A Compelling Iron Ore Investment Opportunity Corporate Presentation October 2014 TSX: BKI Disclaimer Forward Looking Statement TSX: BKI

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 ” 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.

NI 43-101 Technical Report “Feasibility Study of the Shymanivske Iron Ore Deposit for Black Iron Inc”, dated January 24, 2014 Prepared by Lycopodium Minerals Canada Ltd. / Bankable Feasibility Study (the “Feasibility Study”) – For additional information, please see the Report filed on www.sedar.com dated January 24, 2014.

*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 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 What Sets Black Iron Apart? Access to Skilled Labour & Infrastructure – Two of the Most Challenging Iron Ore Project Development Risks TSX: BKI

Key Development Risks

Taxes/Royalties

Human Resources

Canada Access to Infrastructure

Community Opposition

Licensing/Permitting

Access to Water Africa Electricity Supply

Brazil

Australia

3 3 Black Iron has ALL the Key Fundamentals for a Successful Low Cost Project in Place TSX: BKI

Exceptional Sizeable Infrastructure Resource • Significant infrastructure • Large NI 43-101 Compliant advantages (power, rail Resource* and port) with confirmed - Shymanivske access and capacity 646Mt (M+I) @ 32% Fe • Skilled local workforce 188Mt (Inf) @ 30% Fe • Local partnerships - Zelenivske (upside) 1.1 - 1.8Bt potential

Close to Skilled Target Markets Leadership

• Located in , • History of creating value Ukraine a major iron ore for shareholders district, close to Europe, • Significant Ukrainian Turkey, Russia, Asia and political and iron ore Middle East operations experience Compelling Metinvest Development Economics Agreement • Bankable Feasibility Study • Ukraine’s largest company, (Shymanivske Project): 9th globally in iron ore, 16th - 9.9Mtpa of 68% Fe Conc. in

- Post-tax NPV8 of US$2.6B • Committed to half of - Post-tax IRR of 39% project construction • Break even price of $54/t * Please see note on Page 2 financing (est. $250-$500M) 4 (after-tax) A Track Record of Iron Ore Success with Rio Tinto’s Iron Ore Company of Canada, and TSX: BKI

Key Management Board of Directors Matt Simpson – President & CEO Bruce Humphrey – Chairman • Former General Manager, Mining for Rio Tinto’s Iron • Former Chief Operating Officer of Goldcorp Ore Company of Canada Jaroslav Kinach • Worked for Hatch designing global metallurgical • Former Advisor to Ukraine Prime Minister and refineries former Ukraine Country Head of EBRD George Mover – COO Chris Westdal • Former Project General Director of Ferrexpo Yeristovo • Canadian Ambassador to Ukraine (1996-98) and to Mining, Ukraine Russia (2003-06) • Since 1994 worked on numerous mining projects in Former Soviet Union (Ukraine, Russia, Kazakhstan, Pierre Pettigrew Armenia) • Former Canadian Minister for Foreign Affairs and international Trade Paul Bozoki – CFO John Detmold • Former CFO of CD Capital Partners, operating in Former Soviet Union & Ukraine • Chairman & Founder of Invecture Group, S.A. de C.V. which owns Frontera Copper Corporation Aaron Wolfe – VP Corp Development Dave Porter • Former investment banker with Macquarie • Former VP for Rio Tinto’s Iron Ore Company of Nikolay Bayrak – VP Gov’t & Community Relations Canada and COO of Algoma Steel • Former department head, Ukrainian Ministry of Matt Simpson – President & CEO Emergencies and Public Protection; Former MP and President of MP’s Parliamentary Social Club 5

Major Local Development Partner: Metinvest Ukraine’s Largest Company and a Global Iron Ore & Steel Producer TSX: BKI

• Over 100,000 employees; Generated US$12.8 billion of revenues and a 18% EBITDA margin in 2013 • Metinvest is owned by System Capital Management (SCM) and Smart Holding • SCM has over US$28.4B in assets and operations across 13 different areas including ownership of:

• DTEK >18GW of electricity • Leman Trans, ~21% of • Portinvest, ~13% of

production (~26%) railway cars Ukraine’s port capacity

• Global Commodity Ranking: • 9th in Iron Ore with 33.9 MT • 16th in Steel with 18.4 MT • 33rd in Coal with 2.6 MT 6 Sound Capital Structure Attractive Valuation with Substantial Upside & Funding Support TSX: BKI

