FORTUNA METALS LTD — Capital/Financing Update 2017

May 18, 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

19[th] May 2017

Option Agreement Signed to Purchase FrontRunner Exploration PNG Ltd Ala River EL and Kol Mountains ELA, West/East New Britain Provinces, PNG

Frontier Resources Limited ( Frontier ) is very pleased to announce it has signed an Option Agreement to purchase 100% of FrontRunner Exploration PNG Ltd by 15/12/2017, for the consideration of A$80,000 (reimbursed expenses), plus a future 4.9% Net Smelter Royalty to the vendor’s nominees, on all metal /saleable products produced, from each Mining Lease /mining operation within the boundaries of EL 2375 ‐ Ala River and ELA 2513 ‐ Kol Mountains (subject to Frontier shareholder approval).

No exploration was conducted at EL 2375 ‐ Ala River between 1986 and 2012 and Exploration highlights are:

• Uasilau ‐YauYau is a copper in soil anomaly > 9,000m long by 700m to 2,000m wide . Most of the grid was not analysed for gold.

9 shallow (<90m) and 2 deep holes were drilled in the 1970's at a miniscule density of 1 hole/sq km.

The Koka Prospect hole returned 304m of 0.12 % copper + 82 ppm molybdenum over its entire length and outcrop sampled creeks returned 395m averaging 0.15% copper.

The Kaikai Prospect hole (located 2,100m to the east) returned 305m grading 0.10% copper + 21 ppm molybdenum over its entire length.

• The Pelepuna Skarn Prospect has continuous outcrops to 4m of 15.8% zinc and 5m of 128 g/t silver. Seven short holes were drilled 34 years ago, with results to 16.7m grading 6.88% zinc .

• The Pelepuna copper‐gold porphyry deposit potential remains untested by drilling.

• Uasilau North has a gold in soil anomaly > 2,000m long and 700m wide with excellent access and hand trench results to 12m grading 1.25 g/t gold and 35m of 0.80 g/t gold.

• Gavuvu Prospect has 10m of 150 g/t silver in very limited trenching completed, with extensive low tenor gold, copper, lead, zinc and arsenic in soils.

• Ala River Prospect has 8m of 2.41% copper + 0.11 g/t gold in a trench and up to 4.34% copper in float.

Chairman and Managing Director, Peter McNeil commented:

FrontRunner Exploration PNG Ltd is minority owned by myself (49%) and 2 Papua New Guinean consultants/ shareholders to Frontier Resources with 51%. FrontRunner owns Ala River‐ EL 2375 and has also applied for Kol Mtns ‐ELA 2513, on New Britain Island.

Ala River is an excellent porphyry copper‐gold, epithermal gold and polymetallic skarn region that has not been explored on the ground for 31 years. The Pelepuna porphyry has never been drilled, while its surrounding skarns returned up to 16.7m grading 6.88% zinc in very limited drilling.

Frontier has negotiated an Option to purchase a 100% interest in FrontRunner for a 4.9% Net Smelter Royalty on possible future production, plus a cash payment of A$80,000, for all compiled data and the bond on EL 2375.

It is much easier and cost effective to explore in New Britain relative to the Highlands of PNG and access in the Ala EL area is excellent for possible future mine developments. The Kol Mountains ELA had a successful Warden’s Court Hearing in early‐March 2017 and should go before the Mining Advisory Council (MAC) in July to consider granting the EL. A comprehensive report will be posted to the website post haste and information will be released on the Kol Mtns ELA forthwith.

EL 2375 ‐ ALA RIVER SUMMARY

Exploration Licence 2375 was granted to FrontRunner Exploration PNG Ltd on December 14[th] 2015; it is located about 90km east to southeast of Kimbe straddling the boundary of West and East New Britain Provinces. No ground exploration has been completed for 31 years.

The region is highly prospective and contains two known porphyry copper mineralised zones, zinc ‐ gold skarns, gold in quartz sulphide veins and epithermal gold – silver. Known prospects include, Uasilau/ YauYau, Pelepuna skarns, Pelepuna porphyry copper, Uasilau North, Gavuvu and Ala River Skarn.

A multi‐phase intrusive complex of Miocene age intruded older volcanics and limestone of the Baining and Kapaluk Volcanics. There is widespread surficial tephra cover. The intrusives were emplaced in three pulses over a 6.6Ma period during the Miocene (30Ma to 23.5Ma). Alteration and mineralisation is associated with the youngest phase. Intrusive types include granodiorite, quartz diorite, gabbro and quartz feldspar porphyry, with associated andesitic and rhyolitic volcanics.

