IRON BEAR RESOURCES LTD — Capital/Financing Update 2010

Apr 20, 2010

ASX Announcement 21 April 2010

SIGNIFICANT WIDTHS OF SHALLOW IRON ORE MINERALISATION INTERSECTED AT MATUKIA PROSPECT AT MARAMPA

Key Points:

• First assay results received from diamond drilling at Matukia with significant intersections of specular hematite schist over 1.2km of strike including:

• MPDD015: 132m at 34% Fe from 0m;

• MPDD016: 81.2m at 36% Fe from 32.8m;

• MPDD017: 98m at 33% Fe from 152m;

• Metallurgical response expected to be similar to Gafal West, where a concentrate of >60% Fe is produced with simple magnetic separation,

• Ground geophysical survey identifies 3 new targets north of Matukia enhancing the overall prospectivity of the field.

Australian resources and investment company, Cape Lambert Resources Limited ( ASX: CFE ) (“Cape Lambert” or the “Company”) is pleased to announce the first assay results from a recently completed diamond drilling program at the Matukia prospect (“Matukia”) comprising part of its 100% owned Marampa Iron Ore Project (“Marampa Project”) located in Sierra Leone, West Africa (refer Figure 1).

Matukia is located immediately to the north and along strike of the historic Masaboin open pit, an iron ore mine operated by Sierra Leone Development Corporation until the late 1970’s (refer Figure 2). Matukia is the second of 6 prospects (refer Figure 2) defined by surface exploration in 2009 to be subject to systematic drill testing.

Drilling

Diamond drilling commenced at Matukia in January 2010. The aim of the drilling program was to determine the structure, thickness and grade of hematite schist mineralisation, which outcrops over a strike of >1km. A total of five east-west sections spaced between 200m and 400m apart were drilled, with 2 or 3 holes on each section (refer Figure 3).

A total of 11 diamond drill holes have been completed at Matukia for a total of 2,698m, with assay results now received for the first 9 holes (refer Figure 3 and Table 1 for details).

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

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

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

Lady Annie Copper Project Marampa Iron Ore Project 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 Email: Jos@conduitpr.com

info@capelam.com.au

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

www.capelam.com.au

ASX Announcement 21 April 2010

Geology

All diamond drill holes with final assays received to date at Matukia have intersected medium to coarse-grained (0.5mm – 3mm) specular hematite hosted in quartz-albite-mica schist (“specular hematite schist”).

Specular hematite schist at Matukia has been intersected in up to 3 sub-vertically dipping limbs of tight folds over a strike length of 1.2km. There are 3 intersections in the south, reducing to one in the central and north parts of the prospect.

The specular hematite schist has been intersected from surface to a vertical depth of approximately 250m. Weathering extends from the surface to vertical depths of from 10 to 45m. A laterite cap from 2m to 5m thick is developed over the specular hematite schist.

Assay Results

Drill intersections of specular hematite schist vary in length from 39m to 132m at grades of 26% to 36% Fe. Assay results for the first 9 holes from Matukia are summarised in Table 1.

Exploration Potential

Diamond drilling at Matukia has now confirmed specular hematite mineralisation with significant widths and grades from surface to a depth of up to 250m over a strike length of 1.2km. Further drilling is required to test along strike to the north of Matukia where specular hematite schist has been recorded in old prospecting pits.

An exploration target size[1] from 60 to 80 million tonnes at 26% - 36% Fe is estimated for the Matukia prospect, which is only one of six prospects making up the project. This is based on interpretation and modelling of all available geological mapping, trenching and diamond drilling information.

Geophysics

A ground gravity geophysical survey was completed in February 2010 along prospective stratigraphy between Matukia and Makambo prospect (“Makambo”) (refer Figure 2). This survey identified three groups of gravity high anomalies located immediately south of Makambo under cover. Both the Matukia and Gafal West prospects are coincident with gravity high ridges (refer Figure 2). These new anomalies represent new exploration targets for hematite mineralisation and will be subject to reconnaissance in the June quarter 2010.

