FORTUNA METALS LTD — Capital/Financing Update 2010

Oct 28, 2010

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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

ABN 96 095 684 389

ASX:FNT

ASX Limited Company Announcements Office Announcement

29th October 2010

Notice to Option Holders Concerning the Exercise and Expiry of Listed Company Options and Corporate Update

The Company wishes to advise all holders of listed options (ASX:FNTO) that in accordance with the ASX Listing Rules, a letter and notice of exercise of options form has been sent to all option holders for the purpose of allowing an election to exercise those options.

The details of the listed options are as follows:

Expiry date: 5.00pm (AEST) on 3rd December 2010 Exercise price: $0.045

Option holders may elect to:

• I. Sell their options;

• II. Exercise their options prior to expiry to acquire fully paid ordinary shares; or

• III. Do nothing and allow the options to expire.

Note that the quotation of the options will cease at the close of trading 26th November 2010.

Option holders are under no obligation to exercise their options.

FRONTIER RESOURCES LTD

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

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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

ABN 96 095 684 389 ASX:FNT

29th October 2010

Dear Optionholder

EXPIRY OF LISTED OPTIONS (ASX:FNTO)

Frontier Resources Ltd is writing to you as a registered holder of the Company’s options exercisable at 4.5 cents on or before 5pm AEST 3 December 2010, to request that you consider exercising your options to provide additional working capital for conducting additional, value adding exploration programs.

Frontier continues to explore the Andewa Gold Project in PNG, utilising 3DIP geophysical technology, soil geochemical sampling and geological evaluation/reconnaissance. Initial field results are very encouraging and the survey has been significantly expanded. The program will be completed in late Nov and the first assay results are expected forthwith.

Ok Tedi Mining Ltd (OTML) have completed two major airborne geophysical programs at the Likuranga and Leonard Schultz projects in PNG. They will commence aeromagnetics at the Bulago project in early Nov. These programs will allow detailed modelling of the mineralised areas and definition of drill targets for 2011.

Frontier has engaged an Exploration Manager in Tasmania and a diamond drill program is planned at Elliott Bay/SMRV in early 2011. Further drilling will also be conducted to enhance the resource at the Narrawa Deposit. The tungsten potential of the district is being systematically evaluated for the first time commencing with extensive grid based soil sampling in mid Nov.

In accordance with ASX Listing Rule 6.24, the Company provides you with the following information:

• Each Option entitles you to subscribe for one fully paid ordinary share in the capital of the Company

• The exercise price payable to exercise your Option is $0.045 per Option

• The expiry date of the Option is 3rd December 2010. If you fail to exercise your Options prior to the expiry date, those Options will lapse and you shall have no further right or entitlement to those Options

• Quotation of the Options on ASX will end 26th November 2010

• The latest available closing price of FNT listed shares prior to the date of this letter was $0.072 on 28/10/10.

• The latest available closing price of FNT Options prior to the date of this letter was $0.025 on 28/10/10.

• The highest & lowest market sale price of shares on the ASX during the three months immediately preceding the date of this letter & their respective dates were: Highest $0.093 on 4/10/10 & Lowest $0.055 on 26/8/10.

• The highest & lowest market sales price of Options on the ASX during the three months immediately preceding the date of this letter and their respective dates were: Highest $0.038 on 4/10/10 and Lowest 0.011 on 2/9/10.

To exercise your Options, complete the attached exercise notice and forward, with the required payment in the Rely Paid envelope. Please make cheques payable to "Frontier Resources Ltd" crossed "Not Negotiable". A BPAY facility is also available.

Options may be exercised in whole or in part by the payment of 4.5 cents for each option (to convert it to a fully paid ordinary share that then can be held or sold) at any time prior to the option expiry date. Directors recommend that you exercise your Options before the expiry date. For additional information please Registries Ltd 1300 737 760, +61 2 9290 9600 or registries@registries.com.au

FRONTIER RESOURCES LTD

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P.A.McNeil, M.Sc. Chairman /Managing Director

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