FORTUNA METALS LTD — Capital/Financing Update 2017

Apr 27, 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

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28[th] April 2017

Option Agreement Signed for Joint Venture on Andewa EL

Frontier Resources Limited ( Frontier ) is very pleased to announce it has signed an Option Agreement with WNB Resources Ltd ( WNB ‐ a PNG registered company that is wholly owned by Frontier’s Chairman Peter McNeil).

The Option relates to WNB’s Andewa Exploration Licence (EL 2461), in West New Britain Province, Papua New Guinea and records a number of principles that will apply to a Proposed Joint Venture at the end of the Option period on 16/11/2018, including:

• Frontier will earn a 90% interest in EL 2461 ‐ Andewa by spending a minimum of A$50,000 on exploration in 2017 and in 2018 (the Option Period), including reimbursement of A$30,000 exploration costs.

• WNB will be 9.9% free‐carried interest to point of profitable production on each Mining lease granted within the original boundaries of EL 2461.

• The Option Agreement is binding on WNB, but Frontier may elect to withdraw from it at any time.

• The Joint Venture Agreement will be based on the Principles noted herein and is subject to obtaining necessary Frontier shareholder, Australian and PNG regulatory approvals.

• Frontier will manage and WNB will operate the exploration programs for a standard Management fee (10%). Frontier can assume project operation after a JORC compliant Indicated Resource is estimated.

Highlights Relating to the Andewa Project are:

• Bulk porphyry gold and vein gold targets at Andewa expressed as several square kilometres of strongly anomalous gold and copper in grid based soils, with large and deep 3D IP and resistivity anomalies.

• High grade gold drill intercepts including 1.5m of 39.3 g/t, 1.0m of 18.4, 5.9m of 13.1 g/t, 10.8m of 7.0 g/t

• Low grade generally entire drill holes including 993.3m of 0.10 g/t gold, 106.6m of 0.75 g/t + 0.30% copper, 114.0m of 0.74 g/t + 0.20% copper, 409.1m of 0.30 g/t, 404.6m of 0.24 g/t and 403.5m of 0.27 g/t gold.

Highlights Relating to the Stoneleigh Project are:

• Porphyry copper‐gold, epithermal gold and skarn targets in a 5.6 km diameter circular feature, with a ~40 km[2] window of weak molybdenum mineralised volcanics in limestone on a major crustal structure.

• Effectively no exploration has been conducted over this prospect. BHP collected 36 recon samples with copper >0.1% in two different rock types (0.1% was the analysis maximum), with effectively all the samples molybdenum and arsenic anomalous with trace gold, showing proximity to a porphyry copper system.

• Five different mineralised rock types sampled plus epithermal vein quartz and strong silicification.

• Arsenic and gold anomalous stream sediment samples occur throughout the prospect and eight stream panned concentrate samples reported visible gold.

Non‐Executive Director, Peter Swiridiuk (geophysicist) commented:

The Andewa property was the first EL ever granted to Frontier Resources in PNG in 2004. The Company explored the area and Joint Ventured it to Newcrest Mining Ltd (2012/2013), who withdrew after A$8 million exploration / drilling of the $20 million earn ‐in requirement. Frontier subsequently lost the EL and reapplied for it in 2015, but it was not granted.

Frontier’s Chairman Peter McNeil applied for a different area but also covering the main former Andewa EL, via his private Company WNB Resources in mid‐2016 (with my full knowledge) and it was granted in mid‐November.

Andewa is an excellent gold project, but in addition, the Stoneleigh probable porphyry copper‐gold, epithermal gold and polymetallic skarn region has never been explored; it has recently been dissected by logging related bulldozer tracks, so access is now fantastic for exploration /evaluation and possible future development opportunities.

It is much easier and more cost effective to explore /operate in New Britain than in the Highlands. After we finish our current drilling at Bulago in a few weeks, we will not have a project to work to work on until October (due to the wet season at Bulago/Muller), and Andewa fulfils the Company’s requirements perfectly.

I am excited that Frontier has concluded an Option with WNB to obtain a 90% equity in the Andewa / Stoneleigh Projects for an outstanding consideration, so we can unlock the area’s excellent mineralisation potential. I believe Frontier will get excellent value plus an immediate upside from these projects and recommend shareholders approve the transaction when requested. A 2‐week reconnaissance exploration program is planned to commence forthwith at Stoneleigh.

