IRON BEAR RESOURCES LTD — Capital/Financing Update 2008

Mar 27, 2008

28 March 2008

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The Company Announcements Office ASX Limited Via E Lodgement

Cape Lambert and MCC positively

progressing AUD$400M sale

Key points:

• AUD$400 million sale of Cape Lambert Iron Ore Project to MCC on track,

• MCC has submitted an application to the Foreign Investment Review Board (“FIRB”),

• Due diligence progressing.

Cape Lambert Iron Ore Limited (“Cape Lambert” or the “Company”) (ASX: CFE , AIM: CLIO ) is pleased to advise that the sale of its namesake iron ore project in Western Australia to MCC Mining (Western Australia) Pty Ltd (“MCC”) is on target.

On 26 February 2008, Cape Lambert announced that it had signed a non-binding MoU for the sale of the Company’s namesake iron ore project (the “Project”) located in the Pilbara region of Western Australia (refer Figure 1) for a total consideration of AUD$400 million. The Project comprises four key Exploration Licenses being E47/1462, E47/1271, E47/1233 and E47/1248.

MCC has paid an AUD$10 million deposit (AUD$5 million is non-refundable) to secure an exclusive right (until 30 April 2008) to conduct due diligence for the acquisition of the Project. The proposed sale is subject to the successful completion of this due diligence, and shareholder, FIRB and Chinese government approvals.

MCC has advised Cape Lambert that it has lodged an application with FIRB.

Due diligence is progressing. MCC currently has an eight member due diligence team in Western Australia.

Cape Lambert Chairman, Ian Burston, said “MCC has quickly progressed the FIRB application and is expediting due diligence, which gives us a clear indication of its intention to complete the sale and achieve completion in the quickest possible time-frame.”

The Board of Cape Lambert remains committed to the successful completion of the due diligence and subsequent sale of the Project.

Yours faithfully Cape Lambert Iron Ore Limited

Ian Burston Executive Chairman

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Cape Lambert Iron Ore Limited ASX Release

28 March 2008 Page 2 of 3

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:

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:

MCC has more than 70 fully owned and controlled subsidiaries, including nearly 20 overseas companies worldwide. It has a workforce of more than 47,600 technical and managerial employees.

The company has total assets of approximately US$20 billion (145 billion Yuan) and in 2007 the revenue and total profit of the group totalled approximately US$18 billion (126 billion Yuan) and US$1 billion (7.2 billion Yuan) respectively. It has completed design and construction assignments for approximately two thirds of the iron ore projects in China and undertaken design and construction work for more than 90% of the steel mills in China. Its stated objective is to become a Fortune 500 company by 2010.

In Australia, MCC owns 20% of Citic Pacific Mining’s AUD$5.2 billion Sino Iron Project, located near Cape Preston, approximately 120km south west of the Cape Lambert iron ore project (refer Figure 1). MCC has also been awarded the EPC construction contract at the Sino Iron Project.

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

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----- Start of picture text ----- 400 000mE 600 000mE 800 000mE Iron Ore mineIron Ore depositIndianPortCITIC PACIFIC CAPE LAMBERT OceanSINO IRON PROJECT 1.6 BILLION TONNE Existing Iron Ore Railway20% MCC RESOURCEIron Ore Railway underBHP Billiton constructionPort Proposed Iron Ore Railway7 800 000mNRio TintoRio Tinto Port Natural Gas pipelinePortPORT HEDLAND HighwayDAMPIER CAPE LAMBERTFortescueCapePreston Proposed PublicAccess PortCitic PacificProposed PublicAccess PortP I L B A R A7 600 000mNCloud BreakChristmas CreekMT TOM PRICEPARABURDOOMT NEWMAN7 400 000mNWESTERNAUSTRALIA 100km BHP AND RIO TINTOMINESFigure 1Tom PriceParaburdooNewmanKarrathaMarble BarOnslow----- End of picture text -----