IRON BEAR RESOURCES LTD — Investor Presentation 2014

Mar 23, 2014

ASX Announcement 24 March 2014

Company Presentation

Cape Lambert Resources Limited ( ASX: CFE ) ( Company ) is pleased to attach a copy of the presentation which will be presented by Company executives at Hong Kong Mines and Money this week.

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.

Yours faithfully Cape Lambert Resources Limited

Melissa Chapman Company Secretary

Australian Securities Exchange Code: CFE

Ordinary shares 661,753,785

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[ABN 71 095 047 920 ]

Corporate - 32 Harrogate Street, West Leederville WA 6007

Cape Lambert Resources

Mines and Money Hong Kong March 2014

Advancing Undervalued Mineral Assets

Tony Sage - Executive Chairman

Cape Lambert is a diversified mineral development company listed on the ASX (“CFE”)

Strategic Portfolio

• » Geographically diverse portfolio of mineral assets and investment interests

• » Multi-commodity portfolio

• » Pipeline of quality projects

Fully funded

• » No bank debt

• » Cash position at 31 Dec 2013 A$14.6M

• » Received Q3 2014:

GLY takeover proceeds $12.7M Leichhardt Bonds refund $5.6M

Future cash flows

• » Receivables and convertible notes of A$84.5M[1 ]

• » Proposed sale of Mayoko royalty – potentially $55m-$114m

Ownership

• » Directors hold approximately 6.9% of the Company

• » Top 20 hold 67.6% of the Company

• » Proposed sale of Marampa – potentially $250m - $500m

1 Includes loan receivables of $1.4m, convertible notes of $3.1m and the MCC receivable of $80m. Legal Action has commenced to recover the final $80m owing from MCC.

Strong track record of delivering shareholder value

May 2006 Oct 2007 Oct 2008 In specie distribution In specie A$100M of International distribution of capital/ Goldfields (now Global Iron dividend International (now African payment (from Petroleum Petroleum sale of CFE Market cap Market cap magnetite A$17.6M[1] ) A$135.6M[1] ) deposit)

July 2010 Feb 2011 A$44M fully On market buyfranked special back 54M shares dividend for A$32M payment (from sale of Lady Current Annie Copper On market buyProject) back

Divestments that created significant shareholder value

2010–2011: CopperCo

• Acquired CopperCo Assets for $130m

• Sold Lady Loretta for $30m

• Sold Lady Annie for $130m

• Sold Sappes for $46.5m

• Total sale value of $206.5m

2011–2012: African Iron

• Divestment of DMC Mining Ltd into African Iron Ltd (ASX.AKI) for $47m cash, 25% of AKI, and a $1/t production royalty

• 25% AKI holding sold to Exxaro for $72m

• CFE retains production royalty, estimated value of more than $55m

2014: Glory Resources

• Received $12.75m from takeover by Eldorado

1 Market Capitalisations calculated as at 28 February 2014

Quality Assets in Project Pipeline

Earmarked for sale Marampa (Fe) Sierra Leone

Development projects Rokel (Fe) Sierra Leone

Exploration projects

Regional Gold, Sandenia (Fe) Cote d’Ivoire Guinea

Kukuna (Fe) Sierra Leone

Early exploration Mt Anketell (Fe, Au) Regional Iron New Desktop Studies Pilbara, Australia Ore, Gabon Projects

Key Projects and Investments

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Page 5 | March 2014

Capital Structure	Capital Structure
Ordinary shares (ASX: CFE)	662m
Market Cap at $0.10	$66m
Cash as at 31 Dec 2013	$14.6m
Receivables1	$84.5m
Options ($0.15 exp. Sept 2015)	0.5m
Listed investments2	$13m
Unlisted investment	$3m
Enterprise value	($67m)

Shareholders	Shareholders
African Minerals Limited	18.3%
Top 20	67.9%
Institutional shareholders Including: Capital World BlackRock Henderson JP Morgan	~38%
Directors	6.9%
Average Daily Trading Volume
2014 (year to date)	0.8m

1. Receivables includes loans receivable of $1.4M, convertible notes $3.1M and the MCC receivable of $80M. Legal action has commenced to recover the final $80m owing from MCC. 2. Marked to market on 28 February 2014.

