IRON BEAR RESOURCES LTD — Capital/Financing Update 2011

Jun 20, 2011

ASX Announcement 21 June 2011

PRIORITY DRILL TARGETS CONFIRMED AT KUKUNA – DRILLING TO COMMENCE WITHIN THREE WEEKS

Key Points:

• Results from ground geophysical surveys and trench and rock chip sampling confirm extensive distribution of specular hematite schist at Kukuna, and highlight priority drill targets.

• Significant trench results include:

• 32m at 44.9% Fe from trench KUTR2 in the north, and

• 44m at 42.5% Fe from trench KUTR3 in the south.

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.

• 24 rock chip samples returned with average of 41.8% Fe.

• Ground geophysics indicate several potential units of hematite schist trending north-south under shallow cover over the entire 12km length of the licence.

• Diamond drill rig currently being mobilised to site, with drilling anticipated late June/early July.

Australian resources and investment company, Cape Lambert Resources Limited ( ASX: CFE ) (“Cape Lambert” or the “Company”) is pleased to announce the results of ground based exploration completed at the Kukuna Iron Ore Project, located in Sierra Leone, West Africa (“Kukuna” or “Kukuna Project”).

Australian Securities Exchange Code: CFE

Ordinary shares 626,299,603

Unlisted Options 7,850,000 ($0.45 exp 30 Sep 2011)

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

Kukuna is located 120km northeast of Freetown in the northwest of Sierra Leone and approximately 70km north of the existing heavy haulage Lunsar-Pepel railway (refer Figure 1). The exploration licence covers 68km[2] and is 100% owned by Sierra Leone company Pinnacle Group Assets (SL) Limited, which is 100% owned by Pinnacle Group Assets Limited (“Pinnacle”).

On 16 June 2011, Cape Lambert increased its interest in Pinnacle to 90.2%.

At Lunsar, Cape Lambert has defined a maiden Inferred Mineral Resource of 197 million tonnes at 28.5% Fe[1] within an exploration target size of 700 million to 1 billion tonnes[2] at 28-32% Fe at its Marampa Project, and London Mining plc has defined a total Indicated and Inferred Mineral Resource of 906 million tonnes at 32% Fe[3] (refer Figure 1) (“Lunsar Projects”). An exploration target size of 1 to 2

1 Refer ASX releases dated 12 November 2010 and 10 June 2011 by Cape Lambert (ASX: CFE) 2 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 in accordance with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

3 Refer AIM Rule 26 Regulatory Announcement dated 17 January 2011 by London Mining plc (AIM: LOND:LN). The London Mining Mineral Resource comprises an Indicated Mineral Resource of 379 million tonnes at 31.5% Fe and an Inferred Mineral Resource of 527 million tonnes at 31.8% Fe.

Marampa Iron Ore Project Pinnacle Group Assets Sappes Gold Project 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

Cape Lambert Resources Limited[ABN 71 095 047 920 ]

www.capelam.com.au

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

ASX Announcement [Date Day Month Year]21 June 2011

billion tonnes at 30 to 35% Fe[4] for hematite schist has been estimated for Kukuna[5] .

The Kukuna Project represents an under-explored area with potential to host similar sized deposits of specular hematite to the Lunsar Projects[1] .

The Company‟s Executive Chairman, Mr Tony Sage said “with the Company now owning more than 90% of Pinnacle, the commencement of drilling at Kukuna is an important step in crystallising shareholder value from the Pinnacle iron ore assets.”

Geological Setting

The Kukuna licence area straddles the eastern boundary of the Neoproterozoic Rokel-Kasila Belt. Historic geological mapping by the Geological Survey of Sierra Leone and others recognised rocks, including specular hematite schists, correlated with the Marampa Group on the licence area. The licence is extensively covered by lateritic duricrust, alluvium and vegetation, which has hindered exploration.

The Marampa Group hosts the specular hematite deposits located around the town of Lunsar 70km to the south. In the past two years Cape Lambert and London Mining plc have been exploring and evaluating the hardrock hematite deposits in the Lunsar district (refer Figure 1).

Geophysical Survey

An extensive Induced Polarisation ground geophysical survey (“IP”) was completed in March 2011 by geophysical contractors SAGAX Afrique. A total of 26 east-west traverses spaced 800m apart covering the licence were surveyed.

Previous petrophysical tests and exploration surveys in Sierra Leone by Cape Lambert have demonstrated that bodies of specular hematite schist under shallow cover show coincident conductive and high chargeability anomalism.

The survey identified several linear conductor/chargeable anomalies at shallow depths under cover, which roughly correlate with mapping of the target hematite schist unit of the Marampa Group rocks (refer Figure 2).

Geochemistry

Geological mapping and clearing of the IP traverses located four historic trenches and several old prospecting pits and outcrops. Final assay results from sampling of these exposures have now been received. Sample locations and results are shown in Tables 1 and 2 and summarised in Figure 2.

