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1 ASX release Friday, 10 February 2012 Bauxite Hills resurce dubles t 60 Millin tnnes Pre-Feasibility Study launched fr cmpletin in July 2012 Highlights Inferred resurces at Bauxite Hills have dubled t 60 Millin tnnes (Mt) f in-situ, exprtgrade bauxite. Key features f the resurces at Bauxite Hills are: Very clse t castal waters and internatinal shipping rutes; High alumina cntent; and Lw mining and transprt csts are expected. Pre-Feasibility Study n the integrated Bauxite Hills mine and prt prject has cmmenced and will be cmpleted by July Detailed envirnmental studies fr the Bauxite Hills prject are underway and cmmunity engagement with Traditinal Land Owners is nging.

2 ASX Release Bauxite Hills resurce upgrade (February 2012) Cape Alumina Limited (ASX Cde: CBX) will prceed with a Pre-Feasibility Study (PFS) n its flagship Bauxite Hills mine and prt prject n western Cape Yrk, Queensland, fllwing explratin results mre than dubling the prject s inferred resurces t 60 Mt f in-situ, exprt-grade bauxite (see Table 1). This is expected t yield 42 Mt f beneficiated, dry-prduct bauxite at average grades f 51.6 per cent alumina (Al 2 O 3 ) and 9.5 per cent silica (SiO 2 ). Cape Alumina s Managing Directr, Mr Graeme Sherlck, said demand fr Cape Alumina s bauxite is expected t remain strng ver the medium t lng-term. We are wrking t bring ur prject int prductin by late 2014 when demand fr bauxite in Asian markets is expected t really pick up, he said. Of particular imprtance is the fact that the Bauxite Hills BH1 depsit includes Lw Mnhydrate Bauxite, which we expect will attract a premium frm thse prducers perating lw temperature refineries. Pre-Feasibility Study The Pre-Feasibility Study fr the Bauxite Hills prject will cver: Envirnmental studies; Mine planning and scheduling; Capital and peratinal csts; Beneficiatin prcess ptins; and Transhipment ptins. Mr Sherlck said that a number f psitive features f the cmpany s resurces prvided a strng cmpetitive advantage in the marketplace. Cape Alumina s resurces at Bauxite Hills are expected t have extremely lw strip ratis and are very shallw, free-digging depsits, he said. The depsits are very clse t castal waters and internatinal shipping rutes, and they have high alumina cntent and lw bauxite t alumina ratis, which means lwer shipping csts and lwer verall refinery input csts cmpared t bauxite depsits utside the Weipa regin. These results are very encuraging and allw the cmpany t cmmence a Pre-Feasibility Study, which we hpe t cmplete by July this year. At the same time we will advance the prject s permitting requirements thrugh detailed envirnmental studies and n-ging stakehlder engagement with Traditinal Land Owners, Mr Sherlck said. Office Level 8, 300 Adelaide Street, Brisbane, Qld 4000 Phne Facsimile inf@capealumina.cm.au Web Page 2 f 5

3 ASX Release Bauxite Hills resurce upgrade (February 2012) Abut Bauxite Hills The Bauxite Hills mine and prt prject is situated 95 kilmetres nrth f Weipa n Queensland s Cape Yrk Peninsula and five kilmetres suth-east f the prt at Skardn River (see Figure 1). Western Cape Yrk is wrld-renwned fr its depsits f high-quality, exprt-grade bauxite. Figure 1 (left): Bauxite Hills mine and prt prject area shwing BH1, BH2 and BH6, EPM15376, EPM16899 (utlines shwn in blue), and MLA (BH1), MLA (BH2), MLA (BH6 East) and MLA (BH6 West) (utlines shwn in yellw). EPM = Explratin Permit fr Minerals. MLA = Mining Lease Applicatin The assay results frm the BH1 area have indicated the presence f tw types f bauxite an upper layer f Mixed Bhemite-Trihydrate Bauxite (MBT) and an underlying layer f Lw Mnhydrate Bauxite (LMB). The LMB prduct is expected t be suitable fr refineries perating at lw temperature. A schematic prfile thrugh BH1, illustrating the distributin f the tw bauxite types, is presented in Figure 2. Figure 2 (abve): Schematic prfile thrugh BH1 area. Office Level 8, 300 Adelaide Street, Brisbane, Qld 4000 Phne Facsimile inf@capealumina.cm.au Web Page 3 f 5

