IRON BEAR RESOURCES LTD — Capital/Financing Update 2010

Dec 19, 2010

ASX Announcement 20 December 2010

Stirling Minerals Limited shareholders approve acquisition of DMC Mining Limited from Cape Lambert Resources Limited

A short time ago Stirling Minerals Limited ( ASX: SMZ ) (“Stirling”), released an announcement in which Stirling confirmed that at a shareholder meeting held earlier today in Perth its shareholders approved the acquisition of DMC Mining Limited, a wholly owned subsidiary of Cape Lambert Resources Limited ( ASX: CFE ) (“Cape Lambert”) (the “Transaction”).

The approval of Stirling shareholders was one of the key conditions precedent to completion of the Transaction, with the remaining conditions precedent including:

• Stirling completing a A$96M capital raising; and

• Stirling receiving conditional approval to be re-quoted on ASX following completion of the Transaction.

Stirling has advised that the final conditions precedent to the Transaction are progressing, with a prospectus to raise A$96M lodged by Stirling on 17 December 2010.

Full details of the Transaction are detailed within the ASX announcement issued by Cape Lambert on 5 November 2010.

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 616,718,480

Unlisted Options 8,000,000 ($0.45 exp 30 Dec 2011)

Board of Directors

Tony Sage Executive Chairman Tim Turner Non-executive Director Brian Maher Non-executive Director Ross Levin Non-executive Director Claire Tolcon Company Secretary

Key Projects and Interests

Yours faithfully Cape Lambert Resources Limited

Tony Sage

Executive Chairman

Marampa Iron Ore Project Pinnacle Group Assets Sappes Gold Project Mayoko Iron Ore Project Corvette Resources Limited

Cape Lambert Contact

Tony Sage Executive Chairman

Eloise von Puttkammer Investor Relations

Phone: +61 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 Simson Phone: +44 (0)20 7429 6603 Mobile: +44 (0)7899 870 450

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

info@capelam.com.au www.capelam.com.au