IRON BEAR RESOURCES LTD — Capital/Financing Update 2017

Mar 28, 2017

ASX Announcement 29 March 2017

Cobalt Off-Take Discussions Advance

Due Diligence Progresses Towards Positive Conclusion

Highlights

• Discussions underway with major global commodity trading houses on potential life-of-mine offtake agreements

• Preliminary non-binding offers of off-take debt funding and prepayment received and currently being reviewed by the Board

• As part of off-take discussions a further 32kg tailings sample collected, with metallurgical testing in South Africa underway to determine final concentrate composition and characteristics

• Assay results on earlier tailings samples received and support cobalt and copper grades determined by hand held XRF sampling

• Assay results of concentrate sample (KT005) taken from simple artisinal operation at Kipushi Tailings reported 1.50% cobalt and 8.28% copper

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 720,686,586

Unlisted Options 23,500,000 ($0.05 exp 18 Dec 2018)

Board of Directors

Tony Sage Executive Chairman

Tim Turner Non-executive Director

Jason Brewer Non-executive Director

Melissa Chapman Company Secretary

• Technical and legal due diligence progressing well and on track for a positive conclusion in April

Australian resource and investment company, Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) is pleased to provide an update on its activities in respect to the Binding Heads of Agreement ( Agreement ) entered into with Congolese company, Paragon Mining SARL ( Paragon ) to develop the Kipushi Cobalt Tailings Project, the Kasombo Copper-Cobalt Projects (together Projects ) and operate the Kipushi Processing Plant, located near Kipushi in the Democratic Republic of Congo ( DRC ) (refer ASX announcement dated 21 February 2017).

Over the past month, the Company and its technical management have completed a number of site visits to the Projects and appointed key technical and legal advisors to progress its legal and technical due diligence, to meet with key stakeholders in the DRC and to prepare itself for the proposed development and commencement of production activities.

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

As part of this, the Company has also met and held discussions with five major global commodity trading houses, all of whom have expressed an interest to enter into life-of-mine cobalt and copper concentrate offtake agreement in respect to the Kipushi Cobalt Tailings Project.

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

ASX Announcement 29 March 2017

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In addition, non-binding offers of off-take debt funding and pre-payment finance have also been received for amounts of up to a maximum US$10m. These are proposed to be made available for funding 100% of the anticipated capital and working capital requirements of the Projects and also fund the acquisition of additional advanced cobalt projects in the DRC. Management have also held several detailed meetings in Lubumbashi, in London and in Johannesburg to progress this. Further meetings are planned to continue in April in Hong Kong and Johannesburg, with a view of finalizing an off-take agreement and associated debt funding package over the coming months.

Whilst these meetings are preliminary in nature, and there is no assurance that a final binding life-ofmine cobalt and copper concentrate offtake agreement, or associated off-take debt funding and prepayment finance agreement will be reached, the very high level of interest and significant offers received to date is considered by management to demonstrate the significant opportunity and value of the Kipushi Cobalt Tailings Project.

The Company’s technical consultants collected 32kg of additional samples from various locations within the Kipushi Cobalt Tailings Project during their last site visit. This material has been despatched to the laboratory of Mintek in South Africa for characterisation and metallurgical testwork.

The results of this testwork and the concentrate characteristics and composition is critical to finalisation of the Company’s proposed cobalt and copper concentrate offtake agreement and offtake debt funding and pre-payment finance, and has been requested by the major global commodity trading houses that the Company is in discussions with.

This testwork, which is currently underway in South Africa, is aimed at verifying previous work completed and aimed at producing both a bulk concentrate grading initially 10-12% copper and greater than 2% cobalt and three separate concentrates of copper, cobalt and zinc. A further objective of this testwork is to conduct gravity work to determine the potential for pre-concentration of a mill product and on tailings from rougher flotation. It is expected that the testwork will be completed in April 2017.

