FORTUNA METALS LTD — Capital/Financing Update 2016

Jul 25, 2016

ADDRESS Office J, Level 2, 1139 Hay St. West Perth, WA, 6005 Australia

PHONE EMAIL +61 (8) 9486 4036 pmcneil@frontierresources.com.au ABN WEBSITE 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

26[th] July 2016

High Grade Gold Targets to be Drilled

Frontier Resources Limited ( Frontier ) is very pleased to advise that it will commence a diamond core drilling program targeting the Swit Kai high-grade gold outcrops at the Bulago EL in Papua New Guinea as soon as possible.

Managing Director, Mr Peter McNeil M.Sc. commented:

The Share Purchase Plan was very successful and the funds raised will enable us to undertake our objective of additional drilling at the high grade gold Swit Kai Project , c ommencing within a month.

The drilling team will mobilise as soon as logistical requirements are finalised . It is the peak wet season in August /September and we are assuming it is still safe to operate in East Creek.

Frontier will attempt to evaluate targets including 2 holes at East Creek Upper, 2 holes at East Creek Lower Zones and 2 holes on Camp or Kapia ridgeline, targeting the inferred high grade gold plunge associated with the intersecting mineralised structural orientations.

For additional information please visit our website at www.frontierresources.com.au

FRONTIER RESOURCES LTD

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