IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2014

Oct 28, 2014

September 2014 Quarterly Report 29 October 2014

29 October 2014

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

QUARTERLY REPORT – 30 September 2014

Please find attached the Quarterly Activities Report and Appendix 5B for the period ended 30 September 2014.

Yours faithfully Cape Lambert Resources Limited

Tony Sage

Executive Chairman

Ordinary shares 626,686,586

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

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

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

UK Enquiries

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

www.capelam.com.au

Cape Lambert Resources Limited September 2014 Quarterly Report

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September

HIGHLIGHTS

Corporate

• At 30 September 2014, the Company had approximately A$58.1 million in cash at bank.

• Settlement with MCC reached whereby Cape Lambert received $51.6m cash.

• Cape Lambert reaches out of court settlement with the ATO regarding $96m notice of amended assessment received in 2012 whereby the Company makes a final payment to the ATO of $2.4m in full and final settlement.

• Following the successful settlements with MCC and the ATO, Cape Lambert declares the payment of a 4cps fully franked dividend payable in two equal tranches.

• Buy back continues with 8,041,271 fully paid ordinary shares bought back in the quarter.

Post Quarter end:

• Cape Lambert negotiated a US$20 million financing agreement to Timis Mining to fund its acquisition of the London Mining Marampa mine which includes:

• US$8 million 12 month bridging loan; and

• US$12 million royalty purchase

• Cape Lambert will receive US$2/t royalty for 4 years from iron concentrate exported from Timis Mining Marampa mine to provide Cape Lambert with a royalty stream of potentially up to US$56 million

• Timis Mining will have exclusive rights to mine and acquire 100Mt of oxide material from Cape Lambert’s Sierra Leone Projects at a price of US$3 to US$5/t, potentially earning US$300 to US$500 million for the Company.

Projects

Marampa Iron Ore Project – Sierra Leone

• Post Quarter end, a Large Scale Mining Licence application for Marampa was approved, subject to the Company agreeing to accept the proposed licence and making payment of the annual mining licence fee.

• Following the grant of the mining licence, the Company will commence the negotiation of the associated mine lease agreement that sets out the terms and conditions under which the Company would operate the large scale mine, which is expected to take 6 to 9 months to finalise.

Rokel Iron Ore Project – Sierra Leone

• Magnetite prospects – significant assays:

• Makonkari – MKGR102: 49.6% Fe (magnetite gneiss);

• Makonkari – MKGR103: 57.2% Fe (magnetite gneiss);

• Makonkari – MKGR106: 50.3% Fe (magnetite gneiss).

Gold Prospects – Cote D’Ivoire

• Aeromagnetic surveys completed across all three Exploration Tenements with ground mapping and drilling targets to be identified.

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CORPORATE

Strategy and Business Model

Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) is an Australian domiciled, fully funded, mineral development company. Cape Lambert has interests in several exploration and mining companies, providing exposure to iron ore, copper, gold, uranium, manganese, lithium and lead-silver-zinc assets in Australia, Asia, Europe, Africa and South America (refer Figure 1).

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 undeveloped Projects. If Projects are converted into cash, the Company intends to follow a policy of distributing surplus cash to Shareholders.

Capital Management

Dividend Payment

On 8 August 2014, following the successful settlements with the Australian Taxation Office and the Metallurgical Corporation of China Limited, the Company announced the payment of 4cps in fully franked dividends.

The payment of the first fully franked dividend of 2cps will be made on 31 October 2014 and the payment of the second fully franked dividend of 2cps will be made on 27 February 2015.

On Market Buy-Back

During the quarter, the Company continued with its on market share buy-back of up to 10% of the Company’s fully paid ordinary shares ( Shares ) within the 12 months from 23 January 2014. Shares bought back by the Company are subsequently cancelled.

During the quarter, the Company bought back 8,041,271 Shares for total consideration of A$899,527.37. As at 29 October 2014, there are 25,541,587 Shares remaining that may be bought back under this facility.

Investments and Divestments

Timis Mining Corporation Finance Agreement

Post Quarter end, the Company announced (Refer ASX Announcement 22 October 2014) that it had entered into a binding terms sheet with Timis Mining Corporation SL Limited and Timis Mining Corporation Limited (collectively Timis Mining ) to provide financing of US$20 million to assist Timis Mining with its acquisition of the Marampa Iron Ore Mine ( Mine ) in Sierra Leone from the administrator of London Mining PLC ( London Mining ) ( Agreement ).

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The Agreement is divided into two parts including:

• (a) US$8 million Bridging Finance ; and

• (b) US$12 million for purchase of a royalty ( Royalty Purchase) .

Bridging Finance

The US$8 million Bridging Finance is repayable in 12 months and incurs interest of 3 month US LIBOR + 6%.

The principal and interest will be repaid to Cape Lambert in one payment at the expiry of the 12 month loan period and can be extended by the parties on mutually agreed terms.

Royalty Purchase

The Company negotiated the purchase of a royalty for US$12 million with Timis Mining in exchange for a US$2 per tonne of iron concentrate exported from the Mine ( Royalty ).

The Royalty is payable on a quarterly basis and will commence from the first shipment of concentrate from the Mine following the completion of the acquisition of the Mine by Timis Mining from the administrator of London Mining.

The Royalty will be payable over a four year period and in the event the Mine temporarily suspends production for a force majeure event, the Royalty period will be extended by the same period that the force majeure event continues.

Exclusive Rights to Acquire Cape Lambert’s Oxide Material

Cape Lambert has also negotiated the sale of oxide material from its Sierra Leone Projects to Timis Mining. Under the terms of the Agreement, Timis Mining will have exclusive rights to purchase 100 million tonnes of oxide material, or such greater amount as defined by further drilling from Cape Lambert’s adjacent Sierra Leone Projects.

The price at which the oxide material will be purchased from Cape Lambert is expected to be in the range of US$3 to US$5 per metric tonne.

A drilling campaign to increase the upside of Cape Lambert’s oxide resources is planned to begin 12 months after Timis Mining commences mining at Cape Lambert’s Sierra Leone Projects. This drilling campaign, together with any costs associated with mining operations, will be bourne by Timis Mining and not Cape Lambert.

Rights to Match

Timis Mining may sell its interest in its Mine and Cape Lambert can sell its oxide material at any time during the period of this agreement. In the event that Timis Mining sells the mine, then it will use its reasonable endeavours to incorporate the sale of Cape Lambert’s Sierra Leone Projects at the same time.

Should the mine be sold without a sale of Cape Lambert’s Sierra Leone Projects, then the Royalty and Bridging Finance obligations continue with any new third party owner and the new third party owner will be obligated to purchase the oxide material on the same basis as agreed between the parties.