The Company is also pleased to report that assay results from the four tailings samples collected during the recent site visit completed in February 2017 supports the grades determined by the handheld XRF readings (refer ASX announcement dated 1 March 2017). The Company’s technical consultants collected samples of the Kipushi tailings from various locations and at various depths (refer to Figure 2) and indicative grades of the tailings were determined using a handheld XRF and ranged between 0.40% to 0.75% cobalt and 0.50% to 0.86% copper. These collected samples were dispatched to Bureau Veritas Minerals laboratory in Perth for assay analysis, with the key results as presented in Table 1 and a complete table of all elements assayed included in Table 2. Sample number KT005 was a sample collected of some artisanally concentrated tailings using simple sluicing techniques (gravity concentration). This serves to demonstrate what may be achieved using gravity separation processes as an alternative or in addition to conventional flotation.

Sample ID	UTM **Easting **	UTM Northing	Estimated thickness	Co Grade (%)	Cu Grade (%)
KT001	529928	8698248	0.5m	0.43%	1.12%
KT002	529937	8698168	1.0m	0.46%	1.18%
KT003	530033	8698043	2.5m	0.35%	1.08%
KT004	530240	8697959	0.5m	0.41%	0.89%
KT005	529932	8698405	-	1.50%	8.28%

Table 1: Key Assay Results

Cape Lambert Resources Limited ASX: CFE

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In addition to the ongoing technical due diligence, the Company is close to finalizing its legal due diligence on the various licenses and permits in place and approvals to commence commercial production and sales and export of concentrates. The Company’s lawyers have further drafted the Joint Venture Shareholders Agreement which is currently being reviewed by the parties.

The Company can confirm that at this stage it has not identified any fatal flaws or identified any material adverse findings that would prevent it from successfully concluding its due diligence. However, as a result of the additional testwork that is now being completed to assist the Company in finalizing a cobalt and copper concentrate offtake agreement and associated off-take debt funding and pre-payment finance, agreement has been reached with Paragon to have the date extended to 30 April 2017 for the due diligence and Joint Venture Shareholders Agreement to be executed.

Cape Lambert Executive Chairman, Mr Tony Sage, said: “It’s great to see the assay results support what our team observed in the field. The metallurgical testwork now being conducted will also provide confidence in the product that can be produced and assist us greatly in finalizing a cobalt and copper concentrate offtake agreement and associated off-take debt funding and pre-payment finance.”

“The level of interest from some of the world’s largest global commodity trading companies in entering into a life-of-mine cobalt and copper concentrate offtake agreement in respect to the Kipushi Cobalt Tailings Project, is very encouraging and clearly demonstrates the significance of this project and the strong market fundamentals for cobalt, where prices have risen to now exceed US$50,000/tonne.”

“There is still much work to be done by the Cape Lambert team and its advisors but I am confident that over the coming weeks, we can move towards finalization of our due diligence and execution of the Joint Venture Shareholders Agreement.”

Yours faithfully Cape Lambert Resources Limited

Tony Sage Executive Chairman

Cape Lambert Resources Limited ASX: CFE

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ASX Announcement 29 March 2017

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Figure 1 - Kipushi Location Map

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Figure 2 - Sample locations from Kipushi tailings

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ASX Announcement 29 March 2017

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Sample	Au1	Pt	Pd	Ag	Co	Cu	Mg	Mn	Ni	Zn
UNITS	ppb	ppb	ppb	ppm	%	%	%	ppm	ppm	ppm
KT01	6	-5	-5	-0.5	0.43	1.12	6.13	634	52	366
KT02	5	-5	-5	-0.5	0.46	1.18	6.76	758	50	798
KT03	10	-5	-5	-0.5	0.35	1.08	5.35	514	52	286
KT04	3	-5	-5	-0.5	0.41	0.89	7.71	796	50	486
KT05	51	-5	5	0.5	1.50	8.28	4.9	1170	134	1240

Table 2: Assay Results from Tailings Samples

About Us

Cape Lambert is an Australian domiciled, ASX listed (ASX: CFE), fully funded, mineral development company. Cape Lambert has interests in several exploration and mining companies, providing exposure to iron ore, copper, uranium, cobalt, lithium and lead-silver-zinc assets in Australia, Europe, Africa and South America.

