IRON BEAR RESOURCES LTD — Capital/Financing Update 2016

Jan 11, 2016

ASX Announcement 12 January 2016

Underwriting Agreement to raise $4m

Further to the announcement released by Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) on 11 January 2016, the Company has been requested by the ASX to provide further details on the underwriting agreement it has entered into with Gulf Energy International Limited ( Gulf Energy ) for the placement of approximately 94 million shares at 4.25c per shares to raise $4m ( Underwriting Agreement ).

The key terms of the Underwriting Agreement are as follows:

• Underwritten amount of $4m;

• Placement with sophisticated investors in the United Kingdom or Europe;

• Subject to shareholder approval, one option for every four shares subscribed to under the placement to be issued with an exercise price of 5c exercisable on or before 31 December 2018;

• Proposed closing date of 11 February 2016, being 30 days from execution of the Underwriting Agreement, and settlement date of 26 February 2016; and

• An underwriting fee of 5% will be paid to Gulf Energy.

The Underwriting Agreement contains a number of indemnities, representations and warranties from the Company to Gulf Energy that are considered standard for an agreement of this type. It also contains termination provisions whereby Gulf Energy has the right to terminate the Underwriting Agreement upon the occurrence of certain events, including:  If the S&P 200 falls more than 10% at any time from execution of the Underwriting Agreement up to the date of closing; and

• A number of other termination events common to agreements of this type.

Yours faithfully

Cape Lambert Resources Limited

Tony Sage Executive Chairman

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 626,686,586

Unlisted Options 7,675,000 ($0.088 exp 18 Dec 2016)

Board of Directors

Tony Sage Executive Chairman

Tim Turner Non-executive Director

Jason Brewer Non-executive Director Melissa Chapman Company Secretary

Cape Lambert Contact

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

www.capelam.com.au

Cape Lambert Resources Limited ABN 71 095 047 920 Corporate - 32 Harrogate Street, West Leederville WA 6007