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Cape Lambert Resources Commences Legal Action

Australian resources and investment company, Cape Lambert Resources Limited (“Cape Lambert” or the “Company”) (CFE) wishes to advise the market that it has commenced legal action against MCC Australia Sanjin Mining Pty Ltd, and its parent company Metallurgical Corporation of China Limited (collectively “MCC”) to recover a final $80 million payment from the sale of its flagship Cape Lambert Iron Ore Project. This follows MCC’s failure to make the final payment to Cape Lambert in accordance with the terms of a Tenement and Related Asset Sale Novation Deed dated on or around 9 December 2009 (“Agreement”), and which payment is guaranteed under the terms of a Parent Company Guarantee dated on or around 9 December 2009 (“Guarantee”). The total consideration in respect of the Agreement was A$400 million, payable in three tranches, as follows: • A$240 million (60%) at settlement (paid on 6 August 2008); • A$80 million (20%) sixty (60) days after settlement (paid on 15 September 2008); and • A$80 million (20%) on the earlier of the grant of mining approvals or within two years (outstanding). A total of A$320 million has been received by Cape Lambert as per the Agreement, however, MCC has not made the final payment of A$80 million. Discussions between Cape Lambert and MCC to try and resolve the matter have not been successful. “It is disappointing that MCC refuses to accept that the $80 million final payment has fallen due and so chosen not to honour the terms of the Agreement, which has meant that we have had to take this action to ensure our shareholders are protected,” said Cape Lambert Executive Chairman, Mr Tony Sage. “Given the discussions between the parties have been unsuccessful we will now let the Supreme Court decide on the matter” he went on to say. Cape Lambert has retained the services of Mr Martin Bennett of Lavan Legal in Perth, Western Australia, to act on its behalf.