Capital Structure (TSX: BKI) Corporate Structure

Shares Outstanding 159.2 million (1) Stock Options 9.9 million Black Iron Inc. Metinvest B.V. Warrants(2) 17.7 million (TSX: BKI) (Ukraine private) Fully Diluted Shares 186.8 million 51% 49% Market Cap(3) ~US$15.6 million Current Cash Balance(4) ~US$19.2 million Debt Balance nil Black Iron (Cyprus) Ltd. 1. 9,913,750 options exercisable at a weighted average price of $0.32 per share. (Cyprus private) 2. 17,680,000 warrants expire Feb 20, 2017 with strike price of $0.25. 3. As Oct 1, 2014, using a closing price of CAD $0.11 per share. 4. Consolidated cash position as at June 30, 2014 includes final installment from Metinvest transaction as subsequent event

Analyst Coverage 100% 100%

Shymanivske Steel Zelenivske Steel (Ukraine private) (Ukraine private)

7 Deposits In Mining Friendly Region Adjacent to existing Iron Ore Producers TSX: BKI

ArcelorMittal’s Kryvyi Rih Iron Ore Complex • Two mining and exploration permits 2 Black Iron’s covering 5.92 km Shymanivske Project − Mining permit at Shymanivske, which M&I: 646Mt @ 31.6% has been extensively explored, Inferred: 188Mt @ 30.1% covering 2.56 km2 valid until 2024 − Exploration permit at Zelenivske covering 3.36 km2 valid until 2014 Railway lines • Adjacent to ArcelorMittal’s Kryvyi Rih iron ore complex and Metinvest & Black Iron’s Evraz’s YuGOK iron ore mine Zelenivske Project 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

** See Black Iron’s website at www.blackiron.com for a Corporate Video highlighting the project location and infrastructure ** 8 Large Ore Deposit with Growth Potential

TSX: BKI

• 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 Shymanivske Tonnage Fe Tot Fe Mag metres of infill drilling Resource* (Mt) (%) (%) ― Total iron grade and band width align very well with 37,000 metres of historical drilled data Measured 355.1 32.0 19.5 • Potential for total combined resource Indicated 290.7 31.1 17.9 expansion of 1.1 to 1.8BT Total Measured 645.8 31.6 18.8 − Additional drilling of Shymanivske at North end and Indicated of deposit and to depth Inferred 188.3 30.1 18.4 − Exploration of the Zelenivske project Tonnage and grade rounded to first decimals. Cut-off grade of 10% Fe Mag * Please see note on page 2 9 Potential Resource Extension at Shymanivske Ground Gravity Shows Iron Ore Mineralization at North End TSX: BKI

Potential resource • Ground gravity and magnetic surveys upside to be drilled show potential extension of iron ore mineralization at North end of property as circled in red Property • This area has not been included in the NI boundary 43-101 resource as it has not yet been Very likely sufficiently drilled Iron in ground • 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

Likely just dirt in ground Drill hole

10 Extensive Pit Shell Design and 3D Model Completed (Property Overview) TSX: BKI

11 * Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd. Concentrator Footprint Compressed by Staggering HPGRs and Stacking LIMS TSX: BKI

12 * Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd. Conventional Flowsheet Producing High Quality Iron Ore Products TSX: BKI

B.F. Concentrate B.F. Pellets D.R. Concentrate D.R. Pellets

Fe 68.0% Fe 69.5% Fe 67.4%

Fe 65.5%

SiO2 4.5% SiO2 4.5% SiO2 1.3% SiO2 2.0% Add Add P 0.02% S <0.01% P 0.02% S <0.01% -

S 0.05% CaO/SiO2 0.15% S 0.05% CaO/SiO2 0.34% Products

Al O 0.43% SiO +Al O 5.1% Al O 0.28% SiO +Al O 2.4% Value

2 3 2 2 3 2 3 2 2 3 Alternative Core Product Core Mn 0.03% CaO+MgO 1.0% Mn 0.03% CaO+MgO 1.2% 13 P80 32 µm Compress. 318kg/pel P80 32 µm Compress. 283g/pel Secured Infrastructure Access (Rail, Port Power) Key to a Successful Iron Ore Project TSX: BKI

• 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 tonnes per 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 ** 14 Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI

• 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 15 Ukraine: A Mining Friendly Country in Transition TSX: BKI

