FORTUNA METALS LTD — Capital/Financing Update 2011

May 25, 2011

ADDRESS PO Box 35 North Perth WA 6906 Australia

PHONE EMAIL +61 (8) 9295 0388 info@frontierresources.com.au FAX WEBSITE +61 (8) 9295 3480 www.frontierresources.com.au

ABN 96 095 684 389 ASX : FNT

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ASX Limited Company Announcements Office Announcement

26th May 2011

Tasmanian Tenement Portfolio Expansion and Commodity Diversification Strategy Completed and the Stormont Gold – Bismuth Deposit and Wanderer ELs Granted

Frontier Resources Ltd is pleased to announce that the River Lea (Stormont Gold -Bismuth Deposit - EL 42/2010) and Wanderer River (EL 33/2010) Exploration Licenses have been granted to the Company, consolidating and significantly enhancing the Company’s tenement portfolio in this richly endowed state.

In addition, a further three Exploration Licence Applications were recommended to the Minister for granting to the Company by Mineral Resources Tasmania.

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The Tasmanian tenement portfolio is highly prospective for a diverse suite of metals.

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• Tungsten, molybdenum and tin are a major new focus for the Company, as there is excellent potential for World Class and major deposits in the Moina Project area (Stormont Deposit / Cethana EL / Narrawa Deposit /Dolcoath Granite).

• The new ELs/ELAs add 646 km[2] and 125 tungsten, tin, base-precious metal and rare earth element occurrences to the total portfolio, that will consist of seven tenements covering 769 km[2] .

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• Exploration is being carefully targeted and the probability of discovery is high.

The River Lea area covers 9 km[2 ] and includes the Stormont Deposit, plus 23 prospective aeromagnetic anomalies (some of which correspond to the known 5 gold – bismuth occurrences).

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• World Class Intrusive Related Gold (IRG) deposits are the primary focus and the region is virtually unexplored for this type of target. Bismuth is a key indicator element for these types of deposits.

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• The high-grade sheeted vein Pogo gold Deposit and low grade, Fort Knox gold Deposit in Alaska are type examples. Large low-grade IRG gold systems (average of 0.8 g/t gold) are currently being aggressively explored for and developed in North America.

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• River Lea and Frontier’s Cethana EL are proximal to or surround an excluded (competitor’s) 2 km[2] area that contains the worlds’ largest unmined fluorspar (fluorite) deposit, demonstrating that ‘World Class’ Deposits are associated with the Dolcoath granite.

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• The Dolcoath granite appears to dip shallowly to the west from where it crops out on surface to the east of Frontier’s Narrawa gold-silver-zinc-lead Deposit. The granite has a sub-surface area of about 50 km[2] with about half in the Moina Project area.

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• The known Dolcoath mineralising trend varies broadly (from east to west) from silver to tungsten and/or molybdenum (with tin occurrences), to gold - silver - base metals (at Frontier’s Narrawa Deposit), then gold – zinc, fluorite and gold-bismuth. Fluorite mineralisation is also noted in the River Lea area.

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• The Stormont Deposit (in EL 42/2010) has a gold + silver + bismuth Inferred Resource of 112,500 tonnes grading 3.94g/t gold, 3.41g/t silver and 0.27% bismuth (at a cut‐off grade of 1g/t gold) for 14,250 ounces of gold, 12,335 ounces of silver and 30.6 tonnes of bismuth.

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• A Conceptual Mining Study (CMS) (completed by Frontier in 2009) evaluated mining the on-surface Stormont and Narrawa Deposits and showed a theoretical cash flow from processing based on a capital expenditure estimated at A$8 million (neglecting working capital and provision for contingencies). The theoretical cash flow improved significantly with increased metal prices, grades and/or tonnages of mineralisation.

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• Metals prices utilised in the CMS as of 3/7/2009 were US$940/oz gold, US$0.71.44/lb zinc, US$0.7738/lb lead, US$13.70/oz silver. Since then the gold price has appreciated more than 50% , silver more than 300% and zinc and lead prices are also strong.

