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A Compelling Iron Ore Investment Opportunity
Corporate Presentation
2017
TSX: BKI
TSX: BKI
DisclaimerForward Looking Statement
This Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation. 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, 2013 (and dated March 14, 2013) 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 (as defined below) 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 on commercially reasonable terms; and the impact of concerns relating to permitting, regulation, governmental and local community relations, including the
results of upcoming Presidential elections and Western and Russian responses to the results of said elections. 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 “completion of the transaction with Metinvest” 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
Lycopodium Minerals Canada Ltd. (“Lycopodium”), Soutex Inc. (“Soutex”), 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.
This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to
make such an offering or solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and
nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or future.
The technical information contained herein is derived from or a summary of the NI 43-101 Compliant Technical Report entitled “Feasibility Study of the Shymanivske Iron
Ore Deposit for Black Iron Inc”, dated January 24, 2014 (Prepared by Lycopodium Minerals Canada Ltd. the “Feasibility Study”) – For additional information, please see the
Feasibility Study filed on www.sedar.com dated January 24, 2014.
*The mineral resource estimate for the Shymanivske Project is based on results from 185 historical drill holes totaling 37,316 meters and 60 Black Iron drill holes, which were
drilled during the Company’s Twin Hole drill program and the Definition Drill program, totaling 16,518 meters and is effective as of September 2012. Watts, Griffis and McOuat
Limted (“WGM”), Consulting Geologists and Engineers of Toronto, Canada, was retained to audit an in-house mineral resource estimate completed by Black Iron. Mr. Michael
Kociumbas, P.Geo, Vice-President of WGM and Mr. Richard Risto, P.Geo, Senior Geological Associate of WGM, were retained by Black Iron as independent technical consultants
and are Qualified Persons as defined by NI 43-101 and are responsible for reviewing and approving this mineral resource estimate. The Feasibility Study was prepared in
accordance with the guidelines of National Instrument 43-101 by the independent firms of Lycopodium Minerals Canada Ltd.; Soutex Mineral & Metallurgical Consultants; Watts,
Griffis and McOuat Limited; and P&E Mining Consultants Inc..
*Matt Simpson, President & CEO of Black Iron, a Qualified Person as defined by NI-43-101, has reviewed and approved the scientific and technical information in this presentation. 2
TSX: BKI
What Sets Black Iron Apart? Access to Skilled Labour & Existing Infrastructure –
Two of the Most Challenging Iron Ore Project Development Risks
Key Development Risks
Taxes/Royalties
Human Resources
Access to Infrastructure
Community Opposition
Licensing/Permitting
Access to Water
Electricity Supply
Canada
Brazil
Africa
Australia
Ukraine
3
TSX: BKI
* Please see note on Page 2
Black Iron has ALL the Key Fundamentals for
a Successful Low Cost Project in Place
ExceptionalInfrastructure
• Significant infrastructure
advantages (power, rail
and port) with confirmed
access and capacity
• Skilled local workforce
• Local partnerships
CompellingEconomics
• Bankable Feasibility Study
(Shymanivske Project):
- 9.9Mtpa of 68% Fe Conc.
- Post-tax NPV8 of US$2.6B
- Post-tax IRR of 39%
• Break even price of $54/t (after-tax)
SizeableResource
• Large NI 43-101 Compliant
Resource* at Flagship
Shymanivske
- 646Mt (M+I) @ 32% Fe
- 188Mt (Inf) @ 30% Fe
- Significant resource
potential upside
SkilledLeadership
• History of creating value
for shareholders
• Significant Ukrainian
political and iron ore
operations experience
Close to Target Markets
• Located in Kryvyi Rih,
Ukraine a major iron ore
district, close to Europe,
Turkey, Russia, Asia and
Middle East
4
TSX: BKI
Board of DirectorsKey Management
Matt Simpson – President & CEO
• Former General Manager, Mining for Rio Tinto’s Iron Ore Company of Canada
• Worked for Hatch designing global metallurgical refineries
Les Kwasik – COO
• Over 40 years of hands-on experience building and operating mines globally with companies such as with INCO (VALE), Xstrata Columbia delivering disciplined operational successes in the mining industry