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Should Cape Lambert sell its Sierra Leone Projects without a sale of Timis Mining’s mine, then the Royalty and Bridging Finance obligations continue with any new third party owner of Cape Lambert’s Sierra Leone Projects and the new third party owner will be obligated to sell the oxide material to Timis Mining on the same basis as agreed between the parties.

Legal Action and Disputes

MCC Legal Action

As announced on 14 July 2014, the Company reached settlement with the Metallurgical Corporation of China Limited over the final A$80 million payment from the sale of the Cape Lambert magnetite project.

On 8 September 2010, Cape Lambert announced that it had commenced legal action against MCC Australia Sanjin Mining Pty Ltd ( MCC Sanjin ), and its parent company Metallurgical Corporation of China Limited (collectively MCC ) to recover the final A$80 million payment from the sale of the Cape Lambert magnetite project in mid-2008 pursuant to an agreement between the parties ( MCC Agreement ). In accordance with the terms of the MCC Agreement, Cape Lambert received payments totalling A$320 million in 2008, with the final payment due on the grant of mining approvals, or if MCC had not used its reasonable endeavours to procure the mining approvals within two years.

Legal proceedings were instigated in the Supreme Court of Western Australia after discussions between MCC and Cape Lambert to resolve the non-payment proved unsuccessful.

In March 2013, the Court made orders, inter alia, for the dispute to be determined by an arbitrator in Singapore and for the Company to propose (such proposal to be consented to by the MCC parties) that the dispute between the Company and MCC (in respect to the payment of A$80 million into an escrow account pending determination of the primary dispute) ( Escrow Dispute ) be heard and determined by the arbitrator prior to the hearing of the disputes between the Company and MCC.

The Company referred the dispute to arbitration in Singapore and in June 2013 a hearing was held by the Arbitrator to determine the Escrow Dispute. The Arbitrator ordered that MCC pay the disputed amount of A$80 million into an escrow account in the joint names of the Company and MCC pending the determination of the substantive dispute. The amount was paid into the escrow account on 25 November 2013.

The substantive legal matter was due to be heard in Singapore commencing in July 2014. In July 2014, the Company and MCC reached an out of court settlement. Under the terms of the settlement, the escrow agent was ordered to released the funds held in escrow with A$30 million payable to MCC and the balance of A$51.6 million, which included accrued interest, to Cape Lambert. The funds were received by the Company on 17 July 2014.

ATO Notice of Amended Tax Assessment

As announced on 1 August 2014, the Company reached an out of court settlement with the Australian Taxation Office ( ATO ).

The Company was subject to an audit from the ATO on its income tax return for the 2009 year. Following the conclusion of this audit, in May 2012 a notice of assessment was issued for additional income taxes payable together with interest and associated penalties

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( Amended Assessment ). The Amended Assessment totalled $95,787,254 which comprised $57,642,715 of additional income taxes payable with respect to the 2009 income tax year, $28,821,357 in penalties and $9,323,182 in interest charges.

On 11 December 2012 the Company announced that following discussions with the ATO it had agreed to an Arrangement for Payment ( Arrangement ) of half the primary tax and shortfall interest charge assessed pending the outcome of the objections lodged by the Company. Under this Arrangement the Company paid to the ATO an amount of $33,395,426. On 26 February 2014 the Company announced that the objections lodged with the ATO in relation to the Amended Assessment were disallowed.

In July 2014, the Company and the ATO reached an out of court settlement. Under the terms of the settlement, the Company has, on a without admission of liability basis, made a final payment to the ATO of $2,465,106 ( Settlement Payment ) following the issue of further amended assessments. This represents full and final settlement and removes the potential for any further payments to the ATO under the Amended Assessment issued in 2012.

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September

PROJECTS

Marampa (100% interest)

Marampa is an iron ore project at development and permitting stage, and is located 90 km northeast of Freetown, Sierra Leone, West Africa ( Marampa or Marampa Project ) (refer Figure 2). Marampa comprises two granted exploration licences (EL46A/2011 – 239.18 km[2] and EL46B/2011 – 66.00 km[2 ] (formerly EL46/2011 – 305.18 km[2] )) held by Marampa Iron Ore (SL) Limited, which is indirectly, a wholly owned subsidiary of Cape Lambert.

Marampa has a total JORC Mineral Resource of 681 million tonnes[1] ( Mt ) at 28.2% Fe (above a cut-off grade of 15% Fe) covering four deposits (Gafal, Matukia, Mafuri and Rotret) (refer ASX Announcement 7 July 2011).

Exploration

No exploration activities occurred during the quarter.

Topographic Surveying

Topographic surveying continued with completion of the farms in the planned railway yard area. Crop counting continued to allow assessment for compensation requirements.

Mining Licence

On 15 October 2014, the Company received a notice from the Ministry of Mineral Resources ( MoMR ) that its Large Scale Mining Licence application lodged late in 2013 was approved, subject to the Company notifying the MoMR of its willingness to accept the proposed licence and making payment of the annual mining licence fee. The Company plans to accept the proposed mining licence and make payment of the fee.

Following the grant of the mining licence, the Company will commence the negotiation of the associated mine lease agreement that sets out the terms and conditions under which the Company would operate the large scale mine, which is expected to take 6 to 9 months to finalise.

Dempsey Resources (100% interest)

Dempsey Resources holds the Kukuna Iron Ore Project located in Sierra Leone ( Kukuna or Kukuna Project ).

The Project is located 120 km northeast of Freetown in the northwest of Sierra Leone and consists of one exploration licence (EL22/2012) covering 68 km[2] (refer Figure 2). The licence is located 70 km due north of the Marampa Project and the Pepel Infrastructure and comprises rocks that correlate with the Marampa Group stratigraphy known to host specular hematite mineralisation.

The Kukuna project is currently under care and maintenance. The Company is maintaining the camp as a base for exploration activities in and around the district.

1 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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Metal Exploration Limited (100% interest)

Metal Exploration (Mauritius) Limited, a wholly owned subsidiary of Cape Lambert, holds 17 granted exploration licences and one application in Sierra Leone covering approximately 2,386 km[2] . This land package covers the region 70 km to the north and south of Marampa and is referred to as the Rokel Iron Ore Project ( Rokel or Rokel Project ). Rocks from the Marampa Group exist throughout the licence areas, much the same as the Marampa Project, and are known to host specularite schist bearing units.

The Rokel Project is prospective for discovery of hematite schist deposits geologically similar to those at Marampa and is located proximal to the existing Pepel infrastructure (refer Figure 3). Regional mapping and geophysics has identified a number of prospective areas which are progressively being followed up with targeted exploration.

Exploration

Mapping and rock chip sampling was completed in the Magbosi and Makonkari licences over the magnetite targets and moved north into the Lankono licence area. Outcrops of magnetite gneiss, granitic gneiss containing magnetite and magnetite rich laterites continue to be discovered. Several samples have been collected and will be sent for preparation and assay in due course.

