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20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
20110901 bki corp_pres
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20110901 bki corp_pres

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  • 1. A Compelling Iron Ore Investment Opportunity Corporate Presentation September 2011TSX: BKI
  • 2. Disclaimer Forward Looking Statement TSX: BKIThis Presentation contains „„forward-looking information‟‟ which may include, but is not limited to, statements with respect to the future financial or operating performance of theCompany and its subsidiaries (collectively, the „„Company‟‟) and its mineral projects; the future prices of metals; the anticipated results of exploration activities; the estimation of mineralresources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Company‟s mineralproperties; timing of future exploration; requirements for additional capital; government regulation of mining operations; anticipated results of economic and technical studies;environmental matters; reclamation expenses; title disputes or claims; limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters.Often, but not always, forward-looking information can be identified by the use of words and phrases such as „„plans‟‟, „„expects‟‟, „„is expected‟‟, „„budget‟‟, „„scheduled‟‟, „„estimates‟‟,„„forecasts‟‟, „„intends‟‟, „„anticipates‟‟, or „„believes‟‟ or variations (including negative 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 based on the opinions and estimates of management as of the date such statements are made and is based on information currently available to managementand upon what management believes to be reasonable assumptions, including, among others, that general business, economic, competitive, political and social uncertainties remainfavorable; that actual results of exploration activities justify further studies and development of the Company‟s mineral projects; that the future prices of metals, and iron ore in particular,remain at levels that justify the exploration and future development and operation of the Company‟s mineral projects; that ore body quality and characteristics remain as anticipated; thatthere is no failure of plant, equipment or processes to operate as anticipated; that accidents, labour disputes and other risks of the mining industry do not occur; that the jurisdictions inwhich the Company operates remain politically stable; that there are no unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies,development or construction activities; that the actual costs of exploration, and studies remain within budgeted amounts; that regulatory and legal requirements required for exploration ordevelopment activities do not change in any adverse manner, as well as those factors discussed in the section entitled „„Risk Factors‟‟ in this Final Prospectus of the Company dated March16, 2011 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 involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to bematerially different from any future results, performance or achievements expressed or implied by such forward-looking information. Although the Company has attempted to identifyimportant factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause suchactions, events or results to differ from those anticipated, estimated or intended. Any inaccuracy in the assumptions identified above may also cause actual actions, events or results todiffer materially from those described in the forward-looking information.Forward-looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to update any forward-looking information, whether as aresult of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that such forward-looking information will prove tobe accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place unduereliance on forward-looking information.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 anoffering 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, orshall be relied upon, as a promise or representation, whether as to the past or future. 2
  • 3. Solid Fundamentals for Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity & five deep water ports accessible by rail (140-515km) Large iron ore deposit with NI 43-101 compliant resource* • Two properties held – Shymanivske & Zelenivske Sizable • Shymanivske - 345 Mt Measured & Indicated resource @ 31.83% iron; Resource additional 469 Mt of Inferred resource @ 31.05% iron, which will be concentrated to ~65% iron • Potential for resource expansion by further drilling of both deposits Project located in Kryviy Rih, Ukraine; one of the world’s major iron Close to ore districts Target Markets • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East • Surrounded by 7 other operating iron ore mines Compelling High margins due to close proximity to multiple steel mills, relative Economics labour cost advantage and favourable corporate tax rate of 16% • Plan to produce iron ore pellets which are a premium product Skilled Experienced management team with history of creating value for Management shareholders of Consolidated Thompson, RioTinto and Ferrexpo* Resource estimate compiled using historic Soviet data by Hugues de Corta of Genivar, who is a qualified person as defined by NI 43-101 3
