Black Iron Announces AGM Results

TORONTO, June 27, 2018 (GLOBE NEWSWIRE) -- Black Iron Inc. (“Black Iron” or the “Company”) (BKI.TO) reports, in accordance with the policies of the Toronto Stock Exchange, that the nominees listed in the management information circular dated May 29, 2018 were elected as directors of the Company at the Annual and Special Meeting of shareholders of the Company (the “Meeting”) held on June 27, 2018. 

Detailed results of the vote for the election of directors are as follows:

 Votes For% Votes ForVotes Withheld% Votes Withheld

John Detmold 59,257,87099.9527,3330.05

Bruce Humphrey 59,257,87099.9527,3330.05

Pierre Pettigrew 59,247,87099.9437,3330.06

David Porter 59,257,87099.9527,3330.05

Matthew Simpson 59,257,87099.9527,3330.05

Other Matters

Shareholders at the Meeting also approved (i) the appointment of the Company's auditors, (ii) the rolling 10% stock option plan of the Company, (iii) the amended and restated deferred share unit plan which provides non-executive directors with the ability to redeem annual director compensation through the issuance of common shares of the Company, and (iv) an amendment to By-Law No. 2 of the Company amending the quorum requirement at any meeting of the Company’s shareholders from 25% to 5%.  A total of 61,063,659 common shares were voted in connection at the Meeting, representing approximately 38% of the issued and outstanding common shares of the Company.

About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske project located in Kryviy Rih, Ukraine. The Shymanivske project contains a NI 43-101 compliant mineral resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 32.0% total iron and 19.5% magnetic iron, and Indicated mineral resources of 290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the Shymanivske project contains 188 Mt of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron. Full mineral resource details can be found in the NI 43-101 compliant technical report entitled “Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit” effective November 21, 2017 under the Company’s profile on SEDAR at www.sedar.com. The Shymanivske project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. Please visit the Company's website at www.blackiron.com for more information.

The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Matt Simpson, P.Eng, CEO of Black Iron, who is a Qualified Person as defined by NI 43-101. 

For more information, please contact:

Matt Simpson
Chief Executive Officer
Black Iron Inc.
Tel: +1 (416) 309-2138

Black Iron’s Product Versatility Confirmed by Chinese Study

TORONTO, May 09, 2018 (GLOBE NEWSWIRE) -- Black Iron Inc. (“Black Iron” or the “Company”) (BKI.TO) (BKIRF) (BIN.F) is pleased to announce the positive results of a recently completed technical study undertaken to evaluate the suitability of the iron content product expected to be produced from Black Iron’s Shymanivske project located in Kryviy Rih, Ukraine, as a raw material for the production of sinter for iron-making.  This study conducted by the China Iron and Steel Research Institute (“CISRI”), China’s premier iron and steel research institute, concluded that the product expected to be produced from the Shymanivske project is well suited for this use.

Blast furnaces in the Asia Pacific region typically use 70% sinter, 15% lump ores and 15% pellets as iron ore raw materials.  The CISRI study highlighted that the Shymanivske product is of high quality and versatile for use across different applications.  CISRI found that because of its superior chemistry and other favourable sintering characteristics, such product is suitable for combining with coarse iron ore fines as part of an overall sinter feed blend. The Company believes these characteristics will translate to further demand for Shymanivske’s ultra high-quality product. 

Previous technical studies conducted by Black Iron have shown that the iron product it expects to produce can also produce high quality iron ore blast furnace and direct reduction grade pellets.  The CISRI results are significant as they demonstrate the wide range of markets that Black Iron’s product can supply.  Iron ore used as sinter feed accounts for over 60% of global iron ore demand (1.3 Bt in 2016), while iron ore pellets account for about 15% of total global iron ore demand (0.3 Bt in 2016) and growing.

About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske project located in Kryviy Rih, Ukraine. The Shymanivske project contains a NI 43-101 compliant mineral resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 31.6% total iron and 18.8% magnetic iron, and Indicated mineral resources of 290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the Shymanivske project contains 188 Mt of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron. Full mineral resource details can be found in the NI 43-101 compliant technical report entitled “Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit” effective November 21, 2017 under the Company’s profile on SEDAR at www.sedar.com. The Shymanivske project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex.  Please visit the Company's website at www.blackiron.com for more information.

The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Matt Simpson, P.Eng., CEO of Black Iron, who is a Qualified Person as defined by NI 43-101.

