FORTUNA METALS LTD — Capital/Financing Update 2010

Sep 23, 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

24th September 2010

A Ground Magnetics Program has Commenced at the Andewa Gold Project in Papua New Guinea and the 3D–IP, Geochemical & Geological Exploration Programs are Nearing Completion

• An extensive grid (now approx. 20 sq km) is now 100% surveyed and cut at Exploration License 1345 - Andewa for the ongoing geophysical and geochemical exploration programs.

• A ground magnetic survey has commenced and it is anticipated to take 3 to 4 weeks to complete.

• The extensive 3D - Induced Polarisation geophysical survey is anticipated to take another month to complete the gridded area.

• Prospective 3D-IP chargeability anomalies have been identified in the preliminary data.

• Soil and rock geochemical sampling is nearing completion. Approximately 2,000 soils and 200 rock-chip samples have been despatched to the laboratory and results will be released as possible.

• The data will allow a comprehensive geological, geochemical and geophysical assessment of the Andewa gold mineralised system and will define high-quality, coherent and coincident anomalies for further evaluation/ drill testing.

• The goal is to demonstrate a major gold mineralised system and produce new and systematically defined, high quality trenching and drilling targets in multiple prospect areas. Management believe the Andewa Gold Project has excellent potential to yield significant gold mineralisation with additional exploration. An extensive drilling program is anticipated for 2011.

• Andewa is located near the north coast of the island of New Britain and rocks within the 9km wide crater show evidence of significant hydrothermal alteration. Five high-level gold prospects have been demonstrated within a 7 km by 2.5 km structural zone.

• The closest known gold /copper mineralisation is an excellent analogy to Andewa and it is located in the ‘next’ extinct volcano about 65km to the east. This is the ‘more advanced’ Mt Penck Project held by Vangold Resources Ltd, which recently completed the same 3D –IP over a grid half the size of Andewa’s. On 20/9/10 they announced “The IP Surveys ... have greatly enhanced our understanding of the geology and its mineral potential, suggest that a major sulphide system may be present ... Vangold plans to commence deep drill testing at Mt Penck in the near future.”

• For additional information relating to Frontier Resources 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 his information in the form and context in which it appears.

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