4 ASX Release Bauxite Hills resurce upgrade (February 2012) Table 1: Inferred Resurce estimate fr Bauxite Hills prject (BH1, BH2 and BH6 Areas) Area In-situ dry tnnes (Mt) Beneficiated dry tnnes (Mt) Average verburden Average thickness Ttal Al 2O 3 Ttal SiO 2 Fe 2O 3 BH1 (LMB)* NA*** BH1 (MBT)** BH2 (MBT) BH6 (MBT) Ttal Nte: Ecnmic bauxite mineralizatin has been defined as material with ttal alumina greater than r equal t 45 per cent, ttal silica less than r equal t 15 per cent, and a minimum thickness f 0.5 metres. The inferred resurce statement is based n a weighted plygnal mdel using nminal 320 x 320 metre spaced RAB drill hles with plygn average values weighted fr drillhle interval thickness, drillhle area f influence and sample wet screen recvery. * LMB Lw Mnhydrate Bauxite is defined by calculated bhemite alumina (BA) <3 per cent, where BA = TCA-THA- ( *RxSiO2), where TCA = Ttal Chemical Alumina, THA = Trihydrate available Alumina (gibbsite alumina + kalinite alumina lw temperature desilicatin prduct [DSP] alumina at 150 C), RxSiO2 = reactive silica at 150ºC. LMB is expected t be a suitable feedstck fr lw temperature Bayer refineries. ** MBT Mixed Bhemite-Trihydrate Bauxite is defined as calculated BA>3 per cent. MBT is expected t be a suitable feedstck fr high temperature Bayer refineries. *** LMB generally lies beneath MBT s generally n verburden. LOI Office Level 8, 300 Adelaide Street, Brisbane, Qld 4000 Phne Facsimile inf@capealumina.cm.au Web Page 4 f 5

5 ASX Release Bauxite Hills resurce upgrade (February 2012) Abut Cape Alumina Cape Alumina cntrls apprximately 1,900 square kilmetres f explratin tenements in western Cape Yrk. This is the largest tenement hlding in the regin utside the Ri Tint Alcan mining leases (see Figure 3). Key features f the resurces at Bauxite Hills and the Weipa regin, expected t have psitive implicatins fr ptential prject ecnmics, include: Very shallw, free-digging bauxite with minimal verburden thickness and very lw strip ratis, which suggests that mining csts will be lw; Very clse t castal waters and internatinal shipping rutes, ptentially lwering transprt capital and perating csts; and High alumina cntent cmpared t ther Australian bauxite prvinces (utside Weipa regin) - a lwer Bauxite t Alumina rati reduces verall shipping and refinery input csts. Figure 3 (left): Lcatin map f Cape Alumina s western Cape Yrk mining and explratin tenements. COMPETENT PERSON S STATEMENT Technical infrmatin relating t Cape Alumina cntained in this reprt has been cmpiled by Dr Paul Messenger wh is a Principal Advisr t Cape Alumina Limited and a Fellw f the Australasian Institute f Mining and Metallurgy (F. AusIMM) with mre than five years f relevant experience in the style f mineralisatin being reprted and qualifies as a Cmpetent Persn as defined by the Australasian Cde fr Reprting f Minerals, Resurces and Reserves. Dr Messenger cnsents t the inclusin in this reprt f the matters based n the infrmatin in the frm and cntext in which it appears. Fr mre infrmatin cntact: Cape Alumina Limited Office Level 8, 300 Adelaide Street, Brisbane, Qld 4000 Phne Facsimile inf@capealumina.cm.au Web Page 5 f 5