Cape Lambert Resources Limited ASX Announcement 20 January 2010 AFRICAN URANIUM EXPLORATION YIELDS PROMISING RESULTS IN LINE WITH EXPECTATIONS Key Points: - Exploration drilling by Africa Uranium Limited in Namibia identifies extensive calcrete hosted uranium mineralisation proximal to the Langer Heinrich uranium mine, - Drilling has confirmed existence of shallow calcrete hosted uranium mineralisation over a large area in the "Southern Basin," - Africa Uranium owns highly prospective uranium tenements in Namibia and exploration applications in South Africa, and - Cape Lambert has a 10% beneficial interest in Africa Uranium Limited. Australian resources and investment company, Cape Lambert Iron Ore Limited (ASX: CFE) ("Cape Lambert" or the "Company") is pleased to advise that recently completed drilling at the Hoasib project in Namibia tenements by private company Africa Uranium Limited ("Africa Uranium") has yielded promising results in line with expectations. Africa Uranium has uranium exploration projects in Namibia and South Africa, with its flagship project being the Hoasib project located in Namibia (refer Figure 1).

The Hoasib project area is covered by mineral lease EPL 3664, owned by Green Minerals Resources Pty Ltd, which is a joint venture between the Bastos Foundation (30%) and Africa Uranium (70%). Cape Lambert, via its 100% owned subsidiary Dempsey Resources Pty Ltd ("Dempsey"), has obtained a 10% beneficial interest through a Convertible Note issued in 2009 (see ASX announcement released 28 August 2009). In late 2009 Africa Uranium completed two drilling programs on the Hoasib Project, confirming the existence of shallow calcrete hosted uranium mineralisation over a large area in the "Southern Basin".

Wide-spaced drilling (predominantly 1,000 m by 500 m) has defined low grade uranium in calcrete over an area of 4 km by 1.5 km, which appears open along strike (Figure 2). In erosional channels visible uranium (carnotite mineral) has been identified over approximately 8 km strike within the Southern Basin. Results of greater than 100 ppm U3O8 and eU3O8 (1) identify up to two consistent mineralised horizons within the top 11 metres of alluvial material from surface, with the upper horizon exposed by creek beds in places.

The best results received to date include 308 eU3O8 (1) over 0.10 m from the downhole gamma probe and 181 U3O8 (2) over 0.5 m in physical sample. Mr Tony Sage, Executive Chairman of Cape Lambert, believes the commencement of exploration activities at Hoasib has not only yielded results in line with expectations but given the company and investors and insight into the potential of the project. "Africa Uranium has defined the broad outline of one area of mineralisation in the Southern Basin, however the reconnaissance drilling is widely spaced and we believe any higher-grade mineralised channels will be individually less than 50 metres wide," Mr Sage said. "There are more areas to explore in the Southern Basin, plus two more untested alluvial basins to the north, not to mention the possibility of hard-rock uranium mineralisation," Mr Sage added. Africa Uranium proposes to continue reconnaissance exploration, to fully test and define other targets, before committing to detailed exploration in any one area. Click here to view the whole announcement: http://esp.gewru.com/em/message/email/view.php?id=620201&u=15636 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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