Exploration activities on the extensions to the eastern hematite targets progressed with numerous pits and short trenches excavated during the quarter. Reconnaissance mapping moved into the northern leases to test extensions to the known mineralisation in the Kukuna district. Observation of hematite schist float is more extensive to the north of Kukuna with little or no hematite schistose rocks identified in the south. A series of pits are planned to try and identify any in-situ mineralisation that may exist.

Sampling

Assay results were received during the quarter for rock chips taken from the magnetite target areas. See Figure 4 for a plan of rock chip assay locations and Tables 1 and 2 for all assays received during the quarter. The following significant rock chip assays were received:

• MKGR102: 49.6% Fe;

• MKGR103: 57.2% Fe; and

• MKGR106: 50.3% Fe.

These results were retutrned from samples logged as magnetite gneiss. The results will be followed up to determine if they are from isolated surface enrichment or are part of a more pervasive enriched iron zone.

Cote D’Ivoire (100% interest)

Metals Exploration Cote D’Ivoire SA Limited is a wholly owned subsidiary of Cape Lambert Resources. The Company holds three tenements in the highly prospective Birimian Gold Belt of Cote D’Ivoire. The tenements are named Boundiali North (400km[2] ), Katiola (400km[2] ) and Bouake (400km[2] ) for a total land position of 1,200km[2 ] (refer Figure 5).

The tenements all contain, or are adjacent to, Birimian Greenstones and metasediments and have significant structural characteristics known to host high tenor gold mineralisation in the

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district. The Birimian Group is broadly divided into phyllites, tuffs and greywackes of the Lower Birimian (Type 2 metasediments), and various basaltic to andesitic lavas and volcanoclastics of the Upper Birimian (Type 1 Greenstone metavolcanics). Spatial distribution of gold mineralisation appears to be governed by north to northeast trending belts of metavolcanic rocks, ranging from 15 km to 40 km in width, associated with the Upper Birimian.

The Birimain Gold Belt is host to numerous multi-million ounce gold deposits including the Morila (7 Moz), Syama (7 Moz) and Tongon (4 Moz) deposits. Almost without exception, these major gold deposits are located at or close to the margins of the metavolcanic belts, adjacent to the strongly deformed contacts between the Upper and Lower Birimian sequences as seen to exist within the recently granted tenements.

All three tenements are highly prospective and have the potential to host multi-million ounce gold deposits (refer to ASX announcement of 30 April 2013).

Exploration

Airbourne geophysical and radiometric surveys over the three granted tenements were completed during the quarter. A draft report on the results has recently been received and is currently under review. Initial interpretation has indicated promising structural features, which will be investigated during a regional follow up mapping program planned for the December quarter.

Pinnacle (100% interest)

Pinnacle holds the Sandenia Iron Ore Project ( Sandenia or Sandenia Project ) located 290 km east of Conakry in the central south of the Republic of Guinea. The Project comprises a single tenement covering approximately 298 km[2] . The Sandenia permit contains Banded Iron Formation prospective for iron mineralisation, similar to that hosting the 6.16 Bt Kalia deposit owned by Bellzone Mining plc located on the contiguous permit to the north.

The camp and facilities have been placed on care and maintenance and the Company is continuing to seek divestment opportunities for the project.

Mt Anketell Pty Ltd (100% interest)

Mt Anketell Pty Ltd ( Mt Anketell ), a wholly owned subsidiary of Cape Lambert, holds a single exploration licence (E47/1493) covering 56.9 km[2] in the northern Pilbara region of Western Australia, which is prospective for niche iron and gold mineralisation associated with the Nickol River precinct. Mt Anketell recently received a two year extension of the licence terms.

No exploration activities were conducted during the quarter. The Company has decided to divest Mt Anketell and buyers are being sought for this project.

Competent Person:

The contents of this Report relating to Exploration Results and Mineral Resources are based on information compiled by Olaf Frederickson, a Member of the Australasian Institute of Mining and Metallurgy. Mr Frederickson is a consultant to Cape Lambert and has sufficient experience relevant to the style of mineralisation and the deposit under consideration and to the activity he is 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”. Mr Frederickson consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

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Figure 1: Group Structure September 2014

	(ASX: CFE)	(ASX: CFE)	(ASX: CFE)	(ASX: CFE)	(ASX: CFE)
Exploration Projects				Investments in Listed Entities
Marampa Iron Ore Project CFE - 100% Sierra Leone				International Goldfields Limited (ASX: IGS) 24.7% interest Gold(Australia/ Cote d'Ivoire/ Brazil)
Kukuna Iron Ore Project CFE Sierra Leone				Fe Limited (ASX: FEL) 57.7% interest Iron Ore, Gold, Nickel(Yilgarn, Australia)
Sandenia Iron Ore Project CFE - 100% Guinea				Kupang Resources Limited (ASX: KPR) 12.6% interest Manganese(West Timor)
Rokel Iron Ore Project CFE - 100% Sierra Leone				Latin Resources Limited (ASX: LRS) 9.4% interest Iron Ore, Gold, Copper(Peru)
Mt Anketell Iron Ore Project CFE - 100% WA, Australia				OGL Resources Limited (ASX: OGL) $1.0m cnote
Cote D'ivoire Gold Project CFE - 100% Cote D'Ivoire				Cauldron Energy Limited (ASX: CXU) 19.0% interest Uranium (Australia / Argentina) $0.85m cnote
Gabon Iron Ore Project CFE - 20% Gabon				Global Strategic Metals Ltd 28.0% interest Lithium (Austria)

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Figure 2: Cape Lambert West African Iron Ore Interests

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Figure 3: Location Map of Rokel Prospects

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Figure 4: Rokel Project - Magnetite Significant Assay Results - Sample Locations

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Figure 5: Cote D’IvoireTenements

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Table 1: Rokel Magnetite Rock Chip Assay Results