Paul Bozoki – CFO
• Former CFO of CD Capital Partners, operating in Soviet Union & Ukraine
Nikolay Bayrak – VP Gov’t & Community Relations
• Former department head, Ukrainian Ministry of Emergencies and Public Protection; Former MP
Bruce Humphrey – Chairman
• Former Chief Operating Officer of Goldcorp
Pierre Pettigrew
• Former Canadian Minister for Foreign Affairs and international Trade
John Detmold
• Chairman & Founder of Invecture Group, S.A. de C.V. which owns Frontera Copper Corporation
Dave Porter
• Former VP for Rio Tinto’s Iron Ore Company of Canada and COO of Algoma Steel
Matt Simpson – President & CEO
A Track Record of Iron Ore Success
5
TSX: BKI
Sound Capital StructureAttractive Valuation with Substantial Upside & Funding Support
Capital Structure (TSX: BKI)
Shares Outstanding 159.7 million
Stock Options 9.5 million
Warrants 17.7 million
Fully Diluted Shares 186.9 million
Market Cap1 ~$7.4 million
Analyst Coverage
1 As of January 24, 2017
TSX: BKI
Deposits In Mining Friendly RegionAdjacent to existing Iron Ore Producers
• Mining permit at Shymanivske, which has been extensively explored, covering 2.56 km2 valid until 2024
• Adjacent to ArcelorMittal’s Kryvyi Rih iron ore complex and Metinvest & Evraz’s YuGOK iron ore mine
• Plan to acquire a plot of land from Ukraine Government adjacent to the Shymanivske deposit for project waste dumps, concentrator and tailings
Black Iron’s Shymanivske
Project*M&I: 646Mt @ 31.6%
Inferred: 188Mt @ 30.1%
ZelenivskeOre Body
ArcelorMittal’s Kryvyi RihIron Ore Complex
Metinvest & Evraz’sYuGOK Iron Ore Mine
Railway lines
**See Black Iron’s website at www.blackiron.com for
a Corporate Video highlighting the project location
and infrastructure ***Please see notes on page 2-Resources are not Reserves and do not have economic viability-Full details of the mineral reserve estimate can be found in the press release dated Jan 9, 2014 -Notes to the mineral reserves can be found on page 26
7
TSX: BKI
Large Ore Deposit with Growth Potential
• Banded iron formation consisting primarily of magnetite with some hematite
− Iron band thickness ranges from 40-80 m
− Only 9.7-21.2 m of overburden with a strip ratio of 1.63:1, life of mine; 1.36:1 for first 8 years
− Very clean ore body low in phosphorus, manganese and aluminum
• Resource defined by ~54,000 metres of drilling
― Black Iron completed a Twin Hole Drill Program consisting of 6,042 metres and a Phase II Drill Program consisting of 11,435 metres of infill drilling
― Total iron grade and band width align very well with 37,000 metres of historical drilled data
• Potential for resource expansion
− Additional drilling of Shymanivske at North end of deposit and to depth
− Exploration of the Zelenivske project
ShymanivskeTonnage
(Mt)
Fe Tot
(%)
Fe Mag
(%)
Proven 312.9 31.1 19.5
Probable 136.1 31.1 18.9
Total Reserves* 449.0 31.1 19.3
Measured
(incl. Proven)355.1 32.0 19.5
Indicated
(incl. Probable)290.7 31.1 17.9
Total Resources* 645.8 31.6 18.8
Inferred 188.3 30.1 18.4
Tonnage and grade rounded to first decimals. Cut-off grade of 10% Fe Mag
*Mineral Resources include Mineral Reserves. Please see notes on page 2-Resources are not Reserves and do not have economic viability-Full details of the mineral reserve estimate can be found in the press release dated Jan 9, 2014 -Notes to the mineral reserves can be found on page 27-The company has applied for an extension to the Zelenivske exploration permit that was to expire on Nov 1, 2014. The Company awaits a response from the Ministry of Ecology and Natural Resources 8
TSX: BKI
Potential Resource Extension at ShymanivskeGround Gravity Shows Iron Ore Mineralization at North End
• Ground gravity and magnetic surveys show potential extension of iron ore mineralization at North end of property as circled in red
• This area has not been included in the NI 43-101 resource as it has not yet been sufficiently drilled
• The identified area will be a target of a future drill program to allow for a second phase process plant expansion to increase production and project value
Potential resource upside to be drilled
Drill hole
Propertyboundary
Very likelyIron in ground
Likely just dirt in ground
9
TSX: BKI
Extensive Pit Shell Design and 3D Model
Completed (Property Overview)
10* Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd.
TSX: BKI
Concentrator Footprint Compressed by
Staggering HPGRs and Stacking LIMS
11* Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd.
