FORTUNA METALS LTD — Capital/Financing Update 2009

Aug 6, 2009

==> picture [145 x 101] intentionally omitted <==

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

ASX Limited

Company Announcements Office

Announcement

7[th] August 2009

The best tungsten mineralisation in drill hole to date is demonstrated at the Narrawa precious and base metal Deposit, Tasmania, with 1.0m grading 1.98% WO3

Frontier Resources Ltd is pleased to announce that limited and selective re-sampling and assaying of Narrawa Deposit core for wolfram/ tungsten has returned very encouraging results, with the highest grade drill intersection to date over a 1m downhole width.

• The selective re-sampling of drill holes within the Narrawa Deposit returned assays to 1m grading 1.98% WO3 (in hole NC048 near the NW end of the Narrawa Deposit), within a broad low grade geochemical halo that averaged 14m of 0.20% WO3 (from 21 to 37m).

• Soil assays and historic drilling have demonstrated a large area of tungsten anomalism proximal to the Narrawa Deposit. There is a +800m known strike length between drill holes containing tungsten anomalism and it remains effectively untested.

• The tungsten mineralisation is broadly coincident with the gold –base metals zone in hole NC048 (the gold +base metals and tungsten mineralisation are generally located in noncoincident, discrete mineralised orientations).

• Significant tungsten mineralisation was noted by Frontier earlier this year approximately 400m east of the Narrawa Deposit, including up to 0.65m section grading 1.04% WO3, contained within a 10.5m section grading 0.228% WO3. The mineralisation is in the geochemical halo to the Squib Mine, peripheral to the high grade quartz/tungsten veins actually targeted by the hole, that had been stoped out by historic mining to a lower level than recorded.

• The historic Squib Mine produced 34.5 tonnes of tungsten. Dump samples have analysed up to 5.03% WO3 + 2.5 g/t Au + 19 g/t Ag and a sample from a lode in a drive at Squib returned 3.19% WO3.

• Six previous holes drilled for gold returned potentially economic grades of tungsten, peaking at 0.5m of 1.26% WO3 with 0.12% molybdenum. Five channel samples returned anomalous tungsten with up to 1.5m grading 0.70% WO3 and also 3m grading 1.17 g/t gold + 0.1% WO3.

• Metallurgical and spatial aspects of the wolfram/ tungsten mineralisation will be examined to determine if it has the potential to contribute to the economics of a possible gold-silver-leadzinc mining operation at the Narrawa Deposit.

• Narrawa is an on or near surface, steeply dipping, stratabound/stratiform skarn deposit, with significant gold and base metal intersections demonstrated by Frontier’s drilling over its entire length (the Indicated and Inferred Resource is approximately to 220m long, 20m wide and 60m deep).

• The Narrawa (Higgs) Deposit is located 6.5km east of Frontier’s Stormont Deposit.

Page 1 of 3

==> picture [493 x 349] intentionally omitted <==

Managing Director, Peter McNeil commented:

“The Narrawa gold-base metal Deposit in northern Tasmania is continuing to evolve and improve, today with the highest grade tungsten intersection reported to date in a drill hole.

Frontier’s aim is to combine the Narrawa and Stormont Deposits into an operational entity and create a potentially economic mining project, for near-term development“.

The plan above shows:

• The large area of tungsten in soil anomalism with schematic soil assay results.

• The location of historic tungsten mines/workings and the Narrawa gold Deposit.

• NC53 drill collar/hole orientation information, relative to the trend of the Squib Mine tungsten mineralisation.

• Schematic 2m composite drill assays on hole traces for NC53 and historic drill holes.

• Hole NC48 is located at the NW end of the ‘Higgs’ Resource area.

Hole NC48 was collared at 425460.6mE, 5406693.1mN, RL 521.9m [AGD66, Zone55], with an azimuth of 213ºTN, an inclination of -60º and an end of hole depth of 40.3m. Note that calculations for FerroTungsten herein assume all concentrate is FeW, equating to 76.7% tungsten, whereas commercial concentrate typically contains 70 to 75% tungstic oxide (WO3) or 55 to 63% tungsten. Ferro-tungsten was selling for US$25/Kg on 29/7/2009.

See the ASX release dated 29/1/09, for further information on tungsten at Narrawa. For additional information relating to Frontier Resources and its projects, please visit our website at www.frontierresources.com.au or feel free contact me.

FRONTIER RESOURCES LTD

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

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

Page 2 of 3

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 the information in the form and context in which it appears.

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 Dolcoath Granite and Mt Read Volcanics of Tasmania.

• Frontier has a 100% interest in 5 Exploration Licences covering approx. 1,987 km[²] in PNG (EL 1596 is currently being sold for A$300,000 cash) and 1 Exploration Licence + 2 Retention Licences covering 18 km[²] in Tasmania.

• The portfolio offers excellent mineral deposit potential, with primary targets being World Class gold/silver epithermal, gold– base metal skarn, 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 have more than 150 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 rig.

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

Page 3 of 3