A laboratory experiment was carried out to extract iron from oolitic iron ore by a deep reduction and magnetic separation technique. The raw coal with fixed carbon of 66.54% was used as the reductant. The iron was successfully extracted from the oolitic iron ore which otherwise is nearly impossible to be separated due to its extremely fine-grain and mosaic nature. The results showed that an iron recovery rate of 90.78% and an iron content of 92.53% of iron concentrate could be obtained by such a technique. The optimized roast temperature is 1200 ℃ and time is 60 min. The subsequent magnetic separation was performed by using a magnetic field intensity of 111 kA·m-1 and a grinding fineness less than 45 μm of 96.19% for the sintered product.