FORTUNA METALS LTD — Capital/Financing Update 2008

Sep 21, 2008

ADDRESS PHONE EMAIL PO Box 35 +61 (8) 9295 0388 info@frontierresources.com.au North Perth FAX WEBSITE WA 6906 Australia +61 (8) 9295 3480 www.frontierresources.com.au

ABN 96 095 684 389 ASX : FNT

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22nd September 2008

ASX Limited

Company Announcements Office

Announcement

DRILLED STRIKE LENGTH OF GOLD MINERALISATION INCREASED AT KOMSEN PROSPECT BY 65% TO >180M, WITH UP TO 15.1 G/T GOLD IN HOLE AFD018

Frontier Resources Ltd is pleased to announce that assay results from drilling at the Komsen Prospect in West New Britain, Papua New Guinea continue to increase the strike length of gold mineralisation and demonstrate a consistent higher grade gold zone. The intersections reported are from the eastern sector of the mineralised Komsen structure, at shallow to moderate depths.

• Hole AFD 018 returned 17.9m grading 2.09 g/t gold (including 2.9m of 5.23 g/t gold), plus 5m of 2.51 g/t gold a further 2m downhole. AFD020 returned 7.5m grading 3.76 g/t gold (including 3.5m of 6.54 g/t gold). True widths are yet to be determined.

• The widest part of the Komsen structure (at its eastern end) was targeted by holes AFD018 - 022. Previous trenching here returned 4.4 g/t gold over 21.65m, including the only known visible gold in the prospect area. Hole AFD018 confirmed the surface widths of mineralisation with a 24.9m wide intersection of gold mineralisation (including 2m of ‘barren’ material).

• The primary focus of Frontier’s exploration work at Komsen was to increase the number of drill intersections (and thus possible tonnage) in the gold mineralised structure, both along strike and at depth. This has been successful and a resource will be estimated in early 2009.

• Gold (+/- silver/zinc/lead & copper) mineralisation in the Komsen structure has been shown as continuous between drill intersections over approximately a 180m horizontal strike length and to +320m maximum vertical depth.

• The structure is consistently gold mineralised and it remains open along strike in both directions on surface and at depth (to the NW and SE). Drill intersections show increasing gold grade and width (total contained gold) at depth in several cases, with a higher grade gold mineralised zone running the length of the system at shallow to moderate depths.

• Close inspection of the high grade zones in some of the holes at Andewa indicates that some of the elevated gold assays are related to medium grained pervasively silicified and brecciated andesites/diorite dykes.

• Systematic core sampling has been undertaken for petrological evaluation to develop a better understanding of the mineralised system and its genesis. This study should assist with future drill targeting by providing vectors to zones of stronger mineralisation.

• The drilling program at Andewa was completed in May, however, issues with sample shipment and analysis (loss of samples) have precluded reporting of the associated assays. Holes AFD019, 021 and 022 have now been re-sampled and will be reported in about 1 month.

• Hole AFD-022 was prematurely terminated at 35.0m, prior to the target zone, to enable the drill rig to be demobilised to undertake a commercial drilling contract.

• The Andewa and the coastal camps are under care and maintenance, but can be re-activated when additional drilling is funded.

Page 1 of 8

ADDITIONAL DETAILS

Mineralised and higher grade sections within some of the drill holes were re-photographed to get a better idea of which styles of mineralisation are conducive to hosting higher gold and base metal grades. This information is shown in Appendix 1.

Figure 1 is a plan of part of the Komsen Prospect, showing surface traces of holes drilled during the program, the approximate true width of hand trenched gold mineralised intervals and their locations and the surface traces of and spatial relationships between the known gold mineralised structures.

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Table 1 below lists all drill results to date, plus hole location and orientation information.

