IRON BEAR RESOURCES LTD — Capital/Financing Update 2009

Aug 26, 2009

ASX Announcement 27 August 2009

CAPE LAMBERT INCREASES MT ISA BLOCK HOLDING WITH A$1.75M DEAL TO ACQUIRE MOJO MINERALS

• Cape Lambert signs agreement to acquire MOJO Minerals Limited in a scrip deal valued at A$1.75M,

• MOJO holds 15 contiguous exploration tenements covering approximately 5,000km[2] in the southern portion of the Mt Isa Block in Queensland,

• Extensive aeromagnetic, radiometric and gravity anomalies indicate Copper, Zinc-Lead-Silver, Phosphate and Uranium potential,

• Tenements are contiguous to land package owned by 100% owned Cape Lambert subsidiary Australis Exploration Pty Ltd, and south of the Lady Annie and Lady Loretta projects.

Australian resources and investment company, Cape Lambert Iron Ore Limited ( ASX: CFE ) (the “Company” or “Cape Lambert”) has signed a binding Heads of Agreement (HoA) to acquire 100% of the share capital of unlisted public company MOJO Minerals Limited (“MML”) in a scrip deal valued at A$1.75 million. The scrip consideration will be satisfied with the issue of approximately 3.98 million Cape Lambert shares and is based on an issue price of A$0.44 per share.

MML, through its 100% owned subsidiary MOJO Mining Limited, holds 15 contiguous exploration tenements covering approximately 5,000km[2] in the southern portion of the Mt Isa Block in Queensland. These tenements have been subjected to aeromagnetic, radiometric and gravity assessment that identified geophysical anomalies prospective for Copper, Zinc-Lead-Silver, Phosphate and Uranium.

The tenement package held by MML is contiguous to the 38,000 km[2] tenement package held by 100% owned Cape Lambert subsidiary Australis Exploration Pty Ltd (“Australis”) and south of the Lady Annie (CFE 100%) and Lady Loretta (CFE 25%) projects (refer Figure 1).

The Company’s strategy for the Australis land holding is to complete a reconnaissance level exploration work program over the next 12-18 months ahead of a potential IPO. It is intended to include the MML tenement package within the Australis IPO.

Cape Lambert Chairman, Mr Tony Sage believes this latest transaction gives the Company a dominant position in the Mt Isa Block, a region of Queensland recognised as a world class resources province.

Cape Lambert is an Australian domiciled, mineral investment company. Its current investment portfolio is geographically diverse and consists of mineral assets and interests in mining and exploration companies.

The Company continues to focus on investment in early stage resource projects and companies, primarily in iron ore, copper and gold. Its “hands on” approach is geared to add value and position assets for development and/or sale.

The Board and management exhibit a strong track record of delivering shareholder value.

Australian Securities Exchange Code: CFE

Ordinary shares 523,797,213 million

Unlisted options (30 June 2010) 8,350,000 million

Unlisted options (31 Oct 2010) 28,000,000 million

Board of Directors

Tony Sage Executive Chairman Tim Turner Non-executive Director Brian Maher Non-executive Director Eloise von Puttkammer Company Secretary

Key Projects and Interests Lady Annie Copper Project Sappes Gold Project DMC Mining Limited Corvette Resources Limited

Cape Lambert Contact Tony Sage Executive Chairman Phone: +61 (0)8 9380 9555

Australian Enquiries

Professional Public Relations David Tasker Phone: +61 8 9388 0944 Mobile: +61 433 112 936 Email: david.tasker@ppr.com.au

UK Enquiries

Conduit Public Relations Jos Simpson Phone: +44 (0)20 7429 6603 Mobile: +44 (0)7899 870 450

Cape Lambert Iron Ore Ltd[ABN 71 095 047 920] PO Box 144, West Perth Western Australia 6872 Phone: +61 8 9380 9555 Facsimile: +61 8 9380 9666

info@caplam.com.au www.caplam.com.au

ASX Announcement 27 August 2009

“The Mt Isa Block is recognised as a world class resources province and to have such an extensive landholding in this region will prove to be of significant importance to the Company now and in the future,” Mr Sage said.

“This area has already produced, and in our view will continue to produce, world class deposits and mining projects.”

The transaction is subject to due diligence, which is expected to be completed within 30 days and the execution of a Sale and Purchase agreement between the parties.

Yours faithfully Cape Lambert Iron Ore Limited

Tony Sage Executive Chairman

==> picture [485 x 597] intentionally omitted <==

----- Start of picture text ----- 136°S 137°S 138°S 139°S 140°S 141°SWestmorelandGulf ofCarpentariaBurketown18°SHighland PlainsNCentury19°SAlexandriaAlroyBuchanan DamThorntonia Lady JaneMammothD-TreeCamooweal East Galah Creek LADY LORETTA DEPOSITYelverton20°S Wonarah North Area LADY ANNIE DEPOSITMOUNT KELLY DEPOSITLily Ck Sherrin Ck LADY ANNIEPLANT SITE DugaldRiverValhalla Ernest Henry100km Hilton RocklandsMt. IsaMOUNT ISACloncurry21°S DarwinMT ISAPhosphate HillBrisbaneSelwyn MinePerth Sydney Ardmore DajarraAdelaide DuchessMelbourne1000km Quita Ck OsborneMOJO Tenement AcquisitionsAustralis TenementsNorthern Territory Licences Boulia(Granted)Queensland Licences(Applications)Legend MOJORock Phosphate Deposits Tenement HoldingsCu/Base Metal DepositsUranium DepositsTownsiteHighway/RoadTMI ImageFigure 1LaurenceTrend----- End of picture text -----

==> picture [185 x 33] intentionally omitted <==

----- Start of picture text ----- AUSTRALIS AND MOJOTENEMENT HOLDINGS----- End of picture text -----