Black Iron Inc. (TSX: BKI) (OTC Pink: BKIRF) (FSE: BIN) has closed the first of two planned tranches of its previously announced non-brokered private placement financing of units of the Company. The Company issued 17,508,440 units at a price of $0.06 per Unit for gross proceeds of $1,050,506.

Certain insiders of the Company, including members of senior management and the board of directors, have subscribed for Units pursuant to the First Tranche (the “Insider Participation”). The Insider Participation will be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101. The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

A new strategic investor also participated in this Offering that brings value well beyond the cash invested at this time. This investor has expressed an interest to potentially participate in construction financing and may also be able to assist in negotiations with other strategic parties that could make an investment to construct Black Iron’s Shymanivske project.

In the Offering, each Unit consists of one common share of the Company and one-half of one common share purchase warrant entitling the holder to acquire a Common Share at a price of $0.09 for a period of three years from the date hereof. In the event that the Common Shares of the Company trade at $0.15 or higher on the Toronto Stock Exchange for a period of 10 consecutive days, the Company shall have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise the acceleration right.

The Company intends to use the net proceeds of the First Tranche to advance the Company’s Shymanivske project, including negotiations to secure essential land surface rights, to further discussions and negotiations on construction financing and for general working capital purposes.

Closing of the First Tranche is subject to receipt of regulatory approval, including final Toronto Stock Exchange approval. The Company paid cash finder fees of $15,940 and issued 105,000 finder warrants to certain finders. Each finder warrant is exercisable at a price of $0.09 into one Common Share for a period of 36 months following the date hereof. The (i) securities underlying the Units; and (ii) the finder warrants and Common Shares underlying the finder warrants, will be subject to a four month hold period that expires on July 30, 2019.

The second tranche of the Offering is expected to close on or before April 5, 2019.

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske project located in Kryvyi Rih, Ukraine. The Shymanivske project contains a NI 43-101 compliant resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 31.6% total iron and 18.8% 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 Inferred 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” effective November 21, 2017 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 Company’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 Qualified Person as defined by NI 43-101.