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		Table 1.	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information	Komsen Prospect - Complete Weighted Drill Hole Assay Results and Hole Information
Hole Number	Gold Equiv. Gram Metres	Interval Length	Weighted Assay Grades						Downhole Interval		Hole Information
			Gold Equivalent (g/t)	Gold (g/t)	Silver (g/t)	Zinc (%)	Lead (%)	Copper (%)	From (m)	To (m)	EOH Depth (m)	Easting	Northing	RL	Azimuth (TN)	Incl. Degrees
AFD001	4.87	1.2 m	4.06	4.06	-	-	0.00	0.01	20.6	21.8	197.9m	713542	9383644.5	374	14	-45
plus	1.79	0.5 m	3.58	2.55	36.0	0.48	0.14	0.19	165.4	165.9
AFD002	3.41	0.2 m	17.07	5.52	95.0	11.10	2.30	0.12	35.7	35.9	55.6	713542	9383644.5	374	14	-55
plus	2.35	0.9 m	2.62	2.62	-	0.08	0.01	0.02	38.7	39.6
AFD003	4.36	2.5 m	1.74	1.43	16.4	0.25	0.05	0.10	60.8	63.3	81.2	713542	9383644.5	374	14	-65
AFD004	12.98	6.9 m	1.88	1.60	4.6	0.12	0.02	0.03	76.8	83.7	97.8	713542	9383644.5	374	14	-70
incl.	4.44	0.7 m	6.34	6.28	3.0	0.39	0.07	0.02	76.8	77.5
plus	4.71	3.0 m	1.57	1.46	5.6	0.05	0.02	0.03	80.7	83.7
AFD005	2.76	1.0 m	2.76	0.09	1.0	3.20	0.49	0.05	115.5	116.5	153.4	713542	9383644.5	374	14	-75
plus	35.90	4.5 m	7.98	5.81	27.8	2.34	0.06	0.06	121.4	125.9
incl.	29.05	1.0 m	29.05	19.00	119.0	10.30	0.24	0.22	122.4	123.4
AFD006	18.88	2.9 m	6.51	6.39	6.2	-	-	-	30.4	33.3	56.9	713547	9389648	374	60	-45
incl.	9.50	0.9 m	10.55	10.55	-	-	-	-	32.4	33.3
AFD007	79.76	7.9 m	10.10	10.01	4.5	0.11	-	-	31.5	39.4	49.5	713547	9389648	374	60	-55
incl.	77.82	5.9 m	13.19	13.07	6.0	0.14	-	-	33.5	39.4
incl.	65.33	2.0 m	32.67	32.55	6.0	0.22	-	-	37.4	39.4
AFD008	0.19	0.9 m	0.21	0.21	-	-	-	-	71.2	72.1	82.4	713547	9389648	374	60	-65
AFD009	3.45	1.0 m	3.45	2.44	16.0	1.00	0.20	0.11	52.8	53.8	82.3	713544	9389652	374	328	-42.5
AFD010	32.92	3.0 m	10.97	10.97	-	-	-	-	99.0	102.0	108.7	713544	9389646	374	328	-57.5
incl.	30.50	2.0 m	15.25	15.25	-	-	-	-	99.0	101.0
plus	3.01	1.0 m	3.01	3.01	-	-	-	-	107.0	108.0
AFD011	4.78	2.0 m	2.39	2.39	-	0.17	-	-	78.4	80.4	321.6	713617	9383704	322	248.5	-75
plus	1.50	1.3 m	1.16	1.06	5.0	-	-	-	174.3	175.6
plus	3.22	1.0 m	3.22	2.73	7.0	0.51	-	-	279.6	280.6
plus	4.06	2.0 m	2.03	1.39	7.5	0.71	0.28	-	282.4	284.4
AFD012	6.44	3.0 m	2.15	2.10	2.3	0.34	-	-	65.7	68.7	100.3	713617	9383704	322	194	-45
incl.	3.02	1.0 m	3.02	3.02	-	-	-	-	67.7	68.7
AFD013	0.14	1.2 m	0.12	0.12	-	-	-	-	97.9	99.1	151.5	713617	9383704	322	194	-60
AFD014	5.47	2.6 m	2.10	2.10	-	-	-	-	109.0	111.6	170.4	713617	9383704	322	194	-70
AFD015	5.37	2.4 m	2.24	2.14	5.0	0.14	-	-	70.0	72.4	107.6	713617	9383704	322	217	-45
AFD016	12.04	3.8 m	3.17	3.06	5.5	0.17	-	-	80.5	84.3	142.5	713617	9383704	322	217	-55
incl.	6.44	1.0 m	6.44	6.41	1.5	-	-	-	80.5	81.5
AFD017	78.08	10.8 m	7.23	6.99	12.4	0.17	-	-	127.4	138.2	183.9	713617	9383704	322.00	220	-70
incl.	77.47	9.8 m	7.90	7.65	13.2	0.10	-	0.10	128.4	138.2
incl.	76.43	8.8 m	8.68	8.40	14.7	0.11	-	0.10	128.4	137.2
incl.	49.81	3.6 m	13.84	13.51	16.8	0.20	-	0.12	132.4	136.0
incl.	21.55	0.8 m	26.94	26.13	42.0	-	-	0.25	135.2	136.0
AFD018	37.30	17.9 m	2.09	2.09	-	-	-	-	30.7	48.6	70.5	713729.3	9383635.9	253.00	227	-45
incl.	27.84	9.9 m	2.82	2.79	1.2	0.13	-	-	30.7	40.6
incl.	15.29	2.9 m	5.31	5.23	4.1	0.38	-	-	30.7	33.6
plus	12.53	5.0 m	2.51	2.51	-	-	-	-	35.6	40.6
AFD-019			Assay Results Still Outstanding								120.2	713729.3	9383635.9	253.00	227	-60
AFD020	28.17	7.5 m	3.76	3.73	1.5	-	-	-	69.5	77.0	114.0	713729.3	9383635.9	253.00	227	-75
incl.	22.87	3.5 m	6.54	6.51	1.5	-	-	-	69.5	73.0
incl.	13.62	0.9 m	15.13	15.10	1.7	-	-	-	69.5	70.4
AFD021			Assay Results Still Outstanding								69.0	TBDE	TBDE	TBDE	170	-50
AFD022			Assay Results Still Outstanding								35.0	TBDE	TBDE	TBDE	170	-65

