Mr. Matt Simpson reports

BLACK IRON PROVIDES YEAR-END UPDATE

Black Iron Inc.'s team spent the past year completing studies and holding public hearings essential for the renewal of the company's extraction permit at its Shymanivske iron ore project in Ukraine, while raising the company's profile with mainly government agency backed financial organizations who could potentially finance future construction. The company also submitted proposals to the Newfoundland and Labrador government to acquire the exceptional Julienne Lake undeveloped iron ore resource, with the support of global miner Anglo American, and successfully made the short list of bidders.

Shymanivske iron ore project, Ukraine

Black Iron's extraction permit has an expiry date of November, 2024, but its validity is extended by the current period of marshal law. Prior to 2022, permits could easily be renewed within one year of expiry for a 20-year period; however, Ukraine introduced new legislation in 2022 requiring permit holders to mine at least 1 per cent of their orebody prior to seeking renewal. During 2025, Black Iron's team completed all of the necessary Ukraine engineering studies, environmental and social impact studies, and subsequent public hearings to mine 1 per cent of the Shymanivske orebody. All necessary approvals to proceed have been received from the Ukraine government.

To avoid needing to raise significant funds to mine this ore, the company is negotiating with neighbouring iron ore mines with spare concentrate capacity to process this ore into a salable product. As part of these negotiations, Black Iron successfully trial processed some of its ore, further proving the ability to produce a highly salable iron ore concentrate product. The next step will be to start commercial mining operations at Shymanivske, which is anticipated to occur in early 2026. Upon renewing this permit, Anglo American will invest a further $1.6-million (U.S.) as agreed in the royalty and offtake agreement that had been announced in November, 2024.

Discussions were also held with government-backed agencies interested to participate in Ukraine's rebuilding to raise awareness of Black Iron. One agency is considering granting a non-recourse loan to finance permitting of the full project during the continuing war that would be repaid only upon the start of full commercial production.

Julienne Lake iron ore project, Canada

Finally, Black Iron participated in a competitive bid process run by the Newfoundland and Labrador government to develop the Julienne Lake iron ore deposit. This iron ore deposit is located adjacent to Rio Tinto/Mitsubishi's Iron Ore Company of Canada's producing iron ore mine and would benefit similarly as the Shymanivske iron ore project does from close access to existing railway, multiuser deep seaport, low-cost hydroelectric power and skilled labour. Preliminary work conducted historically on Julienne Lake indicates the potential for a very low strip ratio and high iron recovery making it likely a highly economic project to build for the production of high-purity iron ore which is ideally suited for cleaner steelmaking.

Outlook

The focus for 2026 will be to complete mining of the 1 per cent ore at Shymanivske, as required to renew the permit, ideally secure non-dilutive funding to advance permitting the broader project, and continue discussions with the Newfoundland and Labrador government with support from Anglo American to win the rights to develop the Julienne Lake iron ore deposit.

About Black Iron Inc.

Black Iron is an iron ore exploration and development company, advancing its 100-per-cent-owned Shymanivske iron ore project located in Kryviy Rih, Ukraine. Full mineral resource details and projected project economics can be found in the National Instrument 43-101 technical report entitled "(Amended) Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit" published in March, 2020, with an effective date of Nov. 21, 2017, under the company's profile on SEDAR+. The project is surrounded by five other operating mines, including Metinvest's YuGOK and ArcelorMittal's iron ore complex.

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