IRON BEAR RESOURCES LTD — Capital/Financing Update 2008

Oct 6, 2008

ASX Circular

Date: 7 October, 2008

• Key topics
• 1. Cape Lambert Iron Ore Limited
• 1. Reorganisation of Capital
• 1. Return of Capital
• 1. Dividend
• 1. ASX Code: CFE

Reading List

Client Advisers
Compliance Managers
Corporate Advisory
DTR Operators
Issuers
Institutions
ASTC Participants
Operations Managers (back office)
Research Analysts
Share Registries
ACH Participants
Market Participants

Authorised by

Jill Hewitt

Contact

Jill Hewitt

Telephone

(08) 9224 0000

ASX Limited ABN 98 008 624 691 Exchange Centre 20 Bridge Street Sydney NSW 2000 PO Box H224 Australia Square NSW 1215

Internet: http://www.asx.com.au

No responsibility is accepted for any inaccuracies contained in the matter published.

CAPE LAMBERT IRON ORE LIMITED - Return of Capital and Unfranked Dividend

Participating Organisations are advised that the reorganisation of capital of Cape Lambert Iron Ore Limited (the "Company") will become effective on Tuesday 14 October 2008.

The reorganisation is by way of a return of capital of approximately 7.09 cents per share.

The Company has also declared an unfranked dividend of approximately 15.60 cents per share.

The option exercise price will be reduced by the same amount as the amount returned in relation to the ordinary shares. Option holders do not receive the dividend unless the option is exercised prior to the record date.

Please note that the amounts for the return of capital and unfranked dividend are estimates only.

The following timetable will apply.

28 July 2008	Shareholder approval.
14 October 2008	Trading commences in the reorganised securities on a ex return of capital basis.
	ASX Code: CFE
14 October 2008	Securities quoted on an ex dividend basis
20 October 2008	Last day for the Company to register transfers on a pre-reorganisation basis.
	Record date for dividend
21 October 2008	First day for the Company to register securities on a post reorganisation basis.
24October 2008	Despatch date. Payment date
	Deferred settlement trading ends ASX Code: CFE