• Member of World Trade Organization (WTO) • Large, highly skilled labour force (pop. 45.4 million) • S&P Sovereign Risk rating of B − GDP per capita only $7600/yr − Commodity driven economy (agriculture, metals − Literacy rate >99% and energy) • Mining friendly jurisdiction with strong local and − Steel production is Ukraines largest industry national support − 60% of total exports are commodity-related − ArcelorMittal and Ferrexpo plc have operated in- (majority is steel) country for over 8 years − Recently held successful presidential election (5 • Competitive Corporate tax rate of 18% year term); elected a new pro-democracy pro- (Approximately half compared to other major iron Ukraine leader ore producing countries) − Gross Domestic Product (GDP) in Ukraine averaged 0.55% from 2010 until 2014, reaching Major Foreign Corporate Investors an all time high of 3.90% in the second quarter of 2010 and a record low of -2% in the first quarter of 2014 $5Bn Investment $3.2Bn Market Cap Iron $10Bn Planned Investment in Integrated Iron Ore and Steel Production in exploration and • Signed the “Ukraine-European Union Association Mine/Steel Mill in Ukraine development of shale gas Agreement“ in two stages in 2014 (political portion March 21; economic portion June 27) − Demonstrates a strong desire by citizens and $1.8Bn Investment $10Bn Planned Investment in in Shale Gas unconventional gas exploration business for closer European integration Development and development − Expected to result in lower duties, but could drive Russian gas imports up 16 Globally Significant Iron Ore District 4th largest iron ore producer & 2nd largest reserve base TSX: BKI

• Black Iron’s projects are located in the heart of Global Distribution of Fe Reserves & Ukraine’s iron ore belt Fe Production – 35km from Kryvyi Rih, city of 750,000 people

60% • Iron ore district trends 300 km with sedimentary rock hosted banded iron formations (Dnenpovskog complex) 50% • Historically well explored resource base but 40% substantially under-exploited due to historic Soviet policy Production Reserves 30% • 15 iron ore mines in Ukraine produced 88 million

20% tonnes in 2012 20%

10% 7%

% of World ofWorld % Production and Reserves Kiev 0% Poltavsky GOK Yeristovskoye

Kryviy Rih Iron Ore Complex Tsentralny C Gok Shymanivske YuGok Zelenivske Ingulestky GOK Kryviv Rih Ordzhonikize Gok Yuzhny GOK Production Reserves

Source: Based on know production and reserves as listed in the USGS 2013 Iron Ore report

17 Permit Process for Shymanivske Deposit Black Iron Remains on Track TSX: BKI

Exploration Extraction Mining Land Construction Operations Permit Permit Allotment Allotment Approval Approval

Explore Deem deposit Pit shell reserves Obtain surface Start mine Operate mine & resource economical & environmental rights for mine, overburden refinery potential impact Gov refinery & removal & plant approval tailings construction

• Conduct • Complete • Complete field • Land use analysis • Detailed design • Ensure geophysical Ukraine version environmental based on plot approved compliance with program of scoping study (OVOS) & plan showing (Expertisa) Ukraine Safety, including archeological major buildings & Environment, • Drill ore body evaluation of studies for Gov agreed • Obtaining the Health and various mining approval connections to construction Employment • State approval methods & high utilities, rail and permit laws as check by of explored level • Submit pit shell roads (Proekt) regular Gov deposit environmental design & • Commissioning inspections impact mapped ground • Approval of the of the facility surface project project location • Finalize for Gov. approval • Registration of environmental • Approval from all the ownership to permits land owners & the facility finalize lease

Completed 18 BFS Highlights – High Grade Concentrate High Value, Low Net Cost Iron Ore Development Project TSX: BKI

Annual Production: 9.9 Mt Iron Content: 68.0% Estimated Capital Investment: US$1,097 million (capital intensity, includes 15% contingency) US$111/t Estimated Operating Expenses: (average FOB) US$44.54/t (average at Mine Gate) US$29.64/t Long-Term CFR Benchmark Price(62%): US$95/t (pre-tax) US$3.3 billion Net Present Value (8%): (after-tax) US$2.6 billion (pre-tax) 48% Internal Rate of Return: (after-tax) 39% (pre-tax) US$630 million Annual Average Cash Flow: (after-tax) US$536 million (pre-tax) 2.0 years Projected Payback (8%): (after-tax) 2.5 years modelled reserve 14 years Estimated Mine Life: total defined resource ~19 years Projected Plant Start-Up Q4 2016 Projected Revenue Commencement Q1 2017 19 * Bankable Feasibility Study completed by Lycopodium ** See Disclaimer on page 2 ** Black Iron’s Operating Cost Competitiveness Shymanivske: First Quartile to Local Markets; Second Quartile to China TSX: BKI

