FORTUNA METALS LTD — Capital/Financing Update 2014

Feb 4, 2014

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ABN 96095684389 ADDRESS PHONE EMAIL PO Box 52 +61 (08) 9295 0388 info@frontierresources.com.au WEST PERTH WA 6872 FAX WEBSITE Australia +61 (08) 9295 3480 www.frontierresources.com.au

ASX: FNT

ASX Limited

Company Announcements Office

5 February 2014

STORMONT GOLD MINE AND JOINT VENTURE, TASMANIA – MINING PROGRESS AND UPDATE

BCD Resources NL released an announcement to the ASX today (copy attached) advising positive progress with the commissioning of the Stormont Gold Mine owned by Frontier Resources Ltd (5% Nett profits Interest), Torque Mining Ltd (45% Nett profits Interest) and BCD Resources NL (50% Nett profits Interest) in north central Tasmania, Australia.

Stripping of waste rock and mining of the near surface Stormont ore commenced in December 2013, a substantial stockpile was built up and is now being processed through BCD’s Beaconsfield Mill.

Frontier Resources also has a 10% Free Carried Interest to Completion of 'Bankable Feasibility Study’ in Torque's surrounding Moina Project tenements, that are prospective for additional precious and / or base metal deposits.

Frontier will also be repaid long term debt from Torque Mining Ltd when the Stormont JV mining/processing/gold sales have been finalised.

For previous announcements from Frontier Resources Ltd, please visit the Company’s website at www.frontierresources.com.au.

FRONTIER RESOURCES LTD

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

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PROJECT UPDATE

SUCCESSFUL COMMISSIONING – STORMONT PROJECT

BCD Resources NL (BCD) is pleased to announce positive progress with Project commissioning for the mining and processing of ore and production of gold from its 50% Joint Venture with Torque Mining Ltd and Frontier Resources Ltd (ASX: FNT) at Stormont in Tasmania. BCD is Manager of the Joint Venture.

As previously advised, mining of ore from the open pit commenced second half December with processing at the Company’s Beaconsfield facility commenced first half January 2014.

Progress towards steady production has been extremely positive. Mining of ore has now reached targetted volume rates while the head grade of ore into the mill is now above 4.5gms per tonne. Achieved recovery rates have been excellent with gold recoveries now exceeding 90%. Volumes of ore crushed has exceeding 600 wet tonnes per day with feasability volumes expected to be achieved within the coming week.

The first shipment of gold loaded carbon has now left Beaconsfield to be processed.

BCD Chairman, Mr Clive Carroll, commented:

“The Board is extremely pleased with progress to date at Stormont with both mining and processing now approaching steady state in line or above feasibility expectations.

In particular, we are encouraged as to the above forecast recoveries currently being achieved through the mill. The recommissioning of the Beaconsfield facility via CIL processing has progressed well, and is largely due to the good work of our dedicated and experienced management team.”

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Mining Operation of open pit at Stormont

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Processing Plant at BCD loading ore to crusher

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Processing Plant at BCD crushing ore

For further information, please contact Richelle Greenwood, Joint Company Secretary on (03) 6383 6500 or by email info@bcdresources.com.au

1 Rifle Range Road, Beaconsfield, Tas 7270

Telephone (03) 6383 6500  Facsimile (03) 6383 6590