IRON BEAR RESOURCES LTD — Investor Presentation 2011

Jan 18, 2011

ASX Announcement 19 January 2011

Company Presentation

Cape Lambert Resources Limited is pleased to attach a copy of the presentation which will be delivered by Company executives to brokers in Perth today.

Yours faithfully

Cape Lambert Resources Limited

Claire Tolcon

Company Secretary

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

Ordinary shares 610,705,062

Unlisted Options 8,000,000 ($0.45 exp 30 Sept 2011)

Board of Directors

Tony Sage Executive Chairman Tim Turner Non-executive Director Brian Maher Non-executive Director Ross Levin Non-executive Director Claire Tolcon Company Secretary

Key Projects and Interests

Marampa Iron Ore Project Pinnacle Group Assets Sappes Gold Project African Iron Limited International Goldfields Limited

Cape Lambert Contact

Tony Sage Executive Chairman

Eloise von Puttkammer Investor Relations

Phone: +61 8 9380 9555

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

Conduit Public Relations Jos Simson Phone: +44 (0)20 7429 6603 Mobile: +44 (0)7899 870 450

Cape Lambert Resources Limited[ABN 71 095 047 920] PO Box 144, West Perth Western Australia 6872 Phone: +61 8 9380 9555 Facsimile: +61 8 9380 9666

info@capelam.com.au www.capelam.com.au

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Market Update January 2011

Tony Sage Executive Chairman

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Disclaimer

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This presentation has been prepared by Cape Lambert Resources Limited (“Cape Lambert” or the “Company”). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for , or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance , involve unknown risks and uncertainties . Actual results and developments will almost certainly differ materially from those expressed or implied. Cape Lambert has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Cape Lambert makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors i n or om ss on, i i f rom any i n orma f ti on, s a emen t t t or op n on con a ne i i t i d i n thi s presen a t ti on. Throughout this presentation all figures are quoted in A$ dollars unless otherwise stated.

You should not act or refrain from acting in reliance on this presentation material. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Cape L am b ert s ’ prospects. Y ou s h ou ld con d uct your own i nvest gat on i i an d per orm f your own ana ys s l i i n or d er to sat s y i f yourse lf as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

Information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on previous announcements made by Cape Lambert (or other relevant parties) to the ASX .

This presentation does not constitute financial product advice (nor investment, tax, accounting or legal advice) and has been prepared without taking account of any person’s investment objectives, financial situation or particular needs.

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Progressive Global Mining Company

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• Australian mineral investment company, listed on ASX (CFE)

• Geographically diverse portfolio of mineral assets and interests in mining and exploration companies

• Cash and receivables of A$126 million[1] at 30 September 2010, no bank debt and fully funded

• Post 30 September 2010, A$47 million cash received from sale of DMC Mining Limited

• Convertible notes of A$5.9 million maturing inside 18 months

• Deferred consideration receivable from sale of Lady Annie (A$5 million) triggered by the achievement of certain production milestones

• Directors hold approximately 6% of the Company

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1 Legal Action has commenced to recover the final A$80 million

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Strong Track Record

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 S trong trac k recor d o f d e li ver ng s i h are h o ld er va ue l

• November 2010, on market buy back commenced, A$7.2 million bought back from shareholders to date

• July 2010, A$44 million fully franked special dividend

• October 2008 , A $ 100 million ca p ital/dividend p a y ment

• October 2007, in specie distribution of Global Iron Limited (now African Petroleum Corporation Limited), Market Cap now A$1.1 billion

• May 2006, in specie distribution of International Goldfields Limited (now International Petroleum Limited), Market Cap now A$305 million

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Business Model and Strategy

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• Leverage off strong balance sheet (cash reserves) and relationships

• Invest in early stage resource projects and companies that are considered undervalued or distressed

• Assets and investments are primarily iron ore, copper, gold and uranium

• Add value through a “hands on” approach

• Position assets for ultimate sale

• Regularly distribute cash to shareholders via dividend payments as asset realisation occurs

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Corporate Snapshot

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Capital Structure

Share Price Performance

Ordinary shares (ASX: CFE)	611M
Market Capat$0.55	$336M
Cash and receivables	$179M
Enterprise value	$157M
Shareholding
Directors	6%
Top 20	62%	Substantial Shareholders	Holding (%)

Top	20	62%	Substantial Shareholders	Holding (%)
			African Minerals	19 4% .
			Directors	6.1%
			Australian Institutions	31.1%
			USA Institutions	15.2%
			UK & European Institutions	7.8%

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Strong Board and Management

Directors

Tony Sage Executive Chairman Over 25 years experience in corporate advisory, funds management and capital raisings.