Uasilau ‐YauYau

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The Uasilau mineralisation was discovered in 1965 by CRAE during the Craestar survey. Results of up to 3400ppm copper (one assay of 1.2% copper was reported) and 4360ppm zinc in stream sediment samples were reported.

Rock and ridge / spur soil geochemistry by CRAE defined an erratic anomalous area with dimensions of about 9km x 1.2km trending NW, within which there are several zones containing 0.1‐0.2% copper in soils over areas of up to 90,000 sq m. The latter areas were grid soil sampled, hand trenched and pitted.

Bedrock sampling highlights included a 360m x 550m area of plus 0.1% copper and ~500m grading 0.15% copper in Bilele Creek. The highest bedrock copper values correlate with zones of more intense shearing and brecciation. Follow up grid soils, pitting and drilling was carried out by CRAE. Subsequent work was undertaken by Placer, CEC‐MIMETS, Triako‐Buka, Esso PNG and Frontier/OTML.

15 historical holes were drilled by CRAE, Placer and CEC.

CRAE: 2 diamond holes (304m & 305m), 2.5km apart based on soil/pit geochem to test Koka and Kaikai anomalies with copper mostly 0.1‐0.2% on surface. Best intersection was 300m grading 0.12% copper, including 3m grading 0.47g/t copper, with low gold, molybdenum and silver. The Kaikai hole appears to have intersected 305m of a possible diatreme breccia.

Placer: 3 diamond holes (37m, 90m and 99m) based on IP anomalies, copper values 0.02‐0.1% and a high pyriteto chalcopyrite ratio. CEC: 6 diamond holes (66‐70m deep). The best hole averaged 0.24% copper, the others averaged in the range 0.07% to 0.18% copper, molybdenum <100ppm, low gold, 1‐4% total sulphides and a pyrite: chalcopyrite ratio of 6:1.

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EL 2375 ‐ Ala River topographic
image showing prospects/ targets Ala River Aeromagnetic TMI‐RTP image
and gold in stream geochemistry. showing targets and copper in rocks.
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Thorium image showing gold in rocks.
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Potassium image with targets & copper in rocks.
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Pelepuna and Ala River Prospects

Pelepuna is located ~14km south of Uasilau. There are zinc‐rich skarns at both Pelepuna and Ala River.

A variety of calc‐silicate skarns are developed at Pelepuna related to dyke‐ like gabbro‐diorite bodies intruding Kapaluk volcanics and limestone. Skarn assemblages include garnet, magnetite, epidote, chlorite, tremolite‐ actinolite, diopside, pyrite, sphalerite, galena and chalcopyrite.

Surface sampling and drilling shows the skarns are zinc‐rich and copper‐ poor. Four diamond holes were drilled by Esso to test a fault‐controlled skarn carrying sphalerite, galena and pyrite. The best intersection was 16.7m grading 6.88% zinc with low gold and copper.

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Uasilau North

The prospect contains a gold in soil anomaly > 2,000m long and 700m wide, with seven geochemically anomalous zones historically defined on the basis of gold anomalous soils, with three considered more prospective (A, B and G).

There is strongly fractured (180[o] , 150[o] and 040[o] , with 70[o] dips) to brecciated granodiorite float / outcrop with pervasive sericite –clay altered zones (to >10m wide) and quartz sulphide limonite veining was noted in Alelegwa Creek, with a pebble dyke occurring along it (indicating possible buried porphyry copper‐gold mineralisation) plus various breccias.

Pyrite is ubiquitous, with rare chalcopyrite, chalcocite, covellite and bornite in quartz/pyrite veins/veinlets. Sphalerite was noted in float and outcrop in 2 locations. There is intense manganese in trenches 1, 2 and 25 through 30, indicating possible manto mineralisation. The latter trenches also contain weakly anomalous zinc associated with the manganese. There is low intensity disseminated epidote and/ or chlorite throughout the intrusive with slightly increasing intensity to the SE.

