Ann: Annual Report, page-2

Dear Shareholders
On behalf of the Board of Directors I present the Annual Report of Cape Lambert Resources Limited for the financial year ended 30 June 2015. This past financial year has been another tumultuous period for commodity prices, global equities and junior resource stocks and we have suffered along with everyone else in the mining exploration industry.
Throughout the period, Cape Lambert Resources has remained steadfast in its strategy of acquiring and investing in assets that are distressed or undervalued and adding value to these assets, retaining long-term exposure through royalty agreements or equity interests. This approach is clearly visible when considering the Company’s activities at the wholly-owned Marampa iron ore project in Sierra Leone.
On 5 November 2014 Cape Lambert Resources announced that it had finalised a US$20 million funding/royalty agreement with Timis Mining Corporation, providing Cape Lambert with a US$2 per tonne royalty on all iron concentrate exported from the mine. This same royalty, on the then London Mining owned Marampa, was purchased by Blackrock in 2012 for US$112 million. While the royalty agreement was originally payable over a four year period, the temporary suspension of production at the mine has led to an amendment of the agreement to be based on the production of 24 million tonnes of iron concentrate.
To date, Cape Lambert has received a total of A$400,000 funding from the royalty agreement with US$2.6 million still outstanding on shipped ore, and we remain hopeful of a recommencement of mining at the project once all the internal issues are resolved. In regards to corporate activities,

I am pleased to report that Cape Lambert has progressed on two separate fronts.
Firstly, the Company has reached settlement with the Australian Taxation Office (ATO) relating to a A$96 million Notice of Amended Assessment, as reported on 1 August 2014. The settlement has seen Cape Lambert make a net final payment to the ATO of approximately $2.4 million.
Secondly, Cape Lambert was able to reward shareholders for their ongoing support. During the period Cape Lambert returned approximately A$12.5 million in fully-franked dividend payments.

The Board regrets the cancellation of a second dividend payment however determined that current iron ore prices are prohibitively volatile and that the Company is unable to return additional funding at this time.
Dividend payments are consistent with the Company’s goal of driving value and returning surplus cash to shareholders, and the Company intends to maintain its commitment to this objective.
I would like to thank you as a shareholder of Cape Lambert for your continued support throughout the financial year and I am optimistic about future growth prospects for Cape Lambert Resources, as I have recently purchased approximately 30 million shares.