IRON BEAR RESOURCES LTD — Remuneration Information 2016

Aug 25, 2016

ASX Announcement 26 August 2016

Chairman Signs New 3 Year Contract

Australian resource and investment company, Cape Lambert Resources Limited ( ASX: CFE ) ( Cape Lambert or the Company ) makes the following disclosure in connection with a new consultancy agreement entered into with Okewood Pty Ltd ( Okewood ) to provide the services of Chairman of Cape Lambert. This disclosure is made in accordance with ASX Listing Rule 3.16.4.

The Cape Lambert Remuneration Committee ( Remuneration Committee ) considered the concerns raised by shareholders at the Annual General Meeting in November 2015 in respect to the Company’s 2015 Remuneration Report and has taken these into account in the formation of Okewood’s new consultancy contract. The Company confirms the key terms of the new agreement with the Company as:

• three year term (effective from 28 August 2016) consultancy contract to provide the services of Chairman of the Company and specific responsibility for all negotiations and strategic networking to facilitate the acquisition and disposal of assets of the Company;

• set fee of $700,000 (plus GST) per annum, which has not increased for 3 years, to be reviewed by the Remuneration Committee from time to time; and

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

Ordinary shares 720,686,586

Unlisted Options 7,675,000 ($0.088 exp 18 Dec 2016)

Board of Directors

Tony Sage Executive Chairman

Tim Turner Non-executive Director

Jason Brewer Non-executive Director

Melissa Chapman Company Secretary

• 3 month termination notice (or payment in lieu of notice, subject to the Corporations Act and Listing Rules), without cause, for either party.

The Remuneration Committee acknowledged the importance of aligning the interests of Cape Lambert’s shareholders with those of the Chairman therefore the contract allows for an incentive structure of 10-20%, subject to Remuneration Committee approval, which is dependent on the achievement of key performance milestones. The performance hurdles directly benefit Cape Lambert shareholders and have been set based on a material increase in net market capitalisation of the Company and maximizing returns to shareholders of the Company.

Yours faithfully Cape Lambert Resources Limited

Cape Lambert Contact

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

www.capelam.com.au

Tim Turner Remuneration Committee Chairman

Cape Lambert Resources Limited ABN 71 095 047 920 Corporate - 32 Harrogate Street, West Leederville WA 6007