A Compelling Iron Ore Investment

OpportunityCorporate Presentation

September 2012TSX: BKI

TSX: BKI

2

DisclaimerForward Looking Statement

This Presentation contains ‘‘forward-looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, the ‘‘Company’’) and its mineral projects; the future prices of metals; the anticipated results of exploration activities; the estimation of mineral resources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Company’s mineral properties; timing of future exploration; requirements for additional capital; government regulation of mining operations; anticipated results of economic and technical studies; environmental matters; reclamation expenses; title disputes or claims; limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-looking information can be identified by the use of words and phrases such as ‘‘plans’’, ‘‘expects’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘believes’’ or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved.

Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and is based on information currently available to management and upon what management believes to be reasonable assumptions, including, among others, that general business, economic, competitive, political and social uncertainties remain favorable; that actual results of exploration activities justify further studies and development of the Company’s mineral projects; that the future prices of metals, and iron ore in particular, remain at levels that justify the exploration and future development and operation of the Company’s mineral projects; that ore body quality and characteristics remain as anticipated; that there is no failure of plant, equipment or processes to operate as anticipated; that accidents, labour disputes and other risks of the mining industry do not occur; that the jurisdictions in which the Company operates remain politically stable; that there are no unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or construction activities; that the actual costs of exploration, and studies remain within budgeted amounts; that regulatory and legal requirements required for exploration or development activities do not change in any adverse manner, as well as those factors discussed in the section entitled ‘‘Risk Factors’’ in this Final Prospectus of the Company dated March 16, 2011 or as may be identified in the Company’s public disclosure from time to time, as filed under the Company’s profile on SEDAR at www.sedar.com.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause such actions, events or results to differ from those anticipated, estimated or intended. Any inaccuracy in the assumptions identified above may also cause actual actions, events or results to differ materially from those described in the forward-looking information.

Forward-looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information.

This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or future.

TSX: BKI

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What Sets Black Iron Apart? Access to Skilled Labour & Infrastructure – Two of the Most Challenging Iron Ore Project Development Risks

Key Development Risks

Taxes/Royalties

Human Resources

Access to InfrastructureCommunity Opposition

Licensing/Permitting

Access to Water

Electricity Supply

Canada

Brazil

Africa

Australia

Ukraine

3

TSX: BKI

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5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity

Project located in Kryviy Rih, Ukraine; one of the world’s major iron ore districts• Close to target markets: W.Europe, Turkey, Russia, Asia and Middle

East• Surrounded by 7 other operating iron ore mines

Close to Target Markets

Close to Target Markets

Large iron ore deposit with NI 43-101 compliant resource*• Two properties held – Shymanivske & Zelenivske• Shymanivske - 373 Mt Measured & Indicated resource @ 31.4%

iron; additional 480 Mt of Inferred resource @ 30.2% iron, which will be concentrated to ~65% iron

• Potential for resource expansion by further drilling of both deposits

SizableResourceSizable

Resource

Good access to skilled labour, power, rail & ports• 35km from city of Kryviy Rih (pop. 750k); paved road to site• 2 km from state-owned rail and power lines with surplus capacity &

five deep water ports accessible by rail (140-515km)

ExceptionalInfrastructureExceptional

Infrastructure

Experienced management team with history of creating value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo

SkilledManagement

SkilledManagement

High margins due to close proximity to multiple steel mills, relative labour cost advantage and favourable corporate tax rate of 16%• PEA for 7.3Mt Pellet Plant Feed – NPV of US$3.0 billion and 42.1%

IRR• PEA for 7.6Mt Pellet – NPV of US$4.1 billion and IRR of 35.2%

Compelling EconomicsCompelling Economics

* Resource estimate compiled using historic Soviet data by Hugues de Corta, who is an independent qualified person as defined by NI 43-101

TSX: BKI

2005 Today

5

Project Backed by Forbes & ManhattanSuccess with Consolidated Thompson’s Bloom Lake Iron Mine