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• The CMS demonstrates that the continuation of Feasibility Studies is strongly warranted to evaluate the ultimate economic potential of the Narrawa and Stormont Deposits and to move them toward future production and possible cash flow for Frontier.

• The Wanderer River area (EL 33/2010) covers 210 km[2] and 25 massive sulphide gold – silver – zinc - lead occurrences. The 20 kilometre strike length is the most under explored section of the highly prospective Mount Read Volcanics in Tasmania, with only 8 short holes completed (663.1m total in the mid 1990’s and supervised by Frontier’s Managing Director).

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• A high resolution heli-borne electro-magnetic (EM) geophysical survey will be flown over the entire area as soon as practical (about October 2011).

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• EM is one of very few exploration methods that has ‘direct VHMS deposit detection capability’ and the Wanderer River area has never been covered by a new generation heliborne survey.

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• The World class Hellyer polymetallic Deposit in the northern Mt Read Volcanics can be regarded as analogous to the Wanderer River and it was identified using a less powerful electromagnetic survey and discovered by moderate depth drilling.

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• The potential for locating high value/tonne VHMS and/or gold deposits is excellent.

• The Interview River area (ELA 6/2011) covers 91 km[2] and has 11 historic workings.

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• Four high-grade tungsten workings are related to a 3.5km long N - S linear trend.

• One silver and five copper workings are located within a different 1 km[2] area.

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• An additional ELA has also been applied for on Interviews’ southern margin, to obtain all the prospective granite in the region and 5 more prospect areas.

• The Mt Paris ERA covers 100 km[2] and hosts about 60 known Devonian tin greisens, particularly in the Mt Paris, Rattler Hill and Ruby Flat tin fields.

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The Tonganah area (ELA 3/2011) covers 236 km[2] and two rare earth element (REE) occurrences.

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DETAILS

River Lea - EL 42/2010

The 9km[2] EL is located in central northern Tasmania and is part of the contiguous ‘Moina’ tenement portfolio of 121 square kilometers that is centred on the highly fertile Dolcoath Granite and enclosing rocks. The EL was granted from a competitive tender process against a number of companies, including both current Tasmanian producers.

Figure 1 shows the location of Frontier Resources Ltd’s tenements in Tasmania showing including newly granted licences EL 33/2010 and EL 42/2010 and the Application areas. Geology is from Mineral Resources Tasmania’s 1:250,000 digital geology.

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Figure 2. River Lea EL (above) showing the 2nd vertical derivative aeromagnetic image, the Stormont resource (light green ellipse), drill collars and numerous aeromagnetic highs having limited or no drilling.

Some of the licence area was held previously by Frontier as RL 4/2005 - Stormont and contains a JORC compliant gold + silver + bismuth Inferred Resource of 112,500 tonnes grading 3.94g/t gold, 3.41g/t silver and 0.27% bismuth (at a cut‐off grade of 1g/t gold) for 14,250 ounces of gold, 12,335 ounces of silver and 30.6 tonnes of bismuth (figure 3).

A Conceptual Mining Study relating to possible mining and processing of the gold and base metal mineralisation at the Narrawa and Stormont Deposits has demonstrated the potential for a positive theoretical cash flow.

Mining Lease applications covering the deposits, possible satellite mineralised areas and the required plant and tailings areas, will be initiated and submitted to Mineral Resources Tasmania as the next phase toward possibly developing either a self mined/treated, toll milled or other type of extractive development.

Metals prices utilised in the CMS on 3/7/2009 were US$940/oz gold, US$0.71.44/lb zinc, US$0.7738/lb lead, US$13.70/oz silver; since then, the gold price has appreciated more than 50%, silver more than 300% and zinc and lead prices are also strong.

Feasibility studies will continue in due course with:

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• Expansion drilling to increase the total resources and thus further improve the overall project economics;

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Infill drilling to improve the classification or confidence of the resources associated with each deposit, so reserves can be estimated, fiscal outcomes published and development capital ultimately be raised;

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Additional metallurgical testwork to maximise metal recoveries and minimise operating costs; and

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• Environmental and other evaluations.

