FORTUNA METALS LTD — Board/Management Information 2016

Feb 16, 2016

ADDRESS PHONE EMAIL Office J, Level 2, 1139 Hay St. +61 (08) 9295 0388 pmcneil@frontierresources.com.au West Perth, WA, 6005, Australia ABN WEBSITE 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

ASX Limited Market Announcements Platform

17[th] February 2016

MULLER RANGE EL GRANTED, BONDS RECEIVED AND CORPORATE CHANGES

Frontier Resources Ltd is pleased to announce:

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• That Exploration Licence 2356 - Muller Range (330 km[2] ) has been granted in the highly geologically prospective Fold/Thrust Belt of Papua New Guinea (PNG).

• The EL (Figure 1) is along strike to the SE of Frontier's Bulago Project and contains (NW to SE):

  • Two known porphyry occurrences (Tingi Valley and Baia).

  • A possible high sulphidation/ intrusive related gold prospect and a probable buried porphyry copper-gold-molybdenum target (Cecilia River).

  • Copper in stream anomalies in the structural zone to/at the Mt Sisa volcanic centre.

• The Baia Prospect is drill ready and all areas warrant significant additional exploration.

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• Anticipated exploration to capitalise on the significantly increased US dollar gold price and 'leveraged' Australian dollars /PNG Kina includes:

• A strategic diamond core drilling program as soon as possible at Bulago to evaluate known surficial high grade gold mineralisation with the Company's onsite CSD500 drill rig:

  • Targets are Swit Kia Prospect's Upper and Lower Zone eastern strike extensions.

  • Surface jackhammer sampling previously demonstrated a 2.0m wide, 55 degree south dipping zone grading 195.0 g/t gold.

• Frontier will assess small scale alluvial gold development opportunities with the Landowners, as currently being advocated by the PNG Mineral Resource Authority.

• Possible skarn mineralised areas proximal to Swit Kia will be evaluated for possible future exploration and drilling.

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Corporate:

• Frontier's Managing Director - Paige McNeil has resigned as Managing Director to pursue other opportunities but remains a Non-Executive Director.

• Chairman - Peter McNeil has been re-appointed Managing Director and Chief Geologist.

• Peter Swiridiuk has reverted to a Non Executive Director role, but still assists with geophysical data compilations and project assessments.

• Management/ Director Consultants have taken a 20% or more decreases in their daily rates to assist Frontier's cash flow through a difficult time in the minerals/investment cycle.

• Tasmanian and Papua New Guinean Exploration License bond refunds have been received totalling ~$55,000.

• $112,000 in Tasmanian bonds remain outstanding and are currently being assessed.

• $130,000 is anticipated by the end of March from the sale of Tasmanian assets, as previously announced.

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FIGURE 1
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DETAILS

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FIGURE 2
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A schematic of the island of New Guinea (from Barrick Gold Corp-Figure 2) shows the most prospective arc for major mineralisation is on the southern fall of the mountainous spine of PNG from OK Tedi through Bulago, the Muller Range EL and on to Crater Mountain at the eastern end.

Frontier considers this structural zone to be the best geological address to discover very large gold and copper deposits in PNG.

The Baia Project (Figure 3) is a large porphyry system that strongly warrants exploratory drilling, with a copper - gold - molybdenum in soil anomaly, a small skarn and the correct geochemical, geological and structural characteristics such as:

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Tingi
Baia
Cecilia
Mt Sisa
FIGURE 3
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• The copper in soil geochemistry demonstrates a distinct cohesive anomaly that is about 900m long north- south and about 600m wide east -west. There are three smaller, but still large, copper anomalies that are about 500m long and up to 200m wide.

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• The contoured zinc and lead soil geochemistry at Baia Prospect demonstrates a typical zinc/ lead halo around a 1,200m diameter core to the porphyry copper system which is approximately coincident with the outer margins of the copper anomaly. The zinc/ lead anomaly has a width of about 500m and an outer annulus diameter of about 2,200m.

