IRON BEAR RESOURCES LTD — Capital/Financing Update 2010

Aug 17, 2010

ASX Announcement 18 August 2010

CAPE LAMBERT COMPLETES ACQUISITION OF LEICHHARDT COPPER PROJECT

Key Points:

• Cape Lambert successfully completes the acquisition of the Leichhardt Copper Project located in world class Mt Isa base metals province of north west Queensland;

• Revised consideration amounted to A$7.75M;

• Leichhardt Copper Project comprises a copper cathode process plant capable of producing 9,000 tpa, and an extensive landholding with considerable exploration upside; and

• Acquisition continues Cape Lambert’s strategy of investing in undervalued/distressed assets/companies, adding value through technical and corporate support, before looking for ways to realise the investment.

Australian resources and investment company, Cape Lambert Resources Limited (“Cape Lambert” or the “Company”) (ASX: CFE) today through its wholly owned subsidiary, Cape Lambert Leichhardt Pty Ltd, completed the acquisition of the Leichhardt Copper Project (“Project”) from Matrix Metals Limited (Receivers and Managers Appointed) (In Liquidation) (“Matrix”). Payment on completion amounted to A$6.75M in addition to the deposit of A$1M paid in November 2009.

Matrix went into voluntary administration on 11 November 2008, with receivers and managers subsequently appointed by the secured creditor.

The Project is located approximately 100km north east of Mt Isa in the highly prospective Mt Isa Inlier and comprises:

• The Leichhardt process plant at Mt Cuthbert – a heap leach, solvent extraction and electrowinning facility with installed production capacity of 9,000 tpa of copper cathode,

• A granted tenement package (43 tenements) totaling approximately 850km[2] located within the highly prospective Mt Isa Inlier,

• A further 500km[2] of tenement applications (11 applications) also located within the Mt Isa Inlier, and

• The established Mt Watson oxide, open pit located approximately 30km north of the Leichhardt process plant.

The Project is currently on care and maintenance. The Company plans to commence systematic evaluation of the exploration dataset, with the objective of identifying drill targets and commencing drill programs to define additional oxide copper inventory.

The acquisition of the Project is in line with Cape Lambert’s strategy of investing in undervalued or distressed assets or companies, adding value through technical and corporate support, before looking for ways to realise the investment.

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 625,759,256

Board of Directors

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

Key Projects and Interests

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

Cape Lambert Contact

Tony Sage Executive Chairman 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

ASX Announcement 18 August 2010

Commenting on completion of the transaction, Tony Sage, Executive Chairman, said “Given this is a highly prospective tenement package in a world class base metals province, we believe our latest acquisition can return significant value to Cape Lambert and its shareholders in the medium term.”

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

Cape Lambert Resources Limited ASX:CFE

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