Black Iron Announces Private Placement Financing

BLACK IRON ANNOUNCES PRIVATE PLACEMENT FINANCING

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT

INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR

DISSEMINATION TO THE UNITED STATES

TORONTO, CANADA, April 23, 2020 – Black Iron Inc. (“Black Iron” or the “Company”) (TSX: BKI; OTC:

BKIRF; FRANKFURT: BIN) announces it intends to complete a non -brokered private placement financing

of up to 36,534,420 units of the Company (the “Units”) at a price of $0. 05 per Unit for maximum gross

proceeds of $1, 826,721 (the “Offering”). Each Unit shall consist of one common share of the Company

(each a “Common Share”) and one -third of one common share purchase warrant (each whole warrant, a

“Warrant”) entitling the holder to acquire a Common Share at a price of $0. 06 for a period of three years

from the date of issuance.

The Company intends to use the net proceeds of the Offering to advance the Company’s Shymanivske

project (the “Project”) , including negotiations to secure essential land surface rights, discussions and

negotiations on construction financing and for general working capital purposes. The Common Shares,

Warrants and common shares underlying the Warrants will be subject to a four month and one day statutory

hold period.

Closing of the Offering remains subject to receipt of all regulatory approvals, including t he approval of the

Toronto Stock Exchange. Closing of the Offering is anticipated to occur on or before Ma y 1, 20 20. In

connection with the Offering, Black Iron may pay finder’s fees to eligible finders in accordance with the rules

and policies of the Toronto Stock Exchange.

Project Update

Black Iron has received strong interest from several steel mills and global trading companies to enter into

an offtake agreement for its entire initial 4 million tonnes per year of production in exchange for receiving a

significant amount of the money required for project construction. Prior to the outbreak of COVID-19,

potential investors where scheduled to conclude their due diligence for investment by conducting Project

site visits which are now on hold. Completion of these site visits and the subsequent negotiation of binding

offtake and investment agreements is currently pending Ukraine and investor resident country borders to

reopen, the timing of which is currently unknown. The Offering is important to ensure Black Iron has

sufficient funds to complete this work as it is expected to be transformative for the Company.

Black Iron also notes that benchmark 62% iron content ore continues to sell in the mid $80 per tonne range,

which is well above the long-term $62 per tonne used in Black Iron’s PEA. The PEA estimates an after-tax

unlevered IRR of 34% and NPV of US$1.4 billion using a 10% discount rate for a US$452 million investment

to construct th e initial 4Mtpa plant which is expected to produce ultra-high grade 68% iron content pellet

feed. The strong economic returns expected to be generated by the Shymanivske Project reinforce the

unique investment opportunity Black Iron presents by not having to build high-cost rail, powerlines or a port,

as is required with the majority of other iron ore development projects globally. As noted in Black Iron’s

press release dated May 2, 2018, highly regarded market analysis firm CRU recently ranked the Project at

the lowest position on the business cost curve (i.e., normalized operating costs) and as the second -lowest

capital intensity undeveloped pellet feed iron ore project globally.

About Black Iron

Black Iron is an iron ore exploration and development compan y, advancing its 100% owned Shymanivske

project located in Kryviy Rih, Ukraine. The Shymanivske project contains a NI 43 -101 compliant mineral

resource estimated to be 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

290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut -off grade of 10% magnetic iron.

Additionally, the Shymanivske project contains 188 Mt of Infe rred mineral resources grading 30.1% total

iron and 18.4% magnetic iron. Full mineral resource details can be found in the NI 43 -101 compliant

technical report entitled “Preliminary Economic Assessment of the Re -scoped Shymanivske Iron Ore

Deposit” effecti ve November 21, 2017 (the “PEA” or “Preliminary Economic Assessment”) under the

Company’s profile on SEDAR at www.sedar.com. The Shymanivske project is surrounded by five other

operating mines, including ArcelorMittal's iron ore complex. Please visit the C ompany's website at

www.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, CEO of Black Iron, who is a Qua lified Person

as defined by NI 43-101.

For more information, please contact:

Matt Simpson

Chief Executive Officer

Black Iron Inc.

Tel: +1 (416) 309-2138

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 th at time. Forward -looking information may include,

but is not limited to, statements with respect to the Company’s ability to develop the Shymanivske project,

the Company’s ability to complete the Offering , the timing of completion of the Offering , the Company’s

ability to secure the requisite land rights and the Company’s future plans. 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 ex pressed 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 a nd 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 ot her

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. The Company notes that mineral resources that are not

mineral reserves do not have demonstrated economic viability.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities

in the United States. The securities have not been and will not be registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be

offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act

and applicable state securities laws or an exemption from such registration is available.