FORTUNA METALS LTD — Capital/Financing Update 2007

Nov 25, 2007

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ADDRESS PHONE EMAIL PO Box 7996 +61 (07) 5592 2274 info@frontierresources.com.au Gold Coast Mail Centre FAX WEBSITE Qld 9726 Australia +61 (07) 5592 2275 www.frontierresources.com.au

ABN 96 095 684 389 ASX Code : FNT

26th November 2007

ASX Limited Company Announcements Office

Announcement

2007/2008 EXPLORATION PROGRAM COMMENCES SOUTHERN MOUNT READ VOLCANIC (SMRV) PROJECT, TASMANIA

Frontier Resources is pleased to announce the commencement on 23 November 2007 of its 2007/2008 exploration program on the under-explored, highly prospective Southern Mount Read Volcanics (SMRV) Project, in southwest Tasmania.

The target is a Rosebery / Hellyer type high-grade, high tonnage, zinc-lead-silvergold, volcanic hosted massive sulphide Deposit.

Previous Frontier high grade drill results at the Wart Hill Prospect have included 3.9m of 12.6% zinc + 7.2% lead + 123 g/t silver + 0.60 g/t gold, with historic trench values such as 3m of 21.9% zinc + 13.9% lead + 680g/t silver + 0.84g/t gold.

The base and precious metal mineralised horizon at Wart Hill was tracked plunging for 290m by Frontier’s previous drilling, before being faulted off at the southern end. The Company will attempt to locate the fault offset mineralised horizon, undertake infill drilling and also test the width of the zone.

Exploration will be undertaken in phases, commencing with a regional survey to define new drill targets at NE Osmund Prospect, then diamond drilling (1,200m) at the Wart Hill mineralised area, additional regional geochemical and geophysical surveys and lastly drilling of the regional targets. This staged approach will result in a substantial and cost effective program.

The NE Osmund area and other reconnaissance programs will consist of power auger soil sampling, rock chip sampling, ground magnetic surveys and geological mapping.

Summary

Figure 1 shows the location of Frontier’s project areas in Tasmania and figure 2 shows the Exploration Licences and prospect areas at the SMRV in SW Tasmania.

The SMRV Project covers a total strike length of about 45km of the highly prospective Mount Read Volcanics south of Macquarie Harbour in Tasmania (ELs 20/1996, 21/1999, 19/2006 and 20/2006). Refer to previous ASX releases for specifics relating to the SMRV Project.

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Figure 1
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Figure 2
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The primary focus of Frontier’s planned exploration work for the 2007/2008 field season will be to increase known tonnage in the ‘faulted off’ mineralisation at depth in the south of the Wart Hill Prospect. Infill drilling at Wart Hill (EL20/1996) will extend and further define the known high grade zinc-lead-silver-gold Volcanic Hosted Massive Sulphide mineralisation.

Drilling will commence at Wart Hill (also called V19) in early/mid January 2008, with approximately 1,200m of diamond coring planned.

Targets have been generated from Frontier’s detailed structural and stratigraphic understanding of Wart Hill, synthesised with the results of a relatively new geophysical technique called 3D Induced Polarisation (IP). 3D IP was trialled in 2005/6 over the Wart Hill and Aldebaran areas to define targets at depth, with up to 350m effective ground penetration claimed by the contractors.

See figure 3 for the schematic exploration model and figure 4 for a long section through Wart Hill showing mineralised drill intersections (represented as Zinc

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Figure 3
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equivalent). Figure 5 shows the 3D IP grid on a zinc soil geochemistry contoured base, with Wart Hill Prospect (V19) in the mid/upper left and Aldebaran (V34) in the upper right. Figure 6 shows the Wart Hill regional geology . Figure 7 is a closer up image of the Wart Hill area showing drill hole traces, downhole geology and mineralised intervals, plus the possible southern extension of the mineralised horizon on a zinc soil anomaly base.

The existing Wart Hill Camp will be utilised, along with quad bike support.

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Figure 4
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The Aldebaran Prospect (V34) area is located about 1.5km ENE of Wart Hill; it has a >1km long base metal soil anomaly and limited drilling has shown relatively distal but focused alteration and mineralisation, such as 27m grading 0.3% zinc plus 0.1% lead. Chargeable and resistive anomalies coincident with this zone extend to depth. About 450m of drilling are planned at Aldebaran. (See ASX release dated 30 March 2006 for additional information).