488 trench samples were collected from 31 general short trenches totalling 1,078m (at 1m, 2m and then 5m intervals). Higher grade gold, but rarely silver, occurred in isolated narrow quartz –pyrite veins /fracture zone. The peak trench grade = 5m of 5.38 g/t gold and grabs from veins in sericite altered zones in trench 17 returned 21.1 g/t gold + 19 g/t silver + 8 ppm molybdenum + 87 ppm arsenic and 4.03 g/t gold + 26 g/t silver + 13 ppm molybdenum + 370 ppm arsenic.

Hand trench assay result highlights included: Trench 14 ‐ 12m grading 1.25 g/t gold (area G)

Trench 3 ‐ 26m of 0.50 g/t gold

Trench 29 ‐ 35m of 0.80 g/t gold (peak = 5m of 5.38 g/t gold + 0.25% zinc + 1.42% manganese, at end of trench) Trench 31 ‐25m grading 0.50 g/t gold (peak = 5m of 0.72 g/t gold + 0.15% copper + 4,800 ppm manganese + 18 ppm molybdenum + 40 ppm arsenic).

Trench 2 ‐1m of 4.58 g/t gold + 12 g/t silver + 0.10% copper + 650 ppm manganese

Semi‐continuous generally quartz sulphide veined granodiorite outcrop rock chip sample assay highlights included:

• 5m of 6.70 g/t gold + 25 g/t silver + 17 ppm molybdenum + 210 ppm arsenic plus 141m of mineralisation containing 10m of 1.82 g/t gold + 0.18% copper, 10m of 0.94 g/t gold + 14 g/t silver + 0.16% copper + 0.18% zinc and 5m of 5.48 g/t gold + 15 g/t silver + 0.16% copper (+ 0.10% zinc + 70 ppm molybdenum).

• 13m of 1.60 g/t gold + 20.5 g/t silver (+ zinc, manganese and arsenic)

• 7m of 3.20 g/t gold + 17 g/t silver (+ 2,010 ppm manganese + 112 ppm arsenic)

• 0.6m of 10.7 g/t gold + 30 g/t silver + 0.16% copper (+ 1.96% manganese + 112ppm arsenic)

• 10m of 2.30 g/t gold

256 semi‐continuous rock chip included 55 samples > 0.5 g/t gold, 75 samples from 0.1 to 0.5 g/t gold, 62 samples from 0.05 to 0.1 g/t gold and 64 samples < 0.05 g/t gold.

115 float rock samples were collected in 6 general locations/traverses, with 75 samples > 0.1 g/t gold. 18 samples were > 1.0 g/t gold and ranged from 1.13 to 15.0 g/t gold, with silver to 132 g/t (with 5.80 g/t gold). All samples had moderate to strong molybdenum. Copper ranged up to 0.17%, zinc to 0.26% and lead to 0.40%. Virtually all the floats had weak to moderate copper and sometimes higher silver associated with lower gold or with copper and zinc.

Float rock highlights included:

15.0 g/t gold + 21 g/t silver + 0.094% copper + 38 ppm molybdenum + 174 ppm arsenic

5.30 g/t gold + 32 g/t silver + 0.13% copper + 53 ppm molybdenum + 236 ppm arsenic

5.70 g/t gold + 47 g/t silver + 870 copper + 0.15% lead + 38 ppm molybdenum + 490 ppm arsenic

5.87 g/t gold + 132 g/t silver + 0.092% copper + 690 ppm lead + 128 ppm molybdenum + 1,320 ppm arsenic 5.68 g/t gold + 14 g/t silver + 720 ppm arsenic

0.37 g/t gold + 36 g/t silver + 0.41% lead + 33 ppm molybdenum + 327 ppm arsenic

2.01 gold + 18 g/t silver + 0.04% copper + 63 ppm molybdenum + 79 ppm arsenic

3.79 g/t gold + 24 g/t silver + 0.10% copper + 0.25% lead + 35 ppm molybdenum + 560 ppm arsenic

2.21 g/t gold + 4 g/t silver + 0.094% copper + 16 ppm molybdenum + 180 ppm arsenic

2.32 g/t gold + 4 g/t silver + 19 ppm molybdenum + 170 ppm arsenic

1.96 g/t gold + 35 g/t silver + <5 ppm molybdenum + 33 ppm arsenic

REGIONAL GEOLOGY

A multi‐phase, 15km by 6km intrusive complex has intruded older volcanics and limestone and there is widespread surficial tephra cover. The intrusives were emplaced in three pulses over a 6.6 million years ago (Ma) period during the Miocene (30 to 23.5 Ma). Alteration and mineralisation was associated with the youngest phase of intrusion. The geological plan, illustrates the intrusives, volcanics and sediments.