The Stormont orebody occurs as a skarn mineral assemblage hosted in the upper half of the Transition Beds, an approximately 40m thick bed of carbonate bearing sediments lying between the underlying Moina Sandstone and overlying Gordon Limestone.

Figure 3. Stormont plan of the gold + silver + bismuth resource (on right) showing the colour coded Inferred Resource block model, surface geology, hole collars and significant assays.

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Figure 4. Stormont Deposit Section 2075E (local grid) looking to 325° (AMG). Legend as in figure 3.

The orebody lies in the hinge zone of a northwest trending 2nd generation open synclinal fold superimposed on an earlier more east‐west trending broader open synclinal fold. Similar 2nd generation folds with Transition Beds in their hinge zones occur in a number of locations in EL 42/2010 - River Lea as well as Frontier’s adjacent tenement EL 29/2009 - Cethana (figure 2).

Frontier’s intention is to explore the Moina Project area at greater depths for World Class mineral deposits related to the Dolcoath granite.

The principal exploration targets are Intrusive related gold deposits but pragmatically, the Company will also work to convert the local Stormont area into a mining lease as part of a strategy to develop a larger stand alone mining operation in the region (initially utilising the known modest satellite orebodies such as Stormont and Narrawa Deposit processed in a centralised mill). Future work will involve infill drilling and surface trenching of increased density to allow conversion of the Inferred Resource into the Indicated category.

Figure 5. Intrusive related gold exploration model.

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Intrusive Related Gold
Exploration Model
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Targets are generally shallow and quickly tested. Resources identified will likely be amenable to open cut mining, as at Stormont. The potential for other high grade gold skarns in the licence (as well as Frontier’s adjacent EL29/2009 - Cethana) is high.

Analysis of high resolution heli-magnetic data clearly demonstrates a strong spatial association between the Stormont Deposit and aeromagnetic highs and has revealed the presence of numerous lookalike magnetic highs containing little or no drilling (as shown in figure 3). The mineralised skarn assemblage includes magnetite and so has a positive magnetic response.

There is strong potential to upgrade the gold grade associated with the resource by 7 or 8% just by redressing probable errors in previous assaying results by new check and umpire re-assaying (i.e. 26 assays of an independent NATA certified gold standard included in 4 discrete batches of samples of core from the Stormont Drilling consistently assayed 10.5% lower than the specified grade). Check and Umpire reassaying of Frontier’s drillhole sample pulps will be conducted immediately.

Wanderer River - EL 33/2010

The Wanderer River tenement is the most under explored section of highly prospective Mount Read Volcanics in Tasmania; effectively no drilling has been completed and the potential for locating high value/tonne VHMS and/or gold deposits is excellent.

The EL covers a 20 kilometre strike length of the Mt Read Volcanics and the “holy host” stratigraphic horizon where the Wart Hill base metal sulphide lenses and other VHMS deposits occur (Lens A is 4.0m of 17.9% zinc + 132g/t silver + 10.2% lead + 0.60g/t gold and Lens B is 3.0m of 21.9% zinc + 680g/t silver + 13.9% lead + 0.80 g/t gold).

Exploration targets are volcanic hosted massive sulphide (VHMS) and structural gold deposits such as:

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• Rosebery Deposit (pre-mining resource of 32 million tonnes grading 14.6% zinc + 146g/t silver + 4.5% lead + 0.6% copper + 2.3g/t gold).

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• Hellyer Deposit (pre-mining resource of 16.9 million tonnes grading 13.8% zinc + 167 g/t silver + 7.2% lead + 2.5g/t gold).

EL 33/2010 - Wanderer River is located in (central) western Tasmania, south of Birch's Inlet. The 216km[2] licence is along strike from Frontier’s Elliott Bay EL, where drilling has just been successfully completed (results to be announced in the near future).