• World class 8Mtpa iron ore concentrate mine in Quebec

• Advanced from exploration stage through development to construction − 8 mtpa capacity (66% Fe

concentrate) expanding to 16 mtpa

− Completed scoping study, 3 feasibility studies, secured off-take with China’s third largest steel producer (WISCO)

• Raised over Cdn$1 bn in capital

• Attracted and put in place a qualified management team

Recently acquired for $4.9 billion

$1 mm market

cap

First F&M involvemen

t

Forb

es

& M

anhatt

an

Involv

em

ent

TSX: BKI

Board of DirectorsKey Management

Matt Simpson – President & CEO• Former General Manager, Mining for Rio

Tinto’s Iron Ore Company of Canada

• Worked for Hatch designing global metallurgical refineries

George Mover – COO• Former Project General Director of

Ferrexpo Yeristovo Mining, Ukraine

Paul Bozoki – CFO• Former CFO of CD Capital Partners,

operating in Soviet Union & Ukraine

Igor Buchatskiy – VP Strategy• Former GM, International Business

Development, ArcelorMittal S.A.

Aaron Wolfe – VP Corp Development• Former investment banker with Macquarie

Bruce Humphrey – Chairman• Former Chairman of Consolidated Thompson Iron

Mines

Jaroslav Kinach• Former Advisor to Ukraine Prime Minister and

former Ukraine Country Head of EBRD

Chris Westdal• Canadian Ambassador to Ukraine (1996-98) and

to Russia (2003-06)

Pierre Pettigrew• Distinguished career as a Canadian Federal

Cabinet Minister

John Detmold• Chairman & Founder of Invescture Group, S.A.

de C.V.

Dave Porter• Former VP for Rio Tinto’s Iron Ore Company of

Canada

Matt Simpson – President & CEO of Black Iron

6

A Track Record of Iron Ore Successwith Consolidated Thompson Iron Mines, Rio Tinto’s Iron Ore Companyof Canada, and Ferrexpo

TSX: BKI

Sound Capital StructureAttractive Valuation with substantial upside

7

• IPO’d on the TSX on March 29, 2011 ($1.40)

Historical Share PriceCapital Structure

Shares Outstanding 140.1 million  

Warrants (1) 1.7 million  

Stock Options (2) 8.2 million

Share Comp Plan (3) 1.5 million  

Fully Diluted Shares 151.5 million

Market Cap(4) ~US$40 million

Current Cash Balance ~US$17.0 million

Debt Balance nil

1. 1,653,312 warrants exercisable at $1.40 per share (IPO financing). 2. 5,700,000 options exercisable at $1.40 per share and 2,530,000 options

exercisable at $0.54.3. 1,500,000 shares reserved for Directors, Executives, Employees and

Consultants.4. As at August 31, 2012, using a closing price of CAD 0.285 per share.

Analyst Coverage

Maxim Sytchev

Cliff Hale-Sanders

John Hughes

Daniel Greenspan

Robin Kozar

Craig Miller

Philip Ker

David Talbot

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Ivan Dzvinka

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Deposits In Mining Friendly RegionAdjacent to existing Iron Ore Producers

• Two mining and exploration permits covering 5.92 km2 − Mining permit at Shymanivske,

which has been extensively explored, covering 2.56 km2 valid until 2024

− Exploration permit at Zelenivske covering 3.36 km2 valid until 2014

• Adjacent to ArcelorMittal’s Kryviy Rih iron ore complex and Smart & Evraz’s YuGOK iron ore mine

• Plan to acquire a plot of land from Ukraine Government adjacent to the Shymanivske deposit for project waste dumps, concentrator and tailings

Black Iron’s Shymanivske

ProjectM&I: 373Mt @ 31.4%

Inferred: 480Mt @ 30.2%

Black Iron’s Zelenivske

Project

ArcelorMittal’s Kryviy Rih Iron Ore Complex

Smart & Evraz’s YuGOK Iron Ore Mine

Railway lines

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Large Ore Deposit with Growth Potential

• Banded iron formation consisting primarily of magnetite with some hematite− Iron band thickness ranges from 40-80 m

