FORTUNA METALS LTD — Capital/Financing Update 2012

Dec 3, 2012

4th December 2012

ASX Announcement 4/66 Kings Park Road, West Perth WA 6005 PO Box 52, West Perth WA 6872

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50/50 Joint Venture on New Britain with Frontier Resources Ltd

Quintessential Resources Ltd (ASX:QRL) advises that it has signed a Heads of Agreement with Frontier Resources Ltd (ASX: FNT) to commence a 50/50 Joint Venture, over a total area on 10,250km[2 ] on the island of New Britain to advance each company’s recent granted exploration licences.

QRL Aria River EL 2045 Open Bay ELA 2046 (under application) FNT Whiteman Range EL 2047 Gasmata EL 2057 Nakanai Mts ELA 2058 (under application)

The 'WOGAN' New Britain JV provides Quintessential with extensive tenement interests and exposure for the possibility of exploration success on the island of New Britain.

The tenements are all prospective for major porphyry copper and/or epithermal gold deposits.

A field crew will begin the initial ground assessment of the compelling Stoneleigh porphyry Prospect in EL 2045, commencing in January 2013.

Virtually no exploration has been conducted over most of the tenements, due to locally extensive limestone and/or volcanic rocks.

An aeromagnetic/radiometric survey will be planned/ budgeted/ undertaken in 2013 for the ELs to locate porphyry copper target signatures and to allow the definition of dilatant structural zones. These targets will be follow-up with geochemical - geological evaluation and subsequent drilling.

The Joint Venture maximises Quintessential’s chances for success in New Britain and reduces risk with the new ELs, by having half as much equity but in twice as many project areas.

Earn-In Joint Ventures will be sought, ideally with a major mining companies for the 'natural' eastern and western tenement clusters, individual ELs or exploration will be funded by pro-rata (50/50) contributions.

Frontier is a well-established explorer in New Britain and will manage and operate the Joint Venture on behalf of the partners, which allows Quintessential to focus on exploration at its Flagship Bismarck property in the highlands.

For more information and to register to receive ASX announcements via email please visit www.quintessentialresources.com.au

Paige McNeil Managing Director & Company Secretary T: + 61 8 6278 3202 E: info@quintessentialresources.com.au

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 Dr Salam Malagun - Member of the Aust. Inst. of Geoscientists. Dr Malagun is the Technical Director of Quintessential Resources Ltd and a full time employee of the Company. Dr Malagun 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. Dr Malagun consents to the inclusion in the report of the matters based on the information in the form and context in which it appears

Drilling I Determination I Discovery

ASX Symbol: QRL info@quintessentialresources.com.au www.quintessentialresources.com.au ACN 149 278 759

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Figure 1. New Britain island SRTM topographic plan showing the location of the Quintessential; - Frontier ‘WOGAN’ (Whiteman Range - Open Bay – Gasmata - Aria River – Nakanai Mountains) Joint Venture Exploration Licences and Applications. Also shown are the Simuku and Nakru porphyry copper deposits and Sinivit Gold Mine. The Newcrest – Frontier Andewa Project is located to the west of Aria River.

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