FORTUNA METALS LTD — Capital/Financing Update 2008

Apr 1, 2008

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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

www.frontierresources.com.au

ABN 96 095 684 389 ASX : FNT

2[nd ] April 2008

ASX Limited Company Announcements Office

Announcement

FRONTIER PROPOSES TO RELINQUISH THE KOKODA TRACK FROM EL1348 WITHOUT SIGNIFICANTLY AFFECTING THE KODU DEPOSIT

Frontier Resources Ltd is pleased to announce that it has proposed a highly significant compromise to the Hon Dr Puka Temu MP (Deputy Prime Minister and Minister for Mining in Papua New Guinea) in relation to the ongoing renewal issue of EL 1348.

The Company has proposed to relinquish an additional approximately 15km of World War II Kokoda Track that remains in the exploration license (which is all the Track within the license area, except for a 250m section for future road access), when EL 1348 is renewed.

The original license area granted to Frontier in August 2004 included about 40km (or 40%) of the Kokoda Track. The Company has already reduced this area in good faith and is again willing to voluntary reduce the area to 250m (1/4 of 1 % of the Track). The proposed relinquishment has been surveyed so there is no significant detriment to the possible development of the Kodu Deposit, but it allows for a large and cohesive area to be established as a ‘Kokoda Track Park’.

Tourism, exploration, mining and the advancement of our landowner partners can and should exist in a symbiotic relationship, sharing the vast advantages of this area.

Frontier Resources aims to develop the Kodu copper- gold –molybdenum Deposit with our landowner and stakeholder partners in a socially and environmentally responsible manner utilising ‘world’s best practice’ for the benefit of all stakeholders.

See figure 1 showing EL 1348 before and after the proposed area reduction, figure 2 showing a close up of the area proposed to be relinquished near the Kodu Deposit and figure 3 showing the Brown River catchment and other affected ELs and ELAs.

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

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Figure I: The Kokoda track (red) starts near Owers Corner and finishes at Kokoda.

Frontier’s access track starts at Owers Corner and is always south of the Kokoda Track, finishing at Kodu.

The purple shading indicates the original EL, as granted in August 2004. Grey shading/dots indicate the proposed EL area to retain.

The parallel hatched area is that proposed to be voluntarily relinquished to ‘free up’ the Kokoda Track.

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----- Start of picture text ----- Figure 1----- End of picture text -----

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Figure 2 is a digital elevation model (close up plan showing topography) of the Kodu Deposit region showing the area proposed for retention and relinquishment.

It also shows the location of the original WWII Track (as confirmed by Historian and Kokoda Expert Soc Kienzle), the post WWII Track (that Frontier originally said might be impacted over a 600m distance and is now utilised by all trekking companies) and a proposed bypass Track (that would be 2km or more at the closest point from the centre of the proposed pit).

The Super Pit in Kalgoorlie could now encroach within about 200 metres of peoples homes. The plan shows that this relinquishment proposal is a highly significant compromise that can benefit all stakeholders.

The original WWII Kokoda Track can be legislated into a ‘Park’ over its entire length and World Heritage could apply if desired.

Figure 2

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Figure 3 is a plan of the Brown and Goldie River Catchments, showing 7 different companies’ ELs (including Frontier) and ELAs that are partly covered by it.

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----- Start of picture text ----- The Port Moresbywater supply(Sirinumu Dam) isdrawn from theLaloki Catchment(located to the southof the Goldie).An ASX listedcompany has anapplication thatcovers a section ofthe northern part ofthe Kokoda Track.Figure 3SirinumuPort Moresby orDam----- End of picture text -----

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