FORTUNA METALS LTD — Capital/Financing Update 2016

Nov 29, 2016

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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

ASX: FNT

30[th] November 2016

Dear Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE

Frontier Resources Limited ( Company ) has issued a prospectus ( Prospectus ) for a rights issue of one (1) fully paid New Share in the Company ( Share ) for every three (3) existing Shares held by Australian and New Zealand resident shareholders at 5:00pm on 5[th] December 2016 (the Record Date ) at an issue price of $0.03 per Share to raise up to $469,851 ( Rights Issue ). The Rights Issue will result in the issue of a maximum 15,661,707 New Shares in the Company. The Prospectus was lodged with the Australian Securities and Investments Commission and ASX on 29[th] November 2016 and is available on the ASX website for inspection. The timetable for the issue is set out below:

TIMETABLE AND IMPORTANT DATES*

TIMETABLE AND IMPORTANT DATES*
Lodgement date	29 November 2016
Notice to SecurityHolders containinginformation required byAppendix 3B	1 December 2016
Ex-date – Shares trade ex-Entitlement	2 December 2016
Record date to determine Entitlement *	5 December 2016
Prospectus with Entitlement and Acceptance Form dispatched	8 December 2016
Offer opens for receipt of Applications	8 December 2016
Closingdate for acceptances *	9 January2017
Deferred settlement tradingcommences	10 January2017
NotifyASX of under-subscriptions	12 January2017
Issue of New Shares *	16 January2017
Deferred settlement tradingends	16 January2017
Dispatch of shareholdingstatements	17 January2017
Normal tradingof New Shares expected to commence	17 January2017
Last date to issue Shortfall Shares	10 April 2017

• The Directors may extend the Closing Date by giving at least 3 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 currently on issue	46,985,121
Shares offered pursuant to the Rights Issue	15,661,707
Total Shares on issue*.	62,646,828

*Assumes the offer is fully subscribed

In calculating entitlements under the Rights Issue, fractions will be rounded down to the nearest whole number. Full details 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.

FRONTIER RESOURCES LTD

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