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Figure 6. EL 33/2010 – Wanderer River (blue outline) and EL 20/1996 – Elliott Bay – Wart Hill (black outline) showing principal prospects on an aeromagnetic 1st vertical derivative image.

Figure 7. EL 33/2010 – Wanderer River and EL 20/1996 – Elliott Bay showing principal prospects on a combined geological, aeromagnetic and radiometric interpretation with principal targeted Mt Read Volcanics in various greens with “Holy Host” horizon shown (maroon line).

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Wanderer River Anomalous Zones	Wanderer River Anomalous Zones
Prospect	Comments
Condor River	3km x 1km cohesive, coincident stream-sediments, soils, C horizon samples (to 560ppm Pb and 800 ppm Zn), I.P and airborne EM anomalies.
Condor River West	3.5km x 0.3km zone with anomalous soils, C horizon samples (to 1190 ppm Pb, 870 ppm Zn), three airborne EM and 3-I.P. anomalies.
Condor River East	1 km long zone with anomalous soils (to 260 ppm Pb), an airborne EM anomaly and roughly a coincident Dighem EM anomaly.
Hales River West	2 km long zone with anomalous stream - sediments (to 240 ppm Pb), soils, C horizon samples (Pb to 860 ppm, Zn to 888 ppm) and 2 airborne EM anomalies.
Hales River East	3.5 km long zone with anomalous stream-sediments and soils.
Viking 14	Two E.M. anomalies and coincident? Dighem E.M. anomalies.
Hales River North	Small zone defined by Pb and Zn anomalous soils.
Hales River NW	Small zone defined by Pb anomalous soils.
Viking 15	E.M. anomaly in pyritic lithic-crystal tuff.
Sprent River West	1 km long zone of anomalous soils, erratic stream-sediments and one Dighem EM anomaly.
Sprent River East	1.5 km long weak soil anomaly.
Sprent River South	2 km long weak soil anomaly.
Viking 3	Turair E.M. anomaly.
Viking 4	Turair E.M. anomaly.
D'Aguilar North	Anomalous stream-sediments, Zn rock-chip, Turair E.M. anomaly and 2 possible EM conductors
D'Aguilar South	1.5 km2 area of extensive drainage anomalism.
Mt Lee	Zone with 2 airborne EM anomalies, plus faulting and haematite mineralisation similar to 'The Blow - Mt. Lyell'.
Thirkell North	Narrow 1 km long zone of anomalous soils with airborne E.M. VLF-EM and Dighem anomalies, pan-concentrate gold anomaly, I.P anomalies and weak stream geochemistry.
Thirkell Hill South	2 km long strong airborne EM anomaly, Dighem anomaly and weak stream geochemistry.
D'Aguilar East	Several airborne EM anomalies.
Line 184N IP	Two weak IP responses flanking a magnetic feature.

 Mount Lyell Deposit (pre-mining resource of 311 million tonnes grading 0.97% copper + 0.31 g/t gold).

Zones of favourable hydrothermal alteration of VHMS style occur within rocks in the immediate vicinity of this “holy host horizon” in a number of places within the licence.

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In contrast with the more intensely explored Mt Read Volcanics north of the Gordon River, the southern portion has had relatively limited exploration. The entire Wanderer River area has only had 8 relatively shallow drillholes and has not been surveyed by higher resolution, deeper seeking and more powerful electromagnetic viz. VTEM.

Frontier has recognized and seized the opportunity to use new generation electromagnetics to survey outcrops of highly prospective Mt Read Volcanics and locate buried base and precious metals in massive sulphide bodies if present. Exploration completed over the prospective volcanics in EL 33/2010 has defined a number of areas of base metal and gold soil anomalies, favourable hydrothermal alteration and a number of alluvial gold in stream anomalies (refer to Table 1).

