IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2014

Jan 30, 2014

December 2013 Quarterly Report 31 January 2014

31 January 2014

QUARTERLY REPORT – 31 December 2013

Please find attached the Quarterly Activities Report and Appendix 5B for the period ended 31 December 2013.

Cape Lambert is an Australian domiciled, mineral investment company. Its current investment portfolio is geographically diverse and consists of mineral assets and interests in mining and exploration companies.

The Company continues to focus on investment in early stage resource projects and companies, primarily in iron ore, copper and gold. Its “hands on” approach is geared to add value and position assets for development and/or sale.

The Board and management exhibit a strong track record of delivering shareholder value.

Australian Securities Exchange Code: CFE

Yours faithfully Cape Lambert Resources Limited

Ordinary shares 667,938,887

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

Tony Sage Executive Chairman

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 December 2013 Quarterly Report

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September

HIGHLIGHTS

Corporate

• At 31 December 2013, the Company had approximately A$14.6 million in cash at bank. An additional A$5.6 million, being for environmental bonds associated with the Leichhardt Project is due for release to the Company in February 2014.

• On market buy back of 21,169,905 fully paid ordinary shares completed for expenditure A$3,019,421.41.

• TSX listed Eldorado Gold Corporation (TSX ELD) made an off market takeover offer to acquire all of the shares of Glory Resources Limited (ASX: GLY), a company which Cape Lambert holds 36,750,000 shares in, for A$0.17 per share. A condition of the takeover is Cape Lambert agreeing to receive an upfront payment of A$6.5million in satisfaction of milestone payments payable to the Company pursuant to the terms of the sale agreement between Glory Resources Limited and the Company. On successful completion of the takeover, Cape Lambert will receive a total of A$12,747,500 (based on A$0.17 per share), which includes the A$6.5million upfront milestone payment.

• Increased shareholding in Global Strategic Metals NL (ASX: GSZ) to 34.89% following the conversion of A$1.35m in convertible and converting loan notes to equity.

• Metallurgical Corporation of China Limited (“MCC”) transfered 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.

• Appointment of Mr Jason Brewer as Non-Executive Director.

• Annual General Meeting held and all resolutions passed on a show of hands.

Projects

Marampa Iron Ore Project

• Large Scale Mining Licence application lodged with authorities in November 2013.

• Infrastructure access agreement executed with African Minerals Ltd.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

CORPORATE

Strategy and Business Model

Cape Lambert Resources Limited (“Cape Lambert” or the “Company”) ( ASX: CFE ) is an Australian domiciled, resources and investment company with interests in a number of resource projects and companies.

Through strategic acquisitions and subscriptions to convertible notes the Company has exposure to iron ore, copper, gold, manganese, lithium, base metals and uranium in Australia, Greece, Indonesia, Austria, Africa and South America (refer Figure 1).

The Company’s strategy is to acquire and invest in undervalued and / or distressed mineral assets and companies (“Assets”), and to add value to those Assets through a “hands on” approach to management, exploration and evaluation. This will enable the Assets to be converted into cash at a multiple and to retain exposure to the Assets through a production royalty and/or equity interest. As Assets are converted into cash, the Company intends to follow a policy of distributing surplus cash to Shareholders.

Capital Management

On Market Buy-Back

During the quarter, the Company completed an on market share buy-back (“Buy-back”) of up to 10% of the Company’s fully paid ordinary shares (“Shares”) within the 12 months from 18 December 2012 (refer ASX Announcement dated 18 December 2012). Shares bought back by the Company were subsequently cancelled.

During the Buy-back, the Company bought back 21,169,905 Shares for total consideration of A$3,019,421.41, of which 8,003,055 Shares for a total consideration of A$1,025,903.65 was paid in the current quarter.

Corporate Structure

Board Restructure

On 23 December 2013, the Company announced the appointment of Mr Jason Brewer and the resignation of Mr Brian Maher as Non-Executive Director of the Company with effect from 31 December 2013.

Investments and Divestments

Glory Resources

During the quarter, Glory Resources Limited ( ASX: GLY ) (“Glory Resources”) announced that its 19.9% major shareholder TSX listed Eldorado Gold Corporation ( TSX: ELD ) (“Eldorado”) had made an off market takeover offer to acquire the remaining 80.1% of shares on issue in Glory Resources for A$0.17 per share (“Takeover Offer”).

Cape Lambert holds 36,750,000 shares in Glory Resources and is its second largest shareholder with a 16% shareholding in the company.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Glory Resources’ flagship, the Sapes Gold Project in Greece (“Sapes Project”) was originally acquired by Cape Lambert in June 2009. In August 2011, Cape Lambert became a cornerstone investor in Glory Resources by selling the Sapes Project to Glory Resources for a total consideration of A$32,500,000 in cash and 16,000,000 shares in Glory Resources.