The best trench results were 32m at 44.9% Fe from trench KUTR2 in the north of the licence and 44m at 42.5% Fe from trench KUTR3 in the south. The 24 rock chip samples averaged 41.8% Fe (ranging from 31.2% to 50.5% Fe). The trench and rock chip samples confirm the presence of specular hematite iron mineralisation with widths of approximately 30 - 40m in the north and south of the Kukuna Project.

These specular hematite exposures are weathered and enriched and typically steeply dipping. Some of the trench and pit samples may represent cemented and transported material. Further excavation and drilling will be required to better define the overall true widths and strike lengths of the specular hematite rich units.

4 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.

5 Refer ASX release dated 19 May 2011 by Cape Lambert

Cape Lambert Resources Limited ASX:CFE

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ASX Announcement [Date Day Month Year]21 June 2011

Future Work

A drill rig is presently being mobilised to site with drilling planned to commence late June or early July.

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

Cape Lambert Resources Limited ASX:CFE

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ASX Announcement [Date Day Month Year]21 June 2011

Competent Person Statement:

The contents of this announcement relating to exploration results and mineral resources are based on information compiled by Jason Froud, a member of the Australasian Institute of Mining and Metallurgy. Mr Froud is a consultant to Cape Lambert Resources Limited and has sufficient experience relevant to the styles of mineralisation and the deposit under consideration 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 Froud consents to the inclusion in this announcement of the matters compiled by him in the form and context in which they appear.

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Cape Lambert Resources Limited ASX:CFE

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ASX Announcement [Date Day Month Year]21 June 2011

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ASX Announcement [Date Day Month Year]21 June 2011

Table 1: Trench channel sample results

Trench	Trench Length (m) From (m) To (m) Interval (m)	Fe (%) Al2O3 (%) SiO2 (%) P (%) S (%)
KUTR1 KUTR2 KUTR3 KUTR4	32 4 32 28 32 0 32 32 44 0 44 44 23 0 23 23	25.0 41.3 13.7 0.04 0.02 44.9 13.4 12.7 0.14 0.05 42.5 18.2 11.7 0.08 0.04 41.5 20.3 11.2 0.07 0.03

Table 2: Rock chip sample results

	Table 2:	Rock chip sample results
Sample	Northing Easting WGS84 Zone 28	Fe (%) Al2O3 (%) SiO2 (%) P (%) S (%)
KUAD001/001 KUPT001/001 KUPT002/001 KUPT003/001 KUPT004/001 KUPT005/001 KUPT006/001 KUPT007/001 KUPT008/001 KUPT009/001 KUPT010/001 KUPT011/001 KUPT012/001 KUTR001/001 KUTR001/002 KUTR002/001 KUTR002/002 KUTR002/003 KUTR003/001 KUTR003/002 KUTR003/003 KUTR004/001 KUTR004/002 KUTR004/003	1040048 754194 1031156 755699 1031189 755841 1031553 755964 1037834 755461 1037837 755471 1039544 754362 1039465 754338 1027641 756931 1026705 756962 1021629 759581 1021691 759649 1027748 756313 1037310 753132 1037310 753142 1039890 754251 1039890 754293 1039890 754267 1029980 756159 1029980 756141 1029980 756129 1030000 756090 1030000 756080 1030000 756070	49.1 12.2 10.6 0.06 0.04 35.9 23.7 14.7 0.05 0.03 39.6 19.3 14.5 0.05 0.03 47.8 12.0 11.0 0.07 0.02 42.7 23.2 8.3 0.04 0.03 39.3 22.7 12.2 0.04 0.03 39.5 16.6 15.0 0.15 0.05 31.2 21.0 20.6 0.11 0.07 43.2 19.8 10.8 0.05 0.02 39.8 23.3 12.3 0.02 0.03 43.9 21.9 9.5 0.02 0.02 43.8 16.9 11.3 0.07 0.03 42.2 21.4 11.4 0.04 0.03 34.7 31.3 11.9 0.03 0.03 34.8 31.6 11.0 0.03 0.01 43.2 11.5 14.3 0.23 0.04 50.5 11.9 9.6 0.05 0.02 49.7 10.3 10.7 0.08 0.05 41.8 18.0 12.0 0.10 0.05 45.4 18.2 9.2 0.08 0.03 41.9 19.5 11.1 0.08 0.03 43.5 19.8 10.0 0.06 0.03 40.4 21.5 11.6 0.06 0.04 40.2 23.1 10.5 0.07 0.03
Averages:		41.8 19.6 11.8 0.07 0.03

Notes: Trench and rock chip sample locations are surveyed by DGPS. Trench sample intervals are 2m. Minimum cut-off for trench samples is 15% total Fe. Chemical analysis by X-ray Fluorescence Spectrometry (XRF) at the Ultra Trace Limited laboratory, Canning Vale, Perth Australia. Refer Figure 2 for trench locations.

Cape Lambert Resources Limited ASX:CFE

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