Company Information for Cape Lambert Iron Ore Ltd

AIM-CLIO; ASX-CFE

www.capelam.com.au

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AIM; CLIO

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ASX; CFE

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Company Statement

Cape Lambert Iron Ore Limited ("Cape Lambert" or "the Company") is an iron ore exploration and development company. The Company is focused primarily on the exploration and development of its 100% owned iron ore deposit in the Pilbara region, on the north-west coast of Western Australia.

Cape Lambert is listed on the ASX (ticker CFE) and AIM (joined 4 May 2006; ticker CLIO).

The principal advantage of the Cape Lambert project, in comparison to other independent iron ore developers, is its proximity to port and other infrastructure. The Company will therefore benefit from materially lower initial capital costs and from lower ongoing operational and logistical costs as fuel and other consumables for the mine, and the concentrate it produces, will not have to be transported over long distances.

The market for iron ore remains strong, driven by China, the world's largest steel producer, and the continued strength of the global economy.

Current Operations

After the successful acquisition of the Cape Lambert Iron Ore project, Cape Lambert Iron Ore Ltd (ASX:CFE) have commenced a bankable Feasibility study ("BFS"). The collective skills of the Company's Board and management are focusd on the Cape Lambert project and completion the first phase, being the BFS.

The Cape Lambert Iron Ore project has an area of 223 square km, located in the Northern coastal Pilbara region of Western Australia . The resource is a JORC Code compliant resource of 2.5 billion tonnes @ 30% Fe (250 m depth & 25% Fe cut off) 1.4Bt Indicated Resource, 1.1Bt Inferred Resource. The Deposit appears to be open to the north, west and South and also at depth indicating potential for significant upside if further drilling were undertaken. There appear to be a number of other higher-grade target areas that lie within the project area. CFE has advised that upon successful completion of the BFS, the project would be expected to be in production in late 2009, with production likely to be between five and seven million tonnes of iron ore concClick image to download high resolution versionentrate per annum.

The resource is located 5kms from the coast, 10 kms from Rio Tinto’s Cape Lambert iron ore port with direct connection to nearby infrastructure (highway, gas and power) and the townships of Karratha, Roebourne and Wickham. The projects favourable location also places it close to nearby Port Dampier and Port Hedland, that provide alternate export ports to overseas markets.

The initial project NPV for 100% of the project using a production output of 7 mtpa is A$303. The Cape Lambert property has been valued using the discount to face value resource method by MacKay &Schnellmann geological and mining consultants. The projects Technical Value (not prepared in accordance with the Valmin Code) is considered to be in the range A$251 million to A$377 million with a preferred Technical Value being A$314 million.

A major Chinese Group, Shandong Yuansheng International Trading Co.Ltd., (Shandong) has provided written advice confirming it’s intention of taking a significant equity stake (equivalent to either 19.9% or 50 million shares) in CFE. In return CFE will agree to give Shandong “first right of refusal” to negotiate an off-take agreement for the production from the Cape Lambert iron ore project. This agreement does not preclude CFE negotiating with other groups for equity and/or off-take from the planned mine.

Newly appointed Technical-Director, Mr. Brian Maher , who has over 40 years experience in the mining industry with 10 years in the iron ore industry, provides the Company with the knowledge and experience to further progress the BFS phase of the project.

Geographical Spread

2.5 billion tonne resource within a 220 sq km tenement on the northern coast of Western Australia, 20km to the north of the town of Karratha and 5km from the coast.

Board of Directors and Key Management

Dr Ian Burston - Executive Chairman

Mr Tony Sage - Executive Director

Mr Peter Landau - Non-Executive Director

Mr Brian Maher - Non-Executive Director

Mr Tim Turner - Non-Executive Director / Secretary

Company Address

18 Oxford Close
, 6007


Telephone:	+61 (0)8 9388 0744
Facsimile:	+61 (0)8 9382 1411
Email:	tony[at]capelam.com.au
Website:	http://www.capelam.com.au

Capital

Ordinary fully paid shares - 264,967,500
Options expiring 31 October 2008 - 130,968,835

Annual General Meeting

TBA

Year End

31 December

Nominated Brokers

Collins Stewart Limited
9th Floor
88 Wood Street
London EC2V 7QR
United Kingdom

Nominated Advisors

Collins Stewart Limited
9th Floor
88 Wood Street
London EC2V 7QR
United Kingdom

Broker/Analyst Reports

26/02/08 - Collins Stewart
17/11/06 - Collins Stewart (Jonathan Guy) 12 April 2006

Major Shareholders

Shareholder	Shares	%
Power United Limited	18,328,363	6.92
JP Morgan Nominees (Australia) Limited	17,053,400	6.44
HSBC Custody Nominees (Australia) Limted	15,858,662	5.99
National Nominees Limited	10,991,304	4.15
Computershare Clearing Pty Ltd	10,894,385	4.11
ANZ Nominees Limited	9,850,061	3.72
AWP Sage	8,301,503	3.13
HSBC Custody Nominees (Australia) Limited	6,902,654	2.61
HKT AU Pty Ltd	5,742,309	2.17
AWP Sage	5,228,572	1.97

Most Recent Statement

06/08/08 - Cape Lambert and MCC Settle AU$400m Sale Agreement
28/07/08 - Results of General Meeting - Cape Lambert shareholders approve AUD$400M MCC deal
29/05/08 - FIRB Approval Received
21/05/08 - FINAL DRILL RESULTS RECEIVED AT CAPE LAMBERT
15/04/08 - Quarterly Update
28/03/08 - Cape Lambert Iron Ore and MCC positively progressing A$400m sale

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