Black Iron Files Re-scoped Preliminary Economic Assessment Report for Phased Build Showing Post Tax 36.1% IRR and NPV of US$1.6 Billion

TORONTO, ONTARIO--(Marketwired - Dec 14, 2017) - Black Iron Inc. ("Black Iron" or the "Company") (BKI.TO)(OTC PINK:BKIRF) has filed on SEDAR its National Instrument 43-101 Technical Report entitled "Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit" effective November 21, 2017 (the "re-scoped PEA") for its Shymanivske iron ore project located in Kryvyi Rih, Ukraine (the "Project").

The re-scoped PEA is based on a two-phased build out of the mine and production plant with the first phase operation producing 4MT per year of ultra high-grade 68% iron concentrate expanding to 8MT per year starting in the fifth year of production. By phasing the build, it significantly reduces the up-front construction costs of the Project thus increasing the projected returns of the Project. The Project is able to exhibit superior projected economics due to its proximity to major infrastructure including, railway, electrical power and a deep-sea port.

A long-term iron ore benchmark price of US$61.88/t for products containing 62% iron was used in the re-scoped PEA and adjusted using the three-month average trailing spot iron premium of US$7.21 per 1% Fe above 62% as of November 7, 2017. Based on this pricing, the Project forecasts a pre-tax unlevered IRR of 42.6% and a NPV of US$2,115 million using a 10% discount rate as seen in the table below. The after-tax unlevered IRR using this price and premium is 36.1% and NPV is US1,662 million.

Matt Simpson, Black Iron's CEO, commented: "The long-term price used in the re-scoped PEA is lower than the December month to date average price of US$69.95/t as reported by Metal Bulletin, which as seen in the table below results in significant investor return projections. Further, once debt leverage is added, the projected returns should further increase."

Pre-Tax IRR and NPV at 10% Discount Rate
Sensitivity to Base 62% Fe CFR and %Fe Grade Premium

62% Fe
$/dmt
Fe Premium ($/dmt per 1% Fe)

$4.00$5.00$6.00$7.21$8.00$9.00

$50.00IRR22.2%26.4%30.4%35.2%38.2%41.9%

NPV10%$706M$977M$1,249M$1,577 M$1,792M$2,063M

$61.88IRR30.4%34.3%38.1%42.6%45.5%49.1%

NPV10%$1,243M$1,515M$1,786M$2,115M$2,329M$2,600M

$70.00IRR35.6%39.4%43.1%47.6%50.4%53.9%

NPV10%$1,611M$1,882M$2,153M$2,482M$2,696M$2,967M

$80.00IRR41.9%45.6%49.2%53.5%56.3%59.7%

NPV10%$2,063M$2,334M$2,606M$2,934M$3,148M$3,420M

$90.00IRR48.0%51.8%55.1%59.3%62.0%65.4%

NPV10%$2,515M$2,787M$3,058M$3,386M$3,601M$3,872M

Conditions considered to be extreme (combinations of low and high 62% benchmark price and %Fe grade premium) are highlighted in brown in the above table as they are considered unlikely to occur.

The table below shows the highlights from the re-scoped PEA, which are further elaborated in the detailed technical report filed on www.sedar.com under the Company's profile.

PEA Highlights (all currency is US$)

IRR (pre-tax unlevered)IRR (after-tax unlevered)42.6%
36.1%

NPV at 10% discount (pre-tax unlevered)NPV at 10% discount (after-tax unlevered)$2.12 billion
$1.66 billion

Projected Years to Payback Projected Years to Payback2.6 years
2.9 years

Annual Production Rate: Phase 1 Phase 24 Mt
8 Mt

Capital Cost to build: Phase 1 Phase 2$435.8 million
$312.2 million

Long Term Benchmark Iron Ore Price (62% Fe CFR Port in China)$61.88 /dmt

Final Product Iron Grade68% Fe

Black Iron Projected Sale Price FOB Ukraine Port Yuzhny(Including product quality adjustments and net shipping costs)$97.19/dmt

Life of Mine FOB OPEX (Includes mining, beneficiation, rail, ship loading and G&A costs)$31.46/t

Proposed Initiation of Phase 2 Construction Post Phase 1 StartupYear 3

Estimated Mine Life (based on in-pit resources)20 Years

The re-scoped NI 43-101 PEA Report replaces the Company's 2014 bankable feasibility study ("2014 BFS") as the current technical report for the Project. Significant portions of the PEA remain unchanged from the 2014 BFS, including sections relating to geology, exploration, drilling, sampling and data verification, and the mineral resource estimate. Consistent with practice in the industry, this PEA has been prepared with an engineering accuracy of +/-35%. Please see the Company's press release dated November 21, 2017 for a summary of the assumptions used in the re-scoped PEA.