A Summary of the Andewa EL is included below and a Comprehensive Report has been posted on the website.

The 147 km[2] Andewa Exploration Licence (43 sub‐blocks) was granted to WNB Resources Ltd on November 16 2016 for the normal renewable term of 2 years and is located in West New Britain Province, Papua New Guinea; it has excellent coastal and variable inland access to the 3 non‐ contiguous regions. There are 2 main prospect areas with excellent potential to yield significant gold and copper mineralisation with further exploration.

The Andewa Project is a major gold mineralised system centred on WNW, NNE and NW trending crustal level faults. The project has had deep and shallow drilling completed in multiple prospect areas with significant results and warrants a significant amount of further evaluation. Andewa is highly prospective for narrow high‐ grade epithermal gold and bulk disseminated ‐porphyry type gold deposits.

The Stoneleigh Project is located at the intersection of WNW and ENE crustal level faults, that have produced a slightly contorted but very distinct circular feature in drainages and topography. The region has only had 2 days

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of basic reconnaissance completed and the 30 rocks and multiple panned concentrates collected showed it has excellent potential for epithermal and probably gold porphyry copper – gold‐molybdenum deposits, plus skarns. Access is excellent due to substantial logging having been recently completed.

The Aria region has never been explored but consists of a distinct topographic circular feature in drainages and various Aster satellite anomalies that warrant evaluation.

Forty holes have been completed in total at Andewa for 12,531.6m, with eighteen for 9,907.9m from mid‐2011 to late 2012 as part of the Newcrest JV, to depths of 1,000m targeting porphyry style gold and copper mineralisation. Gold and copper mineralisation are known to extend to >700m vertically with 2.0m of 3.95 g/t gold + 0.11% copper from 986 to 988m downhole and 2.6m grading 0.74 g/t gold + 6.4 g/t silver from 923.2 to 925.8m at end of hole.

Twenty holes were drilled at Komsen (AFD Series) in 2008 and 18 holes were drilled at Ehgin, Ekhos and elsewhere (ADH Series) in 2011/2012.

High grade drill intercepts include:

1.5m grading 39.3 g/t gold (from 450.0m‐ 451.5m downhole) ‐ ADH013

1.0m grading 18.45 +10.3% zinc ‐ AFD005 5.9m grading 13.07 g/t gold ‐ AFD007

10.8m grading 6.99 g/t gold +12 g/t silver ‐ AFD017

3.5m grading 6.51 g/t gold ‐ AFD020

Bulk low grade drill intercepts include:

106.6m grading 0.75 g/t gold + 0.30% copper ‐ ADH001 114.0m grading 0.74 g/t gold + 0.20% copper ‐ ADH002 (in multiple sections) 409.1m grading 0.30 g/t gold ‐ ADH003 404.6m grading 0.24 g/t gold ‐ ADH004 403.5m grading 0.27 g/t gold, incl. 5 narrow zones >1g/t gold ‐ADH008 993.3m grading 0.10 g/t gold, incl. 2.0m of 3.95 g/t gold + 0.11% copper at EOH ‐ ADH017 20.0m grading 0.40 g/t gold + 0.25% copper, plus 173.0m grading 0.12 g/t gold + 0.10% copper ‐ ADH012 79.4m grading 0.11g/t gold +0.10% copper (from 838.6m to 918.0m) ‐ ADH014 12.0m grading 0.96 g/t gold ‐ ADH016 18.6m grading 1.13 g/t gold ‐ AFD019

Untested targets include high gold and silver assays related to structurally controlled, epithermal gold / silver mineralisation and other combinations to possible porphyry copper‐gold‐molybdenum.

Two highly significant gold mineralised outcrops were discovered and channel chip sampled, returning, 15.0m of 15.48 g/t gold + 21.9 g/t silver (sampled partly along strike), 11m of 5.44 g/t gold + 85 g/t silver + 0.22% copper (partly along strike). Also, 6m of 7.56 g/t gold plus 68 g/t silver plus 0.25% copper (central width) and 3m of 9.20 g/t gold plus 32 g/t silver plus 0.30% copper (SE end exposed width). Silver mineralised outcrop channel chip samples included 4.0m of 210.5 g/t silver plus 0.68 g/t gold plus 0.55 % zinc and 3.0m of 137 g/t silver plus 0.58 g/t gold. These areas all need additional exploration.