  • 4. Black Iron at a Glance An Emerging Iron Ore Company TSX: BKI• Company formed to acquire property in one of world‟s major iron ore districts − Acquired 100% interest in two projects located in the Krivoy Rog Iron Basin in central Ukraine − Excellent access to skilled labour as properties only 35km away from city of 750,000 people• Extensive past exploration by agencies of the ex-Soviet Government − 37,000 meters of diamond drilling & Soviet engineering studies completed − A further 6,700 meters of confirmatory twin hole drilling completed by Black Iron in 2011 Scoping study/PEA on track for Q4, 2011 completion  Sufficient rail, port and power capacity for project confirmed• Targeting pellet production (~65% iron) by mid/late 2015 − Pellets (a premium product) command a $35/t higher price long-term over the fines benchmark price Black Iron 4
  • 5. Key Management and Ukraine Advisory Board Strong Industry and Relevant Experience TSX: BKIMatt Simpson  Former General Manager Mining for the Iron Ore Company of Canada, a RioTinto subsidiary, accountablePresident, CEO and to safely move ~70MTpa of material through cost effective management of over 600 employeesDirector  Previously worked for Hatch consulting, designing and building metallurgical refineries globallyGeorge Mover  Former Project General Director of Ferrexpo Yeristovo Mining, a Ferrexpo AG subsidiary, where he led theCOO development of an open pit iron ore mine and refinery slated to produce 10Mtpa of pellets in Ukraine  Significant mining experience with posts across many former Soviet countries and in North AmericaPaul Bozoki  Over 15 years of accounting, tax and corporate finance experience in Canada and Eastern EuropeCFO including former CFO of CD Capital Partners, a privately held real estate development company operating in the former Soviet Union including UkraineAaron Wolfe  Finance and advisory professional with experience from Mercer, Orion Securities and Macquarie CanadaVP Corp DevelopmentUkraine Advisory BoardDaniel Bilak  Partner at the international law firm CMS Cameron McKenna LLP and Head of their Infrastructure & Property Practice Group in Kyiv, Ukraine  From 1997 to 2001, and again in 2005 to 2006, served as a Senior Governance Advisor to the Government of Ukraine providing policy advice on judicial reform, rule of law and anti-corruption issuesJaroslav Kinach  Ukraine Country Head of the European Bank of Reconstruction (EBRD) from Jan 1995 to Nov 1999  Former Advisor to the Prime Minister of Ukraine under a special technical assistance project arranged by the Canadian International Development AgencyIgor Buchatskiy  Former Director of Smart-Holding, a leading Ukraine-focused private investment group owned by a wealthy Ukrainian national  Former General Manager, International Business Development for ArcelorMittal S.A., where he spent a year evaluating acquisition opportunities across CIS nations 5
  • 6. Board of Directors Direct Iron Ore Experience and Political Connections TSX: BKIBruce Humphrey  Mining Engineer with over 35 years experience with major companies including President and ChiefChairman Executive Officer of Desert Sun Mining Corp. and Chief Operating Officer of Goldcorp Inc.  Previously served as Chairman of Consolidated Thompson Iron MinesJaroslav Kinach  Ukraine Country Head of the European Bank of Reconstruction (EBRD) from Jan 1995 to Nov 1999Director  Former Advisor to the Prime Minister of Ukraine under a special technical assistance project arranged by the Canadian International Development AgencyChris Westdal  Over 30 years diplomatic experience leading international missions, delegations and negotiationsDirector  Canadian Ambassador to Ukraine from 1996 to 1998 and to Russia from 2003 to 2006Pierre Pettigrew  Distinguished career as a Canadian Federal Cabinet Minister including as Minister of Foreign Affairs,Director Minister of International Trade, Minister of Intergovernmental Affairs, and a number of othersJohn Detmold  Chairman and founder of Invecture Group, S.A. de C.V. an asset management, private equity fund andDirector M&A advisory firm - successfully pursued hostile takeover of Frontera Copper CorporationDave Porter  Over 33 years of experience in the mining and steel sector in operations, safety, health, sustainableDirector development, communications and community relations  Most recently VP Government Affairs at Rio Tinto’s Iron Ore Company of Canada mine 6
