FORTUNA METALS LTD — Capital/Financing Update 2012

Jun 14, 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

==> picture [122 x 85] intentionally omitted <==

ASX : FNT

ASX Limited Company Announcements Office

15th June 2012

Newcrest and Frontier Finalise Farm-In Agreement on the Andewa Project in Papua New Guinea and Commence Deep Exploration Drilling

Frontier Resources Ltd is pleased to announce that:

==> picture [9 x 10] intentionally omitted <==

• The Farm-In Agreement has been signed by Newcrest and Frontier relating to the Andewa Project (EL 1345 + EL 1951) in Papua New Guinea.

==> picture [10 x 10] intentionally omitted <==

• Newcrest can earn 60% equity in the project by sole funding A$19.25 million of exploration expenditure for the project by 31/12/2015 with a minimum spend of A$2.5 million after which Newcrest may elect to withdraw.

==> picture [10 x 10] intentionally omitted <==

• After Earn-In, Frontier may elect to be deferred carried to completion of a Feasibility Study, repayable from 50% of mine profit.

==> picture [10 x 10] intentionally omitted <==

• A$1.915 million was reimbursed yesterday by Newcrest for actual exploration expenditure incurred since 1 January 2012 plus Frontier's drilling and equipment lease costs for 2012.

==> picture [10 x 10] intentionally omitted <==

• After Earn-in, Newcrest may acquire an additional 12% equity in the project prior to the 'Decision to Mine'.

==> picture [10 x 9] intentionally omitted <==

• Frontier is the operator during the A$2.5 million Initial Spend, then Newcrest can elect to become operator.

==> picture [9 x 9] intentionally omitted <==

• Field crews have been mobilised to Andewa and both of Frontier’s large track mounted rigs are being utilised to enable the completion of the Phase One program (5 x 1,000m holes) as rapidly as possible. Drilling is expected to commence tomorrow with the CS1800 and on Tuesday with the CS1300H.

For additional information relating to the Newcrest Farm-In please refer to the Heads of Agreement announced 6/3/2012 and additional releases dated 6/3/2012, 8/3/2012 and 28/3/2012, visit the Company’s website at www.frontierresources.com.au or feel free to contact me.

FRONTIER RESOURCES LTD

==> picture [110 x 31] intentionally omitted <==

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