Black Iron Inc. and Metinvest B.V. Finalize Arrangement to Develop Ukrainian Iron Ore Assets

--  DEVELOPMENT ARRANGEMENT AND US$20 MILLION INVESTMENT POTENTIALLY
    POSITIONS METINVEST AS AN INFLUENTIAL SHAREHOLDER OF BLACK IRON'S
    DEVELOPMENT PROJECTS 
    
--  THE ARRANGEMENT WILL COME INTO FORCE AFTER OBTAINING ALL NECESSARY
    PERMITS FROM GOVERNMENT AGENCIES INCLUDING ANTIMONOPOLY 
    
--  ADDITIONAL POTENTIAL INVESTMENT BY METINVEST COULD REACH AS MUCH AS
    US$536 MILLION 
    
--  METINVEST IS A VERTICALLY INTEGRATED STEEL AND MINING GROUP OF
    COMPANIES, WHICH PRODUCED 36.2Mt IRON ORE, 11.6Mt COAL AND 12.5Mt STEEL
    IN 2012 (UKRAINE'S LARGEST COMPANY) 



Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) (FRANKFURT:BIN) is
pleased to announce that Metinvest B.V. ("Metinvest"), Ukraine's largest mining
and steel producer, has executed definitive agreements to form a development
arrangement with Black Iron and to invest in Black Iron (Cyprus) Ltd ("BKI
Cyprus"), which is currently a wholly-owned subsidiary of Black Iron. The
agreements create a defined path for Metinvest to become a prominent shareholder
of Black Iron's development projects, the Shymanivske Project and the Zelenivske
Project (collectively, the "Projects"), each located in Kryvyi Rih, Ukraine.


Provisions of the agreements between Black Iron and Metinvest require Metinvest
to make an initial investment of US$20 million in BKI Cyprus to help fund the
Projects, with potential investment amounts thereafter expected to increase
during construction of the Projects to approximately US$536 million.


Metinvest's investments will be structured as follows:



--  Subject to final regulatory approvals, Metinvest will immediately take
    up an initial private placement of shares in BKI Cyprus, which holds
    100% participatory interest in two Ukrainian companies - Shymanivske
    Steel LLC and Zelenivske Steel LLC, for aggregate gross proceeds of
    US$20 million. This investment will give Metinvest a 49% shareholding of
    BKI Cyprus' share capital. There is no increase in shares outstanding in
    Black Iron Inc. as a result of these agreements. Black Iron remains the
    operator and developer of both Projects. 
    
--  Each of Metinvest and Black Iron will have the option to participate in
    the funding of the development of the Projects based on its
    proportionate interest in BKI Cyprus or be diluted down. Using the
    projected total capital investment requirements as outlined in the
    Company's Bankable Feasibility Study (filed on SEDAR in December 2012)
    of US$1,094 million, and assuming the development capital is 100% equity
    financed, Metinvest's future capital contribution could increase by up
    to US$536 million (being 49% of US$1,094 million) for the development of
    the Shymanivske Project. The agreements contain strict dilution
    provisions designed to create a strong incentive for continued
    participation in any future equity financings for the Projects. 
    
--  In addition to the private placement of BKI Cyprus shares, Metinvest
    will also be granted a non-transferable option to acquire additional
    shares in BKI Cyprus to increase their effective ownership to 51% post
    achieving full run rate production of 9.2 million tonnes per annum
    concentrate for three consecutive months. The option exercise price will
    represent a 30% premium over the fair full net asset value as determined
    by an independent third party, and will expire twelve months after
    vesting. 



Black Iron plans to use all of the proceeds received from the Metinvest
subscription in BKI Cyprus shares to finance the development of its Shymanivske
Project and for general working capital purposes.


Completion of this transaction is subject to receipt of all necessary regulatory
approvals, including the Government of Ukraine's anti-monopoly division.


Metinvest has a proven track record of developing and operating iron ore
projects in Ukraine, which will prove invaluable to Black Iron in the
advancement of its Projects. It will also serve in helping attract future
foreign investment to Ukraine.


Matt Simpson, President and CEO of Black Iron said, "Black Iron selected
Metinvest for its industry-leading experience in iron ore mining and steel
making, as well as its operational history in Ukraine. This agreement greatly
strengthens our development team and I look forward to being closely associated
with Metinvest. Together, we will help bring new world class iron ore
processing, safety and environmental technologies to Ukraine."


