Black Iron Selects Fluor Corporation as the Contractor for Its Shymanivske Project, Ukraine

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) (FRANKFURT:BIN) has
selected Fluor Transworld Services, Inc. ("Fluor"), a subsidiary of Fluor
Corporation, as its main Engineering, Procurement and Construction Management
("EPCM") contractor (the "Contractor") for its Shymanivske Iron Ore Project
located in Kryviy Rih, Ukraine (the "Project") and has released initial work
activities for the Project. Fluor has extensive international experience
spanning all facets of EPCM execution and has a proven track record of
delivering major "pit to port" iron ore projects on budget and schedule.


The selection of Fluor as the Contractor by Black Iron concluded a comprehensive
proposal process that included several qualified groups. Fluor is a world leader
in delivering iron ore projects and was chosen based on a number of criteria
which included: global experience and reputation, technical, project management
and logistics expertise, depth of resources, construction know-how and health,
safety and environmental excellence. In addition, Fluor has extensive experience
operating in the Former Soviet Union and Eastern Europe with existing offices in
Russia and Poland and plans to establish a project office in Ukraine. These
offices will work in conjunction with Fluor's head office located in Greenville,
SC, USA to execute Black Iron's Project using world-class EPCM practices, while
remaining sensitive to Ukraine's cultural features and regulatory standards. 


Matt Simpson, President and CEO of Black Iron, commented "This is an important
milestone for Black Iron as we move from the final project evaluation stage and
prepare to formally commence detailed design and construction of the Shymanivske
Iron Ore Mining Complex. Fluor's comprehensive capacity and broad experience in
all aspects of detailed engineering, procurement and construction management,
coupled with their skills in contract administration, safety, and environmental
best practices, will be invaluable to successfully developing the Project."


About 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 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. 


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