2013 Iron Ore Cost Curve

BKI delivered to Europe/Middle East BKI delivered

Markets to China Spot: $80/t Total Cash Cost (US$/t CFR CFR China) (US$/t Cost Cash Total

World Cumulative Production (%)

Source: Company data; Wood Mackenzie; BMO Capital Markets * Adjusted for iron content and shipping distance

** See Disclaimer on page 2 ** 20 Black Iron’s Capital Cost Advantage Shymanivske Relative to Other Iron Ore Projects TSX: BKI

CAPEX Forecast

(US$/t of capacity)

0%

25% 50% 75% 100%

258 Average = 162 236 217 221 222 200 211 180 186 188 189 190 192 157 159 159 160 167 134 135 141 142 109 109 111 122

84 87 90 92

… …

…

Kumba

Alderon

IRC (K&S) IRC

Sundance

Black Iron Black

Baffinland

BHP (RGP5&6) BHP

London Mining London

Auila (Hardey) Auila

Rio Tinto (IOC) Tinto Rio

BHP (Samarco) BHP

Xstrata (Askaf) Xstrata

IRC (Kuranakh) IRC

Xstrata(Zanaga)

Grange Resources Resources Grange

Atlas Iron (Ridley)Iron Atlas

Rio Tinto (Pilbara) Tinto Rio

Gindalbie (Karara) Gindalbie

CITIC Pacific (Sino) Pacific CITIC

Vale (Shimandou 1) (Shimandou Vale

Ferrexpo(Yeristovo)

Aquila (West Pilbara) (West Aquila

Fortescue (Expansion) Fortescue

African Minerals (DSO) Minerals African

Atlas Iron (BallaIronBalla) Atlas

ArcelorMittal (Western (Western ArcelorMittal ArcelorMittal (Western (Western ArcelorMittal

Xstrata (Geulb el Aouj) el (GeulbXstrata

African Minerals (phase2)Minerals African Anglo American (Minas Rio)(Minas American Anglo Source: Company data; Renaissance Capital estimates ** See Disclaimer on page 2 ** 21 Black Iron’s Target Capital Funding Strategy 49% of Equity Capital Solidified with Metinvest Transaction; 100% of Off-Take Still Available TSX: BKI

Estimated Capital Investment US$1.1 billion 40% 60%

Equity Investment Debt Investment

51% 49% Black Iron Inc. Metinvest Export Credit Agencies (TSX: BKI) (US$250-300 million) (US$300-400 million) 9.9Mtpa Off-take Bank Debt / High-Yield Bonds (US$250-300 million) (US$250-350 million) Capital Markets

(US$0-50 million) Significant Off-take Opportunity with Equity Funding Support from Metinvest 22 ** See Disclaimer on page 2 ** ** % and $ amounts are indicative only and subject to negotiation ** Black Iron Continues to Deliver Shymanivske Project Development Timeline TSX: BKI

2011-2012 2013 2014 Future

Drill metallurgical holes  Scoping Study/PEA  Definition Drilling  Bankable Feasibility Study   Pilot Plant Test Work  Land Acquisition Off-take Permitting Detailed Engineering Construction Production Milestone Achieved 2014 Milestone 23 ** See Disclaimer on page 2 ** Black Iron Value Proposition

TSX: BKI

Skilled Experienced management team and Board with history of creating value Leadership for shareholders of RioTinto and Ferrexpo

Strategic Metinvest: Largest company in Ukraine; committed to half of project equity Partners financing

Exceptional Excellent access to skilled labour, power, rail & ports Infrastructure

Large iron ore deposit with NI 43-101 compliant resource* Sizable • 646 Mt Measured & Indicated resource @ 31.6% iron; additional 188 Mt of Resource Inferred resource @ 30.1% iron, which will be concentrated to ~68% iron • Potential for resource expansion to 1.1-1.8 Bt

Close to Target Markets Close to Steel Mills in: W.Europe, Turkey, Russia, Asia and Middle East

High margins due to close proximity to multiple steel mills, skilled labour Compelling cost advantage and favourable corporate tax rate of 16% Economics • 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) * Please see note on Page 2 24 24 Shymanivske Project Site

TSX:TSX: BKIBKI

High voltage State-owned power lines rail line

Paved Road Contact us: 805-65 Queen Street West Toronto, ON, Canada, M5H 2M5

Mike McAllister, Manager IR Toronto: +1(416) 309 2134 Ukraine: +380 (56) 409 2536

[email protected]

Follow us:

www.blackiron.com

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