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Black Iron Completes Process Flowsheet Optimization at Shymanivske Iron Ore Project

Black Iron ("Black Iron" or the "Company") is pleased to announce the completion of process flowsheet optimization work initiated on the Company's wholly owned Shymanivske Iron Ore Project in Kriyviy Rih, Ukraine.

The optimization work, completed in combination with WorleyParsons Canada Services Ltd. in support of the Company's ongoing Feasibility Study, resulted in an optimized process flowsheet which is expected to increase annual production rates by 26%. Full details on the impact of the flowsheet modifications will be included in Black Iron's Feasibility Study, which remains on schedule for completion in the fourth quarter of 2012.

Increased production rates were enabled by the replacement of the Semi-Autogenous Grinding (SAG) mills specified in the Preliminary Economic Assessment (PEA) phase of the project with High Pressure Grinding Rolls (HPGR). This change to HPGR has eliminated the bottleneck at the primary grinding stage of the process and has enabled an increase in production rates from 7.3 million tonnes per annum ("Mtpa") to a post ramp-up life of mine average rate of 9.2Mtpa for the Feasibility Study. The change to the HPGR technology will also result in increased energy efficiency plus elimination of the need for steel grinding balls ultimately resulting in lower unit operating costs at this step of the process.

Additional process enhancements made during the feasibility study include the addition of dry magnetic cobbing downstream of the HPGR, pre-screening ahead of the primary ball mills, and adjustment in the placement of the low intensity magnetic separators in closed loop within the ball mill and Vertimills grinding circuits. These enhancements allowed for processing of the higher HPGR throughput rates while further increasing the energy efficiency of the regrind circuits.

Matt Simpson, President and CEO of Black Iron, commented: "We are extremely encouraged by the results brought about by the flow-sheet optimization exercise. The combined modifications with industrially proven technologies provides increased value to the project".

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