TSX: BKI
12
Conventional FlowsheetProducing High Quality Iron Ore Products
Fe 68.0%
SiO2 4.5%
P 0.02%
S 0.05%
Al2O3 0.43%
Mn 0.03%
P80 32 µm
B.F. Concentrate
Fe 65.5%
SiO2 4.5%
S <0.01%
CaO/SiO2 0.15%
SiO2+Al2 O3 5.1%
CaO+MgO 1.0%
Compress. 318kg/pel
B.F. Pellets
Fe 69.5%
SiO2 1.3%
P 0.02%
S 0.05%
Al2O3 0.28%
Mn 0.03%
P80 32 µm
D.R. Concentrate
Fe 67.4%
SiO2 2.0%
S <0.01%
CaO/SiO2 0.34%
SiO2+Al2 O3 2.4%
CaO+MgO 1.2%
Compress. 283g/pel
D.R. Pellets
Co
re P
rod
uct
Va
lue
-Ad
d
Alt
ern
ati
ve
P
rod
ucts
TSX: BKI
Secured Infrastructure Access
(Rail, Port Power) Key to a Successful Iron Ore Project
• Letters of Intent in place for Electricity (140MW) and Natural Gas (900m3/hr @85kPa)
• Paved roads to site, located 35km away from the major city of Kryvyi Rih which has a highly skilled work force
• Letter of Intent in place for up to 20 million tonnesper year of rail capacity from site to Port Yuchniy
• Black Iron’s Shymanivske Project is ~2 km from main state-owned rail line
• Letter of Intent in place with a private operator at Port Yuzniy for 9.5 million tonnes per year +/- 15%
• Port Yuzniy is located ~430 km away and provides access to the Black Sea and global seaborne iron ore markets
** See Black Iron’s website at www.blackiron.com for a Corporate Video highlighting the project location and infrastructure ** 13
TSX: BKI
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access
• Project is surrounded by steel mills in Europe, Turkey and the Middle East
• River barge & rail access to Western Europe.
• Five dry bulk tonnage ports accessible using railway running beside properties
• Approx 20% to 25% shorter transport distance to growth markets of India and China compared to North and South American producers
• Excellent Ukrainian logistical advantages
• Densely populated roadway infrastructure
• 468 million tonnes of cargo transported via rail
• 155 million tonnes of cargo transported via ship
14
TSX: BKI
Ukraine: A Mining Friendly Country in
Transition
• Member of World Trade Organization (WTO)
• S&P Sovereign Risk rating of B
− Commodity driven economy (agriculture, metalsand energy)
− Steel production is Ukraines largest industry
− 60% of total exports are commodity-related(majority is steel)
− Recently held successful presidential election (5year term); elected a new pro-democracy pro-Ukraine leader
− Gross Domestic Product (GDP) in Ukraineaveraged 0.55% from 2010 until 2014, reachingan all time high of 3.90% in the second quarter of2010 and a record low of -2% in the first quarterof 2014
• Signed the “Ukraine-European Union AssociationAgreement“ in two stages in 2014 (political portionMarch 21; economic portion June 27)
− Demonstrates a strong desire by citizens andbusiness for closer European integration
− Expected to result in lower duties, but coulddrive Russian gas imports up
• Large, highly skilled labour force (pop. 45.4 million)
− GDP per capita only $7600/yr
− Literacy rate >99%
• Mining friendly jurisdiction with strong local and national support
− ArcelorMittal and Ferrexpo plc have operated in-country for over 8 years
• Competitive Corporate tax rate of 18% (Approximately half compared to other major iron ore producing countries)
$5Bn Investment in Integrated Iron Mine/Steel Mill
$3.2Bn Market Cap Iron Ore and Steel Production
in Ukraine
$1.8Bn Investment in Shale Gas Development
Major Foreign Corporate Investors
$10Bn Planned Investment in unconventional gas exploration
and development
$10Bn Planned Investment in exploration and
development of shale gas
15
TSX: BKI
0%
10%
20%
30%
40%
50%
60%
% o
f W
orl
d P
roducti
on a
nd R
ese
rves
Production Reserves
Source: Based on know production and reserves as listed in the USGS 2013 Iron Ore report
Globally Significant Iron Ore District4th largest iron ore producer & 2nd largest reserve base
Global Distribution of Fe Reserves & Fe Production