Access is by barge to Birch's Inlet then quad bile, four wheel drive or tracked vehicle to site, helicopter from Strahan or Strathgordon or light fixed wing aircraft to the Moores Valley airstrip. The area was previously held by Frontier but was never worked and was then relinquished during the GFC due to funding requirements. It is owned 90% by Frontier, reflecting the previous tenement’s ownership arrangements.

Figure 8. The Interview River ELA (6/2011) location and prospects (above).

Figure 9. The Mt Paris ERA covers 100 km[2] and hosts about 60 known Devonian tin greisens, particularly in the Mt Paris, Rattler Hill and Ruby Flat tin fields. In addition, the Tonganah ELA area shows the 2 known rare earth elements occurrences.

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. CHAIRMAN / MANAGING DIRECTOR

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The information in this report that relates to Exploration Results and Mineral Resources 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, Mineral Resources and Ore Resources. 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 LTD

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, AUSTRALIA

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• Frontier is an innovative and socially responsible ASX listed junior mineral explorer whose shares also trade on the Frankfurt, Berlin and Munich Stock Exchanges.

• Directors have more than 150 years combined experience in PNG and Australia to serve the interests of the company, its shareholders and stakeholders.

• 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 rigs.

• The Company has a 100% interest in six Exploration Licences (approx. 2,807 km[²] ) and two Exploration Licence Applications (approx. 2,933km[²] ) in PNG. Five ELs (approx. 2,690km[²] ) are subject to two Joint Ventures with PNG copper-gold producer Ok Tedi Mining Ltd.

• Frontier also has four Exploration Licences and one Retention Licence (348 km[²] ) + 3 EL Applications in Tasmania.

• The tenement portfolio offers excellent mineral deposit potential. Primary targets are World Class copper-gold-molybdenum porphyry, high grade gold epithermal, intrusive related gold (IRG), gold–base metal & tungsten skarns + 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.

PAPUA NEW GUINEA

THE 100% OWNED MT ANDEWA EL IN PNG HAS EXCELLENT GOLD AND COPPER MINERALISATION POTENTIAL

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• Frontier's exploration team is in the field conducting infill soil sampling and preparing for an extensive and deep drilling program scheduled for late May 2011 with our own drilling rig.

• Frontier undertook a major Three Dimensional Induced Polarisation (3D-IP) geophysical program over a 21 sq km grid at the Andewa gold and copper Project on the island of New Britain in Papua New Guinea in 2010 and collected about 5,000 soil and rock samples.

• The 3D-IP survey was a remarkable success that showed three exceptionally voluminous and intense, chargeability anomalies indicating the presence of very large sulphide systems from on-surface to more than 800m deep.

• The total chargeability anomaly (>30ms) area is approximately seven square kilometres, consisting of two very large, spatially related and intense chargeability anomalies (plus one smaller anomaly) called the Core Chargeability (CCZ), Ekhos and Ber Zones. The Ekhos chargeability anomaly is 3.3 Km[2] in area, the CCZ is 3.0 km[2] and Ber is approximately 0.5 km[2] (at 150m below sea level).

• The total anomalous chargeability area is approximately 5,400m long (E-W) and 3,000 wide (N-S). The Ekhos chargeability anomaly is approximately 3,850m long x 1,750m wide. It averages about 1,000m wide and has a higher grade chargeability core zone that is approximately 2,400m long and 1,000m wide (at >30ms and 400m below topography). The CCZ is approximately 2,900m long (NW to SE) and a maximum of 2,100m wide, averaging 1,000m wide.

• Ekhos is the largest and closest to surface 3D-IP chargeability anomaly at Andewa, with much of it very intense at >45ms; it is open to the south and east but appears defined in general at depth. The CCZ chargeability anomaly is open to the south AND at depth, however, it’s very intense core (>45ms) appears to be adequately resolved. The CCZ also has large anomalous areas at >45ms chargeability that extend to depths greater than the 800m modelled maximum.

• Each major chargeability anomaly is surrounded by a sub-circular high-resistivity anomaly that appears to merge near the edge and off the grid, to become 1 x~6km diameter pseudo donut shaped resistivity anomaly in the centre of the Mt Andewa crater, with ‘holes’ present where the strong chargeability anomalies exist .

