1. Low Price for Huge Upside Opportunity – Black Iron’s project represents a potential US$1.7 billion asset that currently trades at a market capitalization of only ~US$11 million (~CAD$15 million)
2. Top Ranked Project – two of the world’s most respected commodity analysis companies rank Black Iron as the lowest cost undeveloped iron ore project globally
3. Premium Product in Supply Deficit – the 68% iron content product planned to be produced ranks in the top 4% globally, results in more environmentally friendly steel production and is predicted to be in supply deficit by market intelligence firm CRU
4. Iron Ore Price Rally – iron ore prices are up 30% over the last year outpacing even gold’s rally
5. Exceptional Infrastructure – very close proximity of railway, power, ports and skilled labour allows for a low-cost phased build
6. Quality Leadership – Black Iron’s board and management are former top executives at mining powerhouses Rio Tinto, Cliffs, and Consolidated Thompson
7. Strong Government Support – Ukraine’s newly elected President Zelensky has publicly stated his support of Black Iron’s project development
8. On the Verge of Rerating – several major milestones are planned to be delivered in the coming months as the project advanced towards construction. In particular, there are currently multiple steel mills, commodity trading companies and European banks conducting due diligence for investment in project construction.

Industrial growth is built on steel, and steel comes from iron ore, which makes it essential to our way of life. Over two billion tonnes of iron ore are mined every year with a value in excess of US$160 billion to produce items people touch everyday ranging from forks and chairs all the way through to cars, bridges and skyscrapers.

The market for iron ore is strong with commodity sales price up roughly 30% over the last year. Big mining companies focused on iron ore have seen a rally of investor support because of their high earnings and large dividends whereas the share price of most juniors is just starting to move presenting a big opportunity for investors.

Price increases are being supported by fundamentals with demand driven by global economic growth and limited supply caused by a tailings dam failure at a large Brazilian iron ore mine in January 2019 resulting in several other mines with similar tailings designs being shut down and cyclones in Australia which are the top two iron ore mining countries globally.

This is why investors should take a hard look at Black Iron Inc. (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) which is developing its Shymanivske iron ore project ranked by highly respected commodity analysis groups CRU and Wood MacKenzie as having the highest economic return and lowest cost undeveloped iron ore project globally.

Black Iron Inc. (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) is advancing its 100% owned Shymanivske iron ore project located in Ukraine to production that has several things going for it:

1. Exceptional infrastructure access allows for lower upfront cost phased construction along with the very high 68% iron content purity of its final product is where Black Iron really differentials itself
   Phase 1 – plan to produce 4 million tonnes per year generates US$388 million of revenue
   Phase 2 – expansion to 8 million tonnes per year doubles revenue to US$776 million
2. Company signed a Memorandum of Understanding with Glencore, US$87 billion company, to invest in project construction in exchange for purchasing product
3. Project located in an established mining region surrounded by five operating iron ore mines owned by majors including ArcelorMittal, Metinvest and Evraz
4. Project previously on the brink of being constructed having raised majority of the funds required from Metinvest (major iron ore and steel producer with US$12 billion per year in revenue) prior to war breaking out in Eastern Ukraine 450 kilometers (280 miles) from site causing major shareholders to sell out depressing the share price to its current level
5. Situation now stable with front line not materially moving in over 5 years resulting in multibillion-dollar international companies such as ArcelorMittal announcing $1.8 billion iron investment and Brookfield Asset Management announcing $170 million investment
6. Ukraine recently elected a new pro-European reform government that is currently making major reforms to substantially increase foreign investment and new the President publicly stated his support for Black Iron’s Shymanivske project to be developed as a priority
7. World Bank’s annual ease of doing business index ranks Ukraine 64 out of 190 countries in 2020 which is a substantial improvement over the last ten years
8. Highly experienced team that formerly held senior roles in iron ore-based companies including RioTinto, Cliff’s and Consolidated Thompson

For large production rate mining projects, to cost effectively mine and process the ore, you need ready access to railway and a deep seaport to move the product to markets, a secure power source and a reliable skilled labor force. Being able to access all these at low cost makes or breaks the project!

1. Black Iron’s project has confirmed access to major infrastructure including:State-owned rail line with surplus capacity only 2km (1mile) from site
2. Railway connects to five ports on the Black Sea located only 230 to 430kms (140 to 270 miles) away for export of iron ore to steel mills located close by in Europe, Middle East and Asia
3. Surplus of low-cost electricity readily accessible from high voltage power lines 30km (20miles) from site
4. Paved roads to site connect with the city of Kryvyi Rih (population 750,000) which is only 8km (6miles) away and has a highly skilled relatively low-cost work force

Highlights From The Recent Independent Preliminary Economic Assessment*

As seen in the table below, Black Iron Inc. (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) has a conservative Net Present Value of US$1.7 billion using a conservative long term iron ore price of US$62 per tonne but is currently trading at a market capitalization of only ~US$11 million (~CAD$15 million) presenting major upside potential in the share price for investors on a company that has completed several economic and technical studies to bring it to the brink of starting construction. When current actual higher benchmark iron ore prices are used the return on investment is even greater than predicted in the preliminary economic assessment as shown below.

Path to Production

The company’s management team has already shown these projected economics to large steel mills and global trading houses resulting in the signing of a memorandum of understanding with Glencore, one of the world’s largest trading companies with US$87 billion market capitalization, for offtake in exchange for significant construction investment. Discussions are also currently ongoing with several mainly European based banks and exports credit agencies to secure construction funding, some of which have a mandate to help Ukraine with its transition towards European values and integration.

From a sequence standpoint, discussions are being held simultaneously with equity and debt investors as both are ultimately required to fund construction. It is likely the anchor equity and offtake investor will be announced first followed by completion of an updated feasibility study and environmental impact assessment upon which the debt financing can be secured to allow for construction start around the end of 2020.

Tormont 50 recently initiated coverage of Black Iron. The report was authored by Jim McFadden who worked as an analyst with Bear Stearns and Goldman Sachs prior to heading JP Morgan’s North American equity proprietary trading desk. In the report, Jim states: “BKI’s (Black Iron) current EV (enterprise value) of US$9 million seems far too low given the economic opportunities described… given BKI’s tremendous economic opportunities, the company should currently trade at perhaps a US$100 million enterprise value, implying a present fair share price of about C$0.75 per share or US$0.55-US$0.60 per share. Furthermore, as Shymanivske construction gets closer, we think the market will start putting perhaps a 1x multiple on the company’s projected annual EBIDTA of around US$385 million." A copy of this report can be found on Black Iron’s website (https://blackiron.com/wp-content/uploads/2019/05/201905-Tormont50-initiation-on-BKI.pdf).

The technical and scientific contents of this note 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.

* Full 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 (the “PEA”), under the Company’s profile on SEDAR at www.sedar.com.

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.

This document contains forward-looking information. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed in the section entitled ‘‘Risk Factors’’ in the Company’s annual information form for the year ended December 31, 2018 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 is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.