• Black Iron’s projects are located in the heart of Ukraine’s iron ore belt
– 35km from Kryvyi Rih, city of 750,000 people
• Iron ore district trends 300 km with sedimentary rock hosted banded iron formations (Dnenpovskog complex)
• Historically well explored resource base but substantially under-exploited due to historic Soviet policy
• 15 iron ore mines in Ukraine produced 88 million tonnes in 2012
Kiev
Yeristovskoye
Poltavsky GOK
TsentralnyKryviy Rih Iron Ore Complex
Ingulestky GOK
Yuzhny GOKKryviv Rih Ordzhonikize Gok
Shymanivske
Zelenivske
C GokYuGok
Production Reserves
7%
20%
16
TSX: BKI
Permit Process for Shymanivske DepositBlack Iron Remains on Track
Exploration
Permit
Extraction
Permit
Mining
Allotment
Construction
Approval
Operations
Approval
Deem deposit economical
• Complete Ukraine version of scoping study including evaluation of various mining methods & high level environmental impact
Pit shell reserves & environmental
impact Gov approval
• Complete field environmental (OVOS) & archeological studies for Gov approval
• Submit pit shell design & mapped ground surface project for Gov. approval
Obtain surface rights for mine,
refinery & tailings
• Land use analysis based on plot plan showing major buildings & agreed connections to utilities, rail and roads (Proekt)
• Approval of the project location
• Approval from all land owners & finalize lease
Start mine overburden
removal & plant construction
• Detailed design approved (Expertisa)
• Obtaining the construction permit
• Commissioning of the facility
• Registration of the ownership to the facility
Explore resource potential
• Conduct geophysical program
• Drill ore body
• State approval of explored deposit
Operate mine & refinery
• Ensure compliance with Ukraine Safety, Environment, Health and Employment laws as check by regular Govinspections
• Finalize environmental permits
Completed
Land
Allotment
17
TSX: BKI
Annual Production: 9.9 Mt
Iron Content: 68.0%
Estimated Capital Investment:
(capital intensity, includes 15% contingency)
US$1,097 million
US$111/t
Estimated Operating Expenses:
(average FOB)
(average at Mine Gate)
US$44.54/t
US$29.64/t
Long-Term CFR Benchmark Price(62%): US$95/t
Net Present Value (8%):(pre-tax)
(after-tax)
US$3.3 billion
US$2.6 billion
Internal Rate of Return:(pre-tax)
(after-tax)
48%
39%
Annual Average Cash Flow:(pre-tax)
(after-tax)
US$630 million
US$536 million
Projected Payback (8%):(pre-tax)
(after-tax)
2.0 years
2.5 years
Estimated Mine Life:modelled reserve
total defined resource
14 years
~19 years
BFS Highlights – High Grade ConcentrateHigh Value, Low Net Cost Iron Ore Development Project
* Bankable Feasibility Study completed by Lycopodium in 201418
TSX: BKI
** See Disclaimer on page 2 **
Black Iron’s Capital Cost AdvantageShymanivske Relative to Other Iron Ore Projects
19Source: Company data; Renaissance Capital estimates
Vale
(Shim
andou 1
)
Afr
ican M
inera
ls (
phase
2)
Xst
rata
(Ask
af)
Afr
ican M
inera
ls (
DSO
)
Arc
elo
rMit
tal (W
est
ern
…
Fort
esc
ue (
Expansi
on)
Bla
ck Iro
n
Rio
Tin
to (
IOC)
Sundance
Kum
ba
Ferr
expo (
Yeri
stovo)
IRC (
Kura
nakh)
London M
inin
g
IRC (
K&
S)
Ald
ero
n
Auila (
Hard
ey)
Xst
rata
(Zanaga)
Atl
as
Iron (
Rid
ley)
Rio
Tin
to (
Pilbara
)
Gin
dalb
ie (
Kara
ra)
Anglo
Am
eri
can (
Min
as
Rio
)
BH
P (
RG
P5&
6)
Aquila (
West
Pilbara
)
Arc
elo
rMit
tal (W
est
ern
…
BH
P (
Sam
arc
o)
Atl
as
Iron (
Balla B
alla)
CIT
IC P
acif
ic (
Sin
o)
Baff
inla
nd
Xst
rata
(G
eulb
el Aouj)
Gra
nge R
eso
urc
es…
84 87 90 92109 109 111 122
134 135 141 142157 159 159 160 167
180 186 188 189 190 192 200 211 217 221 222236
258
CAPEX Forecast(US$/t of capacity)
Average = 162
0%
25%
50%
75%
100%
TSX: BKI
Black Iron’s Target Capital Funding Strategy49% of Equity Capital Solidified with Metinvest Transaction;
100% of Off-Take Still Available
** See Disclaimer on page 2 **
Estimated Capital InvestmentUS$1.1 billion