• Frontier has previously drilled gold mineralisation at Komsen on the western margin of the CCZ from surface to a maximum depth of 320m below surface in a limited program, with drill intercepts containing significant gold and base metals such as 2m of 5.43 g/t gold + 95 g/t silver + 11.1% zinc + 2.3% lead + 0.12% copper and 7.9m of 10.01g/t gold.

OK TEDI MINING LTD JOINT VENTURE

HIGHLY PROSPECTIVE TENEMENTS AND FRONTIER’S EXPLORATION SUCCESS IN PNG CULMINATED IN AN EXCELLENT STRATEGIC ALLIANCE - JOINT VENTURE WITH WORLD CLASS COPPER PRODUCER OK TEDI MINING LTD (OTML)

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13,000m of JV drilling is planned in the coming year, commencing late – May.

• Five ELs are subject to 2 joint ventures that require a total earn-in of US$60 million over 6 years, consisting of US$12 million for each of the 5 projects.

• Frontier is then deferred carried to completion of a Bankable Feasibility Study on each tenement, repayable from 50% of future cash flow.

• The Company will retain a 42% interest (dilutable) in the Bulago and Leonard Schultz ELs and a 19.9% interest (non-dilutable) in the Likuruanga, Central and East New Britain ELs, to the completion of a Bankable Feasibility Study.

• The JVs cover a total area of 2,690 km[2] .

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• OTML have completed large and detailed aeromagnetic and radiometric programs at Bulago, Leonard Schultz and Likuruanga to discriminate and rank targets for follow up exploration.

• The Central and East New Britain licences were granted earlier in 2011 and aeromagnetic programs will be flown as soon as possible.

• OTML is a major producer of copper concentrate from the Ok Tedi mine (that started operations in 1984) and has become the single largest business contributor to the economy of PNG. In 2009, OTML's export earnings were K4 billion, representing 33% of PNG's total export earnings. The contributions of the mine to PNG are wide reaching improving opportunities for employment, education and health services.

PNG exploration results from the JV projects have included:

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• The Bulago JV has 10 zones of high-grade gold in outcrop channel samples at the Suguma and Funutu Prospects from continuous chip outcrop channel samples. Trench intercepts included 27m of 66.8 g/t gold, 4m of 135.6 g/t gold, 9m of 64.0 g/t gold, 16m of 36.5 g/t gold, 18m of 40.3 g/t gold, 7.5m of 67.0 g/t gold and 9m of 24.0 g/t gold.

• The Kru and nearby Wasi Prospects in the Leonard Schultz JV have excellent gold outcrop trench channel sample assay results including 16m of 18.60 g/t gold contained within 76m of 5.35 g/t gold. Additional significant assay results included 22m of 2.71 g/t and 36m of 1.15 g/t (within 384.3m of 0.67 g/t gold) in outcrop trench.

• Likuruanga JV - Esis Prospect has 27m of supergene mineralisation grading 0.71% copper (from 33m depth), plus 66m of primary grading 0.42% copper (from 86.6m to end of hole), with the last 7.6m of the hole grading 0.49% copper. The Bukuam porphyry copper-gold-molybdenum soil anomaly is >4.8km long and has not yet been drilled.

TASMANIA

EXPLORATION ON FRONTIER'S TASMANIAN EXPLORATION AND RETENTION LICENCES IS TARGETING KNOWN HIGHGRADE (PLUS POTENTIALLY BULK MINEABLE) TUNGSTEN, GOLD AND BASE METAL DEPOSITS

The Moina Project consists of EL 42/2010 (Stormont), RL 3/2005 (Narrawa) and EL 29/2009 (Cethana). It covers the E-W spine of the highly mineralised Dolcoath Granite and a number of skarn and vein deposits [from east to west (proximal to distal) including silver, tin, tungsten, molybdenum, gold+ silver + zinc + lead, zinc+ gold, fluorspar (excised RL not FNT's) and gold + bismuth].

