Cape Lambert Resources : Marampa Iron Ore Tenements

ASX

Release

22 October 2019

Marampa Iron Ore Tenements

Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) makes the following clarifying disclosures in respect to the Marampa Iron Ore Project (Marampa Project) tenements. The Marampa Project is a brownfield hematite iron ore project that remains at the development and permitting stage and is located 90km northeast of Freetown in Sierra Leone, West Africa.

The Marampa Project comprises one mining licence (ML05/2014) comprising 97.40km2 and one exploration licence (EL46A/2011) comprising 145.86km2. The status of these tenements is as follows:

ML05/2014

In 2014, Marampa Iron Ore (SL) Limited (Marampa SL), a wholly owned subsidiary of Cape Lambert was granted the mining and environmental licences for ML05/2014 (together the Mining Licence). The Company has spent circa US$62.7m on exploration and development to date on the Marampa Project.

In September 2018, Marampa SL received a letter from the Sierra Leone Ministry of Mines (SLMOM) cancelling the Mining Licence. In 2018, Marampa SL commenced legal action in Sierra Leone to challenge SLMOM's decision to cancel the Mining Licence ML05/2014, however, the Board has agreed to place legal action against the SLMOM on hold.

Whilst no formal application has been made to date, the Company has, and will continue to be, engaged in dialogue with the relevant Sierra Leonean authorities in an attempt to have the Mining Licence reinstated or reissued by mutual agreement.

Whilst there can be no guarantee that the SLMOM will agree to reinstate or reissue a Mining Licence, if Marampa SL were to successfully recover the Mining Licence, the Board is committed to working with the relevant parties to secure access to the necessary plant and equipment and infrastructure to enable the ramp up of the Marampa Project upon the reissue of the Mining Licence for the benefit of our shareholders as well as, importantly, the Government and People of Sierra Leone.

In parallel, Management are in preliminary discussions with third parties to secure financing to fund the development of the Marampa Project.

EL46A/2011

In 2014, Marampa SL was granted exploration license EL46A/2011. In June 2014 the SLMOM extended EL46A/2011 for a further 2-year term from 31 July 2015 until 31 July 2017. Marampa SL has not paid renewal fees to the SLMOM in respect of EL46A/2011 since 31 July 2017. However, Marampa SL has not received any termination documentation or request for information from the SLMOM, therefore is of the view that EL46A/2011 remains a valid license. Marampa SL has contacted the SLMOM asking them to confirm the status of EL46A/2011 however no response has been received to date. Marampa SL will continue to follow up with the SLMOM to determine the status of EL46A/2011.

ML02/09 / ML01/2017

ML02/09 is the adjacent license to ML05/2014 and was issued to Timis Mining Corporation (Timis Mining), which had acquired the assets of London Mining Marampa Mine Assets. Timis Mining later fell into administration and in 2017 the Gerald Metals Group obtained a new licence over ML02/09 (issued under ML01/2017). On 3 August 2019, the SLMOM announced that it had temporarily suspended Gerald Metals licence ML01/2017. On 2 October 2019, the Government of Sierra Leone confirmed that Gerald Metals license ML01/2017 has now been cancelled.

Cape Lambert Resources Limited ABN 71 095 047 920

32 Harrogate Street, West Leederville WA 6007
Phone: [phone] Email: [e-mail]
www.capelam.com.au	ASX: CFE

ASX Announcement

22 October 2019

The processing plant and equipment and infrastructure which Marampa SL is planning to use during the ramp up of the Marampa Project is located on ML01/2017. As such, whilst the Company does not hold an interest in ML02/09 / ML01/2017, nor has the Company applied for ML02/09 / ML01/2017 to be issued to the Company, Marampa SL is interested in the status of this tenement.

The Board also confirms that given the inherent uncertainties relating to the future of the Marampa Project, the carrying value of the Marampa Project in Cape Lambert's audited accounts was fully impaired as at 30 June 2016 and remains fully impaired.

The Company's focus since early 2017 has been on the Kipushi Copper-Cobalt project located in the DRC. In August 2019, the Company announced that it had been unable to source project financing for the Kipushi Copper- Cobalt project and as such it's renewed focus is now back on the Marampa Project (refer ASX announcement 14 August 2019).

Executive Chairman, Tony Sage said "Also despite all the publicity and rumour in the SL media the company is not assisting or partnering with any group that has previously been involved with the Tonkolilli or the Marampa Mine assets"

On behalf of the Board, I would like to thank our shareholders and employees for their continued support.

Yours faithfully

Cape Lambert Resources Limited

Tony Sage

Executive Chairman

For further information please contact:
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Cape Lambert Resources Limited
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