IRON BEAR RESOURCES LTD — Capital/Financing Update 2008

Apr 28, 2008

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29 April 2008

The Company Announcements Office ASX Limited

Via E Lodgement

Cape Lambert and MCC complete due diligence on AUD$400M sale, FIRB application re-lodged

Key points:

• AUD$400 million sale of Cape Lambert Iron Ore Project to China Metallurgical Group Corporation on track,

• Due Diligence completed,

• MCC has re-lodged Foreign Investment Review Board (“FIRB”) application at request of FIRB,

• New FIRB application to be determined before 28 May 2008, and

• Parties progressing to finalisation of Sale Agreement.

Australian iron ore company Cape Lambert Iron Ore Limited (“Cape Lambert” or the “Company”) (ASX: CFE , AIM: CLIO ) is on track with the sale of its namesake iron ore project in Western Australia to China Metallurgical Group Corporation (“ MCC ”), with MCC confirming it has completed due diligence on the project and wishes to commence finalising all relevant Sale Agreements.

Cape Lambert has also been advised by MCC that it has re-lodged its FIRB application at the request of FIRB, who indicated they were unable to reach a determination on the application prior to the statutory deadline being reached. It is now expected that a decision will be made by FIRB prior to 28 May 2008.

Cape Lambert Chairman, Ian Burston, said “Due diligence has been completed and the outcome of the resubmitted FIRB application will be known within a month, all well within the original time frame for key milestones for the sale to be achieved”.

“MCC has advised that they now wish to finalise the Sale Agreement related to the acquisition of the Cape Lambert Iron Ore Project, which gives us great confidence that this company defining transaction will soon be completed.”

The Board of Cape Lambert remains committed to working with MCC towards the successful sale of the Project, to the benefit of all shareholders and stakeholders in the Company.

Yours faithfully Cape Lambert Iron Ore Limited

Ian Burston Executive Chairman

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Cape Lambert Iron Ore Limited ASX Release

29 April 2008 Page 2 of 2

FOR MORE INFORMATION PLEASE CONTACT:

Cape Lambert Iron Ore Limited:

Ian Burston +61 (0)8 9211 0600 Tony Sage +61 (0)8 9380 9555 Australian Enquiries: Professional Public Relations David Tasker +61 (0)8 9388 0944

UK Enquiries:

Nominated Adviser: Grant Thornton LLP Corporate Finance Fiona Owen +44 (0)20 7383 5100 AIM Broker: Collins Stewart Europe Limited Adrian Hadden +44 (0)20 7523 8353 Oliver Quarmby +44 (0)20 7523 8354 Conduit PR: Jos Simson +44 (0)20 7429 6603/+44 (0)7899 870 450 Jane Stacey +44 (0)20 7429 6606

Website:

www.capelam.com.au

About MCC:

Further information about MCC may be found at www.mcc.com.cn.