Black Iron's Shymanivske Project Awarded Mining Allotment From Ukraine Government

TORONTO, ONTARIO--(Marketwired - Aug. 12, 2014) -

• KEY MILESTONE IN PERMITTING PROCESS ACHIEVED

• SHYMANIVSKE PROJECT IS NOW OFFICIALLY RECOGNIZED BY BOTH THE CENTRAL GOVERNMENT OF UKRAINE AND THE LOCAL GOVERNMENT OF KRYVYI RIH

• PERMITTING APPROVAL AT THIS TIME HIGHLIGHTS THE PROJECT'S ABILITY TO CONTINUE TO DEVELOP DURING CHALLENGING TIMES IN UKRAINE

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to report that its subsidiary Shymanivske Steel LLC has been awarded a Mining Allotment Certificate (the "Mining Allotment") from the Central Government of Ukraine in respect of the Shymanivske Iron Ore Project in Kryvyi Rih, Ukraine (the "Project"). The Mining Allotment is a major permitting milestone leading to obtaining construction approval for the Project. (A complete description of the permitting process is available in the Black Iron corporate presentation available on the Company's website at www.blackiron.com.) Receipt of the Mining Allotment signifies that local and central governments now recognize that the Project will be built. The award of a Mining Allotment also includes approval of the pit shell configuration on the mapped ground surface plan. This will allow for the Project to be included in all future official city plans and development initiatives, including for such items as infrastructure connections.

"We're excited that the Shymanivske Project has been recognized by the Central Government and the local Kryvyi Rih City Council," stated Matt Simpson, President and CEO of Black Iron. "This was an important step in our permitting and demonstrates that the central and local governments are continuing to function well under the new President and that it remains business as usual for most of Ukraine despite the unrest in the East. With the award of the Mining Allotment we can now focus on future milestones including the next phase of permitting, the Overall Project Land Allotment, and the execution of our financing plan, including a cornerstone off-take agreement."