Black Iron continues permit renewal work at Shymanivske

Executive Summary

• Black Iron Inc. has completed all necessary engineering, environmental, and social impact studies, as well as public hearings, required to mine 1% of its Shymanivske iron ore orebody in Ukraine, a prerequisite for permit renewal under new 2022 legislation.
• The company has received all necessary approvals from the Ukrainian government to proceed with this initial mining phase, with commercial mining operations anticipated to begin in early 2026.
• To avoid significant capital expenditure for this initial phase, Black Iron is negotiating with neighboring mines to process the ore and is exploring non-recourse loan financing from government-backed agencies for future project permitting.

Key Details

• Shymanivske Project (Ukraine):

  • Permit Status: The extraction permit expires in November 2024 but is extended by current martial law. New 2022 legislation requires mining 1% of the orebody prior to renewal.
  • Compliance: In 2025, the company completed all required studies and public hearings to mine the 1% threshold. All necessary government approvals have been received.
  • Processing Strategy: The company is negotiating with neighboring iron ore mines with spare concentrate capacity to process the ore, avoiding the need for significant upfront capital.
  • Technical Validation: Trial processing of ore was successfully completed, proving the ability to produce a highly salable iron ore concentrate.
  • Timeline: Commercial mining operations at Shymanivske are anticipated to start in early 2026.
  • Anglo American Investment: Upon permit renewal, Anglo American will invest a further $1.6 million (U.S.) as per the royalty and offtake agreement announced in November 2024.
  • Financing: Discussions are ongoing with government-backed agencies interested in Ukraine's rebuilding; one agency is considering granting a non-recourse loan to finance full project permitting, repayable only upon the start of full commercial production.

• Julienne Lake Project (Canada):

  • Bid Status: Black Iron successfully made the short list of bidders in a competitive bid process run by the Newfoundland and Labrador government to acquire the Julienne Lake undeveloped iron ore resource.
  • Support: The bid was supported by global miner Anglo American.
  • Project Attributes: Located adjacent to Rio Tinto/Mitsubishi’s Iron Ore Company of Canada’s producing mine, the project benefits from existing railway, deep seaport, low-cost hydroelectric power, and skilled labor.
  • Economics: Historical preliminary work indicates a very low strip ratio and high iron recovery, suggesting a highly economic project for producing high-purity iron ore suitable for cleaner steelmaking.

• 2026 Outlook:

  • Complete mining of the 1% ore at Shymanivske to renew the permit.
  • Secure non-dilutive funding to advance permitting for the broader Shymanivske project.
  • Continue discussions with the Newfoundland and Labrador government to win rights to develop Julienne Lake.