**Table 1: Rokel Magnetite **			Rock Chip Assay Results											**bd =below **			**detection **
	Sample		**National **			RL	Fe	Al2O3	SiO2	P	S	**LOI **	MgO	TiO2	MnO	CaO	Na2O	K2O
ID	Type	Date	Grid ID	**North **	East		%	%	%	%	%	%	%	%	%	%	%	%
MBGR060	ROCK	19/03/2014	WGS84_28N	935200	771350	82	44.9	3.1	30.4	0.01	0.03	2.6	bd	0.11	0.08	bd	bd	bd
MBGR061	ROCK	20/03/2014	WGS84_28N	933567	773397	69	4.3	15.9	66.5	0.04	0.02	0.5	2.14	0.45	0.07	4.77	1.18	0.42
MKGR102	ROCK	18/03/2014	WGS84_28N	932984	775023	115	49.6	8.6	7.4	0.43	0.08	12.5	bd	0.31	0.10	bd	bd	bd
MKGR103	ROCK	20/03/2014	WGS84_28N	932985	775050	107	57.2	5.2	4.9	0.18	0.01	7.6	0.03	0.14	0.02	0.01	bd	bd
MKGR104	ROCK	12/06/2014	WGS84_28N	932974	775228	111	30.5	31.3	6.3	0.09	0.06	18.1	bd	0.61	0.07	0.02	bd	0.07
MKGR105	ROCK	12/06/2014	WGS84_28N	932878	775129	125	39.3	23.7	4.5	0.08	0.04	15.5	bd	0.82	0.36	bd	bd	bd
MKGR106	ROCK	12/06/2014	WGS84_28N	932978	775028	125	50.3	9.5	5.9	0.30	0.08	10.8	bd	0.36	0.08	bd	bd	bd
MKGR107	ROCK	12/06/2014	WGS84_28N	932979	775029	125	48.2	14.2	5.4	0.12	0.03	10.7	bd	0.22	0.08	bd	bd	bd
MKGR108	ROCK	12/06/2014	WGS84_28N	932991	775004	124	50.8	12.0	5.0	0.15	0.03	9.9	bd	0.41	0.73	0.02	bd	0.01
MKGR134	ROCK	11/06/2014	WGS84_28N	927800	778930	57	38.7	15.7	16.8	0.09	0.03	10.9	0.02	0.74	0.01	0.04	bd	0.11
MKGR135	ROCK	11/06/2014	WGS84_28N	927800	778980	53	35.6	15.0	20.3	0.13	0.02	10.6	bd	2.14	0.05	0.03	bd	0.11

Table 2: Rokel Pit Sample Assay Results

Table 2: Rokel Pit Sa			mple	**Assay **	Results							bd =	**below detection **
Sample	Hole	From	To	Sample	Comments	Fe	Al2O3	SiO2	P	S	LOI	**MgO **	TiO2	MnO	CaO	**Na2O **	**K2O **
ID	ID	(m)	(m)	**Type **		%	%	%	%	%	%	%	%	%	%	%	%
GHPT001/001	GHPT001	0.90	2.20	PIT		23.4	16.4	39.8	0.04	0.04	5.9	1.22	0.72	0.04	bd	bd	2.8
GHPT001/002	GHPT001	2.20	4.00	PIT		24.7	17.5	33.3	0.05	0.05	8.3	0.87	0.71	0.03	bd	bd	1.9
GHPT002/001	GHPT002	0.60	1.60	PIT		32.9	14.6	26.1	0.04	0.05	8.2	0.77	0.57	0.02	bd	bd	1.8
GHPT002/002	GHPT002	1.60	4.00	PIT		37.3	11.7	26.8	0.06	0.04	5.1	0.78	0.54	0.02	bd	bd	1.9
GHPT003/001	GHPT003	1.00	3.00	PIT		29.6	15.4	29.2	0.04	0.04	7.5	0.91	0.66	0.02	bd	bd	2.2
GHPT003/002	GHPT003	3.00	4.00	PIT		33.0	12.9	29.8	0.04	0.04	5.3	0.97	0.70	0.03	bd	bd	2.3
GHPT004/001	GHPT004	0.20	3.00	PIT		33.8	14.4	25.7	0.04	0.05	7.8	0.62	0.67	0.01	bd	bd	1.4
GHPT005/001	GHPT005	0.07	1.33	PIT		39.1	10.6	25.4	0.01	0.04	5.0	0.44	0.48	0.02	bd	bd	1.1
GHPT005/002	GHPT005	1.73	3.00	PIT		48.8	7.5	17.5	0.00	0.05	3.7	0.29	0.36	0.02	bd	bd	0.7
GHPT006/001	GHPT006	0.20	2.40	PIT		12.2	21.5	46.0	0.01	0.02	7.6	0.94	1.06	0.02	bd	bd	3.1
GHPT007/001	GHPT007	0.50	3.00	PIT		6.9	14.4	67.5	0.02	0.03	6.0	0.39	1.02	0.01	bd	bd	0.6
GHPT008/001	GHPT008	0.60	3.00	PIT		43.2	10.9	18.4	0.05	0.04	7.3	0.31	0.46	0.02	bd	bd	0.8
GHPT009/001	GHPT009	0.90	3.00	PIT		40.9	12.4	19.6	0.05	0.06	7.0	0.57	0.58	0.02	bd	bd	1.4
GHPT010/001	GHPT010	0.80	3.00	PIT		30.7	17.4	26.5	0.08	0.03	9.4	0.70	0.68	0.03	bd	bd	1.4
GHPT011/001	GHPT011	0.60	3.00	PIT		17.5	17.1	46.5	0.02	0.04	8.0	0.51	0.75	0.02	bd	bd	1.1
GHPT012/001	GHPT012	0.30	3.00	PIT		26.9	15.3	34.9	0.03	0.04	6.7	0.72	0.73	0.02	bd	bd	1.8
GHPT013/001	GHPT013	1.00	3.00	PIT		31.1	13.0	32.7	0.07	0.03	6.9	0.37	0.62	0.03	bd	bd	1.0

