FORTUNA METALS LTD — Capital/Financing Update 2015

Apr 16, 2015

ADDRESS PHONE EMAIL Office J, Level 2, 1139 Hay St. +61 (08) 9295 0388 pmcneil@frontierresources.com.au West Perth WEBSITE WA, 6005, Australia ABN: 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

17[th] April 2015

Dear Option holder,

NON-RENOUNCEABLE ENTITLEMENT ISSUE

Frontier Resources Limited (the Company ) today lodged a replacement prospectus ( Prospectus ) with ASIC and ASX for a non-renounceable pro rata offer to shareholders with a registered address in Australia or New Zealand of 381,475,706 fully paid ordinary shares on the basis of one (1) new share for every one (1) existing share held as at 5:00pm (AWST) on 27[th] April 2015 ( Record Date ), at an issue price of $0.002 per share ( Entitlements Issue ). Pursuant to the Entitlements Issue, the Company may raise a maximum of approximately $762,951 (before costs).

Offers under the Entitlements Issue will be made under the Prospectus, a copy of which is available on the ASX website http://www.asx.com.au.

The Prospectus will be dispatched to eligible shareholders soon after the Record Date. Eligible shareholders wishing to acquire shares under the Entitlements Issue will need to complete the personalised entitlement and acceptance form that will accompany the Prospectus.

The purpose of this letter is to give you notice that if you wish to participate in the Entitlements Issue with respect to your options, you must exercise your options in time for new shares to be allotted and to be entered on the Company’s register of members in advance of the Record Date.

If you do not wish to participate in the Entitlements Issue (in respect of your options), you do not need to take any action.

Before deciding whether to exercise all or any of your options, you should consider the Prospectus carefully and if in any doubt, consult with your professional advisor.

FRONTIER RESOURCES LTD

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P.A.McNeil, M.Sc., MAIG Chairman and Managing Director