PREVIOUS EXPLORATION

The Ala River EL was originally granted to Frontier Resources in 2010 and the Kol Mountains ELA was the third EL granted to Frontier in PNG in 2004. Both areas were Joint Ventured to Ok Tedi Mining Ltd from 2010 until 2013. Ok Tedi withdrew after spending about ~A$12 million in exploration of the combined $24 million earn ‐in requirement. Subsequently Frontier did not reapply for the El’s and allowed them to lapse.

FrontRunner Exploration PNG applied for Ala River in early‐ 2015 and it was granted 14 December 2015.

No exploration was conducted between 1986 and 2012.

The property comprises at least four main prospects defined historically as multiple 2 mineralised porphyries, 1 cluster of skarns and epithermal to quartz sulphide vein mineralisation.

The tenement has a 9km long porphyry copper‐gold‐ molybdenum occurrence at Uasilau/ YauYau, a zinc‐ gold skarn + porphyry copper‐gold‐molybdenum occurrence at Pelepuna, a zinc‐ gold skarn prospect at Ala River (+ a possible buried porphyry copper‐gold deposit), an aeromagnetic porphyry signature and an intrusive/epithermal silver‐gold occurrence at Gavuvu.

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The Uasilau /YauYau porphyry copper molybdenum Prospect was discovered in 1965 and has been cursorily tested for porphyry and skarn‐related copper mineralisation, with mapping, rock / soil geochemistry, airborne / ground geophysics and drilling of about 15 holes. Known primary porphyry‐style copper grades are sub‐ economic (in the range 0.1‐0.2% copper), with low gold and silver, but often moderate levels of molybdenum. Rock and soil geochemistry suggests there has been surficial enrichment of copper.

The rock and ridge/spur soil geochemistry defined a NW trending anomalous area more than 9,000m long and between 700m and 2,000m wide, with 5 areas about 1 sq km each, with > 500ppm copper, plus 4 smaller areas > 500ppm copper.

Bedrock sampling highlights included a 360m x 550m area with > 0.1% copper and about 500m grading 0.15% copper correlating with zones of more intense shearing and brecciation. The copper anomalism is strongest at the south end (YauYau) and is not closed off. The gold, conversely is strongest at the north end, but that is also an artefact of how much gold sampling was conducted at the time.

Drilling of mostly short holes included 304m grading 0.12% copper (including 3m of 0.47g/t copper) + 82 ppm molybdenum, with low gold, and silver. One hole appears to have intersected 300m of a possible diatreme breccia (the Golpu /Wafi Deposits are associated with a mineralised diatreme). The drill density is

approximately 1 hole per 1.5 sq km of anomalous area.

Intrusives include quartz diorite, granodiorite, gabbro and quartz feldspar porphyry, with associated andesitic and rhyolitic volcanics. There is a large area of advanced argillic alteration representing possible unevaluated epithermal gold mineralisation. Gold analyses are limited, but indicate significant anomalous areas in soils and rock chips that warrant follow up.

Zinc‐rich skarns are present at Pelepuna and Ala River Prospects. Pelepuna has a variety of calc‐silicate skarns related to dyke‐like gabbro‐diorite bodies. Surface sampling and drilling shows the skarns are zinc‐rich and copper‐poor. Seven diamond holes tested a fault‐controlled skarn with sphalerite, galena and pyrite and returned 16.75m grading 6.88% zinc + 0.14% copper +0.15 g/t gold + 4 g/t silver, from 6.5m.

The Ala River Prospect noted 8m of 2.41% copper + 0.11 g/t gold in a trench and up to 4.34% copper in float.

The Gavuvu area has low + higher order silver anomalies in several drainages. The silver mineralisation occurs in silicification and quartz sericite alteration. Limited trenching has demonstrated to 10m of 150 g/t silver (incl 5m of 252 g/t silver ). A grab sample of a semi massive sulphide pod graded 0.90 g/t gold + 112 g/t silver + 47.5 % zinc + 6.1 % copper + 132 ppm molybdenum.

Previous geophysics were flown on a wide spacing in the early 1980’s. Aeroquest UTS were engaged to fly a geophysics survey with a nominal sensor height at 50m, 200m line spacing, and a tie line every 2,000m, covering a total distance of 4,085 line kilometres. The following products were produced and are shown below in Figures 7 to 11. MIRA Geoscience produced preliminary unconstrained 3D inversion modelling and the initial magnetic susceptibility heterogeneous model.