− Only 9.7-21.2 m of overburden

− Very clean ore body low in phosphorus, manganese and aluminum

• The resource is defined by ~37,000 metres of historical drilling― Black Iron recently completed 6,042

meters of twin hole drilling

― Total iron grade and band width align very well with historical data

• Potential for total combined resource expansion of 1.1 to 1.8BT− Additional drilling of Shymanivske at

North end of deposit and to depth

− Exploration of the Zelenivske project

Shymanivske

Resource*

Tonnage

(Mt)

Fe Tot(%)

Fe Mag

(%)

Measured 306.3 31.3 18.9

Indicated 66.4 31.9 20.3

Total Measured and Indicated

372.7 31.4 19.1

Inferred 480.3 30.2 17.4

1.9 km

0.4 km

* Resource estimate compiled using historic Soviet data by Hugues de Corta, who is an independent qualified person as defined by NI 43-101

Tonnage and grade rounded to first decimals. Cut-off grade of 15% Fe Tot

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Potential Resource Extension at ShymanivskeGround Gravity Shows Iron Ore Mineralization at North End

• Ground gravity and magnetic surveys show potential extension of iron ore mineralization at North end of property as circled in red• This area has not been included in the

NI 43-101 resource as it has not yet been sufficiently drilled

• The identified area will be a target of a future drill program

Potential resource upside to be

drilled

Drill hole

Propertyboundary

Very likelyIron in ground

Likely just dirt in ground

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Extensive Pit Shell Design Work CompletedSignificant Portion of the Resource Falls within the Economic Pit Shell

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Conventional Flowsheet (simplified)Producing High Quality Iron Ore Products

Drill Blast Load & Haul Crush

HPGRBall Mill (x2)Vertical Mill Magnetic Separator

Sulphur Floatation Pellet PlantFe 67.0%SiO2 4.5%

P 0.05%S 0.05%Al2O

3

0.31%

Mn 0.15%P80 44 µm

Concentrate

Fe 65.0%SiO2 4.13%

P 0.025%

S 0.01%Mn 0.15%

Pellets(optional)

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Feasibility Study On Track for Q4 CompletionLayouts finalized as shown below

Beneficiation Plant

Rail Loop

Cobbing Building

Secondary Crushing Building

Primary Crusher

Secondary Crushing Building

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Excellent Infrastructure Key to a Successful Iron Ore Project

• Paved roads to site, located 35km away from the major city of Kryviy Rih which has a skilled work force

• Surplus electricity readily accessible from high voltage power lines that run beside property

• ~2 km from main state-owned rail line

• Confirmation in July 2010 from Ukrainian Government that there is sufficient capacity to haul at least an additional 10 million tonnes of iron ore per annum

• 5 deep water ports accessible by rail with iron ore facilities available

• Preferred port option is Yuzhny located ~390 km away and providing access to the Black Sea and global seaborne iron ore markets

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Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access

• Project is surrounded by steel mills in Europe, Turkey and the Middle East

• River barge & rail access to Western Europe

• Five dry bulk tonnage ports accessible using railway running beside properties

• Approx 20% to 25% shorter transport distance to growth markets of India and China compared to North and South American producers

Major Rail Line Major Rail Line Major Rail Line

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Ukraine: A Mining Friendly CountryStrong Local and National Support

• Politically stable Democratic republic

― Following Presidential elections in 2010, country is currently united with a President and Prime Minister from the same Political Party

― S&P Sovereign Risk of B+

• Economy dominated by commodities

― Steel production is Ukraine’s largest industry

― 60% of Ukraine’s total exports are commodity-related (the majority of which is steel)

• Strong economic growth

− Growth driven by US$15.2B IMF stabilization program and strong commodity prices

− GDP growth of 4.2% in 2010; expected to increase to 4.5% in 2011

• Ongoing negotiations to sign the drafted “Association Agreement” with the European Union

• Potential key member of the Russia proposed Eurasian Trade Union

• Large, highly skilled labour force (pop. 45.4 million)

− GDP per capita only $6700/yr

• Mining friendly jurisdiction with strong local and national support

― ArcelorMittal and Ferrexpo plc have operated in-country for over 5 years

• Legislated corporate tax rate reductions from 21% in 2012 to 16% in 2014

• Favourable mining royalties of $0.40 per tonne of ore mined (~2%) to the Government

