IRON BEAR RESOURCES LTD — Capital/Financing Update 2016

Jan 10, 2016

ASX Announcement 11 January 2016

Cape Lambert to raise $4m in fully underwritten placement at a 300% premium

Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) is pleased to announce that it has agreed terms to raise $4m via a fully underwritten placement ( Placement ) to UK and European sophisticated investors.

Under the terms of the Placement, CFE will offer approximately 94m shares at 4.25c per share, a 300% premium to last closing price. The underwriting agreement is executed and the Placement is scheduled to be finalised within 30 days.

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

The Placement will be the first capital raising the Company has undertaken since 2005, and is being conducted to enhance working capital to sufficient levels for maintenance of the Company's portfolio of assets and address other circumstances that gave rise to the emphasis of matter in the Company’s 2015 Annual Report, during a time of uncertain market conditions. Simultaneously the Company continues to monitor and seek costs savings and opportunities to sell non-core assets.

"We are proud of the fact we have not raised new capital since 2005, and during that same period returned over $250m of value to shareholders via dividends, capital returns, in specie distributions and share buy-backs, but in these tough market conditions its important that when we can we maintain flexibility to invest in our current asset portfolio to maintain and enhance value. The underwriting of the placement at a huge premium shows support for, and belief in the Company’s assets and management," said Cape Lambert Chairman, Mr Tony Sage.

Yours faithfully Cape Lambert Resources Limited

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

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

www.capelam.com.au

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