Masses of positive and negative parity excited nucleons and hyperons are calculated in quenched lattice QCD using an O(a 2 ) improved gluon action and a fat-link clover fermion action in which only the irrelevant operators are constructed with fat links. The results are in agreement with earlier N * simulations with improved actions, and exhibit a clear mass splitting between the nucleon and its parity partner, as well as a small mass splitting between the two low-lying J P = 1 2 − N * states. Study of different Λ interpolating fields suggests a similar splitting between the lowest two 1 2 − Λ * states, although the empirical mass suppression of the Λ * (1405) is not seen.