Cape Lambert’s strategy is to acquire and invest in undervalued and/or distressed mineral assets and companies ( Projects ) and:

• improve the value of these Projects, through a hands on approach to management, exploration, evaluation and development; and

• retain long-term exposure to these Projects through a production royalty and/or equity interest.

Cape Lambert aims to deliver shareholder value by adding value to these undervalued and undeveloped Projects.

For more information visit the Company’s website www.capelam.com.au.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Olaf Frederickson. Mr Frederickson is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Frederickson is a consultant to Cape Lambert Resources. Mr Frederickson consents to the inclusion in the report of the Exploration Results in the form and context in which they appear.

Cape Lambert Resources Limited ASX: CFE

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ASX Announcement 23 March 2017

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JORC Code, 2012 Edition – Table 1 Kipushi Tailings

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•Manual channel samples were taken vertically through the
techniques	specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma	excavated pit wall. •Composite samples were taken from the base of the
	sondes, or handheld XRF instruments, etc). These examples should	artisanal pits to top of the tails.
	not be taken as limiting the broad meaning of sampling.	•Samples were collected in zip lock plastics and placed into
	• Include reference to measures taken to ensure sample representivity	calico bags.
	and the appropriate calibration of any measurement tools or systems	•Samples were analysed in the field with a Niton handheld
	used.	XRF gun.
	• Aspects of the determination of mineralisation that are Material to the	•Three readings were taken through the calico bags for each
	Public Report.	sample and the average taken to be the accepted indicated
	• In cases where ‘industry standard’ work has been done this would be	grade.
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	•Samples have since been laboratory assayed and the
	m samples from which 3 kg was pulverised to produce a 30 g charge	results presented earlier in this announcement.
	for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg	•One sample (KT005) was taken out of a bag of artisinally concentrated tailings.
	submarine nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•No drilling conducted.
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other
	_type, whether core is oriented and if so, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries	•No drilling conducted.
recovery	and results assessed. • Measures taken to maximise sample recovery and ensure
	representative nature of the samples.
	• Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due to preferential
	loss/gain of fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•Samples were not logged.
	geotechnically logged to a level of detail to support appropriate
	Mineral Resource estimation, mining studies and metallurgical
	studies.

Cape Lambert Resources Limited ASX: CFE

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Criteria	JORC Code explanation	Commentary
	• Whether logging is qualitative or quantitative in nature. Core (or
	costean, channel, etc) photography.
	• The total length andpercentage of the relevant intersections logged.
Sub-	• If core, whether cut or sawn and whether quarter, half or all core	•All samples were partially wet but were competent to the
sampling techniques and sample preparation	taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique.	touch. The material was in the form of stratigraphically layered non saturated tailings of fairly uniform consistency. • The samples have been sorted & dried. The whole sample has been pulverised in a vibrating disc pulveriser.
	• Quality control procedures adopted for all sub-sampling stages to
	maximise representivity of samples.
	• Measures taken to ensure that the sampling is representative of the in
	situ material collected, including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the material
	being sampled.
Quality of	• The nature, quality and appropriateness of the assaying and	•Initial XRF analysis of samples.
assay data and laboratory tests	laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their	•Indiciative grades were obtained with the use of a Niton handheld XRF gun. •Three readings were taken through the calico bags for each sample and the average taken to be the accepted indicated grade.
	derivation, etc.	•Samples were submitted to the Bureau Veritas lab in Perth
	• Nature of quality control procedures adopted (eg standards, blanks,	and analysed using the following methods”
	duplicates, external laboratory checks) and whether acceptable levels	• The samples have been analysed by Firing a 40 gm
	of accuracy (ie lack of bias) and precision have been established.	(approx) portion of the sample. Lower sample weights
		may be employed for samples with very high
		sulphideand metal contents.This is the classical fire
		assay process and will give total separation of Gold
		Platinum and Palladium in the sample.
		• Au1,Pt,Pd determined by Inductively Coupled Plasma
		(ICP) Optical Emission Spectrometry.
		• The sample(s) have been digested and refluxed with a
		mixture of Acids including Hydrofluoric Nitric
		Hydrochloric and Perchloric Acids. This extended
		digest approaches a Total digest for many elements
		howeversomerefractoryminerals arenot completely

