IRON BEAR RESOURCES LTD — Capital/Financing Update 2007

Nov 22, 2007

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23 November 2007

The Company Announcements Office Australian Stock Exchange Limited

Via E Lodgement

HELICOPTER MAGNETICS IDENTIFIES POTENTIAL NORTHERN EXTENSION TO CAPE LAMBERT RESOURCE AND DRILL TESTING OF MAGNETIC ANOMALIES COMMENCED

KEY POINTS

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• Higher resolution helicopter magnetic survey has identified a potential northern extension to the Cape Lambert resource;

• 3D magnetic modelling is underway to evaluate the full potential of this northern extension;

• Helicopter magnetic surveying has further resolved up to 7, untested, highly prospective magnetic anomalies that extend over 15km;

• These anomalies overlay the prospective Cleaverville formation, which hosts the Cape Lambert resource;

• Several of these anomalies have strike lengths in excess of 2km and have the potential to significantly increase the iron ore resource;

• Drill testing of the most southern magnetic anomaly has commenced with initial results positive.

BACKGROUND

Iron ore exploration and development company, Cape Lambert Iron Ore Limited (the “Company” or “Cape Lambert”) (ASX code: CFE , AIM: CLIO ) is pleased to report to the market the results from the recent helicopter magnetic survey at its namesake iron ore project in the Pilbara region of Western Australia (refer Figure 1).

On 20 September 2007, the Company announced the identification of several, highly prospective, untested magnetic anomalies interpreted from an airborne (light aircraft) magnetic survey and the commencement of the interpretation of a recently completed, higher resolution, helicopter magnetic survey over the Cape Lambert resource and the newly acquired tenements EL47/1271, EL47/1233 and EL47/1248.

The interpretation of the higher resolution helicopter magnetic survey undertaken by independent geophysical consultants, Resource Potentials, is now complete.

Cape Lambert Iron Ore Limited ASX Release

23 November 2007 Page 2 of 5

Northern extension to Cape Lambert resource

The interpretation has highlighted the potential for a covered, northern strike extension to the existing Cape Lambert resource, which is located outside the limit of drilling (refer Figure 2). The interpreted strike extension is approximately 4km long and 1km wide, which compares with the Cape Lambert resource footprint of 6km long by 1.5km wide.

To fully resolve the geometry and depth of this interpreted northern extension, a 3D magnetic inversion model is being developed by Resource Potentials. Drilling testing of this interpreted strike extension is planned for the first quarter of 2008, once the 3D model and heritage clearances are completed.

Improved resolution of magnetic anomalies and drill testing

The interpretation has further resolved up to 7 untested, highly magnetic anomalies that extend for over 15km within the Cleaverville formation, which hosts the Cape Lambert resource. Several of these magnetic anomalies have strike lengths in excess of 2km and widths over 300m, and have the potential to significantly increase the iron ore resource at Cape Lambert (refer Figure 2).

The Company has commenced drill testing the newly discovered most southern anomaly (refer Figure 2). A program of four holes to test a strike extent over 600m is planned. To date, two holes have been completed with wide intersections (50-100m) of medium to coarse grained magnetite logged in the holes. Assay results will be announced once they are received.

Yours faithfully

CAPE LAMBERT IRON ORE LIMITED

Ian Burston Executive Chairman

The exploration information in this report is based on information compiled by Mr. Bruce Hunter, Regional Exploration Manager, who is a Member of The Australian Institute of Geoscientists. Mr. Hunter 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. Hunter consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

Cape Lambert Iron Ore Limited ASX Release

23 November 2007 Page 3 of 5

For more Information please contact:

Cape Lambert Iron Ore Limited

Ian Burston Tony Sage

+61 (0)8 9211 0600 +61 (0)8 9380 9555

Australian Enquiries: Professional Public Relations David Tasker

+61 (0)8 9388 0944

UK Enquiries:

Collins Stewart Europe Limited Adrian Hadden Oliver Quarmby

+44 (0)20 7523 8353 +44 (0) 20 7523 8354

Conduit PR

Jos Simson +44 (0)20 7429 6603 Jane Stacy +44 (0)20 7429 6606

Website:

www.capelam.com.au

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7740000 mN
7730000 mN
EL47/1271
7720000 mN
Wickham
7710000 mN
EL47/1233
Karratha
EL47/1462 Roebourne
7700000 mN EL47/1248
7690000 mN
Location
Map
KARRATHA Legend
Project
Area Central Target Area Figure 1
 Location and Tenements
Project Tenements
KALGOORLIE Author: Date: August 2007
Drawn: Revised: November 2007
PERTH
Dwg No.: CLIO 023 Report No.:
Datum: GDA 94 Scale: 1 : 350 000
480000 mE 490000 mE 500000 mE 510000 mE 520000 mE 530000 mE 540000 mE
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Interpreted Extension
to Cape Lambert EL47/1271
Deposit
7720000 mN
EL47/1462
7715000 mN
Untested
Targets
7710000 mN
EL47/1233
EL47/1248
7705000 mN
Southern Anomaly
Drilling Commenced
Location
Map
KARRATHA Legend
Project
Area Central Target Area Figure 2
Untested Helimag Anomalies
 Helimag Interpretation
Project Tenements
KALGOORLIE Author: Date: September 2007
Drawn: Revised: November 2007
PERTH
Dwg No.: CLIO 039 Report No.:
Datum: GDA 94 Scale: 1 : 100 000
510000 mE 515000 mE 520000 mE 525000 mE
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