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• Dominant alteration is propylitic, with structurally controlled phyllic and patchy un-mineralised potassic.

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• The prospect is located on a topographic high in a major ENE trending fault zone/ transfer structure (as per the OK Tedi Mine).

The Cecilia Prospect can be rapidly advanced to drill testing with additonal surface exploration. It has demonstrated:

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• Stream sediment geochemistry >250ppm copper and altered rock chip samples returned 0.616g/t gold and 0.12 g/t gold + 710ppm copper. Altered granodiorite float assayed 0.18% copper, with chalcopyrite and bornite and others up to 0.62% copper.

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• High sulphidation epithermal advanced argillic alteration, with vuggy quartz - alunite- pyrophyllite, but no significant gold noted in follow-up.

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• Strong argillic and propylitic alteration, which has been covered by a recent agglomerate and pebble dykes are common, indicating a probable buried porphyry copper-gold-molybdenum target.

All historical exploration information relating to the Tingi Prospect has now been obtained and will be evaluated /compiled and announced in about 2 weeks. For further information on the Baia and Cecila River Prospecs, refer to Frontier's Quarterly Report dated 13[th] April 2015.

FRONTIER RESOURCES LTD

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P.A.McNeil, M.Sc., MAIG Chairman and Managing Director

Competent Person Statement :

The information in this report that relates to Exploration Results is based on information compiled by, or compiled under the supervision of Peter A. McNeil - Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

		Frontier Resources	Frontier Resources	Ltd Exploration Licence Information	Ltd Exploration Licence Information	Ltd Exploration Licence Information
	Licence No.	Date From	Date To	Ownership	Area (SQ KM)	Lat. Sub Blocks
Bulago River	EL 1595	7/07/2014	6/7/2016	100% Frontier Gold PNG Ltd	100	30
Muller Range	EL 2356	31/12//2015	30/12/2017	100% Frontier Copper PNG Ltd	330	99
Stormont Mine	ML 1/2013	3/11/2013	13/08/2018	5% Nett Profits Interest Frontier -Torque Mining Ltd	0.13	NA
					430 SQ KM
NB: The Papua New Guinea Mining Act of 1992 stipulates that ELs are granted for renewable 2 year Terms (subject to Work and Financial Commitments) and the PNG Government maintains the right to purchase up to 30% project equity at "Sunk Cost" if/when a Mining Lease is granted.

The following information is provided to comply with the JORC Code (2012) requirements for the reporting of exploration trenching results for Exploration Licence 1595 in Papua New Guinea.

		JORC CODE 2012
		Section 1 -- Sampling Techniques and Data
Criteria		Explanation	Commentary
Sampling techniques	o	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down whole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Historic exploration results are quoted. Previous explorers are known and standard industry practice sampling procedures were followed.
	o	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Unknown
	o	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 11m samples from which 3 kg was pulverised to produce a 30g charge for fire assay') In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	o	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	No drilling undertaken.
Drill sample recovery	o	Method of recording and assessing core and chip sample recoveries and results assessed	No drilling undertaken.
	o	Measures taken to maximise sample recovery and ensure representative nature of the samples.	No drilling undertaken.
	o	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No drilling undertaken.

