Black Iron project supported by Zelensky statements

Black Iron (BKI CN), a Canadian iron ore exploration
and development company, was mentioned by name in several highly supportive statements
by Ukrainian President Zelensky regarding its project in Ukraine, according to
a July 3 company press release. Speaking at an Economic Club of Canada event on
July 3, Zelensky stated that he and his government will be supporting Black
Iron’s project as a priority, the press release said.

Matt Simpson, Black Iron’s CEO who attended the event,
said in the press release: “It is great to hear President Zelensky make very
specific comments on the transfer of essential State Government-owned land to Black
Iron for mine construction and commitment to provide maximum assistance at all
stages of project implementation.”

Recall, Black Iron reported on March 14 that it has
been offered rights to an “ideal” parcel of land that it needs in order to
develop its Shymanivske mine project. The land parcel will host a processing
plant, tailings and waste rock, the company said in its press release, adding
that it was offered via a plan developed by Ukraine’s Ministry of Defense. To
secure the rights to this land, Black Iron needs to finalize discussions with
the ministry on relocating its facilities currently there.

Dmytro Khoroshun: We think
it’s more likely that Black Iron will secure the land parcel it needs only
after Ukraine forms a new government following the July 21 elections. The
stronger the July 21 performance of The People’s Servant, Zelensky’s party, the
sooner the government will be formed and the higher the degree of cooperation
Zelensky will enjoy from the new government. The new government is likely to
emerge in September at the earliest, we think.

Considering the above timeline, Black Iron’s plans to start plant construction by the end of 2019
continue to look realistic.