Igor Syry, General Director and CEO of Metinvest added, "Metinvest believes that
development of Black Iron's Shymanivske Project will be important for Ukraine
and its economy. It will represent a major investment in Ukraine, resulting in
increased local employment, the improvement of local infrastructure and
environmental level standards in Kryvyi Rih, and become a catalyst for regional
and national social and economic development." 


Black Iron Analyst and Shareholder Conference Call 

Black Iron will host a conference call today at 8:30 a.m., EDT (July 23, 2013)
to discuss the arrangement. To participate in the call please dial the
following:


International: [phone]

Toll Free North America: 1 866 223 7781

To register and listen to the webcast of the call, please go to Black Iron's
website at www.blackiron.com.


Company Profiles

Black Iron

Black Iron is an iron ore exploration and development company, advancing its
Shymanivske project located in Kryviy Rih, Ukraine to production. On November
15, 2012, the Company announced completion of its NI 43-101 compliant bankable
feasibility study ("BFS") on the Shymanivske Project. The BFS outlines an
operation producing 9.2 million tonnes per year of high-grade 68% iron ore
concentrate, projecting a 45.9% internal rate of return ("IRR"), US$3.5 billion
net present value ("NPV") at an 8% discount rate and 2.2 year payback for a
capital investment of US$1.1 billion. The project is surrounded by five other
operating mines, including ArcelorMittal's iron ore complex. The Company
believes that existing infrastructure, including access to power, rail and port
facilities, coupled with locally available skilled labour will allow for a
relatively quick and low cost development timeline to production. 


This project contains an NI 43-101 compliant resource, with 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 291 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a
cut-off grade of 10% Magnetic iron. Additionally, the project contains 188 Mt of
Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic iron.
Further, the Company holds an exploration permit for the adjacent Zelenivske
project, which it intends to further explore to determine its potential. 


Please visit the Company's website at www.blackiron.com, follow us on Facebook:
BlackIronInc or Twitter: @BlackIronBKI or write us at [e-mail] for
more information.


Metinvest Group

Metinvest Group is a vertically integrated steel and mining group of companies,
managing every link of the value chain, from mining and processing iron ore and
coal to making and selling semi-finished and finished steel products. The Group
comprises steel and mining production facilities located in Ukraine, Europe and
the USA and has a sales network covering all key markets. Metinvest's Strategic
Vision: Metinvest strives to become the leading integrated steel maker in Europe
demonstrating sustainable growth and profitability independently from the phases
of economic cycle and providing the return on investment above the average
industry levels. Metinvest Group is structured into two operating divisions:
Metallurgical Division and Mining Division. Metinvest is made up of more than
100,000 employees globally and in 2012 produced 36.2 million tonnes of iron ore,
11.6 million tonnes of coal and 12.5 million tonnes of steel.


The major shareholder of Metinvest Group is Metinvest B.V., a holding company
owned by System Capital Management Group (71.25%) and Smart-Holding (23.75%).


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, President and CEO of Black Iron Inc., who is a Qualified Person as
defined by NI 43-101. For further information, please see the technical report
of the Company, which is available on SEDAR at www.sedar.com.


Forward-Looking Information

This press release contains forward-looking information within the meaning set
out in Canadian securities laws. 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, 2012 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 may include, but is not limited to, statements with respect to
results of the feasibility study dated December 17, 2012 (the "Feasibility
Study", as filed under the Company's profile on SEDAR at www.sedar.com) and the
mineral reserve and resource estimate, the future financial or operating
performance of the Company, its subsidiaries and its projects, the development
of and the anticipated timing with respect to the Shymanivske project, the
ability to obtain financing; and the impact of concerns relating to permitting,
regulation, governmental and local community relations. Generally, forward
looking information can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or 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". 


Estimates underlying the results of the Feasibility Study arise from
engineering, geological and costing work of WorleyParsons Canada Services Ltd.
("WorleyParsons"), Watts, Griffis and McOuat Limited ("WGM"), Consulting
Geologists and Engineers of Toronto, P&E Mining Consultants Inc. ("P&E") and the
Company. See the technical report relating to the Feasibility Study for a
description of all relevant estimates, assumptions and parameters.
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, including but not
limited to: general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities; other risks
of the mining industry and the risks described in the annual information form of
the Company. Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking information. The
Company does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Black Iron Inc.
Michael McAllister
Manager, Investor Relations
[phone]
[e-mail]


Black Iron Inc.
Matt Simpson
President & CEO
[phone]
www.blackiron.com


Metinvest Holdings LLC
Alexey Komlyk
Head of media and marketing communications
[phone]
[e-mail]