BKI Black Iron Inc

--  POWER SUPPLY PROTOCOL (LETTER) OF INTENT AGREEMENT EXECUTED TO SECURE
    PROJECTS ELECTRICAL POWER NEED

--  NATURAL GAS CONFIRMATION NOTICE TO SECURE DELIVERY OF BULK NATURAL GAS
    SIGNED



Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is
pleased to announce that Shymanivske Steel LLC, a wholly-owned subsidiary of
Black Iron, has executed a Protocol of Intent Agreement ("PIA") for power supply
and obtained a Confirmation Notice for natural gas supply to the Company's
Shymanivske Project located close to Kryviy Rih, Ukraine.


"We are extremely pleased to have executed the power protocol agreement and
obtained the natural gas confirmation notice, representing two more significant
milestones in the continued development of our Shymanivske Iron Ore Project,"
stated Matt Simpson, President and CEO of Black Iron. "This PIA and Confirmation
Notice provide Black Iron with a confirmed supply of power and natural gas,
which when combined with our previously announced PIA for port facility use,
further de-risks the Shymanivske Project in preparation for construction and
ultimately commercial production."


Power PIA

The PIA for power has been executed with PJSC "DTEK Dneproblenergo" ("DTEK"), a
private company with power production and distribution rights for the region
where Black Iron's projects are located, to guarantee 140 Megawatts of
electricity supply to Black Iron's Shymanivske Project. The power PIA takes
effect immediately and remains in place until a full commercial contract is
signed. The commercial contract is expected to be finalized closer to the
commencement of production. As outlined in the PIA, it is expected the
commercial agreement will require Black Iron assume responsibility for the
construction and assembly of two high voltage power lines from the Gornaya
substation to the Shymanivske Project. The Company will also likely be
responsible for the design and construction of the infrastructure required at
site. The associated costs for this work were anticipated and included in the
Bankable Feasibility Study filed on SEDAR and the Company website on December
18, 2012.


Natural Gas Confirmation Notice

Black Iron has also obtained a Confirmation Notice for supply of natural gas
from the Shiroke Division of Dnipropetrovsk Gas, a public company accountable
for natural gas supply in the Dnipropetrovsk Region of Ukraine. This confirms
natural gas in bulk supply of 900 cubic metres per hour at a pressure of 85
kilopascals from the distribution station located in Zelenaya Balka village to
the Shymanivske Project. It is envisaged that a formal agreement will be signed
and associated construction initiated closer to the commencement of production.
As part of this agreement Black Iron will be responsible for the design and
construction of the gas distribution station, gas odorization, and the gas
pipeline from the gas distribution station to site. The associated costs for
this work were anticipated and included in the Bankable Feasibility Study filed
on SEDAR and the Company website on December 18, 2012.


Black Iron will continue to work together with its local development partner to
complete a PIA for land needs in the near term which will assist to progress the
timeline to production.


About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100
percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project
contains an NI 43-101 compliant resource, with 645.8 Mt Measured and Indicated
mineral resources, consisting of 355.1 Mt Measured mineral resources grading
32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of
290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade
of 10% Magnetic iron. Additionally, the project contains 188.3 Mt of Inferred
mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. 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, will allow for a quick development timeline to
production. 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
info@blackiron.com 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. 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, 2011 (and dated March 26, 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 the execution of a commercial
agreement on terms acceptable to the Company, the effect of this PIA of the
Company and its project, 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".. 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
+1 (416) 309-2950


Black Iron Inc.
Matt Simpson
President & Chief Executive Officer
+1 (416) 309-2138
info@blackiron.com
www.blackiron.com

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