Re-scoped Preliminary Economic Estimate Study Report

The re-scoped PEA has been prepared in accordance with the guidelines of National Instrument 43-101 by the independent firms BBA Inc. and Watts, Griffis and McOuat Limited (with the individual authors identified below) and is effective as of November 21st, 2017. The results of the re-scoped PEA are based on 100% ownership of the Project by Black Iron.

Qualified Persons

The contents of this press release have been reviewed and approved by Qualified Persons, as follows:

  • Angelo Grandillo, P. Eng. of BBA Inc. QP for Study Supervisor.
  • Jeffrey Cassoff, P.Eng. of BBA Inc. QP for In-Pit Resource estimate and mining engineering.
  • Michael Kociumbas, P.Geo. and Rick Risto, P.Geo., Watts, Griffis and McOuat Limited, QPs for mineral resources estimate and QA/QC and data verification;

These persons are Qualified Persons as defined by NI 43-101, are independent of Black Iron, and have authored the technical report in respect of the re-scoped PEA.

Cautionary Statement

The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.

Black Iron's New Preliminary Economic Assessment Shows Highly Favourable Returns Including 36.1% IRR Post Tax

TORONTO, ONTARIO--(Marketwired - Nov 21, 2017) - Black Iron Inc. ("Black Iron" or the "Company") (BKI.TO) (BIN.F) has received the results from BBA Inc. ("BBA") for a new Preliminary Economic Assessment ("PEA") that incorporates, among other things, a two-phased build out of the mine and production plant along with updated iron ore selling prices and Ukraine's favourable currency exchange rates for its Shymanivske iron ore project in Kryviy Rih, Ukraine (the "Project"). The updated PEA outlines a first phase operation producing 4Mtpa of ultra high-grade, low impurity, 68% Fe concentrate expanding to 8Mtpa starting in the fifth year of production. By phasing the build, it significantly reduces the up-front construction costs while still being highly economic given all high cost major infrastructure including railway, powerline and deep-sea port are located in very close proximity to the deposit. Using this phased build strategy coupled with Ukraine's highly favourable exchange rate of 28 Hryvnia to US$1, results in a projected pre-tax, post royalty, internal rate of return ("IRR") of 42.6%, a payback period of 2.6 years and a US$2.12 billion net present value ("NPV") at a 10% discount rate. The post tax unlevered economics show a compelling 36.1% IRR, 2.9 year payback period and US$1.66 billion NPV at a 10% discount rate.

Matt Simpson, Black Iron's CEO, commented: "The operation outlined in the re-scoped PEA for the Shymanivske Project continues to clearly demonstrate the potential for a high-value, low net cost iron ore development project. Use of ultra high-grade 68% iron content product in the production of steel is a value-added product to customers as it increases blast furnace productivity and reduces specific greenhouse gas emissions. By building the Project in phases, it also allows for a portion of the costs for the second phase expansion to 8Mtpa to be funded using internal cash that is expected to be generated from operations during the first phase which is expected to reduce dilution, maximize shareholder returns and reduce project financing risks. As a result of these improvements, the Project's access to significant existing infrastructure (railway, power lines and port), and the availability of a relatively low-cost, skilled labour pool, the re-scoped PEA continues to project extremely attractive and robust economics."

The primary reason for releasing a new PEA to replace the 2014 feasibility study ("BFS"), is to be able to communicate to investors, in a cost effective and timely manner, that the Project's economics remain very strong, even with the benchmark 62% iron content product selling for US$62/t (CFR Port in China) as compared to the spot plus broker outlook of US$95/t back in 2014. Iron content premiums and penalties relative to the 62% iron content benchmark, have significantly increased over the past year due to greater global concerns on reducing pollution and are currently ranging between US$7 to $8 for each 1% iron unit above or below 62%. At the reference date of November 10th 2017, Black Iron's ultra high-grade 68% product is indicated to receive a total premium of approximately $46.85/dmt over the 62% iron content benchmark price. This premium includes the iron grade premium as well as the net premium for other deleterious elements. The table below summarizes the key highlights of the re-scoped PEA.

