IRON BEAR RESOURCES LTD — Capital/Financing Update 2014

Jul 13, 2014

ASX Announcement 14 July 2014

CAPE LAMBERT REACHES SETTLEMENT WITH MCC

Key Points:

• Cape Lambert to receive approx. A$51.6M after reaching settlement with MCC

• Boosts cash, receivables and listed securities to approx. A$100M and unrestricted cash to A$70M

• Board to meet in next two weeks to approve a dividend and/or return of capital to shareholders

Cape Lambert Resources Limited (ASX: CFE) is a fully funded mineral development company with exposure to iron ore, copper, gold, uranium, manganese, lithium and lead-silverzinc assets in Australia, Europe, Africa and South America.

Australian Securities Exchange Code: CFE

Ordinary shares 635,727,857

Unlisted Options 500,000 ($0.15 exp 30 Sept 2015)

Australian resources and investment company, Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) is pleased to advise that settlement has been reached with Metallurgical Corporation of China Limited ( MCC ) over the final A$80 million payment from the sale of the Cape Lambert magnetite iron ore project.

The Company notes that both the Arbitrator and Escrow agent have been advised to release A$30 million to MCC and the balance, of approximately A$51.6 million, to Cape Lambert. The Company expects to receive the funds within the week.

The Singapore International Arbitration Centre has been informed that a settlement has been reached and will immediately issue a procedural order suspending the arbitrations.

Cape Lambert Executive Chairman Mr Tony Sage said “The Company is very happy to see a resolution of this matter.” Mr Sage also said “This is a good outcome for all parties involved, I am grateful for the co-operation shown by MCC in reaching settlement.”

Following receipt of the funds, Cape Lambert will have cash, receivables and listed securities to the value of A$100 million which includes unrestricted cash of A$70 million.

Board of Directors

Tony Sage Executive Chairman

Tim Turner Non-executive Director

Jason Brewer Non-executive Director

Ross Levin Non-executive Director

Melissa Chapman 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

With this matter now finalised the board of Cape Lambert will be meeting within the next two weeks to finalise a dividend and/or return of capital to shareholders.

Professional Public Relations David Tasker Phone: +61 8 9388 0944 Mobile: +61 433 112 936 Email: david.tasker@ppr.com.au

UK Enquiries

Yours faithfully Cape Lambert Resources Limited

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

Tony Sage Executive Chairman

Cape Lambert Resources Limited[ABN 71 095 047 920 ]

32 Harrogate Street, West Leederville WA 6007

www.capelam.com.au