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September

Sample	Hole	From	To	Sample	Comments	Fe	Al2O3	SiO2	P	S	LOI	**MgO **	TiO2	MnO	CaO	**Na2O **	**K2O **
ID	ID	(m)	(m)	**Type **		%	%	%	%	%	%	%	%	%	%	%	%
GHPT014/001	GHPT014	0.35	0.90	PIT		32.7	11.9	32.7	0.03	0.04	6.5	0.44	0.52	0.02	bd	bd	1.1
GHPT014/002	GHPT014	0.90	3.00	PIT		37.9	11.1	26.6	0.03	0.04	5.6	0.60	0.48	0.02	bd	bd	1.5
GHPT015/001	GHPT015	0.60	2.50	PIT		26.4	12.4	41.9	0.02	0.03	6.4	0.35	0.56	0.01	bd	bd	0.9
MEPT019/001	MEPT019	0.00	0.50	PIT		33.8	9.6	34.6	0.04	0.03	6.5	0.29	0.47	0.01	bd	bd	0.8
MEPT019/002	MEPT019	0.50	2.00	PIT		46.9	9.3	15.9	0.01	0.01	4.0	0.62	0.35	0.01	bd	bd	1.5
MEPT019/003	MEPT019	2.00	3.00	PIT		22.6	18.0	37.7	0.01	0.03	7.4	0.89	0.66	0.01	bd	bd	2.4
MEPT020/001	MEPT020	0.00	2.20	PIT		29.7	15.7	31.4	0.04	0.05	8.9	0.31	0.62	0.03	bd	bd	0.9
MEPT021/001	MEPT021	0.00	3.00	PIT		36.5	14.6	21.1	0.07	0.03	10.4	0.04	0.72	0.07	bd	bd	0.2
MEPT022/001	MEPT022	0.00	1.20	PIT		32.8	10.8	31.9	0.07	0.05	7.4	0.33	0.43	0.03	bd	bd	1.0
MEPT022/002	MEPT022	1.20	3.00	PIT		41.5	10.8	21.7	0.03	0.03	5.2	0.54	0.55	0.04	bd	bd	1.6
MEPT023/001	MEPT023	0.36	3.00	PIT		40.4	11.9	21.3	0.03	0.04	6.2	0.45	0.51	0.02	bd	bd	1.2
MEPT024/001	MEPT024	0.40	3.00	PIT		41.2	11.0	22.7	0.02	0.01	4.8	0.61	0.51	0.02	bd	bd	1.7
MEPT024/002H	MEPT024	2.70	2.75	PIT_H	Horizontalsample1.5macrossnorth wall	41.4	8.9	26.3	0.01	0.00	2.8	0.82	0.37	0.02	bd	bd	2.5
MEPT025/001	MEPT025	0.70	3.00	PIT		23.3	18.6	35.0	0.02	0.02	8.7	0.61	0.64	bd	bd	bd	1.6
MEPT026/001	MEPT026	0.30	3.00	PIT		41.3	9.0	24.9	0.03	0.01	4.1	0.54	0.30	bd	bd	bd	1.5
MEPT027/001	MEPT027	0.40	1.10	PIT		22.6	10.7	47.3	0.03	0.02	6.4	0.34	0.28	bd	bd	bd	0.9
MEPT027/002	MEPT027	1.10	3.00	PIT		35.6	9.5	32.2	0.02	0.01	4.3	0.63	0.41	0.01	bd	bd	1.7
MEPT028/001	MEPT028	0.40	2.20	PIT		32.7	13.3	29.3	0.12	0.02	8.8	0.31	0.32	0.01	bd	bd	0.8
MEPT029/001	MEPT029	0.70	1.75	PIT		40.1	11.1	23.1	0.04	0.02	6.5	0.36	0.38	0.01	bd	bd	1.0
MEPT030/001	MEPT030	0.60	2.10	PIT		23.3	17.5	38.2	0.04	0.03	9.6	0.29	0.75	0.02	bd	bd	0.7
MEPT031/001	MEPT031	1.20	2.00	PIT		15.4	11.3	58.7	0.02	0.02	6.2	0.32	0.42	bd	bd	bd	0.5
MEPT033/001	MEPT033	0.40	3.00	PIT		22.6	18.5	35.8	0.04	0.02	9.8	0.27	0.75	0.01	bd	bd	0.7
MEPT034/001	MEPT034	0.00	2.00	PIT		26.3	13.7	39.1	0.03	0.01	5.9	0.84	0.52	0.01	bd	bd	2.2
MEPT034/003	MEPT034	2.00	3.00	PIT		27.6	11.8	41.6	0.03	0.00	4.5	0.88	0.48	0.01	bd	bd	2.3
MEPT034/004H	MEPT034	2.60	2.65	PIT_H	Horizontalsample1.5macrossnorth wall	22.9	12.4	46.5	0.03	0.00	4.0	0.93	0.40	0.01	bd	bd	2.6
MEPT035/001	MEPT035	0.80	3.00	PIT		31.3	13.2	32.4	0.03	0.02	6.7	0.57	0.39	bd	bd	bd	1.4
MWPT001/001	MWPT001	0.30	1.90	PIT		24.6	14.4	39.0	0.07	0.01	7.7	0.62	0.50	0.02	bd	bd	1.5
MWPT001/002	MWPT001	1.90	2.60	PIT		12.6	16.7	54.1	0.03	0.00	6.9	0.90	0.61	0.03	bd	bd	2.0
MWPT002/001	MWPT002	0.30	2.40	PIT		46.9	8.7	16.2	0.09	0.04	5.5	0.38	0.31	0.04	bd	bd	1.1
MWPT003/001	MWPT003	0.30	1.60	PIT		21.3	12.9	44.9	0.03	0.01	6.3	0.88	0.46	0.03	bd	bd	2.3
MWPT003/002	MWPT003	1.60	3.00	PIT		13.0	17.9	50.2	0.04	0.00	5.8	1.77	0.73	0.06	bd	bd	4.6
MWPT004/001	MWPT004	0.30	1.40	PIT		29.8	13.0	34.5	0.02	0.01	6.9	0.60	0.46	0.03	bd	bd	1.5
MWPT004/002	MWPT004	1.40	3.00	PIT		39.9	10.6	25.6	0.03	0.01	4.6	0.67	0.43	0.03	bd	bd	1.8
MWPT005/001	MWPT005	0.30	1.40	PIT		35.8	11.9	28.7	0.05	0.02	6.8	0.48	0.35	0.02	bd	bd	1.3

