IRON BEAR RESOURCES LTD — Capital/Financing Update 2011

Dec 15, 2011

ASX Announcement 16 December 2011

COMPLETION OF $46.5 MILLION SALE OF SAPPES GOLD PROJECT

Australian resources and investment company, Cape Lambert Resources Limited ( ASX: CFE ) (“Cape Lambert” or the “Company”) is pleased to announce that further to its announcement on 18 August 2011, the sale of the Sappes Gold Project in Greece to Glory Resources Limited (to be renamed Chrysos Limited) ( ASX: GLY ) (“Glory Resources”) has now completed.

In accordance with the terms of the transaction, the Company will receive the following in relation to the sale of the Sappes Gold Project:

• (a) A$32,500,000 in cash;

• (b) 16,000,000 shares in Glory Resources (“Glory Resources Shares”);

• (c) A$5,000,000 in cash or Glory Resources Shares, at the election of the Company, on the granting of an operating permit (or equivalent) in respect of the Sappes Gold Project; and

• (d) A$5,000,000 in cash or Glory Resources Shares, at the election of the Company, upon the sale of the first 1,000oz of gold (or gold equivalent in the case of copper concentrate and/or silver metal) from the Sappes Gold Project.

The Sappes Gold Project is a gold development project located on a granted mining lease in north eastern Greece approximately 30km northwest of the Aegean Sea port city of Alexandropoulos. Cape Lambert acquired the Sappes Gold Project as part of its successful bid for the assets of CopperCo Limited in June 2009.

Cape Lambert Executive Chairman, Mr Tony Sage said “Completing the sale of the Sappes Gold Project in the current capital market climate is very pleasing and delivers A$32.5 million in cash to the Company whilst still allowing the Company to retain exposure to the project via its shareholding in Glory Resources. The sale of the Sappes Gold Project brings the total cash generated from CopperCo asset sales to approximately A$250 million”.

Yours faithfully

Cape Lambert Resources Limited

Tony Sage

Executive Chairman

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 688,108,792 Unlisted Options Nil

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

Marampa Iron Ore Project Pinnacle Group Assets African Iron Limited International Goldfields Limited

Cape Lambert Contact

Tony Sage Executive Chairman

Eloise von Puttkammer Investor Relations

Phone: +61 8 9380 9555 Email: info@capelam.com.au

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

Tavistock Communications Emily Fenton / Jos Simson Phone: +44 (0)207 920 3150 Mobile: +44 (0)7899 870 450

www.capelam.com.au

Cape Lambert Resources Limited[ABN 71 095 047 920 ]

Corporate - 18 Oxford Close, Leederville WA 6007 Projects - Level 1, 2 Ord Street, West Perth WA 6005

United Kingdom - 14 Golden Square, London W1F 9JG