TBDE = To be determined exactly

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 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. 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.

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Appendix 1

The high grade gold mineralisation in hole AFD-017B appears to related to a mineralised medium grained porphyrytic andesite or medium grained diorite. This rock is pervasively silicified with a stockwork of silica and fine sulphide veins. Sulphides are dominantly pyrite, with varying amounts of other sulphides with sphalerite>chalcopyrite>galena.

Some sulphides especially chalcopyrite and galena appear to have been introduced with the quartz carbonate veins that occasionally offset the silica sulphide stock working. Alteration is dominantly silica-sericite-pyrite-chlorite and a hint of fuchsite staining in places. The original rock is medium grained with well preserved textures and individual feldspar grains up to 5mm wide. The presence of fuchsite suggests that it is intrusive related.

Information on higher grade sections.

Hole Number	Interval	Au Grades	Comments
AFD-017B	127.40-138.2	26.13 g/t Au	Mostly in pervasive silica and brecciated porphyrytic andesite/diorite with silicic - pyrite stockwork and disseminated massive sulphides.
AFD-004	76.80-77.50	6.28g/t Au	Oxidised material as in trenches.
AFD-005	121.4– 122.4	3.0	-
	122.4–123.4m	19.0 g/t Au	Pale gray coloured porphyrytic andesite/diorite. Silica-sericite- pyrite alteration.
AFD-006	30.4- 32.4	4.58 g/t Au	Silicic, brecciated and oxidized material.
	32.4- 33.3	10.6g/t Au	As above.
AFD-007	33.47- 35.23	4.94 g/t Au	Oxidised and silicified quartz - sulphide vein.
	37.35-39.35	32.70g/t Au	-
AFD-010	99-100	18.0 g/t Au	Medium grained andesitic dyke or diorite
	100-101	12.6g/t Au	-
	101.0-102.0	2.42g/t Au.	-

Two or possibly three styles of mineralisation are apparent;

• a. Medium grained andesitic/dioritic dykes that are pervasively silicified with abundant silica-sulphide stock working. The original rock textures are preserved and there is minor fuchsite.

