IRON BEAR RESOURCES LTD — Capital/Financing Update 2010

Jan 13, 2010

ASX Announcement 14 January 2010

Not for release or distribution in the United States

EXPLORATION DRILLING TO COMMENCE AT LADY ANNIE PROJECT

Key Points:

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• Exploration drilling to commence at the Lady Annie Project in late February 2010, with the first reverse circulation drill rig scheduled to arrive onsite on or about 24 February 2010,

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• Initial focus is on upgrading and adding to the defined resources at the Mt Kelly Mining Area and Anthill-Python prospects,

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• Swick Mining Services Limited (ASX: SWK) awarded a two year contract for surface exploration drilling services, and

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• Program comprises approximately 70,000 metres of reverse circulation drilling and 10,000 metres of diamond drilling.

Australian resources and investment company, Cape Lambert Resources Limited ( ASX: CFE ) (“Cape Lambert” or the “Company”) is pleased to advise that exploration drilling is due to commence at the Lady Annie Project in late February 2010, with the first reverse circulation (“RC”) drill rig scheduled to arrive at the project on or about 24 February 2010.

Swick Mining Services Ltd has been contracted to undertake exploration drilling services over a two year period at the Lady Annie Project, which is located 120km north of Mt Isa, Queensland (refer Figure 1).

The two year exploration drilling program comprises approximately 70,000 metres of RC drilling and 10,000 metres of diamond drilling (“DD”). The first of 3 drill rigs, comprising two RC and one DD rig, will arrive at Lady Annie on or about 24 February 2010 and will commence drilling shortly thereafter. The second RC rig is scheduled to arrive in the second quarter 2010, and a diamond rig in May 2010.

RC drilling will initially focus on upgrading and adding to the currently defined resources at the Mt Kelly Mining Area, and upgrading and extending the defined resource at the Anthill – Python prospects, located to the south of the Mt Kelly Process Plant (refer Figure 2). The scope of RC drilling will expand significantly with the arrival of the second RC rig, which will focus on testing highly prospective exploration targets on granted mining leases and exploration permits within the project area.

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 565,166,467

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

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

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 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: dtasker@pprwa.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 www.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

ASX Announcement 14 January 2010

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The Company is currently divesting its interest in the Lady Annie Project by way of an Initial Public Offering (“IPO”) of Q Copper Australia Limited. Patersons Securities Limited is the Lead Manager to the IPO. The indicative closing date of the IPO is 3 February 2010.

Should you wish to participate in the IPO you can do so by completing the application form in the Supplementary Prospectus dated 14 December 2009, which should be read together with the Prospectus dated 16 November 2009. A copy of the Prospectus and the Supplementary Prospectus can be downloaded from the Q Copper website: www.qcopper.com.au. Alternatively, you can call Mr Philippe Francois on (08) 9211 0600 to request a copy of the Prospectus and Supplementary Prospectus are mailed to you.

“The award of the drilling contract prior to the listing of Q Copper is in line with the Company’s strategy of ensuring exploration commences at Lady Annie as early as possible to enable additional mine life to be crystallised,” said Cape Lambert Executive Chairman, Mr Tony Sage.

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

About Swick Mining:

Swick Mining Services (ASX: SWK) is one of Australia’s largest mineral drilling contractors, providing high quality, high value underground and surface drilling services to a diverse group of mining houses in gold, iron ore, nickel, copper, lead, zinc and manganese. The Company has a strong reputation for innovation in rig design and drilling practices that delivers improvements in productivity, safety, versatility and value. Swick recently committed to expanding its operations outside of Australia and building a global brand through an expansion into targeted international markets, with an initial focus on North America.

This announcement has been prepared for publication in Australia and may not be released in the United States or elsewhere outside Australia. This announcement does not constitute an offer of securities for sale in the United States or any other jurisdiction. Any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.

Cape Lambert Resources Limited ASX Announcement

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----- Start of picture text ----- Lawn HillCentury Younger rock sequence12Mt Zn Eastern Succession133Moz AgWestern SuccessionKalkadoon Leichhardt BeltQ Copper TenementsGranted tenementApplicationOperating mineMt Gordon Former mine0.7Mt CuMineral depositLady Loretta Copper/Gold2.3Mt ZnGoldLady Annie Project Copper>0.35Mt CuBase metalsMt KellyProcess Plant Dugald River5.8Mt Zn,68M oz AgRoseby0.9Mt Cu0.3Moz AuErnest HenryRocklands 1.4Mt Cu,Hilton >0.5Mt Cu 2.2Moz Au319Moz Ag,7.4Mt Zn MOUNT ISACLONCURRYMount Isa8.4mt Cu,10.2 M t Zn,714Mo z Ag50kmDuchessMt Ellio t t / Starra3.1Mt Cu,5.1Moz AuDarwin Tick Hill0.6Mt @ 25g/t AuDajarraMT ISA Cannington1.9Mt Zn,750Moz AgBrisbane22°00’Perth SydneyAdelaide OsborneMelbourne 0.4Mt Cu,1.2Moz Au1000km Figure 1LOCATION OF LADY ANNIE PROJECT----- End of picture text -----

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----- Start of picture text ----- 280 000 mE 340 000 mEDistal 57 84 0 000 mNPower andWater CorridorDistal 4Mt Gordon (Cu)LakeLADY ANNIE WaggaboonyaDistal 1 Redie CkInvestigator7 8 00 000 mN Wild Gec k o MOUNT KELLYPROCE S S PLANT DividendSITESwagmanTo M cLeod HillDarwinLady Maggie& ExtensionWater Pipeline7 760 000 mN PythonJohnson CreekBorefieldJohnson CkAnthillGranted TenementTenement ApplicationsHilton7 720 000 mN Exploration Prospects (Zn Pb)0 20kmMining AreasToTownsvilleMt Isa(Cu Zn Pb)Figure 2MINING AREAS, PROCESS PLANT ANDEXPLORATION PROSPECTS----- End of picture text -----