FORTUNA METALS LTD — Capital/Financing Update 2013

Sep 17, 2013

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ABN 96 095 684 389 ADDRESS PHONE EMAIL PO Box 52 +61 (08) 6141 3500 info@frontierresources.com.au WEST PERTH WA 6872 FAX WEBSITE Australia +61 (08) 6141 3599 www.frontierresources.com.au

18 September 2013

Dear Shareholder

NON-RENOUNCEABLE ENTITLEMENT ISSUE

Frontier Resources Limited ( Company ) has issued a prospectus for an entitlement issue of one (1) fully paid New Share in the Company ( Shares ) for every eight (8) Shares held by Australian and New Zealand resident shareholders at 5:00 pm on the record date of 26 September 2013 at an issue price of $0.007 per Share to raise up to $266,000 ( Entitlement Issue ). The entitlement issue will result in the issue of a maximum 38,000,000 Shares in the Company.

The Prospectus relating to this issue has been lodged with the Australian Securities and Investments Commission and ASX and is available on the ASX website for inspection. The timetable for the issue is set out below:

TIMETABLE AND IMPORTANT DATES*
Lodgement of Prospectus with the ASIC	16 September 2013
Lodgement of Prospectus & Appendix 3B with ASX	16 September 2013
Notice sent to security holders	18 September 2013
Ex date	20 September 2013
Record Date for determining Entitlements	26 September 2013
Prospectus despatched to Shareholders & Company announces despatch completed	2 October 2013
Closing Date*	18 October 2013
Securities quoted on a deferred settlement basis	21 October 2013
ASX notified of under subscriptions	22 October 2013
Issue Date	25 October 2013
Quotation of New Shares issued under the Offer*	28 October 2013

• The Directors may extend the Closing Date by giving at least 6 Business Days notice to ASX prior to the Closing Date. As such the date the New Shares are expected to commence trading on ASX may vary.

The capital structure of the Company on completion of the issue will be as follows:

Shares	Number
Share currentlyon issue	304,046,682
Shares offeredpursuant to the Entitlement Issue	38,000,000
Total Shares on issue*Assumes the offer is fullysubscribed.	342,046,682*

In calculating entitlements under the entitlement issue fractions will be rounded up to the nearest whole number.

Full detail of the issue will be contained in the Prospectus that will be mailed to eligible shareholders with a registered address in Australia and New Zealand as at the record date. Shareholders eligible to participate should read the Prospectus carefully.

Yours faithfully

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JULIA BECKETT Joint Company Secretary