IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2006

Oct 31, 2006

1 November 2006

The Company Announcements Office Australian Stock Exchange Limited

Via E Lodgement

REVISED APPENDIX 5B - CONSOLIDATED CASHFLOW REPORT

Please find attached the revised Appendix 5B - Consolidated Cashflow Report

The Following Appendix 5B replaces the Appendix 5B as announced 31 October 2006 to amend the reconciliation of cash in clause 5 of the Report.

Yours faithfully CAPE LAMBERT IRON ORE LTD

Tony Sage Executive Director

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 17796. Origin: Appendix 8. Amended 177/97, 177/98, 30/9/2001.

Name of entity

CAPE LAMBERT IRON ORE LTD

ABN

71 095 047 920

Quarter ended ("current quarter") 30 September 2006

Year to date

(3 months)

Current quarter

\$A'000

Consolidated statement of cash flows

Cash flows related to operating activities

			SA'000
$\mathsf{L}$	Receipts from product sales and related debtors
1.2
	Payments for (a) exploration and evaluation	(1, 193)
	(b) development		(1,193)
	(c) production
	(d) administration	(781)	(781)
$\mathsf{L}3$	Dividends received
$\mathsf{L}4$	Interest and other items of a similar nature
	received	135	135
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other	313	313
	Net Operating Cash Flows	(1,526)	(1, 526)
1.8	Cash flows related to investing activities
	Payment for purchases of: (a)prospects
	(b) equity investments	(103)	(103)
	(c) other fixed assets
$\left \cdot \right\rangle$	Proceeds from sale of:
	(a)prospects
	(b)equity investments
	(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other - refund of asset purchase		ŧ
I
	Net investing cash flows	(102)	(102)
1.13	Total operating and investing cash flows (carried forward)	(1,628)
			(1,628)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1,628)	(1,628)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other repayment of issue proceeds costs of share issues
	Net financing cash flows
	Net increase (decrease) in cash held	(1,628)	(1,628)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	12,710	12,710
1.22	Cash at end of quarter	11.082	11.082

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	148
1.24	Aggregate amount of loans to the parties included in item $1.10$

$1.25$ Explanation necessary for an understanding of the transactions

Executive and non executive directors salaries

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

⁺ See chapter 19 for defined terms.

Estimated cash outflows for next quarter

	Total	400
4.2	Development
4.1	Exploration and evaluation	400
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter SA'000
5.1	Cash on hand and at bank	412	700
5.2	Deposits at call	10.670	12,010
53	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	11,082	12,710

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
-6.1	Interests in mining tenements relinquished. reduced or lapsed
-6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference *securities
7.2	(description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,
7.3	redemptions *Ordinary	249,324,530	249,324,530
	securities
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs
7.5	*Convertible debt securities
7.6	(description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	550,000 500,000 136,511,805 50,000,000 40,000,000	136,511,805	Exercise price $42.7$ cents 36.7 cents 27.7 cents 32.7 cents 37.7 cents	Expiry date 22 October 2008 9 February 2009 31 October 2008 31 October 2009 31 October 2010
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

$+$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to $\text{ASX}$ (see note 4).
• This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Sign here:

. . . . . . . . . . . . . . . . . . . . (Director/Company secretary)

Date: .31 October 2006...

Print name:

......Timothy Turner...................................

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

nome and many control and many control

⁺ See chapter 19 for defined terms.