Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities

and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

Cape Lambert Resources Limited

ABN

71 095 047 920

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

Fully paid ordinary shares

1 +Class of +securities issued or to be issued

94,000,000

1. Number of +securities issued or to be issued (if known) or maximum number which may be issued

   
   

   Fully paid ordinary shares

2. Principal terms of the

   +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due

   dates for payment; if

   +convertible securities, the conversion price and dates for conversion)

   
   

   Yes

3. Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?

   
   

   If the additional securities do not rank equally, please state:

   • the date from which they do

   • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

   • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

     
     

     $0.0425 per share

4. Issue price or consideration

   
   

   Placement (Refer to ASX announcements dated 11 and 12 January 2016)

5. Purpose of the issue

   (If issued as consideration for the acquisition of assets, clearly identify those assets)

   
   

   No

   6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

   
   

   If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

   
   

   6b The date the security holder resolution under rule 7.1A was passed

   
   

   6c Number of +securities issued without security holder approval under rule 7.1

   6d Number of +securities issued with security holder approval under rule 7.1A

   
   

   6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

   
   

   6f Number of securities issued under an exception in rule 7.2

   
   

   6g If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.

   
   

   6h If securities were issued under rule 7.1A for non-­‐cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

   
   

   6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

   
   

   31 March 2016

6. Dates of entering +securities into uncertificated holdings or despatch of certificates

   
   

   Number	+Class
   720,686,586	Fully Paid Ordinary Shares

7. Number and +class of all

   +securities quoted on ASX (including the securities in section 2 if applicable)

   
   

   Number	+Class
   7,675,000	Unlisted Options (exercisable at $0.088 each on or before 18 December 2016, subject to vesting conditions)

8. Number and +class of all

   +securities not quoted on ASX (including the securities in section 2 if applicable)

   
   

   N/A

9. Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

   
   

   Part 2 - Bonus issue or pro rata issue

   
   

   N/A

10. Is security holder approval required?

    
    

    N/A

11. Is the issue renounceable or non-­‐ renounceable?

    
    

    N/A

12. Ratio in which the +securities will be offered

N/A

14 +Class of +securities to which the offer relates

N/A

15 +Record date to determine entitlements

N/A

1. Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?

   
   

   N/A

2. Policy for deciding entitlements in relation to fractions

   
   

   N/A

3. Names of countries in which the entity has +security holders who will not be sent new issue documents

Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.