IRON BEAR RESOURCES LTD — AGM Information 2008

Nov 24, 2008

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25 November 2008

The Company Announcements Office ASX Limited

Via E Lodgement

Market Update Presentation

The Company’s Executive Chairman, Mr Tony Sage, will make a presentation to attendees of todays Annual General Meeting.

We attach herewith a copy of the presentation.

Yours faithfully

CAPE LAMBERT IRON ORE LIMITED

Tony Sage Executive Chairman

For more information please contact:

Cape Lambert Iron Ore Limited Tony Sage +61 8 9380 9555

Website

www.capelam.com.au

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Market Update – Annual General Meeting 25 November 2008

Disclaimer

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This presentation has been prepared by Cape Lambert Iron Ore Limited (“Cape Lambert” or the “Company”). It should not be considered as an offer or invitation to subscribe for, or purchase any, securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. Cape Lambert has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Cape Lambert makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

Throughout the presentation all figures are quoted in A$ dollars unless otherwise stated.

You should not act or refrain from acting in reliance on this presentation material. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Cape Lambert’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

Information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on previous announcements made by Cape Lambert to the ASX and AIM.

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At a Glance

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• Australian domiciled, iron ore exploration and development company,

• Interests in 2 early definition iron ore assets;

• Cape Lambert South, 100% interest, magnetite, located in the coastal Pilbara region of Western Australia,

• Marampa iron ore project, 30% investment & Manager, specular hematite, located in Sierra Leone, West Africa.

• Cash reserves of ~A$229million,

• Standard & Poors ASX 300 company and AIM listed,

• Evraz Group S.A. largest shareholder,

• Recent track record of delivering shareholder value.

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Project Locations

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Strategy Going Forward

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• Leverage off substantial cash reserves,

• Invest in a portfolio of early definition iron ore and related steel making assets,

• Add value to the assets through defining JORC resources, metallurgical quality and mining development plans,

• Position the assets for either development and/or sale,

• Balance success risk with 4-6 investments with geographical diversity,

• Current turmoil in financial markets is generating investment opportunities.

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Corporate Snapshot

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Dash Board Summary (21 November 2008)	Dash Board Summary (21 November 2008)
Shares on issue	506.78m
Options on issue	39.65m
Share price (close 21 Nov 08)	A$0.165
Market capitalisation (fully diluted)	~A$90m
Cash reserves	~A$229m
Average daily volume (last 6 months)	~2.6m

Capital Structure (21 November 2008)	Capital Structure (21 November 2008)
Ordinary shares (ASX:CFE,	AIM:CLIO)	506.78m
Options on issue
Expiry	Strike (A$)	Quantity
30-Jun-09	1.33	3.30m
30-Jun-10	0.432	8.35m
31-Oct-10	0.309	28.00m
	Total Options	39.65m
Fully Diluted		546.35m
Major Shareholders (21 November 2008)
ANZ Nominees	17.1%
Evraz Group	11.9%
Power United	9.9%
Marampa Iron Ore	8.7%
HSBC Nominees	5.8%
AWP Sage (Director)	4.8%
Top 20	74.0%

Board and Senior Management

Board

	Board
	Tony Sage	Executive Chairman
	Tim Turner	Non-Executive Director, Deputy Chairman	Major Shareholders (21 November 2008) ANZ Nominees 17.1%
	Brian Maher	Non-Executive Director	Evraz Group	11.9%
	Peter Landau	Non-Executive Director	Power United	9.9%
	Senior Management		Marampa Iron Ore	8.7%
	Joe Ariti	EGM	HSBC Nominees	5.8%
	Kim Bischoff	GM - Exploration	AWP Sage (Director)	4.8%
	Jeff Hamilton	Project Manager	Top 20	74.0%
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Past 6 Months in Review

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• Successful closing of the AUD$400 million sale with China Metallurgical Group Corporation (MCC),

• Receipt of A$320 million in cash from the MCC sale – 80% of sale consideration (final A$80 million expected to be received in approximately 2 years hence),

• � AUD$100 million in total, return of capital (31.25%) and unfranked dividend (68.75%) paid to shareholders on 31 October 2008,

• Grant of the Cape Lambert South exploration licence with drilling to commence at the end of October,

• 30% investment in the Marampa Iron Ore Project in West Africa.

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Cape Lambert South

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• Magnetite project,

• Untested 3km long, magnetic anomaly on the Cleaverville formation,

• Southern extension of MCC’s 1.56 billion tonne magnetite project,

• Near term objective is to defined an initial JORC resource inside the next 12 months,

• Drilling to commence late October 2008,

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• Proposed expenditure to December 2009 of A$6 million.

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Near Infrastructure

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Southern Extension

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Project Timeline

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Marampa

• Specular hematite project,

• 30% investment and Manager,

• 319km[2] exploration licence surrounding former iron ore mine workings,

• Proximal to existing mineral railway that terminates at Pepel port,

• Inventory of tailings - potential starter operation and early cash flow,

• Walk-up drill targets and underexplored regional prospectivity.

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Commercial Terms

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• Initial 30% investment,

• Issue of 44 million CFE shares,

• Commitment to fund the first US$25 million toward a definitive feasibility study.

• Cape Lambert is the Manager,

• Able to withdraw at any time after initial expenditure of US$5 million retaining pro-rata interest,

• Right to access rail and port infrastructure on African Mineral’s being granted an operating lease,

• Full “claw back” during the first 12 months if the exploration licence boundaries change or the licence is cancelled, terminated etc,

• Exclusive 20 month option to acquire 100% interest for US$200 million less value of CFE shares and expenditure to date.

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Exploration Targets

• Geophysics has proved successful at identifying the covered hematite schist,

• Reconnaissance drilling of the gravity anomalies has confirmed the presence of broad, continuous zones of iron mineralisation,

• MARDH002 - 237m at 28% Fe from surface,

• MARDH004 – 180m at 30% Fe from surface.

• Drilling priorities are the West and NE gravity prospects,

• Regional potential extends to the northwest of the NE gravity prospect.

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Near Infrastructure

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Quality Fines Product

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• Preliminary metallurgical test program underway on hematite schists,

• Early results indicate a quality fines product at a coarse grind size,

	Fe%	SiO2 %	Al2O3 %	P %
Head Grade	28.1	44.7	5.25	0.23
Concentrate Grade	66.8	1.90	0.55	0.13

Notes:

�Bulk sample prepared by combining continuous, 50m mineralised intervals from diamond drill holes MPD002 (interval 150 to 200m), MPD003 (interval 50 to 150m) & MPD004 (interval 100 to 150m).

�Test work conducted at a feed grind size of 80% passing 125µm on a laboratory scale Wilfley table.

�Mass yield was 30% with a Fe recovery of 70%.

• Hematite schist is relatively soft,

• Compared to magnetite, significantly less power required to produce a concentrate,

• Simple flow sheet comprising crushing, coarse grinding and gravity separation anticipated.

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Project Timeline

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Summary

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• Recent track record of delivering shareholder value,

• Payment of A$100 million return of capital and unfranked dividend on 31 October 2008,

• In the near term drilling to commence at the Company’s two iron ore projects,

• Fully funded,

• Continuing to evaluate other investment opportunities in iron ore and related steel making assets,

• Well positioned to take advantage of current market conditions.

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Competent Persons Attribute

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The Metallurgical information in this report is based on information compiled by GV Ariti who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Ariti has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Ariti consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

The Exploration information in this report is based on information compiled by K Bischoff who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bischoff has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Bischoff consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

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