Asset	A$ Value
Cash at 31 Dec 2013	$14.6m
Leichhardt bond refunds received(Feb 2014)	$5.6m
GLY takeoverproceeds received(Feb 2014)	$6.2m
GLY milestonepayment received(March 2014)	$6.5m
MCC Receivable	$80m
Receivables1	$4.5m
Listed Investments2	$13m
Unlisted Investment	$3m
Value of financial assets	$133.7m
Marampa(100%)	$250-$500m
Royaltyon African Iron(Mayoko Iron Project)	$55-$100m
Rokel(100%)	?
Pinnacle – Sandenia & Kukuna(100%)	?
Mt Anketell(100%)	?
Cote D’Ivoire - Gold(100%)	?
Gabon - Iron Ore(20%)	?
Value of CFE Projects?	+++$300m
Total value of CFE assets = $133.7 PLUS value of projects
Current Market Capitalisation	$66m

1 Includes loan receivables of $1.4M and convertible loan notes of $3.1M.

2 Marked to market on 28 February 2014.

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CFE Projects

*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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• » JORC Resource[1] of 681Mt at 28.2% Fe

• » Supporting 15Mtpa high quality hematite concentrate production for >15 years

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Scoping study for 15Mtpa, standalone open pit mining development complete:

• » Stage 1[2] – up to 3.4Mtpa concentrate: capex US$368m

• » Stage 2[3] – 10Mtpa concentrate: capex US$1.25b

• » Stage 3 – 15Mtpa concentrate: capex US$715m

• » 16 year mine life at operating cost of US$51/t concentrate (incl. transport) » After tax NPV[4] 10%[ US$1.19 billion with IRR = 23% ]

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• » <2.5km from existing operational heavy haulage Lunsar–Pepel railway (73km to Pepel port)

• » 2Mwtpa rights to access Pepel rail and port

• » Environmental Licence approved

• » Mining Licence application lodged. Approval expected » Option agreement for AML to buy 2Mwtpa concentrate at mine gate

• 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.

• Based on Infrastructure Agreement with AML and concentrate transport via Pepel rail and port. 3. Based on concentrate pumped to and exported via newly built port at Tagrin Point.

• At concentrate FoB sales price of US$100/t

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Location	» Republic of Sierra Leone » Large land position (305km2)
Ownership	» 100% CFE
Project stage	» Environmental Licence approved » Mining Licence application lodged » Scoping Study at 15Mtpa concentrate completed
JORC Mineral **Resources1 **	» 4 deposits with JORC resource1of 681Mt at 28.2% Fe (15% Fe cutoff) » Indicated: 262Mt at 28.7%Fe » Inferred: 419Mt at 27.9%Fe
Exploration **Target1 **	» >6km of undrilled strike at 3 prospects » Total Exploration Target21.0 – 1.25Bt at 20-38% Fe (including JORC resource)
Metallurgy and Products	» Coarse primary grind size (P98of 850µm), low power costs, life of mine average mass yield 36.4%, >65% Fe concentrate » Sinter fines and pellet feed. Possible DRI feed
Rail and Port Access	» 2Mwtpa via existing Pepel Port and Rail. » 16Mwtpa via Tagrin trans-shipping port when operational.

1This 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

2The estimates of Exploration Target sizes should not be misunderstood as estimates of Mineral Resources. The estimates of Exploration Target sizes are conceptual in nature and there has been insufficient results received from drilling to date to estimate a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if future exploration will result in the determination of a Mineral Resource.

• Continuing to progress development plans for Marampa & assess all development alternatives that will result in the most efficient use of funds and the highest return

• Detailed below are a number of alternative development scenarios for Marampa - the financial outcomes of each alternative are presented on the following page

Scenario 1A	» 3 stage development (2.5Mtpa, 10Mtpa, 15Mtpa) » Assumes no mine gate sales to African Minerals Ltd (AML)
Scenario 1B	» 3 stage development (2.5Mtpa, 10Mtpa, 15Mtpa) » Assumes 2Mwtpa of mine gate sales to AML for 3 years as per the Infrastructure Agreement
Scenario 1C	» 3 stage development (2.5Mtpa, 10Mtpa, 15Mtpa) » Assumes no mine gate sales to AML » Investigates mining the base of the pit to the London Mining boundary
Scenario 2A	» 3 stage development (5Mtpa, 10Mtpa, 15Mtpa) » Assumes 3Mwtpa of mine gate sales to AML during stage 1.
Scenario 3A	» Single 5Mtpa development » Assumed all product railed on AML’s railway

Considerations and assumptions

• » 1A, 1B & 1C - Existing binding Agreement with African Minerals (AML) allows for transport of 2Mwtpa via Pepel rail and port and AML have an option to purchase 2Mwtpa at mine gate for first 3 years of operation.