Tim Turner Non-Executive Director Over 25 years experience in management and business consultancy and a partner in an accountancy practice . Brian Maher Non-Executive Director Mining engineer with over 40 years ex p erience in the minin g industr y workin g in Australia, Liberia, Guyana & the Philippines. Ross Levin Non-Executive Director Holds degrees in both Law and Economics, extensive experience in acquisitions, corporate restructuring, and takeovers and is currently a senior partner in the commercial division of Rigby Cooke Lawyers.

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Key Management

Joe Ariti General Manager Metallurgist with over 25 years experience in the mining industry working in Australia, Indonesia, PNG and Africa . Fiona Taylor Chief Financial Officer Chartered accountant with over 13 years experience in both commerce and professional practice in South Africa, Australia and the UK. Kim Bischoff GM – Exploration Geologist with 26 years experience in ex p loration , develo p ment and minin g, working in Australia, Southeast Asia and Africa. Claire Tolcon Company Secretary / Legal Counsel Lawyer with 13 years experience primarily in the areas of equity capital markets, mergers and acquisitions, corporate governance and mining and resources.

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Group Structure

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West African Emerging Iron Ore Business

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Marampa Iron Ore Project (CFE: 100%)

• Specular hematite, operated from 1933-1977

• Maiden JORC resource of 197MT (@28.5% Fe) representing 20% of mineralised strike

• Potential p roduction start-u p in 2012

• Proximal to existing mineral railway that -

• connects to Pepel Port refurbishment in progress by African Minerals

• Initial 2Mtpa access and 33% ownership of existing railway and Pepel Port

• Bench scale metallurgical test work completed –

• on Gafal West composite samples high Fe and mass recoveries utilising WHIMS

• Hard rock target size ± 700M-1Billion tonnes

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Rougher WHIMS Test Work (p125u)	Mass %	Fe Rec. %	Fe %	SiO2%	Al2O3%	P %
0-50m
Feed – 30% Fe	43	90.5	63.2	5.8	1.8	0.03
50-200m Feed – 28%	43	92.3	61.1	7.4	1.8	0.04
F e

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Pinnacle Group Assets (Iron Ore & Coal) . (CFE: 37 2% & Manager)

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• Iron ore (Sierra Leone & Guinea) and coal prospects (Sierra Leone)

• Kukuna , Sierra Leone  68km[2] granted licence, with >10km of prospective formation with outcropping enriched specular hematite

• SRK completed geological mapping and defined five target areas; trenching and IP surveys in progress to define drill targets

• B rown coa , l Si erra L eone  3,300km[2] in three blocks prospective for –

• brown coal potential feed stock for power g eneration

• Sandenia, Guinea  two exploration permits (total 608km[2] ) prospective for iron ore

• adjacent to Bellzone’s 2.4 billion tonne Kalia magnetite project

• Airborne geophysics survey now complete

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Sappes Gold Project (CFE: 100%)

• Project based on developing -

• High grade , underground Viper resource (total Mineral Resource – 1Mt at 21.4 g/t Au)

• Small, open pit on St Demetrios mineralisation (total Mineral Resource – 0.8 Mt at 3.4 g/t Au)

• Planned production of 80koz pa over 7 years (in dore and flotation concentrate) for a cash operating cost of A$330 per oz

• D eve opmen l t cap it a l c rca. i A$100M

• Pre-tax NPV(8%) ≈A$176 million (A$1330/oz)

• Historical permitting delays, but now targeting  Feasibility Study Update (no cyanide usage)Complete November 2010

• Preliminary Environmental Impact study- L o d gement D ecem b er 2010

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African Iron Limited (Iron Ore) - (CFE: 25% ASX: AKI)

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• Capital raising of A$96 million strongly su pp orted b y p rominent international funds (represent 67% of the company’s register)

• Post capital raising and settlement of Cape Lambert consideration, African Iron well funded to carry out resource definition and feasibility studies and continue regional exploration

• Consideration to Cape Lambert comprised  A$47 million cash;  120 million African Iron shares; and  Royalty of A$1 per tonne of iron ore shipped from the Mayoko Project

• Cape Lambert to remain as cornerstone shareholder with 25% interest

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International Goldfields Ltd (Gold) (Formerly Corvette Resources Limited) (CFE: 32.3% - ASX: IGS)

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Focussed Gold Explorer 3 major project areas in new frontiers of West Africa and Australia.