• b. Extensively oxidized, leached and brecciated quartz–sulphide veins, as per outcropping trench samples. There are no remnant sulphides.

• c. Quartz sulphides with base metal veins especially sphalerite, galena and chalcopyrite.

The table below shows core with the first style of mineralisation.

Photo, hole no, sampled interval and grade		Comments
AFD-017B 135.2-135.3m26g/t Au		AFD-017B This rock is pervasive silicified with abundant silica-sulphide stockwork. There is a massive sulphide band to the right of the image. The dominant sulphide is arsenopyrite with subordinate chalcopyrite>sphalerite>galena. The greenish tint in the picture is likely due to the presence of fuchsite. The interval from135.2-136.0m assayed26 g/t Au.

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AFD-017B 133.9-134.15m 11.5g/t Au AFD-017B This sample is from porphyrytic andesite or a diorite dyke. As can be seen from the photo, original textures for the rock are preserved. Abundant sulphides occur as disseminations and as veins (stockwork). The stockworking is cut by late quartz-carbonate-sulphide veins which also carry some sulphides. The interval from 133.4- 134.4 assayed 11.5 g/t Au. AFD-004 77.2 -77.6m 6.28g/t Au AFD-004 The rock type appears to be the same as the mineralised sections in AFD-017B except that in this case they appear to be weakly oxidized. There is also less silica-sulphide stockworking. The interval from 77.2 -77.6m assayed 6.28 g/t Au. AFD-005 122.10-122.40 2.98g/t Au AFD-005 This interval assayed 2.98g/t Au. It is a fine to medium grained andesite with abundant disseminated sulphides. As can be seen from the photo there is no evidence of silica-sulphide stock working and late quartz-carbonate –sulphide veining. The host rock is pervasively silicified with some clay-sericite overprint. AFD-010 99.5–99.6m 17.9g/t Au AFD-010 The rock type appears to be a medium grained dark grey coloured porphyrytic andesite (diorite?) with grey black silica-sulphide stockwork and abundant disseminated sulphides throughout.

The rock is moderate to pervasively silicified with some weak clay overprint. Late quartz- carbonatebasemetal veins are also evident.

The interval from 99-100m assayed 17.9 g/t Au.

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AFD-010 100.3-100.4m 12.6g/t Au
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AFD-010 The image on the left shows bleached pervasively silicified andesite (diorite?) with abundant dark grey silica sulphide stockwork and quartz-carbonate-base-metals infilling fractures.

The interval from 100 -101m assayed 12.6 g/t Au.

The table below shows drill core with the second style of mineralisation.

AFD-006 32.4-32.6m 10.6g/t Au

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AFD-006

This material is similar to what is being sampled in the trenches.

It is strongly silicified and brecciated, leached and oxidized in places. Sulphides in this material have been totally leached/ destroyed.

This interval from 32.4-33.4 assayed 10.6 g/t Au.

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----- Start of picture text -----

AFD-007 37.35–39.35m 32.70g/t Au
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AFD-007

About 60% of the material for this sample was of the oxidised and silicified material on the left.

There is no doubt this material is giving the high gold assay (32.70 g/t Au) in this zone.

AFD-007 37.35-39.35m 32.70g/t Au

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AFD-007 The photo on the left is from the same interval as above (i.e. 37.35- 39.35), a 2m interval which assayed 32.70 g/t Au.