Pursuant to the terms of the sale of the Sapes Project, Glory Resources must pay Cape Lambert an additional A$10,000,000 in cash or shares (at the election of Cape Lambert) on achievement of two key milestones relating to the Sapes Project (A$5,000,000 for each milestone), namely the granting of an operating permit and the sale of the first 1,000 ounces of gold or gold equivalent (“Milestone Payments”).

A condition of the Takeover Offer is Cape Lambert agreeing to receive an upfront payment of A$6.5million in satisfaction of the Milestone Payments, to be paid at any time during the period starting at the end of the offer period and ending 20 business days after the end of the offer period.

Cape Lambert advised during the quarter that subject to any superior offer being made during the period of the Takeover Offer, Cape Lambert intends to accept the Takeover Offer in respect to its shareholding in Glory Resources.

Acceptance of the Takeover Offer in respect of all the Glory Resources shares held by Cape Lambert will result in Cape Lambert receiving A$12,747,500 (based on A$0.17 per share), which includes A$6.5million for upfront Milestone Payments.

Global Strategic Metals

Global Strategic Metals NL (ASX: GSZ ) (“Global”) is an Australian based exploration and mining company with an 80% interest in the Wolfsberg Lithium Project, located in Carinthia, 270km south of Vienna in Austria.

In December 2012, Global entered into a loan agreement with Cape Lambert (“Loan Agreement”) pursuant to which Cape Lambert agreed to lend Global A$400,000, with accruing interest. The parties have entered into a deed of variation the effect of which is that the loan (including interest) is now repayable by Global on 30 June 2014. All other terms and conditions of the Loan Agreement remain the same.

In July 2013, Global entered into a converting loan agreement with Cape Lambert (“Converting Loan Agreement”) pursuant to which Cape Lambert agreed to lend Global A$1,000,000, with accruing interest, to fund the Wolfsberg Lithium Project and general working capital. In September 2013, Global entered into a convertible note deed with Cape Lambert (“Convertible Note”) pursuant to which Cape Lambert agreed to lend Global A$350,000, with accruing interest, to fund the Wolfsberg Lithium Project and general working capital. The Converting Loan Agreement and Convertible Note were convertible into shares in Global (“Global Shares”), subject to Global shareholder approval.

At the Global Annual General Meeting in November 2013, Global shareholders approved the conversion of the amounts owing under the Converting Loan Agreement and Convertible Note into Global Shares and consequently on 30 December 2013, a total of 47,084,932 Global Shares were issued to Dempsey Resources Pty Ltd, a wholly owned subsidiary of Cape Lambert.

Following conversion of the converting loan agreement and convertible note deed into Global Shares, Cape Lambert holds a 34.89% interest in Global.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Legal Action and Disputes

ATO Notice of Amended Tax Assessment and Associated Penalty Notice

The dispute with the Australian Taxation office, as reported in detail in previous Quarterly Reports, is ongoing with no developments during the quarter.

MCC Legal Action

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 has 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 China (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 Sanjin.

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.

During the quarter, the Arbitrator ordered that MCC (which had signed a guarantee in respect of MCC Australia Sanjin Mining Pty Ltd’s obligations under the MCC Agreement) 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. This amount was paid into the escrow account on 25 November 2013.

Cape Lambert Resources Limited December 2013 Quarterly Report

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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.

Exploration

No exploration activities occurred during the quarter.

Topographic Surveying

Topographic surveying over the proposed plant site was completed.

Rail and Port Agreement with African Minerals Limited

During the quarter the Company announced it had finalised and executed a binding Infrastructure Agreement for the Marampa Project (refer ASX announcement dated 24 December 2013) with AIM-listed African Minerals Limited (AIM: AML) (“African Minerals”).

The Infrastructure Agreement grants Marampa access rights to transport and export 2Mwtpa (wet – equivalent to 1.8Mtpa dry) of iron concentrate via African Minerals’ existing Pepel rail and port infrastructure. Additionally, African Minerals has an option to purchase 2Mwtpa of Marampa concentrate at mine gate for the first three (3) years of production.

Mining Licence

Marampa finalised and lodged its Large Scale Mining Licence application during the quarter (refer ASX announcement 22 November 2013), and expects that the mining licence will be granted during Q1 2014 or early Q2 2014.

Dempsey Resources (100% interest)

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

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.

Exploration

No exploration activities occurred during the quarter.