  • 7. Capital Structure Attractive Valuation TSX: BKI Financing Details Capital Structure• Completed an Initial Public Offering (IPO) on Shares Outstanding March 29, 2011 139.4 million (Basic) – $38.5 million @ $1.40 per share Warrants Outstanding(1) 3.3 million Stock Options Outstanding(2) 5.1 million• Previously completed $31 million in Share Compensation Plan(3) 3.0 million financings to fund acquisition Fully-Diluted Shares 150.8 million Market Cap(4) ~US$128 million Current Cash Balance(4) ~US$35.0 million Debt Balance(4) nil 1. 1,626,000 warrants exercisable at $0.50 per share, and 1,653,312 warrants exercisable at $1.40 per share. 2. 5,050,000 options granted March 29, 2011 at $1.40 per share to Directors, Executives, Employees and Consultants pursuant to the stock option plan. 3. 3,000,000 shares reserved for issuance under the share compensation plan for Directors, Executives, Employees and Consultants; 253,153 were issued on March 31, 2011. 4. As at August 31, 2011, using a closing price of CAD 0.92 per share. 7
  • 8. Proven Track Record Consolidated Thompson’s Bloom Lake Iron Mine TSX: BKI • World class 8Mtpa iron ore concentrateForbes & Manhattan Involvement mine in Quebec • Advanced from exploration stage through development to construction Recently acquired − 8 mtpa capacity (66% Fe concentrate) for $4.9 expanding to 16 mtpa billion − Completed scoping study, 3 feasibility First F&M studies, secured off-take with China‟s involvement third largest steel producer (WISCO) $1 mm • Raised over Cdn$1 bn in capital market cap • Attracted and put in place a qualified management team 2005 Today 8
  • 9. Iron Ore Market Strong Global Demand Growth for Iron Ore TSX: BKI • Demand strong now & into the future: currently driven by industrialization in China and soon to be followed by rebuilding of Japan plus India‟s industrialization • Price anticipated to slowly decline over the next ten years as additional supply comes on stream down to China‟s marginal cost of production being $85 to $120/T for fines • Pellet‟s anticipated to command a $35/T premium over fines for a price of $120 to $155/T Seaborne Iron Ore Demand Growth Iron Ore Fines Price 1600 2009-2013E CAGR Pellet feed 20.2% 1400 Pellets 20.5% Lump 5.7% 1200 Fines 7.4% 1000Fe Demand (Mt) 800 600 400 200 0 2000 2002 2004 2006 2008 2010E 2012E Source: Anglo American and Bloomberg 9
  • 10. Ukraine: A Mining Friendly CountryStrong Local and National Support TSX: BKI• Socially stable democratic republic• Recently announced desire to sign “Association Agreement” as first step to joining European Union• Strong economic growth − GDP growth of 4.2% in 2010; expected to increase to 4.5% in 2011• Steel production is Ukraine‟s largest industry – 40% of exports• Large, highly skilled labour force − Population of approximately 45 million − GDP per capita only $6700/yr• ArcelorMittal and Ferrexpo plc have operated in-country for over 5 years• Corporate tax rate expected to be gradually reduced to 16% in 2014 from 23% in 2011 10
  • 11. Globally Significant Iron Ore District Ukraine: 6th largest iron ore producer & 4th largest reserve base TSX: BKI • Black Iron‟s projects are located in the heart of 2010E Iron Ore Production Ukraine‟s iron ore belt 1000 900 – 35km from city of 750,000 people 800 Only 3% of world production • Iron ore district trends 300 km with sedimentary rock 600 hosted banded iron formations (Dnenpovskog complex)Iron Ore (mt) 420 370 400 260 • Historically well explored resource base but 200 100 72 55 49 substantially under-exploited due to historic Soviet 35 25 0 policy Sweden Russia United States Canada China India Ukraine Brazil South Africa Australia • 15 iron ore mines in Ukraine produced 72 million tonnes in 2010 Global Distribution of Fe Reserves Tarnavatskoye Kirovograd Liponevsky Poltavsky GOK United States Rest of World Sweden 3% 20% Novokonstantinovsky Yeristovskoye 3% Tsentralny India Russia Kryviy Rih Iron Ore Complex Safonovskoye 5% 16% Shymanivske Ordzhonikize Gok China Zelenivske 8% Ingulestky GOK Kryviv Rih Yuzhny GOK Kuksunurskoye Brazil Australia 18% 17% Ukraine 10% Source: USGS 2011 Iron Ore report and Metal Economics Group 11
  • 12. World Class NeighboursAdjacent to Large ArcelorMittal Operation TSX: BKI• ArcelorMittal purchased Kryviy Rih integrated steelmaking complex in 2005 for US$4.8 billion• Located adjacent to Black Iron‟s projects• 2010 production of 10 million tonnes iron ore concentrate• Iron ore resource of 1.8 billion tonnes at the end of 2009• Kryviy Rih is a banded ferruginous quartzite deposit containing primarily magnetite 12
  • 13. Prospective Iron Ore Deposit Significant Regional Iron Ore Production TSX: BKI ArcelorMittal’s Kryviy Rih Iron Ore Complex • Primarily magnetite with some Black Iron’s hematite Shymanivske Project • Two mining and exploration permits M&I: 345Mt @ 31.83% covering 5.92 km2 Inferred: 469Mt @ 31.05% − Mining permit at Shymanivske, which has been extensively explored, covering 2.56 km2 valid until 2024 Railway lines − Exploration permit at Zelenivske covering 3.36 km2 valid until 2014 • Adjacent to ArcelorMittal‟s Kryviy Black Iron’s Smart & Evraz’s Rih iron ore complex and Smart & Zelenivske Project YuGOK Iron Ore Mine 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 tailings1. Resource estimate compiled using historic Soviet data by Hugues de Corta of Genivar, who is a qualified person as defined by NI 43-101 13
