IRON BEAR RESOURCES LTD — Capital/Financing Update 2009

Aug 12, 2009

ASX Announcement Date 13 August 2009

Cauldron Energy Receives \$1.9m Convertible Note Fundina

Cauldron Energy Limited ("CXU") is pleased to announce it has received convertible note funding totaling \$1.9 million, including \$1.5million from Dempsey Resources Pty Ltd ("Dempsey"), a fully owned subsidiary of Cape Lambert iron Ore Ltd (ASX: CFE). Under the terms of the agreements, the Convertible Note holders have the right before the repayment date of 31 July 2012 to convert the Note into ordinary shares in CXU, subject to the receipt of all necessary regulatory approvals (if any) including from CXU shareholders. The conversion price will be \$0.50 with a coupon rate of 10%.

Cauldron is a leading Australian uranium exploration company which retains an experienced board of directors and management team, with proven success in the resources sector.

Cauldron controls over 17,000 sq km of uranium prospective tenements across three states in Australia and large projects with defined uranium mineralisation in Argentina. The Board believes these holdings allow for diversification geologically and politically towards uranium exploration and mining.

ABN (21102.912.70)

35 Richardson Stave WESTPERED WART OF

POILOX 1918 West Pour WA 607.

ASX Code 73 million urdstacy can enog milion gastro en a

The Sade Executive Chairman

Familiaména Chief Executive Officer

Daar Sach Executive Director

Receipt a districtive Non-executive Director

Stegimal dradkhum Company Secretary

Yours faithfully

Terry Topping Chief Executive Officer