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FORTUNA METALS LTD Capital/Financing Update 2012

May 28, 2012

64952_rns_2012-05-28_4d1c1e54-cfdc-4298-b8f4-a6943bfe0ff8.pdf

Capital/Financing Update

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

ABN 96 095 684 389

ASX Limited

Company Announcements Office

29th May 2012

Share Purchase Plan Cancelled

Frontier Resources Ltd (the 'Company') (ASX Code: FNT) announces that, pursuant to paragraph 12 of the Share Purchase Plan (SPP) Terms and Condition announced to the market on 2 May 2012, the Board of Directors have exercised their discretion to cancel the Share Purchase Plan.

Recent global financial insecurity has resulted in a reluctance to invest and general ASX share market malaise. The Company’s share price is currently slightly below the Share Purchase Plan offer price of 9 cents, making the SPP offer unattractive.

Frontier has no intention to re-issue the Share Purchase Plan at a lower price or to take any placements in the immediate future.

The Company's directors wish to thank all the shareholders who showed their support for Frontier by taking up their entitlements. The Company will refund all application monies received to subscribers (without interest) as soon as possible.

FRONTIER RESOURCES LTD

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Julia Beckett COMPANY SECRETARY