IRON BEAR RESOURCES LTD — Capital/Financing Update 2012

Jan 31, 2012

ASX Announcement 1 February 2012

CAPE LAMBERT FACILITATES SALE OF 65 MILLION SHARES TO UK INSTITUTIONS

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE ) (“ Cape Lambert ” or the “ Company ”) wishes to advise that in recent days it has facilitated a significant secondary sale of its shares. In total 65,000,000 shares will be sold as part of an on-market transaction, representing approximately 9.4% of the issued capital of the Company.

The shares have been held by vendors of the Pinnacle assets, acquired by the Company in 2011 (refer ASX announcements dated 19 May 2011, 16 June 2011, 13 September 2011 and 2 December 2011), and will be sold to a small number of prominent UK based institutions for a total consideration of AUD$36,400,000. Following this transaction, the Company will have approximately 37% of its share register represented by institutions.

Commenting on the successful secondary sale of its shares Cape Lambert Chairman, Mr Tony Sage, said, “We have, for some time, been experiencing strong interest from several large UK based institutions who have been frustrated by their inability to secure the level of stock they require through onmarket purchases.

Once we became aware that a significant holder of our shares was interested in reducing their position, we moved quickly to facilitate a transaction that would allow for an orderly sale of these shares to a small number of very supportive institutions.

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 688,608,792

Unlisted Options 8,300,000 ($0.45 exp 30 Nov 2012)

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

This transaction was important to Cape Lambert and its shareholders as it has removed a potential overhang in the market and at the same time significantly increasing the holding of several London based, blue chip institutions in the Company.”

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

Cape Lambert Contact

Following the successful completion of the disposal of the Sappes Gold Project and the takeover offer by Exxaro Resources Limited of African Iron Limited, the Company will ramp up and focus on its Initial Public Offering of Marampa on the Alternate Investment Market of the London Stock Exchange.

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

Eloise von Puttkammer Investor Relations

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

Australian Enquiries

Tony Sage Executive Chairman

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 ]

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

www.capelam.com.au

United Kingdom - 14 Golden Square, London W1F 9JG