• Liberia - Bukon Jedeh project advanced exploration in emerging gold province

• Cote d’Ivoire – massive landholdin g in g old mineralised district

• Western Australia – Plumridge project located in the “Tropicana Belt”

• Reviewing additional opportunities for Growth

• Expect strong news flow from very active exploration.

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• Strong cash position (A$25m) as at 30 Sept 2010 – Programs fully funded.

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Other Key Assets

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Asset	Interest	Commodity	Stage	Location
Australis	100%	Rock Phosphate	Exploration	Qld/NT, Australia
Leichhardt	100%	Copper	Operations	Qld, Australia
Lady Loretta	25%	Pb-Zn-Ag	Preproduction	Qld, Australia
Cauldron Energy Limited	18.6%	Uranium	Exploration	Australia/Argentina
Latin Resources	16.6%	Iron Ore & Gold	Exploration	Peru
Fe Limited	15.2%	Iron Ore	Exploration	Midwest, WA
Monitor Energy Limited	9 1% .	Oil & Gas	Production	Trinidad

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Value Proposition

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	Asset A$ Value Cash at 30 Setember 2010 46M
	p Cash Receivables / Con notes 86M Cash received from sale of DMC Mining 47M
	On market buy back (7M) Equities (mark-to-market) 85M Marampa(100%) 500M?
	Sappes (100%) 50M? Australis (100%) ?
	Pi l (37 2%) ? nnac e . Lady Loretta (25%) ? Cape Lambert South (100%) ?
	Total ++807M Notes :

• 1.Cash receivables relates to the final payment to be received in respect of the sale of the Cape Lambert project and repayment of convertible notes. 2.Equities were marked-to-market on 14 January 2011.

• 3.Marampa value based on “asking price” in respect of a trade sale.

4.Sappes value based on the preferred value determined by the Independent Expert in CopperCo Limited ’ s ASX release dated 30 June 2008 “ Prospectus to acquire all the issued shares in Mineral Securities Limited ”.

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Attributes

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Competent Persons Statement

The Metallurgical information in this presentation is based on information compiled by GV Ariti who is a Member of The Australasian Institute of Mining and Metallurgy . Mr . Ariti has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Ariti consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

The Exploration information in this presentation is based on information compiled by K Bischoff who is a Member of The Australasian Institute of Mining and Metallurgy . Mr . Bischoff has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Bischoff consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

Mineral Resources

Sappes Gold Project - Mineral Resources quoted in this presentation in respect of Sappes are based on previous announcements made to ASX Limited by CopperCo Limited, specifically ASX release dated 30 June 2008 “ Prospectus to acquire all the issued shares in Mineral Securities Limited ”.

Mayoko Iron Ore Project - Mineral Resources quoted in this presentation in respect of Mayoko are based on previous announcements made to ASX Limited by DMC Mining Limited, specifically ASX release dated 7 May 2008 “Initial JORC Resource – Mayoko Iron Ore Project”.

Exploration Target Size Statements

Target sizes quoted in this presentation are conceptual in nature and in respect of the target sizes quoted, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Target sizes referred to in this presentation refer to potential tonnages of iron ore mineralisation that have been estimated using available exploration information including historic and contemporary geological mapping, geochemical sampling of outcrops, pits and trenches, wide spaced diamond drill holes and modelling of ground and airborne geophysical survey data .

Production and Cost Information

Sappes Gold Project – Production rates, capital and operating costs quoted in this presentation in respect of Sappes are based on previous announcements made to ASX Limited by CopperCo Limited, specifically ASX release dated 30 June 2008 “ Prospectus to acquire all the issued shares in Mineral Securities Limited ”.

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www.capelam.com.au

Corporate Office

18 Oxford Close

Leederville, Western Australia 6007 Australia

Postal Address:

P.O. Box 144

West Perth, Western Australia 6872 Australia

Telephone +61 8 9380 9555 Facsimile +61 8 9380 9666 Email . com . au info@capelam

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