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Sample	Hole	From	To	Sample	Comments	Fe	Al2O3	SiO2	P	S	LOI	**MgO **	TiO2	MnO	CaO	**Na2O **	**K2O **
ID	ID	(m)	(m)	**Type **		%	%	%	%	%	%	%	%	%	%	%	%
MWPT005/002	MWPT005	1.40	2.60	PIT		37.9	12.8	24.0	0.04	0.01	6.1	0.70	0.42	0.03	bd	bd	2.0
MWPT006/001	MWPT006	0.30	3.00	PIT		37.5	11.6	25.9	0.03	0.01	5.9	0.53	0.45	0.03	bd	bd	1.4
MWPT007/001	MWPT007	0.30	1.20	PIT		42.5	8.6	22.6	0.05	0.01	5.5	0.28	0.34	0.03	bd	bd	0.8
MWPT009/001	MWPT009	0.00	1.40	PIT		27.4	10.1	41.8	0.03	0.02	7.1	0.60	0.46	0.02	bd	bd	1.8
MWPT009/002	MWPT009	1.40	2.30	PIT		19.6	6.8	59.1	0.04	0.04	3.7	0.31	0.37	0.01	bd	bd	1.0
MWPT009/003	MWPT009	2.30	3.00	PIT		38.8	11.4	23.2	0.03	0.01	5.0	0.70	0.62	0.02	bd	bd	2.0
MWPT010/001	MWPT010	1.20	3.00	PIT		24.6	12.9	42.1	0.02	0.09	6.3	0.65	0.45	0.01	bd	bd	1.7
MWPT011/001	MWPT011	0.00	0.60	PIT		29.9	10.5	37.9	0.09	0.03	7.1	0.31	0.41	0.02	bd	bd	0.9
MWPT011/002	MWPT011	0.60	2.20	PIT		32.2	12.1	29.6	0.04	0.01	8.6	0.86	0.53	0.04	bd	bd	2.1
MWPT012/001	MWPT012	0.00	3.00	PIT		18.8	16.9	43.8	0.04	0.02	8.4	0.61	0.58	0.02	bd	bd	1.2
MWPT013/001	MWPT013	0.00	0.60	PIT		26.3	11.4	40.2	0.05	0.02	7.1	0.42	0.40	0.02	bd	bd	1.1
MWPT013/002	MWPT013	0.60	3.00	PIT		34.5	12.5	28.6	0.04	0.01	5.5	0.78	0.51	0.04	bd	bd	2.0
MWPT013/004H	MWPT013	2.80	2.85	PIT_H	Horizontalsample1.5macrossnorth wall	33.9	12.5	31.2	0.04	0.01	5.1	0.83	0.54	0.04	bd	bd	2.2
MWPT014/001	MWPT014	0.40	1.50	PIT		38.4	10.7	24.2	0.02	0.02	4.0	0.91	0.45	0.02	bd	bd	2.9
MWPT014/003H	MWPT014	1.25	1.30	PIT_H	Horizontalsample1.5macrossnorth wall	33.0	11.3	31.3	0.03	0.02	6.3	0.54	0.37	0.02	bd	bd	1.6
MWPT015/001	MWPT015	1.20	2.90	PIT		30.0	12.7	35.9	0.04	0.02	6.1	0.61	0.46	0.01	bd	bd	1.8
MWPT016/001	MWPT016	0.30	1.00	PIT		24.3	14.0	41.3	0.02	0.04	7.6	0.39	0.41	0.01	bd	bd	1.0
MWPT017/001	MWPT017	0.00	0.94	PIT		33.1	13.0	28.0	0.05	0.01	7.9	0.48	0.48	0.02	bd	bd	1.2
MWPT017/002	MWPT017	0.94	3.00	PIT		38.2	12.1	24.6	0.03	0.02	5.7	0.59	0.52	0.03	bd	bd	1.5
MWPT017/003H	MWPT017	2.85	2.90	PIT_H	Horizontalsample1.5macrossnorth wall	34.1	13.8	26.6	0.03	0.03	6.3	0.66	0.59	0.03	bd	bd	1.7
MWPT018/001	MWPT018	0.00	3.00	PIT		31.0	14.2	29.1	0.08	0.03	8.1	0.58	0.53	0.03	bd	bd	1.4
MWPT019/001	MWPT019	0.00	1.40	PIT		3.3	9.8	77.6	0.02	0.00	4.6	0.29	0.58	0.03	0.04	bd	0.6
MWPT019/002	MWPT019	1.40	3.00	PIT		10.1	10.1	68.5	0.02	0.03	4.9	0.26	0.41	0.02	0.01	bd	0.6
MWPT020/001	MWPT020	0.00	0.80	PIT		22.9	12.3	43.8	0.04	0.02	6.3	0.83	0.46	0.03	bd	bd	2.2
MWPT020/002	MWPT020	0.80	3.00	PIT		35.8	10.8	29.0	0.04	0.00	4.1	1.00	0.49	0.04	bd	bd	2.4
MWPT021/001	MWPT021	0.80	2.40	PIT		17.9	11.2	54.8	0.03	0.02	6.8	0.25	0.29	bd	bd	bd	0.4
MWPT022/001	MWPT022	0.40	1.60	PIT		41.1	11.9	21.5	0.05	0.01	6.3	0.51	0.42	0.02	bd	bd	1.5
MWPT022/003	MWPT022	1.60	3.00	PIT		22.6	11.8	47.2	0.03	0.01	6.2	0.47	0.34	0.01	bd	bd	1.3
MWPT023/001	MWPT023	0.00	0.40	PIT		33.8	9.5	34.6	0.05	0.02	6.7	0.38	0.35	0.02	bd	bd	1.0
MWPT023/002	MWPT023	0.40	1.40	PIT		36.0	11.0	29.4	0.04	0.01	6.7	0.53	0.38	0.02	bd	bd	1.2
MWPT023/003	MWPT023	1.40	2.00	PIT		24.5	13.9	42.5	0.02	0.04	8.1	0.30	0.50	0.01	bd	bd	0.7
MWPT023/004H	MWPT023	1.90	1.95	PIT_H	Horizontalsample1.5macrossnorth wall	42.2	8.5	21.6	0.03	0.02	6.1	0.35	0.29	0.03	bd	bd	1.0
MWPT024/001	MWPT024	0.00	2.10	PIT		17.5	14.3	50.3	0.04	0.02	7.7	0.22	0.54	0.01	bd	bd	0.6
MWPT025/001	MWPT025	0.00	0.90	PIT		32.3	12.1	31.5	0.05	0.02	6.9	0.54	0.47	0.03	bd	bd	1.3

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Sample	Hole	From	To	Sample	Comments	Fe	Al2O3	SiO2	P	S	LOI	**MgO **	TiO2	MnO	CaO	**Na2O **	**K2O **
ID	ID	(m)	(m)	**type **		%	%	%	%	%	%	%	%	%	%	%	%
MWPT025/002	MWPT025	0.90	1.60	PIT		15.7	19.3	45.3	0.02	0.03	8.6	0.82	0.75	0.03	bd	bd	1.9
MWPT025/003	MWPT025	1.60	3.00	PIT		37.2	12.0	26.7	0.03	0.02	5.2	0.78	0.52	0.04	bd	bd	2.0
MWPT025/004H	MWPT025	2.90	2.95	PIT_H	Horizontalsample1.5macrossnorth wall	41.6	11.7	19.6	0.03	0.02	4.8	0.80	0.50	0.04	bd	bd	2.1
MWPT026/001	MWPT026	0.00	1.00	PIT		46.4	8.1	19.8	0.03	0.02	4.2	0.42	0.33	0.03	bd	bd	1.2
MWPT027/001	MWPT027	0.30	3.00	PIT		26.7	15.8	34.6	0.04	0.02	8.4	0.44	0.60	0.03	bd	bd	0.9
MWPT028/001	MWPT028	0.30	1.80	PIT		29.8	14.9	29.8	0.04	0.04	8.1	0.50	0.65	0.02	bd	bd	1.2
MWPT028/002	MWPT028	1.80	3.00	PIT		20.2	18.4	39.7	0.04	0.04	8.7	0.64	0.84	0.03	bd	bd	1.5
MWPT030/001	MWPT030	0.30	1.40	PIT		24.4	15.6	35.5	0.03	0.02	9.0	0.52	0.58	0.03	bd	bd	1.1
MWPT030/002	MWPT030	1.40	2.60	PIT		28.1	14.2	33.6	0.03	0.02	6.4	0.82	0.52	0.03	bd	bd	2.0
MWPT030/003	MWPT030	2.60	3.00	PIT		15.1	18.9	46.9	0.03	0.01	6.9	1.36	0.66	0.05	bd	bd	3.3
MWPT031/001	MWPT031	0.30	1.10	PIT		21.6	11.6	49.0	0.03	0.02	6.7	0.41	0.44	0.02	bd	bd	1.0
MWPT031/002	MWPT031	1.10	3.00	PIT		38.5	11.5	24.3	0.05	0.01	4.5	0.97	0.48	0.04	bd	bd	2.7
MWPT031/003H	MWPT031	2.90	2.95	PIT_H	Horizontalsample1.5macrossnorth wall	36.0	11.9	28.9	0.03	0.05	4.3	0.93	0.53	0.03	bd	bd	2.6
MWPT032/001	MWPT032	0.50	3.00	PIT		35.1	11.5	29.7	0.04	0.01	5.1	0.80	0.56	0.02	bd	bd	2.2

