Cape Lambert Iron Ore Ltd Cancel EGM

Cape Lambert Iron Ore Limited and Power United Limited are pleased to advise that they have settled all outstanding actions with respect to the calling of a shareholders meeting by Power United to remove the majority of the current Cape Lambert Board.  The requisitioning of the meeting by Power United was announced by Cape Lambert on 16 September 2008.

By the effect of consent orders made by Justice McKerracher today in the Federal Court of Australia the shareholders’ meeting scheduled for 15 October 2008 has been cancelled.

Following extensive meetings and negotiations between the parties, matters were resolved on the basis that a complete geological and technical review of the Marampa project has now been completed by Power United.  Power United endorses Cape Lambert’s assessment of, and optimism for, the project (especially with a target mineralisation of greater than 1 billion tonnes of hematite) and believes that working in conjunction with African Minerals Limited (AIM:AMI) will provide significant benefits to Cape Lambert shareholders and to Sierra Leone.  Substantial synergies have been identified in both companies obtaining leverage through the joint infrastructure development (port facilities and railway) of both the Marampa Project and African Minerals Tonkolili iron ore Project. 

Cape Lambert Executive Chairman, Tony Sage noted that the Company was pleased to have these matters resolved and to be well positioned to focus on the development of its existing assets and review of other opportunities as they become available.