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Criteria	JORC Code explanation	Commentary
		attacked.
		• Ag, Co determined by Inductively Coupled Plasma
		(ICP) Mass Spectrometry.
		• Cu, Mg, Mn, Ni, Zn determined by Inductively Coupled
		Plasma (ICP) Optical Emission Spectrometry.
Verification	• The verification of significant intersections by either independent or	•Lab standards and repeat samples were carried out as part
of sampling and assaying	alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	of the assay procedure.
	• Discuss any adjustment to assay data.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•Samples were located with handheld GPS.
data points	down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.
Data	• Data spacing for reporting of Exploration Results.	•Samples were taken at random dependent on where
spacing and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	artisanal workings were encountered. •The data is not suitable for resource estimation. •Samples were composited as described prior.
	• Whether sample compositing has been applied.
Orientation	• Whether the orientation of sampling achieves unbiased sampling of	•No particular geological structure is evident in the tailings
of data in	possible structures and the extent to which this is known, considering
relation to geological structure	the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample	• The measures taken to ensure sample security.	•Sample chain of custody was maintained by the geologist
security		throughout delivery to their place of storage.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•No audits or reviews have been done.
reviews

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

	Criteria	JORC Code explanation	Commentary
	Mineral	• Type, reference name/number, location and ownership including	•Work was conducted on PER 12347 in the Kipushi Tailings
	tenement and	agreements or material issues with third parties such as joint	area of southern DRC.
	land tenure status	ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	•The licence is reportedly held by state owned company Gecamines and is the subject of a rights agreement between Gecamines and Paragon SARL and a proposed
		• The security of the tenure held at the time of reporting along with any	joint venture agreement between Paragon SARL and Cape
		known impediments to obtaining a licence to operate in the area.	Lambert Resources.
			•Details of tenure are to be confirmed as part of the due
			diligence.
	Exploration	• Acknowledgment and appraisal of exploration by other parties.	•No known exploration has been conducted on the tailings.
	done by other		•Historical plant records have been requested.
	parties
	Geology	• Deposit type, geological setting and style of mineralisation.	•Post processing tailings.
	Drill hole	• A summary of all information material to the understanding of the	•See attached table for sample information.
	Information	exploration results including a tabulation of the following information
		for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above sea level in
		metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		• If the exclusion of this information is justified on the basis that the
		information is not Material and this exclusion does not detract from
		the understanding of the report, the Competent Person should clearly
		explain why this is the case.
	Data	• In reporting Exploration Results, weighting averaging techniques,	•The indicative assay results are the average of three
	aggregation methods	maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade	readings from different parts of the sample.
		results and longer lengths of low grade results, the procedure used
		for such aggregation should be stated and some typical examples of

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Criteria	JORC Code explanation	Commentary
	such aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship	• These relationships are particularly important in the reporting of	•Samples were taken vertically down the walls of artisanal pit
between	Exploration Results.	excavations.
mineralisation widths and intercept	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true	•The base of the tailings was not intersected at any time.
lengths	width not known’).
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•See attached location plan.
	intercepts should be included for any significant discovery being
	reported These should include, but not be limited to a plan view of
	drill hole collar locations and appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not	•All results have been reported
reporting	practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be reported	•N/A
substantive	including (but not limited to): geological observations; geophysical
exploration data	survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential
	deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (eg tests for lateral	•The tailings are to be drilled on a regular grid to ascertain
	extensions or depth extensions or large-scale step-out drilling).	representative grades and accurate depths of tails.
	• Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling areas,
	provided this information is not commercially sensitive.

Cape Lambert Resources Limited ASX: CFE

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