CAPE LAMBERT IRON ORE LIMITED (CLIO)

Highlights

Cape Lambert and MCC Mining (Western Australia) Pty Ltd, a wholly owned subsidiary of China Metallurgical Group Corporation, settle AUD$400 million sale of Cape Lambert Iron Ore Project;
First payment of AUD$240 million received, which comprised an AUD$230 million cash payment and the AUD$10 million deposit;
The Company’s cash reserves now stand at more than AUD$270 million; and
The next payment of AUD$80 million is due on or before 15 September 2008.

Cape Lambert Iron Ore Limited (CLIO) and MCC Mining (Western Australia) Pty Ltd, a wholly owned subsidiary of China Metallurgical Group Corporation have today completed settlement of the AUD$400 million sale of the Cape Lambert Iron Ore Project, located in the Pilbara region of Western Australia.

Cape Lambert Chairman, Ian Burston, said:
“This is a landmark day for the Company. We have significant cash reserves, a highly prospective exploration target and a number of projects and companies that we are running the ruler over at present.”
“Our shareholders will receive a return through the capital reduction, and we feel we are well positioned to complete acquisitions that will provide long-term growth to shareholders.”