• » Scenario 2 and 3 require further agreement with AML to enable transport of 5Mtpa via Pepel rail and port.

• » African Minerals has indicated a willingness to amend the current agreement upwards.

• » Scenario 1C requires an agreement with London Mining to mine pit slopes within their boundary.

• » Average FOB Concentrate Sale Price (65% Fe) of US$100/dmt (equivalent to Platts US$120/dmt) used.

• » Average plant feed grade 27.3% Fe.

• Scenario 3A presents the lowest capital expenditure and the highest IRR – but does require amendments to the agreement with AML.

• Scenario 3A demonstrates a lower start up cost alternative with many potential growth options, such as pipeline construction for an additional 5 or 10Mtpa once the project is generating cash.

	Scenario 1A	Scenario 1B	Scenario 1C	Scenario 2A	Scenario 3A
Mine Life	16	16	17	16	38
Ore Mined Mt	555.3	555.3	668.2	555.3	520.9
Concentrate Produced Mt	202.2	202.2	239.5	202.2	189.9
Capital Costs
Development Capital - Stage 1 ($m) (2.5Mtpa: 1A, 1B, 1C) (5Mtpa 2A and 3A)	368.2	368.2	368.2	476.5	643.3
Development Capital Stage 2 (10Mtpa) ($m)	1253.1	1253.1	1253.1	1144.7	0.0
Development Capital Stage 3 (15 Mtpa) ($m)	715.5	715.5	715.5	715.5	0.0
Total Development Capital $m	$2,336.7	$2,336.7	$2,336.7	$2,336.7	$643.3
Operating Costs
Operating Cost ($/t Concentrate)	53.0	53.0	50.8	52.8	58.4
Total Operating Costs ($m)	$10,725.5	$10,721.6	$12,160.5	$10,673.9	$11,094.9
Financial Summary
Total Revenue ($m)	$20,224.5	$20,224.5	$22,821.8	$20,224.5	$18,985.5
Operating Cashflow ($m)	$8,548.5	$8,552.4	$10,661.2	$8,600.0	$6,998.2
Net Project Cashflow ($m)	$4,475.8	$4,496.9	$6,044.6	$4,534.9	$5,375.9
NPV10%($m)	$1,059.1	$1,191.6	$1,324.4	$1,220.6	$858.9
IRR (%)	20%	23%	21%	23%	27%

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

||Page 13 |
Rokel Iron Ore Project - Overview
Location
»
>2,000km2of prospective
Marampa belt
Ownership
»
100% CFE - Metal Exploration Limited
Exploration
Target
»
Hematite schist iron ore.
»
Identified prospect at Kumrabai east of
Marampa with strike of 8km
»
3 known historical occurrences
north of Marampa
»
Additional potential extensions trending in
line with Kumrabai in the southern
tenements.
Project
stage
»
Airborne magnetic geophysical survey
completed. Target generation in progress
»
Prospect mapping & sampling underway at
Kumrabai
Rail and
Port Access
»
Prospect and occurrences 5-40km from
Tonkolili-Lunsar-Pepel railway
March 2014|
|---|---|

Location	» Republic of Sierra Leone » 68km2granted licence
Ownership	» CFE - Pinnacle Group Assets
Exploration **Target1 **	» Three target trends with total prospective strike of ~20km » Exploration target11-2.0 Bt at 30- 40% Fe of hematite schist iron ore
Product	» High grade hematite concentrate
Project stage	» Early exploration » Trenching & drilling program conducted in 2011/2012 on priority targets
Rail and Port Access	» Located ~80km from existing Pepel-Lunsar railway and/or the Atlantic Coast. » Transport and shipping options being examined.

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1The estimates of Exploration Target sizes should not be misunderstood as estimates of Mineral Resources. The estimates of Exploration Target sizes are conceptual in nature and there has been insufficient results received from drilling to date to estimate a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if future exploration will result in the determination of a Mineral Resource.

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.

Location	» Republic of Guinea » Granted exploration permit (298km2)
Ownership	» 100% CFE - Pinnacle Group Assets
Exploration **Target1 **	» Exploration Target11.5-2.5 Bt at 25-35% Fe » Seven exploration targets prospective for enriched oxide and magnetite BIF
Project stage	» Early exploration » Drill targets defined at Sandenia & Sandenia East » Ongoing trenching and geophysical interpretation
Rail & Port Access	» Adjacent to proposed railway Kalia - Matakang » Bellzone have signed infrastructure deal with China Int. Fund

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1The estimates of Exploration Target sizes should not be misunderstood as estimates of Mineral Resources. The estimates of Exploration Target sizes are conceptual in nature and there has been insufficient results received from drilling to date to estimate a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if future exploration will result in the determination of a Mineral Resource.