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Table 3: Rokel Pit and Surface Sample JORC Information.

JORC Code, 2012 Edition – Table 1 Report

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random chips, or specific specialised		Cut channels within 1m x 1m x 2/3m hand excavated pits
techniques		industry standard measurement tools appropriate to the minerals under investigation,		Random surface rock samples
		such as down hole gamma sondes, or handheld XRF instruments, etc). These		~2kg samples taken from vertical channels by lithology.
		examples should not be taken as limiting the broad meaning of sampling.		Samples sent to SGS operated lab in Lunsar for asmple prep and onto SGS analytical
		Include reference to measures taken to ensure sample representivity and the		lab in Liberia for XRF determination.
		appropriate calibration of any measurement tools or systems used.
		Aspects of the determination of mineralisation that are Material to the Public Report.
		In cases where ‘industry standard’ work has been done this would be relatively simple
		(eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was
		pulverised to produce a 30 g charge 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 submarine nodules) may
		warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,		No drilling
techniques		Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of		Pit and random surface hand sampling.
		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 and results		No drilling
recovery		assessed.		Samples recoverd manually by hand in approximately 2 kg.
		Measures taken to maximise sample recovery and ensure representative nature of the		Sample bias likely due to unconscious preferential sampling inevitable in pit and rock
		samples.		chip sampling.
		Whether a relationship exists between sample recovery and grade and whether sample		Bias minimised in pits with vertical channel samples across entire lithologies.
		bias may have occurred due topreferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically and geotechnically logged to a		Logging included a geological description of the rock type sampled
		level of detail to support appropriate Mineral Resource estimation, mining studies and		The logging is entirely qualitative.
		metallurgical studies.
		Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)
		photography.
		The total length andpercentage of the relevant intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core taken.		No sub samples taken
techniques and		If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or		No duplicate samples were taken at this preliminary stage of the project. The and
sample		dry.		sampling method is only indicative and not suitable for any resource definition work.
preparation		For all sample types, the nature, quality and appropriateness of the sample preparation
		technique.
		Quality controlprocedures adopted for all sub-sampling stages to maximise

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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 thegrain size of the material being sampled.
Quality of assay		The nature, quality and appropriateness of the assaying and laboratory procedures		Assays done by SGS in Sierra Leone and Liberia for analysis by XRF
data and		used and whether the technique is considered partial or total.		Quality control procedures for the pit and rock chip assays were followed via internal
laboratory tests		For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters		SGS protocols.
		used in determining the analysis including instrument make and model, reading times,
		calibrations factors applied and their derivation, etc.
		Nature of quality control procedures adopted (eg standards, blanks, duplicates,
		external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias)
		andprecision have been established.
Verification of		The verification of significant intersections by either independent or alternative		Lab repeats and lab standards used.
sampling and		company personnel.		No samples twinned.
assaying		The use of twinned holes.		Primary assay data received from SGS labs in an excel spreadsheet and loaded into
		Documentation of primary data, data entry procedures, data verification, data storage		the company Datashed database.
		(physical and electronic) protocols.
		Discuss any adjustment to assay data.
Location of data		Accuracy and quality of surveys used to locate drill holes (collar and down-hole		Sample locations have been recorded on a handheld GPS.
points		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 spacing and		Data spacing for reporting of Exploration Results.		Random data spacing based on outcrop
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.
		Whether sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves unbiased sampling of possible structures		Data based on outcrop occurrences.
data in relation to		and the extent to which this is known, considering the deposit type.		No particular sample orientation.
geological		If the relationship between the drilling orientation and the orientation of key mineralised
structure		structures is considered to have introduced a sampling bias, this should be assessed
		and reported if material.
Sample security		The measures taken to ensure sample security.		Chain of custody was managed by Cape Lambert Resources until samples were
				delivered to SGS Lunsar.
Audits or reviews		The results of any audits or reviews of sampling techniques and data.		Not applicable at this stage due to the preliminary nature of the project.

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ASX Announcement Quarterly Report Period Ended 30 September 2014

September September

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral tenement		Type, reference name/number, location and ownership including agreements or		All samples taken from the Rokel Project area held 100% by Metals Exploration which
and land tenure		material issues with third parties such as joint ventures, partnerships, overriding		is a wholly owned subsidiary of Cape Lambert Resources.
status		royalties, native title interests, historical sites, wilderness or national park and environmental settings.		The tenements are in good standing.
		The security of the tenure held at the time of reporting along with any known
		impediments to obtaining a licence to operate in the area.
Exploration done		Acknowledgment and appraisal of exploration by other parties.		Unknown
by other parties
Geology		Deposit type, geological setting and style of mineralisation.		Specularite schist bearing units with the Marampa Group Rocks
Drill hole		A summary of all information material to the understanding of the exploration results		See attached tables.
Information		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 aggregation		In reporting Exploration Results, weighting averaging techniques, maximum and/or		Assays were for a single samples over the full depth of each lithological layer within pits
methods		minimum grade truncations (eg cutting of high grades) and cut-off grades are usually		or as individual rock chips from surface samples.
		Material and should be stated.		Some significant assays were returned.
		Where aggregate intercepts incorporate short lengths of high grade results and longer
		lengths of low grade results, the procedure used for such aggregation should be stated
		and some typical examples of 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 Exploration Results.		All holes taken vertically in pitsconfined to lithological units.
between		If the geometry of the mineralisation with respect to the drill hole angle is known, its		Specularite schist mineralisation has a general strike around due north depending on
mineralisation		nature should be reported.		the location along the eastern thrust fault sampled. Mineralisation is generally steeply
widths and intercept lengths		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 width not known’).		dipping to the east.
Diagrams		Appropriate maps and sections (with scales) and tabulations of intercepts should be		See Figures 3 and 4 attached
		included for any significant discovery being reported These should include, but not be
		limited to aplan view of drill hole collar locations and appropriate sectional views.

