FORTUNA METALS LTD — Capital/Financing Update 2017

Dec 21, 2017

ADDRESS PHONE EMAIL Unit 5, Ground Floor +61 (8) 9486 4036 pmcneil@frontierresources.com.au 1 Centro Ave, Subiaco ABN WEBSITE WA, 6005 Australia 96 095 684 389 www.frontierresources.com.au

ASX: FNT

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Market Announcements Platform

22[nd] December 2017

Forise Investments Agree to a $6 million Placement into Frontier

Frontier Resources Limited ( Frontier ) is very pleased to announce that an Agreement has been signed for a $6 million Placement into Frontier, with Forise Investment Sydney Pty Ltd ( Forise), a subsidiary of one of the largest non-bank financial institutions in China.

The key terms of the proposed transaction are:

Forise to subscribe for A$6 million worth of new Frontier shares at A$0.016 per share (375,000,000 new shares with an attaching option on a 1:2 basis (187,500,000 2-year term Options exercisable at A$0.029). This would represent 78% of total shares on issue post placement and 84% fully diluted.

The Placement is subject to completion of an Independent Expert Report, ASX and ASIC regulatory approvals, and an Extraordinary General Meeting to obtain shareholder approval. The maximum allowable timeframe to completion is March 15[th] , 2018 or as otherwise mutually agreed to by both parties.

The Board of Directors of Frontier will continue as is until completion of the Placement. Upon completion of the Placement Frontier will appoint Forise’s elected Directors to the Board of Frontier.

Frontier have agreed to cancel all options held by its Directors and consultants upon completion of the Placement. Debt owed to Peter McNeil by Frontier will convert into Frontier shares at the same price of A$0.016.

Forise have made a loan facility available to Frontier for near term corporate and exploration costs of A$50,000, that may convert to Frontier shares at A$0.016 per share upon completion of the placement.

Forise’s Managing Director Mr Fenix Dong said:

“ Forise Group who ranks among the largest non-banking conglomerates in China, is delighted to become a significant and strategic investor in Frontier. Forise believes that whilst China's economy is evolving, her need for resources will continue for the foreseeable future. The combination of Frontier and Forise's network, therefore, could be highly synergistic and beneficial to all shareholders.”

Frontier’s Chairman Peter McNeil said:

“ Frontier’s Board of Directors unanimously support this Agreement and recommend that shareholders approve the transaction at the forthcoming General Meeting.

Forise Investments is a subsidiary of an internationally, highly reputable, Chinese diversified business house. Frontier is honoured to be selected as the ASX listed vehicle to ultimately better crystalize Forise’s business aspirations in Australia.

I believe that we have negotiated an excellent agreement, that will also continue with exploration in Papua New Guinea”.

About Forise Group

Forise Group is one of the largest non-banking conglomerate groups in China. The Forise Group is involved in a wide range of activities including asset management and operations (including investing in areas such as resources), corporate finance and financial services, environment, health and health management, hospitality and resorts, real estate, retail and franchising and select manufacturing and value add.

Corporate finance and advisory firm, Saint Gabriel Pty Ltd, assisted broker the transaction on behalf of Frontier. For additional information contact Bernadette Sukkar on +61 (2) 8005 7107.

FRONTIER RESOURCES LTD

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