FORTUNA METALS LTD — Capital/Financing Update 2009

Sep 21, 2009

ADDRESS PHONE EMAIL P.O. 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

==> picture [131 x 91] intentionally omitted <==

ABN 96 095 684 389 ASX Code : FNT

ASX Limited Company Announcements Office Announcement

22nd September 2009

Dear Fellow Shareholder and Possible Investors

It is rewarding to advise you that the Frontier Rights Issue closed successfully on 15/9/2009, after raising $681,208 in this difficult fiscal environment. This capital will allow Frontier to undertake exploration & pre-development programs designed to add value to our Company and investments.

Frontier’s share price has shown good strength in a recent rally, closing above the Rights Issue price on the Issue’s closing day and remaining above it to date (after a peak close of $0.046).

If any shareholders or investors decided they were interested in subscribing and missed the closing date, there is still the possibility of taking up as much or little of the shortfall as desired. To do such, please download the prospectus containing the shortfall application form from the website home page at www.frontierresources.com.au, or phone and request that a prospectus be mailed to you. Directors anticipate finalising the distribution of the shortfall by/on 9/10/2009.

Frontier noted in a release to the ASX dated 11/9/2009, that we are initially concentrating exploration on the Bulago EL in the ‘Highlands’ of Papua New Guinea. This will be the first ground work conducted at Bulago since the EL was granted a year ago. The project contains 3 different known sources of very high grade gold (to 754 g/t) being intrusive, skarn and/or epithermal related, that strongly warrant and will receive substantial additional exploration. Two of these occurrences are known in outcrop and one in float rock. It is a very highly prospective region that has only ever had very limited exploration conducted, due to the requirement for helicopter support (which is actually normal for much of PNG).

I appreciate the faith that shareholders have placed in the Company and intend to honour that with my own continued effort and dedication. I will lead the Bulago exploration team on the ground for a four week field trip once landowners have been contacted, helipads cut and an initial ‘fly camp’ established. My rational is to try and maximise our success by leveraging on my quarter of a century of experience in PNG and knowledge of these types of mineralising systems.

Frontier Directors have positively displayed their belief in the projects by subscribing for between $15,000 and $50,000 (directly or indirectly) each for a total of $115,000.

Please feel free to review previous releases and/or contact me for additional information, but from mid October I will be in the field and then questions can be directed to Joint Company Secretary – Paige McNeil [08) 9295 0388]. If you would like to be placed on our email list for ASX announcements, please contact us at info@frontierresources.com.au

If you would like to take up any shortfall please read the Prospectus to fully inform yourself of our exploration plans and proposed strategy forward.

Thank you and sincerely, FRONTIER RESOURCES LTD

==> picture [109 x 27] intentionally omitted <==

P.A.McNeil, M.Sc.

MANAGING DIRECTOR