PEA Highlights (all currency is US$)

IRR (pre-tax unlevered)
IRR (after-tax unlevered)42.6%
36.1%

NPV at 10% discount (pre-tax unlevered)
NPV at 10% discount (after-tax unlevered)$2.12 billion
$1.66 billion

Projected Years to Payback (at 10% Discount Rate, pre-tax)
Projected Years to Payback (at 10% Discount Rate, after-tax)2.6 years
2.9 years

Nominal Annual Production Rate:Phase 1
Phase 24 Mt
8 Mt

Capital Cost to build:Phase 1
Phase 2$435.8 million
$312.2 million

Long Term Benchmark Iron Ore Price (62% Fe CFR Port in China)$61.88 /dmt

Final Product Iron Grade68% Fe

Black Iron Projected Sale Price FOB Ukraine Port Yuzhny
(Including product quality adjustments and net shipping costs)$97.19/dmt

Life of Mine FOB OPEX
(Includes mining, beneficiation, rail, ship loading and G&A costs)$31.46/t

Estimated Plant Construction Duration:Phase 1
Phase 22.3 years
2.3 years

Proposed Initiation of Phase 2 Construction Post Phase 1 StartupYear 3

Measured and Indicated Resources (at 18.8% Mag Fe, 31.6% Total Fe) 
Inferred Resources (at 18.4% Mag Fe, 30.1% Total Fe)645.8 Mt
188.3 Mt

In-Pit Measured and Indicated Resources (at 19.0% Mag Fe, 31.2% Total Fe)
In-Pit Inferred Resources (at 19.6% Mag Fe, 31.2% Total Fe)480.0 Mt
27.0 Mt

Strip Ratio (life of mine)0.6:1.0

Estimated Mine Life (based on in-pit resources)20 Years

Exchange Rate28UAH:US$1

The re-scoped NI 43-101 PEA will replace the 2014 BFS as the current technical report for the Project. Significant portions of the PEA report remain unchanged from the 2014 BFS, including sections relating to geology, exploration, drilling, sampling and data verification, and the mineral resource estimate.

Ukraine has a corporate tax rate of 18% and an effective mining royalty rate of 8% of net selling price as of the effective date of the PEA. Consistent with practice in the industry, the capital cost estimate in this PEA has been prepared with an intended accuracy of +/-35%.

Details and Assumptions

The PEA assumes a product selling price of US$108.73/dmt of concentrate, CFR China. This price was calculated using the 36-month trailing average price of US$61.88/dmt for the Platts IODEX 62% Fe, CFR North China, adding the three-month trailing average iron grade premium of US$7.21/dmt per 1%Fe above 62% Fe, which equates to $43.28/dmt for Black Iron's 68% Fe product, and applying a trace element premium (for silica, phosphorus and alumina), net of penalties, of $3.57/dmt of concentrate. The realized selling price for a ship loaded at Port Yuzhny (FOB) assumed in the financial analysis is US$97.19/dmt. The final price is determined after applying the current actual shipping cost of US$11.54/dmt to deliver product to North China.

Black Iron Hires Experienced Iron Ore Marketer to Initiate Offtake and Construction Financing Outreach

TORONTO, ONTARIO--(Marketwired - Nov 8, 2017) - Black Iron Inc. ("Black Iron" or the "Company") (BKI.TO) is pleased to announce the hiring of Bill Hart as Senior Vice President Corporate Development. Mr. Hart's main responsibility will be to reach out to his extensive list of relationships with steel mills and trading houses to solicit interest for companies to invest in the construction of Black Iron's Shymanivske iron ore project pursuant to an offtake or constructing financing arrangement.

Mr. Hart has over 30 years of international experience selling iron ore and coal to steel mills and trading houses while working for companies including Rio Tinto, Cliffs Natural Resources and most recently Roy Hill Holdings Ltd. He speaks fluent Japanese and has exceptional relationships across Asia.

On July 19, 2017, Black Iron announced the engagement of BBA to develop a new National Instrument 43-101 compliant Preliminary Economic Assessment ("PEA") for the Shymanivske iron ore project (the "Project"). The revised PEA will be based on a plan to initiate operations with an annual production of 4 million tonnes of high-grade 68% iron ore concentrate followed by an expansion to 8 million tonnes per annum. The results from the PEA are on track to be released later this month followed by the comprehensive report within 45 days of such release.

