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A Compelling Iron Ore Investment Opportunity
Corporate Presentation
December 2012
TSX: BKI
TSX: BKI
2
Disclaimer Forward 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, 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 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; 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.
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.
Bankable Feasibility Study (the “Feasibility Study”) – For additional information, please see the Company’s press release dated November 15, 2012.
*Resource estimate compiled using historic Soviet data by Hugues de Corta, who is an independent qualified person as defined by NI 43-101. Readers should not place undue reliance on
historical estimates.
*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 WorleyParsons Canada Services Ltd., 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.
TSX: BKI
3
What Sets Black Iron Apart? Access to Skilled Labour & 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
4
5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity
Project located in Kryviy Rih, Ukraine; one of the world’s major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East • Surrounded by 7 other operating iron ore mines
Close to Target Markets
Large iron ore deposit with NI 43-101 compliant resource*
• Two properties held – Shymanivske & Zelenivske • Shymanivske – 646 Mt Measured & Indicated resource @ 31.6% iron;
additional 188 Mt of Inferred resource @ 30.1% iron, which will be concentrated to ~68% iron
• Potential for resource expansion by further drilling of both deposits
Sizable Resource
Good access to skilled labour, power, rail & ports
• 35km from city of Kryviy Rih (pop. 750k); paved road to site • 2 km from state-owned rail and power lines with surplus capacity & five
deep water ports accessible by rail (140-515km)
Exceptional Infrastructure
Experienced management team with history of creating value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo
Skilled Management
High margins due to close proximity to multiple steel mills, relative labour cost advantage and favourable corporate tax rate of 16% • Bankable Feasibility Study for 9.2Mt of high-grade 68% iron ore
concentrate – NPV of US$3.5billion and 45.9% IRR
Compelling Economics
* Please see note on Page 2 4
TSX: BKI
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Project Backed by Forbes & Manhattan Success with Consolidated Thompson’s Bloom Lake Iron Mine
• World class 8Mtpa iron ore concentrate mine in Quebec
• Advanced from exploration stage through development to construction
− 8 mtpa capacity (66% Fe concentrate) expanding to 16 mtpa
− Completed scoping study, 3 feasibility studies, secured off-take with China’s third largest steel producer (WISCO)
• Raised over Cdn$1 bn in capital
• Attracted and put in place a qualified management team
Recently acquired for $4.9 billion
$1 mm market
cap
First F&M involvement
Forb
es
& M
anhatt
an I
nvolv
em
ent
2005 Q1-2011
Recently acquired for $4.9 billion
TSX: BKI
Board of Directors Key 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
George Mover – COO
• Former Project General Director of Ferrexpo Yeristovo Mining, Ukraine
Paul Bozoki – CFO
• Former CFO of CD Capital Partners, operating in Soviet Union & Ukraine
Igor Buchatskiy – VP Strategy
• Former GM, International Business Development, ArcelorMittal S.A.
Aaron Wolfe – VP Corp Development
• Former investment banker with Macquarie
Nikolay Bayrak – VP Gov’t & Community Relations
• Former department head, Ukrainian Ministry & Currently President of MP’s Parliament Club
Mike McAllister – Manager Investor Relations
Bruce Humphrey – Chairman
• Former Chairman of Consolidated Thompson Iron Mines
Jaroslav Kinach
• Former Advisor to Ukraine Prime Minister and former Ukraine Country Head of EBRD
Chris Westdal
• Canadian Ambassador to Ukraine (1996-98) and to Russia (2003-06)
Pierre Pettigrew
• Distinguished career as a Canadian Federal Cabinet Minister
John Detmold
• Chairman & Founder of Invescture Group, S.A. de C.V.
Dave Porter
• Former VP for Rio Tinto’s Iron Ore Company of Canada
Matt Simpson – President & CEO 6
A Track Record of Iron Ore Success with Consolidated Thompson Iron Mines, Rio Tinto’s Iron Ore Company
of Canada, and Ferrexpo
TSX: BKI
Sound Capital Structure Attractive Valuation with substantial upside
7
Historical Share Price Capital Structure
Shares Outstanding 141.0 million
Warrants (1) 1.7 million
Stock Options (2) 8.5 million
Fully Diluted Shares 151.2 million
Market Cap(4) ~US$46.1 million
Current Cash Balance ~US$11.7 million
Debt Balance nil
1. 1,653,312 warrants exercisable at $1.40 per share (IPO financing). 2. 5,481,250 options exercisable at $1.40 per share; 2,342,500 options
exercisable at $0.54 per share; 400,000 options exercisable at $0.49 per share; 260,000 options exercisable at $0.30 per share .
