FORTUNA METALS LTD — Capital/Financing Update 2012

Jul 4, 2012

CONTACTS PHONE EMAIL PO Box 52 +61 (08) 9295 0388 info@frontierresources.com.au West Perth FAX W EBSITE WA 6872 Australia +61 (08) 9295 3480 www.frontierresources.com.au

ABN 96 095 684 389

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ASX : FNT

ASX Limited Company Announcements Office

5th July 2012

Torque Mining Ltd Raises $1,047,000 in Seed Capital

Frontier Resources Ltd is pleased announce that Torque Mining Ltd has raised $1,047,000 in Seed Capital to fund future exploration on its highly prospective Tasmanian gold and base metal deposits/prospects and to fund an IPO on the ASX later in 2012.

Seed Capital was subscribed for at $0.05/share and a total of 20,940,000 Shares were issued.

Torques total share capital is now 60,940,000 and Frontier Resources Ltd own 40,000,000 shares (30,000,000 shares will be distributed to FNT shareholders as an in-species distribution after receiving shareholder approval).

It is anticipated that about $8,000,000 will be raised by IPO later in 2012.

'Putting their money where their mouths are', CEO - Bob McNeil subscribed for $300,000, Chairman - Peter McNeil subscribed for $100,000 and Torque and Frontier directors & employees subscribed for $110,000.

Figure 1 shows the location of Torques Tasmanian properties on the State produced Mineral Prospectivity plan. Note that the Cethanna Project area is in the highest rank prospectivity belt.

For additional information relating to Frontier Resources, please visit the Company’s website at www.frontierresources.com.au or feel free to contact me.

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FRONTIER RESOURCES LTD

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