A Compelling Iron Ore Investment Opportunity

Corporate Presentation

May 2012

TSX: BKI

TSX: BKI

2

Disclaimer Forward 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

3

Solid Fundamentals for 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

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

Sizable 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)

Exceptional Infrastructure

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

Skilled Management

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 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

Sound Capital Structure Attractive Valuation with substantial upside

4

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

Historical Share Price Capital 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$37 million

Current Cash Balance ~US$20.0 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 May 22, 2012, using a closing price of CAD 0.265 per share.

Analyst Coverage

Maxim Sytchev

Cliff Hale-Sanders

John Hughes

Daniel Greenspan

Robin Kozar

Craig Miller

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Philip Ker Ivan Dzvinka

TSX: BKI

2005 Today

5

Project Backed by Forbes & Manhattan Success 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 involvement

Forb

es

& M

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an I

nvolv

em

ent

TSX: BKI

A Track Record of Iron Ore Success

Board of Directors

• Management & Board have a history of creating value for shareholders of iron ore projects – Consolidated Thompson Iron Mines, Rio Tinto’s Iron Ore Company of Canada and Ferrexpo

• Respected Ukraine professionals and former Government Advisors

Key Management

• Matt Simpson – President & CEO

• George Mover – COO

• Paul Bozoki – CFO

• Nikolay Bairak – VP Gov. & Community

• Aaron Wolfe – VP Corp Development

• Christine Gallo – Corporate Secretary

• Bruce Humphrey - Chairman

• Jaroslav Kinach

• Chris Westdal

• Pierre Pettigrew

• John Detmold

• Dave Porter

• Matt Simpson – President & CEO

Ukraine Advisory Board

• Daniel Bilak

• Jaroslav Kinach

• Igor Buchatskiy 6

TSX: BKI

7

Deposits In Mining Friendly Region Adjacent 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 Project

M&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

TSX: BKI

8

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 * 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

TSX: BKI

9

Potential Resource Extension at Shymanivske Ground 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

Property boundary

Very likely Iron in ground

Likely just dirt in ground

TSX: BKI

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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

TSX: BKI

11

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

• River barge & rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets

− Target markets include Asia, Western Europe, Turkey, and Middle East

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

• Approximately 20% to 25% shorter transport distance to China compared to North and South American producers1

• Power, port and rail access, combined with local highly skilled workforce, provide potential to accelerate development and reduce the amount of capital investment

Major Rail Line Major Rail Line Major Rail Line

Europe

Middle East

India

China

South Korea and Japan

Russia

1 Based on approximate nautical miles distances of Odessa (Ukraine), Vitoria (Brazil) and Montreal (Canada) to Tianjin (China) as disclosed at searates.com

TSX: BKI

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Ukraine: A Mining Friendly Country Strong 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

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800

1000

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Aust

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Iron O

re (

mt)

13

2010E Iron Ore Production

Source: USGS 2011 Iron Ore report and Metal Economics Group

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

Global Distribution of Fe Reserves Kirovograd

Tarnavatskoye

Liponevsky

Yeristovskoye

Safonovskoye

Novokonstantinovsky

Poltavsky GOK

Tsentralny Kryviy Rih Iron Ore Complex

Kuksunurskoye

Ingulestky GOK

Yuzhny GOK Kryviv Rih

Ordzhonikize Gok Shymanivske

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 Highlights High Value, Low Net Cost Iron Ore Development Project

14

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/t

US$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 2015

OPPORTUNITIES EXIST TO FURTHER IMPROVE ALREADY FAVOURABLE ECONOMICS

TSX: BKI

Black Iron’s Capital Cost Advantage Shymanivske Relative to Other Iron Ore Projects

15

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84 87 90 92 109 109

122 123 124 134 135 141 142

157 159 160 167 180 186 188 189 190 192 200

211 217 221 222 236

258

CAPEX Forecast (US$/t of capacity)