A Lidar topographic airborne survey was carried was completed in late 2012 by Fugro Spatial Solutions Pty Ltd of Perth Western Australia, to enable efficient target selection and field sample planning.

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For additional information relating Frontier, please visit the website at www.frontierresources.com.au

FRONTIER RESOURCES LTD

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

Competent Person Statement :

The information in this report that relates to Exploration Results is based on information compiled by Peter A. McNeil ‐ Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Chairman/Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the Inclusion in the report of the matters based on the information in the form and context in which it appears.

JORC CODE 2012

Frontier’s historical data from 2004 to 2014 is presented herein.

SECTION 1 ‐‐ SAMPLING TECHNIQUES AND DATA

SAMPLING TECHNIQUES

Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

The Senior Geologist was generally onsite for the entire Exploration program. The staff are professional with individual decades of experience and they always attempt to conduct the programs according to well established exploration best practice /norms. Additional information is provided below.

DRILLING TECHNIQUES

The holes at Uasilau and Pelepuna were drilled using PQTT, HQTT and NQTT as conditions required.

MEASURES TAKEN TO MAXIMISE SAMPLE RECOVERY AND ENSURE REPRESENTATIVE NATURE OF THE SAMPLES

Downhole sample recovery was maximised by the drillers utilising appropriate downhole drilling consumables at the appropriate times to ‘consolidate’ or hold the rock together.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Historical results are quoted; however, recovery was normally excellent at >95% overall. Where there is core loss, there is no apparent relationship between recovery and grade. No sample bias appears to have occurred due to loss of fine material when this did occur.

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies

Historical results are quoted. The core has not been geologically and geotechnically logged in sufficient detail to support appropriate Mineral Resource estimation, mining and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

Historical results are quoted. The core was preliminarily logged and marked up for sampling (normally on a 1m or 2m basis, depending on the Exploration Managers estimate of the intervals’ mineralisation potential), measured for recovery and photographed. After being cut and sampled the remaining 1/2 core was geologically and geotechnically logged in detail.

The total length and percentage of the relevant intersections logged

Historical results are quoted. 100% of the core was logged, but not necessarily sampled unless it was noted to be megascopically mineralised / veined or brecciated by the Exploration Manager or Site Supervisor.

SUB‐SAMPLING TECHNIQUES AND SAMPLE PREPARATION

If non‐ core , whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Historical results are quoted. Core samples were obtained from the drilling and utilised, so this is not applicable. Outcrop rock samples were collected from the surface and were wet or dry depending on the prevailing weather conditions.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Historical results are quoted. The whole core was appropriately diamond saw cut to half core to ensure representativeness relative to any structural /mineralisation orientations. The quarter core was then put into consecutively numbered calico bags for analysis.

Measures taken to ensure that the sampling is representative of the in‐situ material collected, including for instance results for field duplicate /second‐ half sampling.

Historical results are quoted. Half core was cut to ensure representativeness relative to any structural /mineralisation orientations. No second quarter core sample analyses were generally undertaken.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Historical results are quoted. The sample size is appropriate for the exploratory phase of work and allows residual samples to be available for use for comparative assaying and later metallurgical testing. Additional assaying is normally undertaken on the same pulp of very high grade samples to ensure their quoted assay accuracy prior to release.

QUALITY OF ASSAY DATA AND LABORATORY TESTS

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Historical results are quoted. All analyses were appropriately requested relative to the target type and expected assay ranges.

Sample Preparation for core and rocks was by drying, crushing to 6 mm and pulverizing to 75µm on a 3.0kg or less sample weight.

Gold was generally determined by fire assay, using lead collection technique with a 50‐gram sample charge weight. Detection limits: 0.01–10,000 g/t

Acceptable levels of accuracy and precision were established. Industry standard reference samples were introduced into the sample sequence every 20 samples as a check on the laboratory. Blanks and duplicates were introduced occasionally and no external laboratory checks were undertaken.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

These machines were not utilised historically and the laboratory is accredited and has its own internal procedures and parameters to ensure representative readings are made and reported.

VERIFICATION OF SAMPLING AND ASSAYING

The verification of significant intersections by either independent or alternative company personnel.

Historical results are quoted.