Cape Lambert Resources Limited September 2014 Quarterly Report

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September September

ASX Announcement Quarterly Report Period Ended 30 September 2014

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Balanced		Where comprehensive reporting of all Exploration Results is not practicable,		All results have been reported
reporting		representative reporting of both low and high grades and/or widths should be practiced
		to avoid misleading reporting of Exploration Results.
Other substantive		Other exploration data, if meaningful and material, should be reported including (but not		Significant aeromag data as well as pit and trench data north and south along strike of
exploration data		limited to): geological observations; geophysical survey results; geochemical survey		the areas sampled.
		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 extensions or depth		Continued Reconnaissance mapping and sampling will continue to be followed up by
		extensions or large-scale step-out drilling).		drilling (RAB and RC) in due course
		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 September 2014 Quarterly Report

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September

Appendix 1: Tenement Status

Tenement reference	Project & Location	Acquired interest during the quarter	Disposed interest during the quarter	Interest at the end of quarter
Marampa Project - EL 46A/2011	Lunsar - Sierra Leone	-	-	100%
Marampa Project - EL 46B/2011	Lunsar - Sierra Leone	-	-	100%
Rokel Project - EL 08/2012	Yaya – Sierra Leone	-	-	100%
Rokel Project - EL 09/2012	Kukuna South – Sierra Leone	-	-	100%
Rokel Project - EL 11/2011	Gbahama – Sierra Leone	-	-	100%
Rokel Project - EL 13/2011	Gbinti – Sierra Leone	-	-	100%
Rokel Project - EL 15/2011	Lankono – Sierra Leone	-	-	100%
Rokel Project - EL 16/2011	Makonkari – Sierra Leone	-	-	100%
Rokel Project - EL 17/2011	Karina – Sierra Leone	-	-	100%
Rokel Project - EL 18/2011	Kukuna North – Sierra Leone	-	-	100%
Rokel Project - EL 19/2011	Lankono North – Sierra Leone	-	-	100%
Rokel Project - EL 20/2011	Marampa East – Sierra Leone	-	-	100%
Rokel Project - EL 21/2011	Mawanka – Sierra Leone	-	-	100%
Rokel Project - EL 22/2011	Kambia East – Sierra Leone	-	-	100%
Rokel Project - EL 23/2011	Magbosi – Sierra Leone	-	-	100%
Rokel Project - EL 24/2011	Gbangbama – Sierra Leone	-	-	100%
Rokel Project - EL 25/2011	Gbinti West – Sierra Leone	-	-	100%
Kukuna Project - EL 22/2012	Kukuna – Sierra Leone	-	-	100%
Sandenia Project – No. A2013/110/DIGM/CPDM	Sandenia – Guinea	-	-	100%
Cote D’Ivoire Projects - EL 284	Katiola - Cote D’Ivorie	-	-	100%
Cote D’Ivoire Projects - EL 285	Boundiali North – Cote D’Ivorie	-	-	100%
Cote D’Ivoire Projects - EL 286	Bouake – Cote D’Ivorie	-	-	100%
Mt Anketell Project - E47/1493	Cape Lambert South - Pilbara Western Australia	-	-	100%
EPM 9869(Note A)	Mareeba –Queensland	-	10%	-
EPM 17449(Note B)	Wee MacGregor -Queensland	100%	-	100%
EPM 17904(Note B)	Wee MacGregor -Queensland	100%	-	100%
EPM 17907(Note B)	Wee MacGregor -Queensland	100%	-	100%
EPM 17910(Note B)	Wee MacGregor -Queensland	100%	-	100%
ML 90098(Note C)	Wee MacGregor -Queensland	100%	-	100%
ML 2504(Note C)	Wee MacGregor -Queensland	100%	-	100%
ML 2771(Note C)	Wee MacGregor -Queensland	100%	-	100%
ML 2773(Note C)	Wee MacGregor -Queensland	100%	-	100%

Notes

A - Completion of sale of 10% interest to Territory Minerals Ltd under agreement 17 October 2012

B - Completion of August 2014 Caeneus Tenement Acquisition Agreement

C - Completion of May 2013 Malaco Leichhardt Sale / Purchase Agreement

Cape Lambert Resources Limited September 2014 Quarterly Report

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Cape Lambert Resources Limited

ABN 71 095 047 920

Quarter ended (“current quarter”) 30 September 2014

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) NetOperating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (4,594) - - (3,461) - 186 - (2,465) 97	- (4,594) - - (3,461) - 186 - (2,465) 97
	(10,237)	(10,237)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets (d) controlled entity 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other: Payment for subscription to convertible notes Other: Cash backing security for performance / other bonds & bank guarantees paid Other: Payment of transaction related and business development costs Net investing cash flows	- (239) (52) 51,504 49 - - (200) 325 (250) (13) (2,423)	- (239) (52) 51,504 49 - - (200) 325 (250) (13) (2,423)
	48,701	48,701
1.13 Total operating and investing cash flows	**38,464 **	**38,464 **
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc.	-	-

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other: On-market buy back Net financing cash flows	- - - - (900)	- - - - (900)
	(900)	(900)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	37,564 20,491 52	37,564 20,491 52
	58,107	58,107

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		1,080
		-
1.25	Explanation necessaryfor an understandingof the transactions
	$250,000 (excluding GST) payment of executive and non-executive director fees and $830,000 (excluding GST) payment of executive and non-executive director bonus payments as recommended by the Remuneration Committee, in respect of the MCC and ATO settlements.

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

N/A

• 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

N/A

• See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	3,500
	-
	-
	1,500
Total	5,000

Reconciliation of cash

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 $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	3,107	5,491
	55,000	15,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	58,107	20,491

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note(2))	Interest at beginning ofquarter	Interest at end of quarter
	EPM 9869	Sale agreement finalised	10%	-
	EPM17449 EPM17904 EPM17907 EPM17910	Completion of August 2014 Caeneus Tenement Acquisition Agreement	- - - -	100% 100% 100% 100%
	ML90098 ML2504 ML2771 ML2773	Completion of May 2013 Malaco Leichhardt Sale / Purchase Agreement	- - - -	100% 100% 100% 100%

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 (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	626,686,586	626,686,586
	- (8,041,271)	- (8,041,271)

• See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	500,000	500,000	Exercise price $0.15	Expiry date 30 Sept 2015
	-	-
	-	-
	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here:

...........................................

Date: 29 October 2014

(Company secretary)

Print name:

Melissa Chapman

Notes

• 1 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.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

01/05/2013