Source: Company data; Renaissance Capital estimates

Average = 161

TSX: BKI

Black Iron Compares Favourably Black Iron to Other Iron Ore Developers

16

Maca

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Centa

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Pre-Tax & Royalty NPV8

(US$ billions)

Maca

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0.1 0.3 0.6 1.0 1.8 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

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Bro

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25.0 32.0 35.0 38.0 40.2 42.1

Pre-Tax & Royalty IRR

(%)

New

Mill

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Bro

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Nort

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Ald

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Bla

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16.9 18.9 20.5 22.7 27.1

35.4

Post-Tax & Royalty IRR

(%)

Tax Regime

Royalties

30% +30%1

39%2

29%

26%

16%

5%

2%

5-8%

n/a

2%

New

M

illeniu

m

New

M

illeniu

m

TSX: BKI

Company Stage

Price

(US$)

Market

Cap

(US$ mm)

Enterprise

Value

(US$ mm) Total

Total

Grade

Total

R&R

Africa

Sundance Resources DFS Complete $0.40 1,159.1 1,097.0 1,200 42.2% 0.91

Zanaga Iron Ore PFS Complete $1.34 375.7 327.7 1,432 33.0% 0.23

Cape Lambert Resources FS Underway $0.44 284.7 161.0 207 29.2% 0.78

Bellzone Mining DFS Underway $0.35 253.0 78.0 2,542 23.6% 0.03

Australia

Gindalbie Metals Pre-Production $0.44 550.9 229.0 430 34.1% 0.53

Brockman Resources DFS Complete $2.43 352.4 311.8 708 43.4% 0.44

Iron Road PFS Complete $0.44 61.9 45.9 341 16.2% 0.13

Macarthur Minerals PEA Complete $0.55 50.2 12.8 410 30.5% 0.03

Brazil

Centaurus Metals PFS Complete $0.54 72.1 48.5 60 27.9% 0.81

Canada

New Millennium Iron PFS Complete $1.60 282.0 194.1 1,634 30.4% 0.12

Alderon Iron Ore PEA Complete $2.32 196.5 177.4 329 30.2% 0.54

Century Iron Mines PEA Underway $1.70 157.8 57.6 64 24.5% 0.90

Adriana Resources PEA Complete $0.68 101.5 90.6 752 29.1% 0.12

Champion Minerals PEA Complete $1.01 88.9 65.2 484 26.4% 0.13

Sweden

Northland Resources Construction $0.92 207.5 92.1 147 32.1% 0.63

Adjusted Mean (Excludes Highest and Lowest Data Point) 0.42

Mean 0.42

Black Iron DFS Underway $0.27 37.1 17.1 262 30.7% 0.07

Market Data

as at

22-May-12

Fe Contained

Reserve & Resource

(mm t)

EV / Fe

Reserve & Resource

(C$/t)

Public Comparable Companies Iron Ore Exploration/Development

Sources: Bloomberg, Reuters, Macquarie equity research and company disclosure

83% discount

17

TSX: BKI

18

Black Iron Continues to Deliver Shymanivske Project Development Timeline

H1 H2 H1 H2

2011 2012

Scoping Study/PEA

Definitive Feasibility Study

Permitting

Construction

Drill metallurgical holes

Exploration & Definition Drilling

Environmental Studies

Detailed Engineering

Production

Future

TSX: BKI

19

Solid Fundamentals for 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

Large iron ore deposit with NI 43-101 compliant resource*

• Two properties held – Shymanivske & Zelenivske • Shymanivske - 373 Mt Measured & Indicated resource @ 31.3% 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

Sizable 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)

Exceptional Infrastructure

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

Skilled Management

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 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 INFORMATION

65 Queen Street West

Suite 805, P.O. Box 71

Toronto, Ontario, Canada

M5H 2M5

www.blackiron.com

TSX: BKI

Investor Relations

Investor Cubed Inc.

Telephone: +1 (647) 258-3311

Toll-Free: +1 (888) 258-3323

Fax: +1 (416) 363-7977

info@blackiron.com