IRON BEAR RESOURCES LTD — Capital/Financing Update 2013

Dec 23, 2013

ASX Announcement 24 December 2013

Cape Lambert finalises Marampa Infrastructure Agreement

Highlights:

• Cape Lambert Resources Limited finalises binding agreement with African Minerals Limited for Marampa infrastructure access;

• Agreement grants Marampa access rights to transport and export 2Mwtpa of iron concentrate via existing Pepel rail and port infrastructure;

• African Minerals Limited has option to purchase 2Mwtpa of Marampa concentrate at mine gate for first three years of production;

• Marampa can expand project to 16.5Mwtpa via pipeline to Tagrin, on terms and conditions to be agreed; and

• Mining Licence for Marampa lodged and expected to be granted in Q1 2014 .

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 669,241,942

Board of Directors

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (“Cape Lambert” or the “Company”) is pleased to advise that it has finalised and executed a binding Infrastructure Agreement for its 100%-owned Marampa iron ore project in Sierra Leone, West Africa (“Marampa Project” or “Marampa”) with AIM-listed African Minerals Limited (AIM: AML) (“African Minerals”).

The Infrastructure Agreement grants Marampa access rights to transport and export 2Mwtpa (wet – equivalent to 1.8Mtpa dry) of iron concentrate via African Minerals’ existing Pepel rail and port infrastructure (refer to ASX announcement dated 16 April 2012).

Additionally, African Minerals also has an option to purchase 2Mwtpa of Marampa concentrate at mine gate for the first three (3) years of production.

The Infrastructure Agreement provides the framework under which Marampa will build the spur line that will connect Marampa to the Pepel Rail, the operational parameters that will enable Marampa to access the transport infrastructure to export its concentrate once in production, as well as the commercial terms for the calculation of the charges for the transport and export services.

Marampa has retained the right to expand production to 16.5Mwtpa and export concentrate via the construction of a pipeline to Tagrin Point, located near the coast to the west of the Pepel port, on terms and conditions to be agreed with African Minerals and subject to regulatory approvals. Marampa will construct a transshipping port at Tagrin Point for the expansion.

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

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 - 32 Harrogate Street, West Leederville WA 6007

www.capelam.com.au

ASX Announcement 24 December 2013

Pursuant to the terms of the Infrastructure Agreement, African Minerals may terminate the agreement upon any direct or indirect transfer of the Marampa mine. African Minerals may also terminate upon any direct or indirect transfer of the Marampa company to an entity that holds an interest of 10% or more in an operating mining asset in Sierra Leone. Additionally, if an entity acquires more than 50% and less than 90% of the issued capital of Cape Lambert, African Minerals will have the right to terminate the Infrastructure Agreement by paying Marampa US$25 million.

Marampa’s strategic location close to African Minerals’ transport infrastructure means that it has a significant advantage over other iron ore projects in the country and West Africa, and enables a shorter development schedule once an investment decision is made.

Marampa recently lodged its Mining Licence application with the authorities, which is the final key step in the permitting process for the Marampa Project (refer to ASX announcement dated 22 November 2013). The granting of the Mining Licence, which the Company anticipates will occur in Q1 2014, derisks the Marampa Project and adds value from a potential investor’s perspective by paving the way for the immediate development of the project.

Cape Lambert’s Executive Chairman, Tony Sage says “The execution of the Infrastructure Agreement with African Minerals is another milestone achieved in progressing the Marampa Project to become Sierra Leone’s third iron ore producer. Marampa is a financially robust project, with the Mining Licence to be granted early next year, which will significantly enhance the project’s appeal to potential investors, in turn adding significant value for our shareholders and the people of Sierra Leone”.

Mr Sage also said that “Cape Lambert was in discussions with African Minerals for a longer term 3Mtpa offtake agreement, which would replace its 2Mtpa option and would enable Marampa to produce 5Mtpa without the need for additional transport and export infrastructure” adding that “this would be great for the project and investors as it would keep the development costs to a minimum and enhance project economics”.

Yours faithfully Cape Lambert Resources Limited

Tony Sage

Executive Chairman

Cape Lambert Resources Limited ASX: CFE

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