It is strongly broken core and the sampling appears to have been done across lithological boundaries. Two thirds of the material for this sample appears to be the oxidised /silicified material (picture above) and 1/3 the material on the left. This particular material appears to be shattered and argillised andesitic rock.

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The table below shows core photos with third possible style of mineralisation.

AFD-017B 136.0m 4.54g/t Au

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AFD-017B Core at 136.0m is dominantly quartzsericite pyrite with hint of dark grey green-fuchsite. Sulphide content here is relatively lower.

This is more silica rich material with fewer sulphides and the grades therefore appear to drop off.

The interval from 136.0-137.2m assayed 4.54 g/t Au.

AFD-005 122.4 – 124.40 19.0g/t Au

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AFD-005 This image shows a photo of a quartz sulphide vein rimmed by yellow- iron poor sphalerite.

This rock assayed 19.0 g/t Au.

The third style of mineralisation shown above could also be the fresh unoxidised version of the mineralisation mapped and sampled in the trenches.

About Frontier Resources

• Frontier is focused on exploring for and developing mineral deposits in the highly mineralised Pacific ‘Rim of Fire’ in Papua New Guinea and the highly prospective Mt Read Volcanics of Tasmania.

• The Company is presently evaluating possible development scenarios for the Narrawa and Stormont Deposits in Tasmania and is undertaking commercial drilling to assist cash-flow.

• Frontier has 4 Exploration Licences (100% interest) covering approx. 1,460 km[²] in PNG and 3 Exploration Licences (90 or 100%) + 2 Retention Licences (100%) covering 134 km[²] in Tasmania.

• The portfolio offers excellent mineral deposit potential, with primary Targets being World Class gold-silver epithermal, gold- base metal skarns, copper-gold-molybdenum porphyry 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.

• Frontier’s Directors and management team have more than 300 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.

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Notes:

• Gold Equivalent* is the contained gold, zinc, lead and silver that are converted to an equal amount of pure gold and summed (based on assays of mineralised rock and actual metal prices) and is based upon metal prices of US$931/oz Au, US$17.90/oz Ag, US$1.04/lb Zn and US$1.28/lb Pb (29/3/2008). In terms of value at those prices, 1g/t Au = 52.01 g/t Ag, 1g/t Au = 1.432% Zn/t, 1g/t Au = 1.164%Pb/t and 1g/t Au = 0.385% Cu/t.

• The formula used to calculate Au Equivalent* g/t = Au(g/t) + (Ag(g/t)/52.01) + (Zn(%)/1.432 + (Pb(%) /1.164) + (Cu(%)/0.385). In any particular interval, all silver was utilised in the estimation, however, zinc and lead were only utilised if >0.5% and Cu >0.2%. The metal prices have not been updated, because previous gold equivalent results were released using these parameters and it is used only as a comparative tool.

• Epithermal gold– silver -basemetal deposits such as Komsen typically recover contained gold, silver and basemetals if in sufficient quantities (subject to metallurgical characteristics and prevailing metal prices).

• The ASX requires a metallurgical recovery be specified for each metal, however, no testwork has been reported for Narrawa and recoveries can only be assumed to be typical for these gold– silver –basemetal deposits.

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

• Drill core at the Komsen Deposit was sampled as half core for the entire length of mineralized intervals (AFD019, 021 and 022 were lost and re-sampled as ¼ core). Sample intervals within the confines of the mineralised zone are typically no greater than one metre and constrained by appropriate lithological or mineralization boundaries.

• Laboratory quality control was assessed via submission of known standards approximately every 20 to 25 samples / metres downhole. Laboratory quality control reported very good repeatability for in-house standards, as well as for duplicate drill core analysis. Assaying was carried out at SGS laboratories in Townsville, QLD using the ICP technique with analysis for silver, arsenic, copper, molybdenum, lead, antimony, zinc and 25 gram fire assays for gold.

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