Logging	o	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	No drilling undertaken.
	o	Whether logging is qualitative or quantitative in nature. Core (or costean,channel,etc) photography.		No drilling undertaken.
	o	The total length and percentage of the relevant intersections logged		No drilling undertaken.
Sub-sampling techniques and sample preparation	o	If core, whether cut or sawn and whether quarter, half or all core taken.		No drilling undertaken.
	o	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.		No drilling undertaken.
	o	For all sample types, the nature, quality and appropriateness of the sample preparation technique.		No drilling undertaken.
	o	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.		No drilling undertaken.
	o	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate /second-half sampling.		No drilling undertaken.
	o	Whether sample sizes are appropriate to the grain size of the material beingsampled.		No drilling undertaken.
Quality of assay data and laboratory tests	o o	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.		Historic exploration results are quoted. Previous explorers are known and standard industry practice sampling procedures were followed.
	o	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation,etc.		Not applicable
Verification of sampling and assaying	o	The verification of significant intersections by either independent or alternative company personnel.		Not verified.
	o	The use of twinned holes.		No drilling reported
	o	Documentation of primary data, data entry procedures, data verification,data storage(physical and electronic) protocols.		Primary data was collected manually then loaded into the database.
	o	Discuss anyadjustments to assaydata.		Unknown
Location of data points	o	Accuracy + quality of surveys used to locate drill holes (collar + down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.		Not applicable
	o o	Specification of the grid system used. Quality and adequacy of topographic control.		Map datum is AGD 066. 40m contours - 1:100,000 plans, 20m -SRTM contours.
Data spacing and distribution	o	Data spacing for reporting of Exploration Results.		Refer to the attached plans for details relating to the data spacingof exploration results.
	o	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied		Not applicable
	o	Whether sample compositinghas been applied.		Unknown
Orientation of data in relation to geological structure	o	Whether the orientation of sampling achieves unbiased sampling of possible structures to the extent this is known, considering the deposit type.		Unknown
	o	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a samplingbias,this should be assessed and reported.		No drilling undertaken.
Sample security	o	The measures taken to ensure sample security		Unknown
audits or reviews	o	The results of any audits or reviews of sampling techniques and data.		No specific audits or reviews of sampling techniques and data have been undertaken
		Section 2 -- Reporting of Exploration Results
Criteria		Explanation	Commentary
Mineral tenement and land tenure status	o	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Exploration Licence (ELA) 2356 - Muller Range is located in Papua New Guinea's Western and Southern Highlands Provinces. ELs are regulated under the Mining Act of 1992. There no agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and/or environmental issues associated with the EL. The PNG National government under the Mining Act of 1992 currently has the right to acquire up to 30% of any project at the time ofgrantingof a mining

			lease for the 'sunk cost'.
	o	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenement is an application only
Exploration done by other parties	o	Acknowledgment and appraisal of exploration by other parties.	Exploration in the region was initiated in the late 1960s as part of a PNG porphyry copper deposit search. It was explored for gold initially in the mid 1980's
Geology	o	Deposit type, geological setting and style of mineralisation.	Gold intrusive -epithermal related targets, porphyry copper-gold - molybdenum and higher grade gold - silver-zinc-lead skarns.
Drill hole information	o	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	No drilling undertaken.
		Eastingand northingof the drill hole collar	No drillingundertaken.
		Elevation or RL (Reduced Level- elevation above sea level in metres)of the drill hole collar	No drilling undertaken.
		Dipand azimuth of the hole	No drillingundertaken.
		Down hole length and interception depth	No drillingundertaken.
		Hole length	No drillingundertaken.
	o	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No drilling undertaken.
Data aggregation methods	o	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	Tables of results included show data aggregation if applied in trench/channel samples etc. No top cuts have been applied. They are continuous channel samples and so are stated as continuous weighted assay results (length x grade summed for each sample/sum of total length).
		Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail	Is this occurs, it is stated in the text.
	o	The assumptions used for any reporting of metal equivalent values should be clearlystated.	No metal equivalent values are reported.
Relationship between mineralisation widths & intercept lengths	o	These relationships are particularly important in the reporting of Exploration Results.	Well understood
	o o	If the geometry of the mineralisation with respect to drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length,true width not known').
Diagrams	o	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Appropriate maps, sections and tabulations of intercepts are included.
Balanced reporting	o	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Comprehensive reporting of Exploration Results has been previously completed and released.
Other substantive exploration data	o	Other exploration data, if meaningful and material should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances	All meaningful exploration data has been included in this and previous releases.
Further work	o o	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	Future work is dependent on a Rights Issue capital raising to be undertaken in early 2105. Appropriate plans will be included, as possible in a later release documenting approved future work programs.