3. As at Nov 28, 2012, using a closing price of CAD 0.33 per share.
Analyst Coverage
Maxim Sytchev
Cliff Hale-Sanders
John Hughes
Daniel Greenspan
Robin Kozar
Craig Miller David Talbot
Ivan Dzvinka
Matthew McDonald
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
13-D
ec-
11
13-J
an-1
2
13-F
eb-1
2
13-M
ar-
12
13-A
pr-
12
13-M
ay-1
2
13-J
un-1
2
13-J
ul-12
13-A
ug-1
2
13-S
ep-1
2
13-O
ct-1
2
13-N
ov-1
2
TSX: BKI
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Deposits In Mining Friendly Region Adjacent to existing Iron Ore Producers
• Two mining and exploration permits covering 5.92 km2
− Mining permit at Shymanivske, which has been extensively explored, covering 2.56 km2 valid until 2024
− Exploration permit at Zelenivske covering 3.36 km2 valid until 2014
• Adjacent to ArcelorMittal’s Kryviy Rih iron ore complex and Smart & 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%
Black Iron’s Zelenivske
Project
ArcelorMittal’s Kryviy Rih Iron Ore Complex
Smart & Evraz’s YuGOK Iron Ore Mine
Railway lines
TSX: BKI
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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
− Very clean ore body low in phosphorus, manganese and aluminum
• The resource is defined by ~37,000 metres of historical drilling
― Black Iron recently completed 12,000 meters of twin hole drilling
― Total iron grade and band width align very well with historical data
• Potential for total combined resource expansion of 1.1 to 1.8BT
− Additional drilling of Shymanivske at North end of deposit and to depth
− Exploration of the Zelenivske project
Shymanivske
Resource*
Tonnage
(Mt)
Fe Tot
(%)
Fe Mag
(%)
Measured 355.1 32.0 19.5
Indicated 290.7 31.1 17.9
Total Measured and Indicated
645.8 31.6 18.8
Inferred 188.3 30.1 18.4
* Please see note on page 2 Tonnage and grade rounded to first decimals. Cut-off grade of 10% Fe Mag
TSX: BKI
10
Potential Resource Extension at Shymanivske Ground 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
Potential resource upside to be drilled
Drill hole
Property boundary
Very likely Iron in ground
Likely just dirt in ground
TSX: BKI
11
Extensive Pit Shell Design and 3D Model
Completed
Property Overview Concentrator Layout
TSX: BKI
12
Conventional Flowsheet (simplified) Producing High Quality Iron Ore Products
Drill Blast Load & Haul Crush
HPGR Ball Mill (x2) Vertical Mill Magnetic Separator
Sulphur Floatation Pellet Plant Fe 68.0%
SiO2 4.5%
P 0.02%
S 0.05%
Al2O3 0.43%
Mn 0.03%
P80 32 µm
Concentrate
Fe 65.0%
SiO2 4.13%
P 0.025%
S 0.01%
Mn 0.15%
Pellets (optional)
TSX: BKI
13
Excellent Infrastructure Key to a Successful Iron Ore Project
• Paved roads to site, located 35km away from the major city of Kryviy Rih which has a skilled work force
• Surplus electricity readily accessible from high voltage power lines that run beside property
• ~2 km from main state-owned rail line
• Confirmation in July 2010 from Ukrainian Government that there is sufficient capacity to haul at least an additional 20 million tonnes of iron ore per annum
• 5 deep water ports accessible by rail with iron ore facilities available
• Preferred port option is Yuzhny located ~390 km away and providing access to the Black Sea and global seaborne iron ore markets
TSX: BKI
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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
Major Rail Line Major Rail Line Major Rail Line
TSX: BKI
15
Ukraine: A Mining Friendly Country Strong Local and National Support
• Politically stable Democratic republic