A trial survey using induced polarisation (“IP”) was carried out at Gafal West and Matukia in March 2010. This trial successfully identified conductive anomalies coincident with specular hematite schist at these prospects. The IP resistivity and chargeability successfully mapped specular hematite schist mineralisation beneath shallow cover, and provided more detailed resolution of boundaries and dips than other geophysical methods.

Further Work

Resource definition diamond drilling is now underway at the Gafal West prospect on 200m spaced sections, targeting near-surface hematite schist mineralisation identified by the previous drilling program completed in 2009 (refer ASX announcement dated 28 January 2010). This drilling will be completed in the June quarter 2010 and will be followed by scout drilling programs at Mafuri and Rotret prospects.

1 The estimates of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

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ASX Announcement 21 April 2010

Resource definition drilling at Matukia is planned to commence in the June quarter 2010 with the aim of estimating Inferred Mineral Resources.

Metallurgical test work of ore type composites from Matukia is underway, although the metallurgical response at Matukia is expected to be similar to Gafal West, where specular hematite schist can be successfully beneficiated using simple magnetic separation to produce an iron ore concentrate of >60% Fe with low levels of impurities.

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

Competent Person :

The contents of this report relating to exploration and mineral resources are based on information compiled by Sean Halpin, a Member of the Australasian Institute of Geoscientists. Mr Halpin is a geological consultant to Marampa Iron Ore Limited and has sufficient experience relevant to the styles of mineralisation and the deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Halpin consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

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Figure 1: Marampa Project Location

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ASX Announcement 21 April 2010

ASX Announcement 14 January 2010

Table 1 – Matukia Diamond Drill Hole Assay Results

Down Hole	Down Hole
RL Dip Azimuth Hole Length Hole Easting Northing	Length Fe AI2O3 SiO2 P TiO2 LOI From To
Number Metres WGS84 Zone 28 Degrees	Metres % % % % % % Metres
MPDD014 774051 963199 102 -50 270 316	226 300 74 30.1 4.76 41.0 0.13 0.17 3.40
MPDD015 773952 963184 104 -50 270 186	0 132 132 33.6 4.83 36.9 0.11 0.20 2.91
MPDD016 773850 963398 102 -50 270 132	32.8 114 81.2 36.1 3.24 35.5 0.15 0.15 3.09
MPDD017 773951 963398 102 -50 270 261	152 250 98 33.0 4.07 37.6 0.17 0.17 3.36
MPDD018 773501 963799 95 -50 90 147	60 132 72 25.9 5.76 43.1 0.09 0.19 3.68
MPDD019 773404 963797 93 -50 90 248	195 237 42 32.8 4.13 38.2 0.14 0.16 3.32
MPDD020 774051 962799 92 -50 270 435	38 106 68 32.5 4.31 38.7 0.18 0.18 2.59
	154 228 74 32.5 3.96 39.1 0.14 0.15 3.28
	288 394 106 28.8 5.04 40.0 0.10 0.20 3.50
MPDD021 773953 962798 93 -50 270 313	8.7 48 39.3 27.0 6.09 49.6 0.17 0.27 1.75
	188 276 88 32.0 4.48 38.0 0.10 0.17 3.68
MPDD022 773882 962598 98 -50 270 170	108 170 62 31.5 4.56 38.8 0.11 0.15 3.60
MPDD023 773982 962599 100 -50 270 335	Assays Pending
MPDD024 773853 962795 95 -50 270 155	Assays Pending

Notes: Minimum intersection width is 6m down hole at >20% Fe. Maximum of 10m of internal waste <20% Fe. All samples half sawn diamond core, HQ in weathered zone, NQ in fresh rock, 2m composites in fresh rock, 2m – 5m composites in weathered rock. Elements assayed by UltraTrace laboratories in Perth, Western Australia using XRF. The down hole intersection lengths do not represent true widths. Hole MPDD022 terminated in mineralisation due to equipment failure.

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Figure 2: Marampa Project - Prospect Locations

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Figure 3: Matukia Prospect - Drill Hole Locations

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