Similarly, from the west side the Wart Hill chargeable zone, the known mineralisation projects south and to depth beneath the Osmund Syncline, providing a likely vector for VHMS mineralisation immediately east of Wart Hill.

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Work has commenced on the NE Osmund Prospect, where there is highly anomalous gold stream geochemistry coincident with a porphyry contact, an airborne electromagnetic (EM) conductor and radiometric and magnetic highs. These airborne geophysical and geochemical anomalies will be tested by approximately 8,000m of grid based power auger soil sampling, rock chip sampling and ground magnetics. Subsequent follow up ground EM and drilling will be conducted as warranted.

Geological mapping, rock chip and soil sampling will be undertaken at other prospects to the north along the Low Rocky Point Porphyry contact, extending

into the Innes Peak EL20/2005 area. Drill testing will be undertaken as warranted, with up to 500m drilling anticipated for regional prospects late in the 2007/2008 field season.

The proposed work program for EL19/2006 focuses on the D’Aguilar South and Hales West Prospects, with low impact geological mapping and stream sediment sampling in other select areas. Three phases of anomaly discrimination are planned:

• First pass focused toward GIS generated targets and filling in stream sediment sample gaps via geological mapping, rock chip, panned concentrates and stream silt (-80#) sampling.

• Preliminary soil sampling may be undertaken where warranted on generated targets.

• Follow up via soil sampling (and infill) and more detailed geological mapping and rock chip sampling.

• Drilling may be undertaken subject to encouraging results, but likely awaits the 2008/2009 field season.

The Hales River West Prospect consists of a 2km long zone with anomalous stream sediments (to 240 ppm lead), C-horizon soil samples with lead to 860 ppm and zinc to 880 ppm. The prospect has favourable general geologic stratigraphy for VHMS (but little detailed mapping has been completed), there are unsampled streams within the anomalous basin and no panned concentrate or stream silt (-80#) gold assays from soils or streams.

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Possible offset
mineralisation
Figure 5
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Figure 6
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Figure 7
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The area strongly warrants testing via C-horizon soil sampling covering a 1.0 x 0.5km grid (200m line spacing with sample 25m downline). Anomalous areas identified during initial sampling may be infill sampled with 100m spaced grids.

The D’Aguilar South Prospect contains widespread copper, lead and zinc anomalism in stream sediment samples, highly anomalous gold in pan concentrates (including six pans of visible gold), a broad zone of anomalous gold in Huminex soils, massive silica±sericite±hematite alteration with rock chip samples to 125ppb gold, intense mapped chlorite±pyrite alteration in the interpreted stratigraphic footwall position to gold-anomalous outcropping mineralization. The previous explorer recommended drill testing at depth (250-300m hole), but it never eventuated. Work in the D’Aguilar South area will be principally reconnaissance in nature, but up to 2000m of soil sampling may be undertaken.

For additional information relating to the Company and its projects please visit our website at www.frontierresources.com.au or feel free contact me.

FRONTIER RESOURCES LTD

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P.A.McNeil, M.Sc. MANAGING DIRECTOR

The information in this report that relates to Exploration Results and Mineral Resources 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 2004 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 their information in the form and context in which it appears.

About Frontier Resources

• Frontier is focused on exploring the highly mineralised Pacific ‘Rim of Fire’, Papua New Guinea and the major Kodu copper – gold – molybdenum Deposit. The Company is also successfully exploring the Andewa gold Project, Elo and Bukuam copper +/- gold/moly porphyries, plus the SMRV zinc-lead–silvergold Project in the highly prospective Mt Read volcanics of Tasmania.

• Frontier’s objective is to advance, develop and mine the Kodu Deposit rapidly and cost effectively.

• The Company has a 100% interest in 3 Exploration Licences (Kodu, Likuruanga and Andewa) covering approx. 804 km[2] of quality copper and gold properties in PNG and 5 Exploration Licences + 2 Retention Licences covering 211 km[2] in Tasmania.

• The portfolio offers excellent mineral deposit potential, with primary Targets being World Class copper/gold/molybdenum porphyry, gold/silver epithermal and polymetallic VMS (zinc/lead/silver/gold) deposits.

• The projects all have high-grade exploration results in rock, trenches and/or drill hole and are in the same or similar geological terranes as existing World Class and/or major mines.