Frontier is specifically targeting tungsten and intrusive related gold deposits, along with other metals in this highly mineralised district.

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• There are at least 70 historic workings (shafts, adits and small open pits) within the targeted area testifying to its highly prospective and mineralised status.

• The primary commodity mined in the district was tungsten in at least 23 workings, tin in 9 workings and gold in 7 workings (many are unspecified).

• Previous Frontier tungsten drill intersections included 1m grading 1.98% WO3 near the NW end of the Narrawa Deposit, within a broad low grade geochemical halo that averaged 14m of 0.20% WO3 (from 21m).

Narrawa is a stratabound/stratiform skarn Deposit hosted within 4 steeply dipping on/near surface lodes, which could be mined by open pit mining methods.

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• The deposit contains an Indicated and Inferred resource with 14,125 ounces of gold, plus 131,300 ounces of silver, 2,765 tonnes of lead and 2,335 tonnes of zinc (at 0.5g/t gold cut-off grade), that is up to 220m long, 20m wide and 60m deep, within 209,330 tonnes of rock grading 2.10 g/t gold, 19.5 g/t silver, 1.32% lead and 1.12% zinc.

• The Indicated Resource consists of 162,755 tonnes grading 2.11 g/t gold, 20.5 g/t silver, 1.42% lead and 1.2% zinc.

• The Inferred Resource consists of 46,574 tonnes grading 2.07 g/t gold, 16 g/t silver, 0.98% lead and 0.81% zinc.

The Stormont Deposit is a skarn hosted within on/near surface fold keels, which could be easily mined by open pit mining methods.

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• The on-surface Stormont Deposit, with an Inferred Resource of 14,250 ounces of gold plus 304 tonnes bismuth, within 112,500 tonnes of mineralised rock grading 3.94 g/t gold plus 0.27% bismuth (1.0g/t gold cut-off grade).

• It is planned to increase the size of the Stormont resource and upgrade it from Inferred to Indicated. The 9 km[2] provides additional highly prospective ground for exploration.

A Conceptual Mining Study evaluating mining the on-surface Stormont and Narrawa Deposits showed a satisfactory theoretical cash flow from processing based on a capital expenditure estimated at A$8 million (neglecting working capital and provision for

contingencies).

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• The theoretical cash flow improves significantly with increased metal prices, grades and/or tonnages of mineralisation.

• Metals prices utilised in the CMS were US$940/oz gold, US$0.71.44/lb zinc, US$0.7738/lb lead, US$13.70/oz silver. Since 3/7/2009, the gold price has appreciated more than 50% , silver more than 300% and zinc and lead prices are also strong.

WART HILL DEPOSIT, SMRV PROJECT, SW TASMANIA

Frontier is targeting a 45km total strike length of the highly prospective Mt Read Volcanics in SW Tasmania for World Class Rosebery and Eskay Creek type of Volcanic Hosted Massive Sulphide Deposits (EL 20/96 and EL 33/2010).

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• A high-grade ‘Rosebery’ style VHMS base metal (zinc, lead, silver, gold) horizon has been tracked for 290m down a fold keel by Frontier's drill i ng. A 3D-IP survey was completed and it has provided useful targeting vectors. The faulted off southern extension and the ‘sides’ are good exploration targets and there is excellent regional potential to locate additional volcanic hosted massive sulphide and also high grade gold deposits.

• Trench results have included 3m of 21.9% zinc + 13.9% lead + 680g/t silver + 0.84g/t gold and 4m of 17.9% zinc + 10.2% lead + 138g/t silver + 0.60g/t gold.

• Drill results have included 3.9m of 12.1% zinc + 7.3% lead +124 g/t silver +0.60 g/t gold, 1.1m of 23.6% zinc +10.4% lead+123 g/t silver +0.60 g/t gold and 5.7m of 7.5 % zinc + 4.0 % lead +77 g/t silver + 0.35 g/t gold.

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