The use of twinned holes

No holes were twinned as this is unnecessary at this stage of exploration drilling and metallurgical samples were not required.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Historical results are quoted.

Any adjustments to assay data.

Historical results are quoted.

ACCURACY + QUALITY OF SURVEYS USED TO LOCATE DRILL HOLES (COLLAR + DOWN‐HOLE SURVEYS), TRENCHES, MINE WORKINGS AND OTHER LOCATIONS USED IN MINERAL RESOURCE ESTIMATION

No Mineral Resource has been estimated.

Specification of the grid system used.

Map datum is AGD 066 and PNG is covered by 1:100,000 topographic plans that have 40m contour intervals. DTM plans from SRTM or aeromagnetics have 10m contour intervals.

Quality and adequacy of topographic control

Topographic control is determined by handheld GPS and/or tape and compass surveying and is adequate at this stage of exploration.

DATA SPACING AND DISTRIBUTION

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

No Mineral Resource has been estimated.

Whether sample compositing has been applied.

Historical results are quoted.

ORIENTATION OF DATA IN RELATION TO GEOLOGICAL STRUCTURE

Whether the orientation of sampling achieves unbiased sampling of possible structures to the extent this is known, considering the deposit type. Historical results are quoted.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported.

Historical results are quoted.

SAMPLE SECURITY

The measures taken to ensure sample security

Historical results are quoted.

AUDITS OR REVIEWS

Historical results are quoted.

SECTION 2 ‐‐ REPORTING OF EXPLORATION RESULTS

TENURE

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Exploration Licences are subject to the Papua New Guinea Mining Act of 1992. Tenure is secure if the EL holder complies with the agreed work and expenditure programs. Terms are renewable 2 year periods that are subject to a Wardens Court Hearing to ascertain the landowners attitude toward the exploration and evaluation by the Mining Advisory Council.

EXPLORATION DONE BY OTHERS Exploration completed by previous explorers is being documented herein. GEOLOGY Deposit type, geological setting and style of mineralisation. Targets on all properties are intrusive and epithermal related gold, plus porphyry copper‐gold ‐ molybdenum. DRILL HOLE INFORMATION A summary of all information material to the understanding of the exploration results DATA AGGREGATION METHODS Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail Historical results are quoted.	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information	Frontier Resources Ltd Exploration Licence Information
	Licence Name	Number	Date From	Date To	Ownership	Area (SQ KM)	Lat. Sub Blocks
	Bulago River	EL 1595	7/07/2016	6/7/2018	100% Frontier Gold PNG Ltd	100	30
	Muller Range	EL 2356	31/12/2015	30/12/2017	100% Frontier Copper PNG Ltd	187	56
	Andewa	EL 2461	15/11/2016	14/11/2018	90.1% *Frontier Copper PNG Ltd	147	44
	Total Granted ELs 433 SQ KM
	Sewatupwa	ELA 2476	Application only		90.1% *Frontier Copper PNG Ltd	436	131
	Lake Lavu	ELA 2477	Application only		90.1% *Frontier Copper PNG Ltd	839	252
	Gazelle	ELA 2529	Application only		90.1% *Frontier Copper PNG Ltd	703	211
	Tolukuma	ELA 2531	Application only		90.1% *Frontier Copper PNG Ltd	433	130
	Total EL Applications					2,411 SQ KM
	NB: Subject to 9.9% carried interest to be apoproved by shareholders to P.McNeil The PNG Mining Act‐ 1992 stipulates that ELs are granted for renewable 2 year Terms (subject to Work and Financial Commitments) and the PNG Government maintains the right to purchase up to 30% project equity at "Sunk Cost" if/when a Mining Lease is granted.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values reported.

RELATIONSHIP BETWEEN MINERALISATION WIDTHS and INTERCEPT LENGTHS

If the geometry of the mineralisation with respect to drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect. Historical results are quoted.

BALANCED REPORTING ‐ Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All Exploration assay results are comprehensively reported.

OTHER SUBSTANTIVE EXPLORATION DATA

Other exploration data, if meaningful and material should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples ‐ size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances

All Exploration work undertaken has been comprehensively reported as possible.

FURTHER WORK

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large‐scale step‐out drilling). Future work is not discussed in the text, as the program is to be determined.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Plans and sections are included as possible, that highlight the areas of possible extensions to mineralisation and show the main geological interpretations.