IRON BEAR RESOURCES LTD — Capital/Financing Update 2011

Jul 4, 2011

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ASX A nn o unc e me n t 5 J u ly 2011

STANDBY FACILITY SECURED

Aus t ralian Sec u rities Exc h ange Code: FEL

Ordin a ry Shares: 115,5 2 1,575 Unlist e d Options: 18,00 0 ,000 ($0.12 e x p. 31 Dec 201 2 ) 375,0 0 0 ($0.15 exp. 2 3 Mar 2014) Boar d of Directors: Tony S age Non- E xecutive Chair m an Kim B ischoff Mana g ing Director Mark G wynne Exec u tive Director Paul K elly Non- E xecutive Direc t or Elois e von Puttkam m er Com p any Secretary Key P rojects & Inter e sts: Mt Id a Iron Ore Proj e ct Mt El v ire Iron Ore Pr o ject Crossroads, Bardoc a nd Grafters G o ld Proje c ts Kalgoorlie Regional G old Project Kalgoorlie Regional N ickel Project

Fe Li m ited Contact: Kim B ischoff Mana g ing Director Tel: +61 (8) 9380 95 5 5

Corp o rate Office: 18 O x ford Close Lee d erville, West e rn Australia 6007 Australia Telephone +61 8 93 8 0 9555 Facsi m ile +61 8 93 8 0 9666

Austr a lian Enquiries: Profe s sional Public R elations David Tasker Tel: +61 8 9388 094 4 Mob: + 61 433 112 9 3 6 Email: david.tasker @ ppr.com.au

Australian mine r al resourc e s explorer , Fe Limite d (ASX: F E L) (“ Fe ” o r the “ Company ” ) advises t h at it has s e cured a $ 2 million standby loa n facilit y to fund e x ploration expenditure and workin g capital.

Fe h a s entered into a facility agree m ent (“ Facility ”) with c ornerston e shar e holder Ca p e Lambe r t Resourc e s Limited (ASX: C F E) (“ Cape Lambert ”). Cap e Lambert c urrently holds a 19.9 % interest in Fe.

Purs u ant to the terms of the Facility, t he Compa n y will hav e access t o $2 million, and a ny amou n ts drawn d own will be repayable in full 1 8 mont h s from d a te of exe c ution of t h e facility a greement. Interest i s paya b le on the a mounts dr a wn down u nder the F acility at the cash rat e plus 3 %.

The D irectors h a ve secur e d the Facility to ens u re that th e Compan y has s ufficient fu n ds to pro g ress the Mt Ida explo r ation prog r am, and t o perfo r m the nec e ssary works to satisf y the conditions prec e dent unde r the a g reement t o sell its 1 0 0% intere s t in Gympi e Eldorado Mining Pt y Ltd (“ GEM ”) to BRI Micr o fine Pty L td (“ BRI ”). The Co m pany ha s enter e d into a D eed of Va r iation with BRI to ext e nd the da t e by whic h the conditions p recedent have to be satisfied t o 31 July 2011 due t o delays in collection of bulk samples. O n comple t ion of the t ransaction , Fe w i ll receive $ 50,000 as consideration for its 1 00% inter e st in GE M and w ill be reim b ursed $8 0 3,548 for c ash bonds put in pla c e by Fe. I n addition, as so o n as prac t icable after completi o n, BRI is required t o provi d e a repla c ement financial assurance to th e relevant g overnmen t depa r tment whi c h will enable the release of $1,4 4 5,400 cash to Fe.

Drilli n g at Mt Id a is sched u led to commence in t h e September quarte r 2011 where th e Compan y has previ o usly ann o unced an exploratio n targe t of 1.0 - 1.4 billion t o nnes at 3 0 -37% Fe[1] . The Company is als o seeking expres s ions of int e rest for th e divestme n t of some of its non - core gold and n ickel asse t s in West e rn Austral i a and Qu e ensland t o enable it to focu s on explor a tion of its iron ore pro j ects.

Your s faithfully FE LIMITED

Fe Li m ited is an Aus t ralian domicile d miner a l resources exploration and devel o pment compa n y.

Fe Li m ited ABN: 31 112 731 63 8

Kim B ischoff Managing Director

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1 Refe r ASX announ c ements by FE L dated 19 Ma y 2011 and 2 9 June 2011. T h e estimates o f explor a tion target size s mentioned in this release sh o uld not be mis u nderstood or m isconstrued a s estima t es of Mineral Resources. T he estimates o f exploration ta rget sizes ar e conceptual i n nature and there has b een insufficie n t results received from drilling completed to d ate to estimat e a Mine r al Resource c o mpliant with the JORC Code (2004) guidelin e s. Furthermor e , it is uncertai n if furth e r exploration w ill result in the d etermination o f a Mineral Res o urce.

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