CAPE LAMBERT RESOURCES LTD ASX Announcement 23 March 2010 Cape Lambert to make A$0.40 all cash take-over offer for DMC Mining Key Points: · Cape Lambert Resources Limited (ASX: CFE) to make all-cash takeover offer for shares in DMC Mining Limited (ASX: DMM), · Offer will be A$0.40 cash for every one (1) DMM share, which represents a substantial and attractive bid premium of: - 24% to 1 month volume weighted average price ("VWAP") of DMM shares on ASX of A$0.3037 prior to this announcement; - 33% to DMM closing share price on ASX of A$0.30 on 22 March 2010, the last trading day prior to this announcement; and - 27% to the 3 month VWAP of DMM shares on ASX of A$0.31497 prior to this announcement. · Cape Lambert already holds a 36.2% relevant interest in DMC Mining, and · Cape Lambert believes the assets of DMM would achieve a significant increase in value under the corporate structure of Cape Lambert. Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) ("Cape Lambert" or the "Company") wishes to announce its intention to make an off-market takeover for shares in DMC Mining Limited (ASX: DMM) ("DMC Mining" or "DMM") ("Offer"). Cape Lamberts Offer for DMC Mining Under the terms of the Offer, Cape Lambert will offer A$0.40 for every one (1) DMC Mining share.

This offer represents a substantial and attractive bid premium of: - 24% to 1 month volume weighted average price ("VWAP") of DMM shares on ASX of A$0.3037 prior to this announcement; - 33% to DMM closing share price on ASX of A$0.30 on 22 March 2010, the last trading day prior to this announcement; and - 27% to the 3 month VWAP of DMM shares on ASX of A$0.31497 prior to this announcement. The Offer is conditional only on the happening of a "prescribed occurrence" (being an occurrence listed in Section 652C(1)(a) -- (h) and Section 652C(2)(a) -- (e) of the Corporations Act but applied to an off market takeover bid) in relation to DMC Mining or its subsidiaries during the period from the date of this announcement to the date which is three (3) business days after the end of the offer period without the prior consent of Cape Lambert. No separate offer will be made for any of the DMMs options with the result that holders of those options will need to exercise them in order to participate in the Cape Lambert offer. Cape Lambert currently holds an interest in DMC Mining of 36.2% and strongly believes that it has the proven technical and corporate resources required to successfully develop the assets of DMC Mining. "Cape Lambert has proven over many years that it is able to acquire an early stage asset and diligently apply the required technical and financial resources to maximise value in the shortest possible time-frame," said Cape Lambert Chairman, Mr Tony Sage. DMC Mining, through its 80% owned subsidiary, owns the Mayoko Iron Ore Project in the Republic of Congo ("ROC").

On 12 January 2010 the exploration target on this project was increased to 0.9 -- 1.3 Billion tonnes of dominantly itabirite iron mineralization.

(see DMM ASX announcement dated 12 January 2010)1.

A drilling program is currently underway at the project.

Cape Lambert is in the process of preparing a formal Bidders Statement and will lodge that document with the Australian Securities Exchange and Australian Securities and Investments Commission in the near future. Ends To download the full ASX annoucement please click here: http://esp.gewru.com/em/message/email/view.php?id=631609&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/ +61 433 112 936 Website: www.capelam.com.au 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 Em: 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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