Equity Investment Debt Investment
9.9MtpaOff-take
Export Credit Agencies
Bank Debt / High-Yield Bonds
Capital Markets
60%40%
(US$300-400 million)
(US$0-50 million)
(US$300-400 million)
(US$250-350 million)
** % and $ amounts are indicative only and subject to negotiation **20
TSX: BKI
Shymanivske Project Development Timeline*
2011-2014 2015-2016
Scoping Study/PEA
Bankable Feasibility Study
Off-take & Project Finance
Construction
Drill metallurgical holes
Definition Drilling
Land Acquisition
Detailed Engineering
Production
Future
* 2015 timeline contingent upon peace in Ukraine and recovered iron ore price
** See Disclaimer on page 2 **
Pilot Plant Test Work
Permitting
Milestone Achieved
21
TSX: BKI
Black Iron Value Proposition
Close to Steel Mills in: W.Europe, Turkey, Russia, Asia and Middle EastClose to
Target Markets
Large iron ore deposit with NI 43-101 compliant resource*
• 646 Mt Measured & Indicated mineral resource @ 31.6% iron; additional 188 Mt of Inferred mineral resource @ 30.1% iron, which will be concentrated to ~68% iron
• Potential for resource expansion
SizableResource
Excellent access to skilled labour, power, rail & portsExceptionalInfrastructure
Experienced management team and Board with history of creating value for shareholders of RioTinto and Ferrexpo
SkilledLeadership
High margins due to close proximity to multiple steel mills, skilled labour cost advantage and favourable corporate tax rate of 16%• Bankable Feasibility Study for 9.9Mt of high-grade 68% iron ore concentrate
– NPV of US$3.3 billion and 48% IRR (US$2.6 billion and 39% after-tax)
Compelling Economics
*Please see notes on page 2-Resources are not Reserves and do not have economic viability-Full details of the mineral reserve estimate can be found in the press release dated Jan 9, 2014 -Notes to the mineral reserves can be found on page 26**The company has applied for an extension to the Zelenivske exploration permit that was to expire on Nov 1, 2014. The Company awaits a response from the Ministry of Ecology
and Natural Resources22
Appendix
TSX: BKI
Mineral Reserves & Resources Estimate
1) Mineral Reserve Estimate for the Shymanivske ironore open pit as of January 8, 2014 prepared by P&EMining Consultants Inc. under the direction ofEugene Puritch, P.Eng.
2) The Mineral Reserve is based on a cut-off grade of13.0% Fe-Mag and incorporates an ore loss of 2%and dilution factor of 7.1%.
3) The terms "mineral reserve", "probable mineralreserve" and "proven mineral reserve" have themeanings ascribed to those terms by the CanadianInstitute of Mining, Metallurgy and Petroleum, asthe CIM Definition Standards on Mineral Resourcesand Mineral Reserves adopted by CIM Council, asamended.
4) P&E is not aware of mining, metallurgical,infrastructure, permitting, or other factors thatcould materially affect the mineral reserveestimates.
24
Tonnage and grade rounded to first decimals. Cut-off grade of 10% Fe Mag
*Mineral Resources include Mineral Reserves. Please see notes on page 2-Resources are not Reserves and do not have economic viability-Full details of the mineral reserve estimate can be found in the press release dated Jan 9, 2014-The company has applied for an extension to the Zelenivske exploration permit that was to expire on Nov 1, 2014. The Company awaits a response from the Ministry of Ecology and Natural Resources
ShymanivskeTonnage
(Mt)
Fe Tot
(%)
Fe Mag
(%)
Proven 312.9 31.1 19.5
Probable 136.1 31.1 18.9
Total Reserves* 449.0 31.1 19.3
Measured
(incl. Proven)355.1 32.0 19.5
Indicated
(incl. Probable)290.7 31.1 17.9
Total Resources* 645.8 31.6 18.8
Inferred 188.3 30.1 18.4
TSX: BKITSX: BKI
Shymanivske Project Site
Paved Road
High voltage
power linesState-owned
rail line
25
Contact us:
805-65 Queen Street West
Toronto, ON, Canada, M5H 2M5
Toronto: +1(416) 309 2138
Ukraine: +380 (56) 409 2536
TSX: BKI
Follow us:
www.blackiron.com