― Presidential reelected in Oct. 2012 for a further five year term
― S&P Sovereign Risk rating of B+
• Economy dominated by agriculture & commodities
― Steel production is Ukraine’s largest industry
― 60% of Ukraine’s total exports are commodity-related (the majority of which is steel)
• Strong economic growth
− GDP growth of 4.2% in 2010; 5.2% in 2011; 2012 forecast to be 6.5% growth
− Member of WTO
− Ongoing negotiations to sign “Association Agreement” with European Union
− Potential key member of the Russia proposed Eurasian Trade Union
• Large, highly skilled labour force (pop. 45.4 million)
− GDP per capita only $6700/yr
− Literacy rate >99%
• Mining friendly jurisdiction with strong local and national support
― ArcelorMittal and Ferrexpo plc have operated in-country for over 7 years
• Legislated corporate tax rate reductions from 21% in 2012 to 16% in 2014
• Favourable mining royalties of $0.40 per tonne of ore mined (~1%) to the Government
TSX: BKI
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Source: Based on know production and reserves as listed in the USGS 2012 Iron Ore report
Globally Significant Iron Ore District 4th 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 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 72 million
tonnes in 2010
Kirovograd Tarnavatskoye
Liponevsky
Yeristovskoye
Safonovskoye
Novokonstantinovsky
Poltavsky GOK
Tsentralny Kryviy Rih Iron Ore Complex
Kuksunurskoye
Ingulestky GOK
Yuzhny GOK Kryviv Rih
Ordzhonikize Gok Shymanivske
Zelenivske
0%
10%
20%
30%
40%
50%
60%
Asi
a
Aust
ralia
S.
Am
eri
ca
FSU
N.
Am
eri
ca
Oth
er
Afr
ica
% o
f W
orl
d P
roducti
on a
nd R
ese
rves
Production Reserves
Production Reserves
7%
21%
TSX: BKI
17
Permit Process for Shymanivske Deposit Black Iron Remains on Track
Exploration
Permit
Extraction
Permit
Land
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 Gov inspections
• Finalize environmental permits
Mining
Allotment
Completed
TSX: BKI
BFS Highlights – High Grade Concentrate High Value, Low Net Cost Iron Ore Development Project
18
PEA BFS
Annual Production: 7.3 Mt 9.2 Mt
Iron Content: 67.0% 68.0%
Estimated Capital Investment: US$896.0 million US$1,094 million
Estimated Operating Expenses:
(average FOB)
(average at Mine Gate)
US$52.40/t
US$41.78/t
US$43.97/t
US$29.67/t
Net Present Value (8%): US$3.0 billion US$3.5 billion
IRR: 42.1% 45.9%
Annual Average Cash Flow: US$383 million US$593 million
Projected Payback (8%): 2.2 years 2.2 years
Estimated Mine Life: 28 years 16 years
Proj. Plant Start-Up Q4 2015 Q4 2015
Proj. Revenue Commencement Q4 2015 Q1 2016
Production, Iron Content, NPV, IRR and Cash Flow all increase
while Capital Intensity decreases ** See Disclaimer on page 2 **
TSX: BKI
BFS Long-Term Concentrate Price Based on Mean Forecast of 20 Banks with Important Adjustments for
Favourable Iron Content & Shipping Distance
19
$95
-$10
+$30
$115
$0
$20
$40
$60
$80
$100
$120
Analyst Benchmark Price
Shipping Adjustment Aggregate Iron Premium
BKI LT Concentrate Price
* BFS model prices for iron ore concentrate are based on the mean forecasted benchmark price for 62% iron concentrate, shipped from Brazil to
China, of 20 investment banks across the globe: 2016 = $105; 2017 = $97; Long-term = $95. The mean forecasted benchmark price is then adjusted
to reflect shorter shipping to target market, and adjusted for iron content at the rate of $5 per 1% of additional iron content (6 x $5 = $30). ** See Disclaimer on page 2 **
TSX: BKI
