the announcement

Cape Lambert successful in tests to reduce silica
09:30, Thursday, 14 February 2008

Sydney - Thursday - February 14: (RWE Aust Business News) - Cape
Lambert Iron Ore (ASX:CFE) has encouraging metallurgical results from a
test program aimed at reducing the silica content in iron ore
concentrates from its project in Western Australia.
The Cape Lambert resource is 1.56 billion tonnes grading 31.2 per
cent iron.
Reverse flotation tests were undertaken to see if a worst case
primary concentrate containing 8pc silica could be improved by reducing
silica levels to below 5pc where it would be suitable blast furnace
pellet feed.
The tests showed the Cape Lambert magnetite concentrate assaying
63.1pc iron and 8.3pc silica could be improved to 66.4pc iron and 4.8pc
silica, with greater than 91pc iron recovery.
The results confirm the company's view that it will be able to
produce a saleable final concentrate at less than 5pc silica routinely,
with minimal impact on operating costs.