  • 14. Shymanivske Has A Large Resource Base Major Iron Deposit with Potential to Grow TSX: BKI • Banded iron formation consisting of 4 iron-rich layers, with the resource comprising 3 of these layers − Layer‟s thicknesses range from 40-80 m • The resource is defined by ~37,000 metres of historical drilling − 9.7-21.2 m of overburden • Black Iron recently completed 6,700 meters of twin hole drilling ― Total iron grade and band width align very well with historical data Shymanivske Tonnage Fe Tot Fe Mag Resource* (Kt) (%) (%) • Potential for total combined resource expansion of 1.1 to 1.8BTMeasured 289,799 31.84 18.77 − Additional drilling of Shymanivske at NorthIndicated 55,705 31.76 18.75 end of deposit and to depthTotal Measured − Exploration of the Zelenivske project 345,504 31.83 18.75and Indicated * Resource estimate compiled using historic Soviet data by Hugues de Corta of Genivar, who is a qualified person asInferred 468,892 31.05 18.26 defined by NI 43-101 14
  • 15. Potential Resource Extension at ShymanivskeGround 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 Likely just dirt in ground Drill hole 15
  • 16. Excellent InfrastructureKey to a Successful Iron Ore Project TSX: BKI • Paved roads to site, located 35km away from the major city of Krivoy Rog which has a skilled work force • Surplus of low-cost 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 10 million tonnes of iron ore per annum • 5 deep water ports accessible by rail with iron ore facilities available • Ports located 140 km to 515km away providing access to Black Sea and global seaborne iron ore markets 16
  • 17. Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI • River barge & rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets − Target markets include Asia, Western Europe, Turkey, and Middle East • Several dry bulk tonnage ports accessible using railway running beside properties • Approximately 20% to 25% shorter transport Major Rail Line distance to China compared to North and South American producers1 • Power, port and rail access, combined with local highly skilled workforce, provide potential to accelerate development and Russia reduce the amount of capital investment Europe South Korea Middle and Japan East China India1 Based on approximate nautical miles distances of Odessa (Ukraine), Vitoria (Brazil) and Montreal(Canada) to Tianjin (China) as disclosed at searates.com 17
  • 18. Key Milestones for Value CreationProject Development Timeline TSX: BKI 2011 2012 Future H1 H2 H1 H2 Drill metallurgical holes Scoping Study/PEA Exploration & Definition Drilling Feasibility Study Environmental Studies Permitting Detailed Engineering Construction Production 18
  • 19. Public Comparable CompaniesIron Ore Exploration/Development TSX: BKI Market Data Fe Contained EV / Fe as at Reserve & Resource Reserve & Resource 31-Aug-11 (mm t) (C$/t) Market Enterprise Price Cap Value Total TotalCompany Location (US$) (US$ mm) (US$ mm) Total Grade R&RDevelopers & ExplorersAfrican Minerals Sierra Leone $8.24 2,615.9 2,279.8 3,983 34.0% 0.57Gindalbie Metals Australia $0.75 622.0 422.0 430 34.1% 0.98Labrador Iron Mines Canada $8.75 460.2 322.2 98 56.5% 3.30Baffinland Iron Mines Canada $1.50 514.6 476.7 559 64.6% 0.85Northland Resources Sweden $1.88 421.2 176.4 147 32.1% 1.20New Millennium Capital Canada $1.85 273.9 258.2 2,309 30.4% 0.11Alderon Canada $3.42 283.9 259.6 183 30.0% 1.42Adriana Resources Canada $1.10 160.4 131.7 729 29.1% 0.18Champion Minerals Canada $1.20 77.2 65.6 141 28.0% 0.47Afferro Mining Liberia $1.09 94.0 57.9 509 34.7% 0.11Adjusted Mean (Excludes Highest and Lowest Data Point) 0.72Mean 0.92Black Iron Ukraine $0.92 128.2 93.2 256 31.4% 0.36Sources: Bloomberg, Reuters, equity research and company disclosure 50-60% discount
  • 20. Solid Fundamentals for Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity & five deep water ports accessible by rail (140-515km) Large iron ore deposit with NI 43-101 compliant resource* • Two properties held – Shymanivske & Zelenivske Sizable • Shymanivske - 345 Mt Measured & Indicated resource @ 31.83% iron; Resource additional 469 Mt of Inferred resource @ 31.05% iron, which will be concentrated to ~65% iron • Potential for resource expansion by further drilling of both deposits Project located in Kryviy Rih, Ukraine; one of the world’s major iron Close to ore districts Target Markets • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East • Surrounded by 7 other operating iron ore mines Compelling High margins due to close proximity to multiple steel mills, relative Economics labour cost advantage and favourable corporate tax rate of 16% • Plan to produce iron ore pellets which are a premium product Skilled Experienced management team with history of creating value for Management shareholders of Consolidated Thompson, RioTinto and Ferrexpo* Resource estimate compiled using historic Soviet data by Hugues de Corta of Genivar, who is a qualified person as defined by NI 43-101 20
  • 21. CONTACT INFORMATION 65 Queen Street West Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 www.blackiron.com Investor Relations Investor Cubed Inc. Telephone: +1 (647) 258-3311 Toll-Free: +1 (888) 258-3323 Fax: +1 (416) 363-7977TSX: BKI info@blackiron.com 21

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