ASX Announcement 22 August 2017

Exploration Work Underway at High Grade Kasombo Cobalt Project
  • Independent geological consultants have commenced exploration work at the Kasombo Cobalt Project
  • SRK Consulting engaged to complete field activities and to undertake a detailed review of historical exploration work completed by State owned mining company La Générale des Carrières et des Mines (Gécamines)
  • Geological mapping works have been completed at Kasombo 7 and are now underway at Kasombo 6
  • Work to also focus on Kasombo 5, which has been the subject of previous drilling programs and historical resource estimation
  • Drilling tender process underway for commencement of Phase 1 RC drilling at the Kasombo Cobalt Project to test known areas of mineralisation and confirm historical results
  • Handheld XRF sampling of artisanal cobalt workings and exposed cobalt mineralisation at Kasombo 7 confirms the high grade nature of the cobalt mineralization with grades of up to 38.2% cobalt reported

Australian resource and investment company, Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) is pleased to announce that exploration activities being undertaken by independent international mining and geological consultants SRK Consulting (SRK) have commenced at the Kasombo Cobalt Project located in the Democratic Republic of Congo (DRC).

Geological mapping works has already been completed on Kasombo 7. Mapping is continuing on Kasombo 6 and will commence on Kasombo 5 later this week.

In addition to the field work underway, SRK are also completing a detailed

review and analyses of the historical exploration work completed by Gécamines at the Kasombo Cobalt Project. This work will include a review

of all previous geological mapping, trenching and sampling that has been undertaken. It will also include an assessment of the previous drilling programs and historical resource estimation work that was undertaken.

Cape Lambert Resources Limited (ASX: CFE) is a fully funded mineral development company with exposure to iron ore, copper, gold, uranium, manganese, lithium and lead-silver- zinc assets in Australia, Europe, Africa and South America.

Australian Securities Exchange

Code: CFE

Ordinary shares 833,019,919

Unlisted Options

23,500,000 ($0.05 exp 18 Dec 2018)

Board of Directors

Tony Sage Executive Chairman

Tim Turner

Non-executive Director

Jason Brewer

Non-executive Director

Melissa Chapman Company Secretary

Cape Lambert Contact

Investor Relations Phone: +61 8 9380 9555

Email: info@capelam.com.au

Australian Enquiries

Professional Public Relations David Tasker

Phone: +61 8 9388 0944

Mobile: +61 433 112 936

Email: david.tasker@ppr.com.au

www.capelam.com.au

Cape Lambert Resources Limited ABN 71 095 047 920

Corporate - 32 Harrogate Street, West Leederville WA 6007

This work will focus on the high grade cobalt mineralization that has been identified at Kasombo 7 and the more historical extensive exploration work that has been completed at Kasombo 5. It is anticipated that this work will be completed by SRK over the next 2 to 3 weeks.

Location of the Kasombo Cobalt Project and nearby Kipushi Processing Plant

The Kasombo Cobalt Project comprises three mineralized areas of approximately 600 hectares, Kasombo 5, 6 and 7. The Kasombo Cobalt Project is held under a Joint Venture Agreement with Congolese company, Paragon Mining.

The Kasombo Cobalt Project is located approx. 25km from Lubumbashi in the Katanga Copper Belt, the world's largest cobalt producing region.

As announced 13 July 2017, Cape Lambert entered into a binding terms sheet with Fe Limited (ASX: FEL) whereby Cape Lambert will assign to FEL 100% of the rights and obligations it has in the Kasombo Cobalt Project located in the DRC (Transaction). Cape Lambert is undertaking the current exploration works to progress the Kasombo Cobalt Project ahead of the anticipated settlement of the Transaction. Costs incurred by Cape Lambert in respect of these works are to be reimbursed by FEL to the Company at completion.

In addition to the exploration activities being completed at the Kasombo Cobalt, the Company has commenced a drilling tender process with several local drilling companies in Lubumbashi. The tender process is for a first phase preliminary RC drilling program targeting the areas of known mineralisation at the Kasombo Cobalt Project and to confirm some of the historical exploration and

drilling conducted by Gécamines. It is expected that this tender process will be completed in the

current quarter.

The Company's in country technical management and consultants have also completed further handheld Niton-XRF sampling of visible cobalt mineralization at Kasombo 7, which has confirmed the high grade cobalt mineralisation within the Kasombo Cobalt Project.

The visible cobalt mineralisation has been exposed in areas where artisanal miners have carried out shallow open pit workings.

The preliminary XRF values indicate numerous high grade areas of mineralisation at Kasombo 7, with grades of up to 38.26% cobalt.

Plan of Kasombo 7 XRF sample locations Table of Kasombo 7 XRF grades

UTM Easting

UTM Northing

Co%

533,998

8,710,264

38.2

543,007

8,710,231

3.1

533.981

8,710,205

4.9

Artisanal Mining Activity Exposing Cobalt Mineralisation at Kasombo 7

High Grade Cobalt Mineralisation Recorded at Kasombo 7 (located at UTM 533998E and 8710264S)

High Grade Cobalt Mineralisation Recorded at Kasombo 7 (located at UTM 534007E and 8710231S)

Fe Limited published this content on 22 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2017 02:02:02 UTC.

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