• Kodu copper- gold –molybdenum Deposit Resources:

• The Total Resource (Indicated + Inferred) at the 0.2 % copper equivalent cutoff contains 1,241,000 tonnes of copper equivalent* grading 0.45%, within 276 million tonnes grading 0.27% copper + 0.30g/t gold + 77ppm molybdenum + 1.7g/t silver. This equals 754,000 tonnes of copper, 83.4 tonnes of gold, 21,200 tonnes of molybdenum and 475 tonnes of silver (or 1.66 billion pounds of copper, 2.68 million ounces of gold, 46.7 million pounds molybdenum and 15.3 million ounces of silver).

• An Indicated Resource has now been estimated for the first time at Kodu at the 0.2 % copper equivalent cutoff and it contains 507,000 tonnes of copper equivalent* grading 0.48%, within 105 million tonnes grading 0.30% copper + 0.35g/t gold + 68ppm molybdenum + 2.0g/t silver.

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• The revised Inferred Resource contains 171 million tonnes (in addition to the Indicated Resource), at the 0.2 % copper equivalent cutoff and it contains containing 734,000 tonnes of copper equivalent* grading 0.43%, consisting of 0.26% copper + 0.27g/t gold + 82ppm molybdenum + 1.6g/t silver.

• The Total Resource (Indicated + Inferred) at the 0.3% copper equivalent cutoff contains 1,080,000 tonnes of copper equivalent* grading 0.51%, within 213.6 million tonnes grading 0.31% copper + 0.35g/t gold + 78ppm molybdenum + 1.8g/t silver.

• Frontier’s Directors and management team have more than 200 years combined experience in PNG and Australia to serve the interests of the Company and its shareholders.

• Frontier operates with a general policy of ‘DRILLING’ our quality projects using our purpose built and self manufactured, cost effective, environmentally friendly, man-portable diamond core rigs. We ‘own’ and operate all the major required means of exploration including a long term and very competent human resources team, drilling, earth moving and transport equipment, magnetic surveys, to maximise exploration success, while minimising costs in a very competitive environment.

• The Company is an ASX listed junior mineral explorer whose shares also trade on the Frankfurt, Berlin and Munich Stock Exchanges.

Notes:

• *Copper Equivalent is the contained copper, gold, silver and molybdenum that are converted to an equal amount of pure copper and summed (based on assays of mineralised rock and actual metal prices).

• Zinc or Gold Equivalents are the same, except metals are converted tho the equivalent amount of zinc or gold, respectively.

• Equivalents are used to allow interpretation of the possible theoretical ‘value’ of mineralised rock, without consideration of the ultimate extractability any of the metals.

• Copper Equivalent herein is based upon metal prices of US$3.69/lb Cu, US$749/oz Au, US$32/lb Mo (57% MoO3 conc.) & US$13.67/oz Ag (11/10/2007). The formula used is Cu Equivalent % = Cu(%) + (Au(g/t) x 0.2958) + (Mo(ppm) x 0.00101) + (Ag(g/t) x 0.00540).

• Island Arc porphyry copper– gold– molybdenum deposits such as Kodu typically recover contained Cu, Au, Mo and Ag (subject to metallurgical characteristics and prevailing metal prices).

• It is the Company’s opinion that each of the elements included in the copper metal equivalents calculation has good potential to be recovered if the project proceeds to mining, as per extraction rates documented in the Conceptual Mining Study (ASX release dated 19/11/2007).

• Zinc Equivalent herein is based upon metal prices of US$0.53/lb Zn, US$0.42/lb Pb, US$7.50/oz Ag, US$425/oz Au (5/6/2005). The formula used is Zn Equivalent % = Zn(%) + (Pb(%) x 0.7928) + (Ag(g/t) x 0.02055) + (Au(g/t) x 1.16952).

• Volcanic Hosted Massive Sulphide Deposits (VHMS) such as Wart Hill, typically recover contained Zn, Pb, Ag and Au (subject to metallurgical characteristics and prevailing metal prices).

• The ASX requires a metallurgical recovery be specified for each metal, however, no testwork has ever been undertaken at Wart Hill and recoveries can only be assumed to be typical for VHMS deposits.

• It is the Company’s opinion that each of the elements included in the zinc metal equivalents calculation has good potential to be recovered if the project proceeds to mining.

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