Black Iron’s Capital Cost Advantage Shymanivske Relative to Other Iron Ore Projects
20
Vale
(Shim
andou 1
)
Afr
ican M
inera
ls (
phase
2)
Xst
rata
(Ask
af)
Afr
ican M
inera
ls (
DSO
)
Arc
elo
rMit
tal (W
est
ern
…
Fort
esc
ue (
Expansi
on)
Bla
ck Iro
n
Rio
Tin
to (
IOC)
Ald
ero
n
Sundance
Kum
ba
Ferr
expo (
Yeri
stovo)
IRC (
Kura
nakh)
London M
inin
g
IRC (
K&
S)
Auila (
Hard
ey)
Xst
rata
(Zanaga)
Atl
as
Iron (
Rid
ley)
Rio
Tin
to (
Pilbara
)
Gin
dalb
ie (
Kara
ra)
Anglo
Meri
can (
Min
as
Rio
)
BH
P (
RG
P5&
6)
Aquila (
West
Pilbara
)
Arc
elo
rMit
tal (W
est
ern
…
BH
P (
Sam
arc
o)
Atl
as
Iron (
Balla B
alla)
CIT
IC P
acif
ic (
Sin
o)
Baff
inla
nd
Xst
rata
(G
eulb
el Aouj)
Gra
nge R
eso
urc
es …
84 87 90 92 109 109
119 122 124 134 135 141 142
157 159 160 167 180 186 188 189 190 192 200
211 217 221 222 236
258
CAPEX Forecast (US$/t of capacity)
Source: Company data; Renaissance Capital estimates
** See Disclaimer on page 2 **
Average = 161
TSX: BKI
Favourable Tax and Royalties in Ukraine Black Iron to Other Iron Ore Developers
21
Maca
rthur
Centa
uru
s
Iron R
oad
Nort
hla
nd
Ald
ero
n
Bro
ckm
an
Gin
dalb
ie
Bla
ck I
ron
0.3 0.5 1.1 1.5 3.1 3.3 3.4 3.5
7.3
Pre-Tax & Royalty NPV8
(US$ billions)
Maca
rthur
Centa
uru
s
Iron R
oad
Nort
hla
nd
Bro
ckm
an
Gin
dalb
ie
Ald
ero
n
Bla
ck I
ron
0.1 0.3 0.6 1.0 1.8 1.8 2.1
2.9
4.9
Post-Tax & Royalty NPV8
(US$ billions)
Disclaimer: Post-tax and royalty graphs are for illustrative purposes only using simple math. These numbers have not been reported, nor are they
substantiated by a financial model. 1 Super-Profits tax >A$75 million profit. 2 Includes Brazil mining tax of $4 / tonne of iron ore
Source: Company data; Press Release; Research Estimates
New
M
illeniu
m
Nort
hla
nd
Gin
dalb
ie
Bro
ckm
an
Ald
ero
n
Bla
ck I
ron
25.0 32.0 35.0 38.0 40.2 45.9
Pre-Tax & Royalty IRR
(%)
New
M
illeniu
m
Gin
dalb
ie
Bro
ckm
an
Nort
hla
nd
Ald
ero
n
Bla
ck I
ron
16.9 18.9 20.5 22.7 27.1 40.3
Post-Tax & Royalty IRR
(%)
Tax Regime
Royalties
30% +30%1
39%2
29%
16%
5%
2%
5-8%
1%
New
M
illeniu
m
New
M
illeniu
m
TSX: BKI
22
Black Iron Continues to Deliver Shymanivske Project Development Timeline
H1 H2 H1 H2
2011 2012
Scoping Study/PEA
Bankable Feasibility Study
Permitting
Construction
Drill metallurgical holes
Definition Drilling
Environmental Studies
Detailed Engineering
Production
Future
** See Disclaimer on page 2 **
Land Acquisition
TSX: BKI
23
Black Iron Value Proposition
Close to Steel Mills in: W.Europe, Turkey, Russia, Asia and Middle East Close to
Target Markets
Large iron ore deposit with NI 43-101 compliant resource*
• 646 Mt Measured & Indicated resource @ 31.6% iron; additional 188 Mt of Inferred resource @ 30.1% iron, which will be concentrated to ~68% iron
• Potential for resource expansion to 1.1-1.8 Bt
Sizable Resource
Excellent access to skilled labour, power, rail & ports Exceptional
Infrastructure
Experienced management team with history of creating value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo
Skilled Management
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 9.2Mt of high-grade 68% iron ore
concentrate – NPV of US$3.5billion and 45.9% IRR
Compelling Economics
* Please see note on Page 2 23
CONTACT INFORMATION
65 Queen Street West
Suite 805, P.O. Box 71
Toronto, Ontario, Canada
M5H 2M5
www.blackiron.com
TSX: BKI
Investor Relations
Toronto: +1 (416) 309-2950 - Michael McAllister, IR Manager
London: +44 (0) 207 466 5000
Ukraine: +380 (67) 619-0454
info@blackiron.com Follow us:
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