TSX: BKI

Russia16%

Australia17%

Ukraine10%

Brazil18%

China8%

India5%

Sweden3%

United States3%

Rest of World20%

900

420370

260

100 72 55 49 35 25

0

200

400

600

800

1000

Chin

a

Aust

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Braz

il

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Ukr

aine

Sout

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rica

Uni

ted

Stat

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da

Swed

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Iron

Ore

(m

t)

17

2010E Iron Ore Production

Source: USGS 2011 Iron Ore report and Metal Economics Group

Globally Significant Iron Ore DistrictUkraine: 6th largest iron ore producer & 4th largest reserve base

Global Distribution of Fe Reserves Kirovograd

Tarnavatskoye

LiponevskyYeristovskoye Safonovsko

ye

NovokonstantinovskyPoltavsky GOK

TsentralnyKryviy Rih Iron Ore Complex

Kuksunurskoye

Ingulestky GOK

Yuzhny GOKKryviv Rih

Ordzhonikize GokShymanivske

Zelenivske

• Black Iron’s projects are located in the heart of Ukraine’s iron ore belt

– 35km from city of 750,000 people

• Iron ore district trends 300 km with sedimentary rock hosted banded iron formations (Dnenpovskog complex)

• Historically well explored resource base but substantially under-exploited due to historic Soviet policy

• 15 iron ore mines in Ukraine produced 72 million tonnes in 2010

Only 3% of world production

TSX: BKI

Shymanivske PEA HighlightsHigh Value, Low Net Cost Iron Ore Development Project

18

Production Case: Pellet Plant Feed Pellet 

Annual Production: 7.3 Mt 7.6 Mt  

Iron Content: 67.0% 65.0%

Estimated Capital Investment: US$896.0 million US$1,571.3 million

Estimated Operating Expenses: (life of mine) (avg ex. leasing costs years 8-20)

US$51.21/t US$48.22/t

US$63.00/tUS$60.11/t

 

Net Present Value (8%): US$3.0 billion US$4.1 billion

IRR: 42.1% 35.2%

Annual Average Cash Flow: US$382.8 million US$540.7 million

Projected Payback (8%): 2.2 years 2.9 years

Estimated Mine Life: 28 years 28 years

Proj. Revenue Commencement Q4 2015 Q4 2015OPPORTUNITIES EXIST TO FURTHER IMPROVE ALREADY

FAVOURABLE ECONOMICS

TSX: BKI

Black Iron’s Capital Cost AdvantageShymanivske Relative to Other Iron Ore Projects

19

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(Shim

andou 1

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Ald

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IRC

(K&

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(Z

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ara

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84 87 90 92109109122123124134135141142157159160167180186188189190192200211217221222236

258

CAPEX Forecast(US$/t of capacity)

Source: Company data; Renaissance Capital estimates

Average = 161

TSX: BKI

Black Iron Compares FavourablyBlack Iron to Other Iron Ore Developers

20

Maca

rthur

Centa

uru

s

Iron R

oad

Nort

hla

nd

Bla

ck Iro

n

Ald

ero

n

Bro

ckm

an

Gin

dalb

ie

0.3 0.5 1.1 1.53.0 3.1 3.3 3.4

7.3

Pre-Tax & Royalty NPV8(US$ billions)

Maca

rthur

Centa

uru

s

Iron R

oad

Nort

hla

nd

Bro

ckm

an

Gin

dalb

ie

Ald

ero

n

Bla

ck Iro

n

0.1 0.3 0.6 1.01.8 1.8 2.1 2.5

4.9

Post-Tax & Royalty NPV8(US$ billions)

Disclaimer: Post-tax and royalty graphs are for illustrative purposes only using simple math. These numbers have not been reported, nor are they substantiated by a financial model. 1 Super-Profits tax >A$75 million profit. 2 Includes Brazil mining tax of $4 / tonne of iron ore