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September

Pinnacle (100% interest)

Pinnacle holds the Sandenia Iron Ore Project (“Sandenia Project” or “Sandenia”) located 290 km east of Conakry in the central south of the Republic of Guinea. The Project is comprised of a single tenement covering approximately 298 km[2] . The Sandenia permit contains Banded Iron Formation (“BIF”) 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.

Exploration

Field mapping and sampling to investigate potential hosts for gold mineralisation alongside iron mineralisation continued throughout the quarter as weather permitted.

Sample Dispatch

There remains 117 samples awaiting multi element (including gold) analysis (ICP-MS). An additional 102 rock chip and soil samples were collected through the quarter, of which 85 were dispatched for assay.

No assay results have been received to date.

Metal Exploration Limited (100% interest)

Metal Exploration (Mauritius) Limited, a wholly owned subsidiary of Cape Lambert, holds 17 granted exploration licences and 1 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 (“Rokotolon Formation”) 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 2). Regional mapping and geophysics has identified a number of prospective areas which are progressively being followed up with targeted exploration.

Exploration

Exploration focused on tenements in the south east of the group (refer Figure 3) targeting mineralisation expected to be associated with an interpreted thrust fault contact between basement granite and gneiss units and Marampa Group rocks. Mapping has identified in-situ highly weathered undifferentiated schist of the Marampa Group striking 165° and dipping 45° west, as well as numerous float rocks of the same lithology in the vicinity of the interpreted thrust fault contact trend. These observations suggest potential for hematite mineralisation to exist along this contact which may continue considerably further south than originally thought (refer Figure 4).

Rock chip sampling continued during the quarter.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Sampling

A total of 189 samples were prepared through the in-house sample preparation facility in Lunsar and dispatched to SGS Laboratories in Monrovia for multi element analysis. A further 28 samples were submitted for XRF for Fe determination.

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 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 15km to 40km in width, associated with the Upper Birimian.

The Birimain Gold Belt is host to numerous multi-million ounce gold deposits including the Morila (7Moz), Syama (7Moz) and Tongon (4Moz) 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

The Company is targeting large primary in-situ gold occurrences and work has commenced on planning and budgeting for a first pass exploration program.

No exploration activities occurred during the quarter.

Australis Exploration Limited (100% interest) (“Australis”)

All tenements and applications held within the Australis and Mojo companies were relinquished during the quarter.

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 2 year extension of the licence term.

Based on significant geochemical gold results identified on surrounding tenements and projected strike extensions of the source lithology into the Mt Anketell ground, a proposal

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

was submitted to the Department of Mines and Petroleum to conduct auger geochemical sampling over the Nickol River prospect. Ministerial consent was granted and a letter of POW approval was received in late December 2013. Work is now progressing in the form of preparations for the proposed field work, which is expected to be conducted during 2014.

Competent Person:

The contents of this Report relating to Exploration Results are based on information compiled by Dennis Kruger, a Member of the Australasian Institute of Mining and Metallurgy. Mr Kruger 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 Kruger consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

Competent Person:

The contents of this Report relating to Mineral Resources and Ore Reserves 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.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Figure 1: Group Structure December 2013

	(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) 26.0% interest Gold(Australia/ Cote d'Ivoire/ Brazil)
Kukuna Iron Ore Project CFE Sierra Leone				Fe Limited (ASX: FEL) 19.9% interest Iron Ore, Gold, Nickel(Yilgarn, Australia)
Sandenia Iron Ore Project CFE - 100% Guinea				Kupang Resources Limited (ASX: KPR) 12.2% interest Manganese(West Timor)
Rokel Iron Ore Project CFE - 100% Sierra Leone				Glory Resources Limited (ASX: GLY) 16.4% interest Gold(Greece)*
Mt Anketell Iron Ore Project CFE - 100% WA, Australia				Latin Resources Limited (ASX: LRS) 11.0% interest Iron Ore, Gold, Copper(Peru)
Cote D'ivoire Gold Project CFE - 100% Cote D'Ivoire				OGL Resources Limited (ASX: OGL) $1.0m cnote
Gabon Iron Ore Project CFE - 20% Gabon				Cauldron Energy Limited (ASX: CXU) 22.6% interest Uranium (Australia / Argentina) $0.2m cnote
				Global Strategic Metals NL (ASX: GSZ) 34.9% interest Lithium (Austria)

• Accepted off-market take-over by Eldorado Gold Corporation.

Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Figure 2: Cape Lambert West African Iron Ore Interests

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Cape Lambert Resources Limited December 2013 Quarterly Report

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September

Figure 3: Location Map of Rokel Prospects

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Cape Lambert Resources Limited December 2013 Quarterly Report

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ASX Announcement Quarterly Report Period Ended 31 Dec 2013

September

Figure 4: Potential for Extension to Mineralisation in the Southern Rokel Group

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Cape Lambert Resources Limited December 2013 Quarterly Report

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ASX Announcement Quarterly Report Period Ended 31 Dec 2013

September

Figure 5: Cote D’IvoireTenements.

==> picture [558 x 411] intentionally omitted <==

Cape Lambert Resources Limited December 2013 Quarterly Report

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ASX Announcement Quarterly Report Period Ended 31 Dec 2013

September

Appendix 1: Tenement Status

		Acquired interest during the quarter	Disposed Interest during the quarter
				Interest at end of quarter
Tenement reference	Project & Location
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 12/2011	Gbonge – Sierra Leone	-	-	100%
Rokel Project - EL 13/2011	Gbinti – Sierra Leone	-	-	100%
Rokel Project - EL 14/2011	Magbeti – 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. A 2013/110/DGMI/CMPD	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	EL 286 – Cote D’Ivorie	-	-	100%
Mojo Project - EPM15687	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15688	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15690	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15691	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15693	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15694	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15695	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15696	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15698	Glenorm – Queensland	-	100%	0%
Mojo Project - EPM15700	Glenorm – Queensland	-	100%	0%
Mt Anketell Project - E47/1493	Cape Lambert South - Pilbara Western Australia	-	-	100%
Australis Project - EL26310	Glasshouse - Northern Territory	-	100%	0%
Australis Project - EL26311	Glasshouse - Northern Territory	-	100%	0%

Cape Lambert Resources Limited December 2013 Quarterly Report

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ASX Announcement Quarterly Report Period Ended 31 Dec 2013

September September

		Acquired interest during the quarter	Disposed Interest during the quarter
				Interest at end of quarter
Tenement reference	Project & Location
Australis Project - EL26312	Glasshouse - Northern Territory	-	100%	0%
Australis Project - EL26701	Glasshouse - Northern Territory	-	100%	0%
Australis Project - EPM16794	West Isa - Queensland	-	100%	0%
Australis Project - EPM16796	West Isa - Queensland	-	100%	0%
Australis Project - EPM16798	West Isa - Queensland	-	100%	0%
EPM 9869 (Note A)	Mareeba – Queensland	-	-	10%

Note A

Subject to completion of sale of 10% interest to Territory Minerals Ltd under agreement 17 October 2012

Cape Lambert Resources Limited December 2013 Quarterly Report

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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”) 31 December 2013

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) Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	- (3,284) - - (1,217) - 252 - - 18	- (6,049) - - (2,967) - 536 (27) - 141
	(4,231)	(8,366)
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: Cash backing security for performance / other bonds & bank guarantees released Other: Payment of transaction related and business development costs Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- (273) (73) - 247 - - (200) - 5 (615)	- (855) (101) - 247 - 11,504 (2,416) 500 13 (1,433)
	(909)	7,459
	(5,140)	(907)

• 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

1.13 Total operating and investing cash flows (brought forward)	(5,140)	(907)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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	- - - - - (1,026)	- - - - - (1,583)
	(1,026)	(1,583)
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	(6,166) 20,706 10	(2,490) 17,034 6
	14,550	14,550

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
		214
		-
1.25	Explanation necessaryfor an understandingof the transactions
	$214,000 (excluding GST) payment of executive and non-executive director fees.

Non-cash financing and investing activities

2.1 2.2	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
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A’000
		3,500
		-
		-
		1,500
	Total	5,000

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

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)	14,550	706
	-	20,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	14,550	20,706

• 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
		Australis Exploration Pty Ltd EL26310 EL26311 EL26312 EL26701 EPM16794 EPM16796 EPM16798 Mojo Mining Pty Ltd EPM15687 EPM15688 EPM15690 EPM15691 EPM15693 EPM15694 EPM15695 EPM15696 EPM15698 EPM15700	Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - -
		N/A

Issued and quoted securities at end of current quarter

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 note3) (cents)	Amount paid up per security (see note3) (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	667,938,887	667,938,887

• See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	- (8,003,055)	- (8,003,055)
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
	500,000	500,000	Exercise price $0.15	Expiry date 30 Sept 2015
	-	-
	(10,765,000)	(10,765,000)	Exercise price $0.29	Expiry date 22 Nov 2013
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-

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: 31 January 2014

(Company secretary)

Print name: Melissa Chapman

• See chapter 19 for defined terms.

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

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

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