Name and Location
Marampa iron-ore project, Sierra Leone.

Client
Cape Lambert Resources and London Mining.

Project Description
Marampa is a specular hematite project, located 90 km north-east of Freetown, in Sierra Leone.

It has a mineral resource of more than one-billion tonnes of iron-ore, including a probable ore reserve of 539-million tonnes grading 31.1% iron, sufficient for a mine life of more than 40 years.

The mine is being expanded to 5.4-million wet tonnes a year and is expected to reach production capacity of 6.5-million wet tonnes in 2014.

Marampa has sufficient resources to support a staged expansion to more than ten-million wet tonnes a year. A bankable feasibility study for an expansion to 9.7-million wet tonnes was completed in 2012.

Net Present Value/Intenal Rate of Return
Not stated.

Value
Capital commited to the five-million-tonne-a-year operation is estimated at $340-million.

Capital for the life-of-mine extension is estimated at $240-millon.

Duration
Production started in December 2011.

Latest Developments
A life-of-mine study completed in the quarter ended September 30 has indicated that production at Marampa can be increased further by simple optimisation of the existing plant to a rate of 6.5-million wet metric tonnes a year in 2014 at an estimated additional cost of $40-million.

London Mining also expects an investment of $240-million to upgrade the plant to process all ore types and extend the life-of-mine to more than 40 years, based on probable reserves of more than 500-million tonnes.

The incremental expansion and other initiatives identified by the feasibility study are expected to reduce average operating costs.

Key Contracts and Suppliers
Bateman Engineering (updated scoping study); Southern Mining Consultants or SMC (financial modelling).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bateman Engineering, tel +27 11 899 9000, fax +27 11 899 4903 or email enquiries-africa@batemanengineering.com.
SMC, tel + 61 407 884 667 or email je@southernmc.com.au.
Cape Lambert Resources investor relations, Eloise von Puttkammer, tel +61 8 9380 9555 or email eloisev@capelam.com.au.