Cape Lambert Iron Ore 25 November 2009 CFE TO LIFT STAKE IN MARAMPA IRON ORE PROJECT TO 100% THROUGH AUD$31M SCRIP DEAL Key Points: Cape Lambert reaches agreement with AIM listed, African Minerals Limited to increase its stake in the Marampa iron ore project in Sierra Leone from 35% to 100%; Cape Lambert to issue African Minerals 57,162,723 shares in the Company (in two tranches); Post transaction African Minerals will hold a 19.90% interest in Cape Lambert; and Cape Lambert advancing exploration and evaluation work programs at Marampa. Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) ("Cape Lambert" or the "Company") has entered into an agreement to increase its stake in the Marampa iron ore project ("Marampa Project"), located in Sierra Leone, West Africa, from 35% to 100% through an all scrip deal with AIM listed, African Minerals Limited ("African Minerals") valued at approximately AUD$31M. Under the terms of the transaction, Cape Lambert will issue African Minerals 57,162,723 fully paid ordinary shares in the capital of the Company, thereby taking African Minerals interest in the Company to 19.90%. The issue of shares to African Minerals will be done in two tranches; 24,569,934 shares to be issued at time of settlement; and 32,592,789 shares to be issued subject to Cape Lambert shareholder approval. On 1 October 2008, the Company formalised an agreement with African Minerals for a 30% investment in the Marampa Project. Under the terms of the agreement, Cape Lambert paid an initial scrip consideration of 44 million fully paid ordinary shares, committed to sole fund US$25 million towards a feasibility study, and assumed management of the Marampa Project.

The Company was also granted an option to acquire the Marampa Project for US$200 million less the value of scrip issued and feasibility study expenditure incurred to the date of exercising the option (see SX announcement dated 1 October 2008).
Click here to view the whole announcement: http://esp.gewru.com/download/files/12414/1006883/0503%20-%20CFE%20to%20Lift%20Stake%20in%20Marmapa_251109.pdf FOR MORE INFORMATION PLEASE CONTACT: Cape Lambert Iron Ore Limited: Tony Sage Executive Chairman Tel: +61 (0)8 9380 9555 Australian Enquiries: David Tasker Professional Public Relations, Tel: +61 (0)8 9388 0944/ +61 (0) 433 112 936 E: This message has been sent to you as a subscriber of the PPR mail service. If you no longer wish to be a part of the service, please email with the word "REMOVE" in the Subject line.
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