Black Iron is a Toronto Stock Exchange listed company that went public in 2011, raising approximately $36 million at a price of CAD$1.40 per share. After completing its bankable feasibility study on the Project in 2014, Black Iron entered into funding and strategic arrangements to provide a significant portion of the capital required to move the Project forward towards production. Soon after, due to political unrest in Ukraine and a sharp correction in the price of iron ore, the development of the Project was delayed and funding agreements subsequently dissolved. During the last three years, Black Iron has been working in Ukraine to obtain the land rights for the Project (see press releases dated January 23, 2017 and July 27, 2017). Early in 2017, with a strong recovery in commodity price and little escalation in the Russia/Ukrainian conflict, Black Iron decided to restart the development of the Project with a new revitalized go forward plan.

Matt Simpson, Black Iron CEO, commented: "With the new PEA due out later this month and current factors including a favorable exchange rate and record premiums being realized for high-grade concentrates, the time is right to showcase the merits of the Shymanivske project to a wider audience. I am extremely pleased that Mr. Hart has decided to work with us and assist us in exploring various financing alternatives, and strategic partnerships."

Please visit the recently revised Company website (www.blackiron.com) to sign up for updates on the Project.

Black Iron Provides Update on Go Forward Development Plan

TORONTO, ONTARIO--(Marketwired - Oct 30, 2017) - The following is an update on the activities Black Iron Inc. ("Black Iron" or the "Company") (BKI.TO) is undertaking to increase shareholder value and move our flagship Shymanivske iron ore project (the "Project") forwards towards production. The following is a brief history of the Company:

  • Black Iron completed a successful initial public offering in 2011 raising approximately $36 million at $1.40/share
  • By 2014, Black Iron management completed a Bankable Feasibility Study showing great economics and reached an agreement with Metinvest to finance a sizable portion of the project construction costs
  • Unfortunately, also in 2014, Russia invaded Ukraine and iron ore prices subsequently fell dramatically
  • Black Iron divested Metinvest's position in January 2016 and currently owns 100% of the Project
     

Black Iron decided to put the Project on hold until recently, when for a number of reasons the timing looked right to create a new go forward plan to move the Project towards production. These reasons include:

  • Since November 2016, benchmark 62% iron content prices markedly increased from a low of US$37/T to hit a high of US$95/T in February 2017 and averaged ~US$74/T over the year to date in large part due to increased global steel demand.
  • Also, interestingly, during this period, the iron content premium and corresponding penalty relative to the benchmark price materially increased as seen in the chart below. 
     

To view the chart associated with this release, please visit the following link: http://media3.marketwire.com/docs/1104066.pdf

  • Historically, the premium/penalty per 1% iron above or below 62% iron was charged at US$3 to $4 per percent. This premium/penalty has significantly increased to the current US$7 to $8 per percent due to several factors including:
     
  1. Steel mill profitability - premiums for high grades usually rise when steel mills are profitable as the mills are seeking to increase output by using more productive raw materials.
  2. Metallurgical coal prices - high grade iron ore demand usually goes up when coking prices rise as steel mills try to reduce fuel rates by using better quality ores.
  3. Chinese environmental policy - pollution is a major issue in China forcing steel mills to curb emissions and driving a preference for high quality raw materials to help reduce emissions.
     

Black Iron plans to make an ultra-high grade 68% iron content product that, using today's prices, would sell for US$42 to $48 per tonne more than the benchmark 62% iron content product often quoted in news articles resulting in a current selling price of ~US$105 per tonne.Ukraine direly needs successful examples of foreign direct investment to help kickstart the country's economy and Black Iron's near shovel ready project is ideal to support investment in Ukraine while providing highly favourable returns to shareholders.

The front line of conflict in Ukraine is located ~450km away from the Project site and has not geographically advanced since the invasion occurred over three years ago. During this entire period, the iron ore mines surrounding the Project continued to operate with parents going to work and kids to school as usual. It is Black Iron management's view that it is highly unlikely the front line ever further advances given Russia achieved their main objectives during the initial invasion. Major international companies are also starting to share this view that it is safe to invest again in Ukraine. For example, ArcelorMittal which owns an iron ore mine and steel mill located only 1km north of the Project recently announced their intention to invest US$1.1 billion into their operation over the next few years.