Source: Company data; Press Release; Research Estimates

New

Mill

eniu

m

Nort

hla

nd

Gin

dalb

ie

Bro

ckm

an

Ald

ero

n

Bla

ck Iro

n

25.0 32.0 35.0 38.0 40.2 42.1

Pre-Tax & Royalty IRR(%)

New

Mill

eniu

m

Gin

dalb

ie

Bro

ckm

an

Nort

hla

nd

Ald

ero

n

Bla

ck Iro

n

16.9 18.9 20.5 22.7 27.135.4

Post-Tax & Royalty IRR(%)

Tax Regime

Royalties

30%+30%1

39%2

29%

26%

16%

5%

2%

5-8%

n/a

2%

New

Mill

eniu m

New

Mill

eniu m

TSX: BKI

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Black Iron Continues to DeliverShymanivske Project Development Timeline

H1 H2 H1 H22011 2012

Scoping Study/PEA

Definitive Feasibility Study

Permitting

Construction

Drill metallurgical holes

Definition Drilling

Environmental Studies

Detailed Engineering

Production

Future

Exploration Drilling

TSX: BKI

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Permit Process for Shymanivske DepositBlack Iron Remains on Track

ExplorationPermit

Extraction Permit

Land Allotment

Construction Approval

Operations Approval

Deem deposit economical

• Complete Ukraine version of scoping study including evaluation of various mining methods & high level environmental impact

Pit shell reserves &

environmental impact Gov

approval

• Complete field environmental (OVOS) & archeological studies for Gov approval

• Submit pit shell design & mapped ground surface project for Gov. approval

Obtain surface rights for mine,

refinery & tailings

• Land use analysis based on plot plan showing major buildings & agreed connections to utilities, rail and roads (Proekt)

• Approval of the project location

• Approval from all land owners & finalize lease

Start mine overburden removal &

plant construction

• Detailed design approved (Expertisa)

• Obtaining the construction permit

• Commissioning of the facility

• Registration of the ownership to the facility

Explore resource potential

• Conduct geophysical program

• Drill ore body

• State approval of explored deposit

Operate mine & refinery

• Ensure compliance with Ukraine Safety, Environment, Health and Employment laws as check by regular Gov inspections

• Finalize environmental permits

Mining Allotment

Completed

TSX: BKI

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5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity

Project located in Kryviy Rih, Ukraine; one of the world’s major iron ore districts• Close to target markets: W.Europe, Turkey, Russia, Asia and Middle

East• Surrounded by 7 other operating iron ore mines

Close to Target Markets

Close to Target Markets

Large iron ore deposit with NI 43-101 compliant resource*• Two properties held – Shymanivske & Zelenivske• Shymanivske - 373 Mt Measured & Indicated resource @ 31.4%

iron; additional 480 Mt of Inferred resource @ 30.2% iron, which will be concentrated to ~65% iron

• Potential for resource expansion by further drilling of both deposits

SizableResourceSizable

Resource

Good access to skilled labour, power, rail & ports• 35km from city of Kryviy Rih (pop. 750k); paved road to site• 2 km from state-owned rail and power lines with surplus capacity &

five deep water ports accessible by rail (140-515km)

ExceptionalInfrastructureExceptional

Infrastructure

Experienced management team with history of creating value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo

SkilledManagement

SkilledManagement

High margins due to close proximity to multiple steel mills, relative labour cost advantage and favourable corporate tax rate of 16%• PEA for 7.3Mt Pellet Plant Feed – NPV of US$3.0 billion and 42.1%

IRR• PEA for 7.6Mt Pellet – NPV of US$4.1 billion and IRR of 35.2%

Compelling EconomicsCompelling Economics

* Resource estimate compiled using historic Soviet data by Hugues de Corta, who is an independent qualified person as defined by NI 43-101

CONTACT INFORMATION65 Queen Street WestSuite 805, P.O. Box 71Toronto, Ontario, CanadaM5H 2M5

www.blackiron.com

TSX: BKI

Investor Relations

Toronto: +1 (416) 309-2950London: +44 (0) 207 466 5000Ukraine: +380 (67) 619-0454

info@blackiron.com