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.

APPENDICES

Acquire

• Leverage off strong balance sheet & relationships

• Early stage projects & companies considered undervalued or distressed

• Iron ore, gold, uranium, manganese, lithium & base metals

Add Value

• “Hands on” approach

• Explore and evaluate project economics to crystalise value

Position assets to realise value

Our project team has the technical and commercial expertise and experience to maximise project development

Realise

Monetise value in assets through IPO or partial sell down

Regularly distribute cash to shareholders via dividend payments, in specie distributions and capital returns

Over A$150M returned to shareholders via Special Dividends and Capital returns

Page 17 | March 2014

Cape Lambert invests at the optimum time to achieve maximum returns

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Grassroots Exploration Appraisal Construction Production
exploration
Expansion
Scoping
Project/
Company Finance
Value
Discovery
Start-up
PFS BFS
Time
Investment ‘sweet spot’
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Company	Ticker	% holding	**Value $1 **	Company Description
Investments ~$1m and over
Cauldron Energy Limited	CXU - ASX	22.61%	$3.4m	Uranium exploration in Argentina and Australia
FE Limited	FEL - ASX	57.89%	$2.8m	The Company's principal focus is the exploration and resource development of the Mt Ida and Mt Elvire Iron Ore Projects in Western Australia
Kupang Resources Limited	KPR - ASX	12.21%	$2.2m	Development of Kupang manganese project
Global Strategic Metals NL	GSZ - ASX	34.89%	$1.6m	The company currently has interests in precious, base metals & lithium. Has an 80% interest in the advanced WolfsbergLithiumproject in Austria
Latin Resources Limited	LRS - ASX	10.94%	$1.2m	Minerals sands and iron ore exploration in Peru
Investments under $1m
International Goldfields Limited	IGS - ASX	25.74%	$0.5m	Well-funded and low cost gold-silver explorer, developer and miner
Shareholdings <5%			$1.5m
TOTAL VALUE			$13m

1 Marked to market as at 28 February 2014.

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Tony Sage Executive Chairman

Over 26 years’ experience in corporate advisory, funds management, capital raisings and management of exploration companies.

Tim Turner

Non-Executive Director

Over 25 years’ experience in management and business consultancy and a partner in an accountancy practice.

Jason Brewer

Non-Executive Director

Over 18 years’ international experience in the natural resources sector and in investment banking.

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.

Tony Boucher General Manager Operations

Metallurgist / Chemist with over 25 years experience in the mining and mining services sectors in Australia.

Jeff Hamilton

Manager –Project Development

Mechanical Engineer with over 25 years of experience in construction and mine developments around the world, including projects in Australia, Indonesia, Malaysia, Saudi Arabia, Greece and Sierra Leone.

Melissa Chapman Chief Financial Officer / Company Secretary

Certified practicing accountant with over 13 years experience in the mining industry working in Australia and the UK.

Dennis Kruger Chief Geologist

Geologist with 30 years experience in exploration, development and mining, working in Australia and Africa.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Dennis Kruger, who is a member of the Australasian Institute of Mining and Metallurgy. Dennis Kruger is a consultant to Cape Lambert Resources Limited, and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dennis Kruger has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

The information in this report relating to Mineral Resources is based on information compiled by Olaf Frederickson, who is a member of the Australasian Institute of Mining and Metallurgy. Olaf Frederickson is a consultant to Cape Lambert Resources Limited, and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Olaf Frederickson has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

Mineral Resources

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.

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 in or omission, from any information, statement or opinion contained in this presentation.

Throughout this presentation all figures are quoted in Australian dollars (A$) 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 Lambert’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself 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.

Cape Lambert Resources Limited

Tony Sage Executive Chairman

PO Box 1385 West Leederville WA 6901

Eloise von Puttkammer Investor Relations

Ph: +61 8 9380 9555 Email: info@capelam.com.au

www.capelam.com.au

Australian PR

UK PR

Professional Public Relations

David Tasker

• 61 8 9388 0944 / + 61 (0)433 112 936

Tavistock Communications Emily Fenton / Jos Simson

+44 (0) 20 7429 6603 / +44 (0)7899 870 540