When Black Iron completed its feasibility study in 2014, Ukraine's exchange rate was fixed at 8UAH:US$1. As part of Ukraine's International Monetary Fund bailout provisions, the exchange rate was unpegged to the U.S. dollar and is currently sitting at ~27UAH:US$1. Using this lower exchange rate is expected to significantly reduce Black Iron's construction cost and operating costs for the Project. In July of this year Black Iron announced that it had commissioned a new Preliminary Economic Assessment (PEA) for the Project that will be based on a much more favorable exchange rate and phased development plan starting with 4MTpa production ramping up to 8MTpa using self-generated cash to fund the expansion. The PEA is expected to be completed in mid-fourth quarter of this year and BKI expects it to show extremely favourable economics. In addition to having favourable exchange rates and low highly skilled labour costs, Black Iron benefits from not needing to build any major infrastructure such as railways, power lines or a port as these are all in existence within very close proximity to the ore body allowing us to build the mine in a scalable manner while still achieving favourable economic returns.

As was done back in 2014, Black Iron will also be engaging firms to seek prepaid offtake and/or a joint development partner to significantly reduce the amount of equity that needs to be raised to build the mine. Additionally, we will be initiating discussions with debt finance sources including the European Bank for Reconstruction and Development (EBRD) who have committed to invest US$350M into ArcelorMittal's iron ore mine and steel mill located beside the Shymanivske pit.

Finally, management continues to make good progress with both the city of Kryviy Rih on the Project and also the Ministry of Defense of Ukraine to secure the surface rights necessary for the open pit, processing plant, tailings and waste rock at the Project.

Please visit the Company website (www.blackiron.com) to sign up for updates on the Project.

Black Iron CEO to Participate in a Live Video Interview on August 14, 2017

TORONTO, ONTARIO--(Marketwired - Aug 11, 2017) - Black Iron Inc. ("Black Iron" or the "Company") (BKI.TO) Chief Executive Officer, Matt Simpson, will participate in a live video interview with Proactive Investors on Monday, August 14, 2017.

On July 19, 2017, Black Iron announced the engagement of BBA to develop a new National Instrument 43-101 compliant Preliminary Economic Assessment ("PEA") on its wholly owned Shymanivske iron ore project (the "Project"). As background, Black Iron released a positive bankable feasibility study on the Project in 2014. The study was based on the annual production of 9.9MT of high grade 68% iron content concentrate at an estimated cost of US$45/T, used the long-term broker consensus iron ore price at the time of US$95/T and an exchange rate of eight Ukrainian Hryvnia (UAH) to the U.S. dollar. Today, the exchange rate is approximately 26UAH:US$1 and iron ore with 62% iron content is selling for approximately US$77/T. Using the current exchange rate is expected to materially reduce the projected upfront capital cost since a significant amount of the construction costs including labour, concrete, steel and secondary equipment such as conveyors will be Ukraine based. The lower exchange rate also results in significantly lower operating costs as achieved by existing Ukraine iron ore miners such as Ferrexpo, who has seen its reported full year operating costs decrease from approximately US$46/T in 2014 to US$28/T in 2016.

Black Iron is a TSX listed company that went public in 2011, raising approximately $36 million at a price of CAD$1.40 per share. After completing its bankable feasibility study on the Project in 2014, Black Iron entered into funding and strategic arrangements to provide a significant portion of the capital required to move the Project forward towards production. Soon after, due to political unrest in Ukraine and a sharp correction in the price of iron ore, the development of the Project was delayed and funding agreements subsequently dissolved. During the last three years, Black Iron has been working in Ukraine to obtain the land rights for the Project (see press releases dated January 23, 2017, March 29, 2017, and July 18, 2017). Early in 2017, with a strong recovery in commodity price and little escalation in the Russia/Ukrainian conflict, Black Iron developed a new revitalized go-forward plan for the development of the Project, which included the preparation of the PEA.

In this upcoming live interview, Matt Simpson will discuss the merits of the Project, the political environment inside Ukraine, his outlook for iron ore prices moving forward, and why an investment in Black Iron, at current valuations, is well justified given the potential impressive rates of return.

The interview will take place at 10.00 a.m. (EST). Those interested in learning more about Black Iron as an investment opportunity are encouraged to send in questions for Black Iron's management to stocktube@proactiveinvestors.com.

Please join the broadcast by clicking on the following link at the specified time: https://www.youtube.com/watch?v=oGMkIv2ykDU.