PNG and its northern islands are considered as part of the “Rim of Fire”, the active circum‐Pacific volcanic belt that hosts many large porphyry copper‐gold deposits and a number of world‐class epithermal gold deposits. The islands off the north‐east coast of Papua New Guinea include New Britain Island and host a chain of subduction‐related Pleistocene to Holocene strato‐volcanoes of calc‐alkaline affinity, known as the Bismarck Island Arc.

The Mount Andewa volcano lies on the north coast of the West New Britain Province in Papua New Guinea and shows evidence of hydrothermal alteration in the rocks within its crater. Within the 9km wide crater of the extinct strato‐volcano, multiple high‐level gold prospects occur within a 7 km by 2.5 km zone and constitute the Ehgin, Komsem, Samarung, Ekhos, Ler and Kehedie Prospects.

EL 2461 covers an area of 80 sub‐blocks for 286 km[2] and is located about 75 km west of Kimbe in West New Britain Province. The Mount Andewa section is situated on the northern coast and is centred on 5[0] 34’ 00” S latitude and 148[0] 56’ 30” E longitude on the Mucadha and Aria 1:100 000 topographic map sheets. The tenement is accessible both by sea and air.

Initial work in Andewa crater demonstrated stream sediment samples containing as much as 0.63 g/t Au and panned concentrate samples of 525µg (containing as much as 12.1 g/t Au) and led to the discovery of an 18 km² anomalous gold/arsenic surface zone. Within this supposedly fracture‐controlled zone, soil samples (as much as 4.06 g/t Au), rock chip and float samples (as much as 58.4 g/t Au) and rock chip sampling in trenches (as much as 15.6m grading 5.12 g/t Au) have defined a >1,000m long mineralised vein system at the Komsem prospect.

A very large grid (approx. 21 sq km) was surveyed and cut for the geophysical and geochemical programs and a very large sulphide mineralised system was identified by 3D‐IP chargeability anomalies from surface to >800m total depth, in three major but discrete zones.

• The Ekhos chargeability anomaly is 3.3 Km[2] in area (at 150m below sea level), which is larger than the Core Chargeability Zone (CCZ) (3.0 km[2] ) and the Ber anomalies (approx. 0.5 km[2] ).

• Ekhos is the largest and closest to surface 3D‐IP chargeability anomaly at Andewa, with much of it very intense (>45ms).

• Each chargeability anomaly is surrounded by a sub‐circular, high‐resistivity anomaly that appears to merge near and/or off the edge of the grid, to become one ~ 6km diameter anomaly in the centre of the Mt Andewa caldera, representing probable silicification around the intrusions.

• There are strong correlations between known surficial gold and copper and the 3D‐IP chargeability anomaly at Ekhos, however, most of that region has never been explored.

• The CCZ and Ekhos chargeability anomalies are connected by an east‐west trending zone and the Ekhos and Ber anomalies are located at higher elevations above sea level (than the CCZ).

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The 3D‐IP survey showed 3 exceptionally voluminous and intense chargeability anomalies, indicating the presence of very large sulphide systems from on‐surface to more than 800m deep. The total chargeability anomaly (over 30ms) area is ~ 7 km[2] , consisting of two very large, spatially related and intense chargeability anomalies (plus one smaller anomaly) called the Core Chargeability (CCZ), Ekhos and Ber Zones. The Ekhos chargeability anomaly is 3.3 Km2 in area, the CCZ is 3.0 km2 and Ber is approximately 0.5 km2 (at 150m below sea level).

The total anomalous chargeability area is approximately 5,400m long (E‐W) and 3,000 wide (N‐S). The Ekhos chargeability anomaly is approximately 3,850m long x 1,750m wide. It averages about 1,000m wide and has a higher‐grade chargeability core zone that is approximately 2,400m long and 1,000m wide (at over 30ms and

400m below topography). The CCZ is approximately 2,900m long (NW to SE) and a maximum of 2,100m wide, averaging 1,000m wide.

Ekhos is the largest and closest to surface 3D‐IP chargeability anomaly at Andewa, with much of it very intense at over 45ms; it is open to the south and east but appears defined in general at depth. The CCZ chargeability anomaly is open to the south AND at depth, however, it’s very intense core (over 45ms) appears to be adequately resolved. The CCZ also has large anomalous areas at over 45ms chargeability that extend to depths greater than the 800m modelled maximum.

Each major chargeability anomaly is surrounded by a sub‐circular high‐resistivity anomaly that appears to merge near the edge and off the grid, to become 1 x ~6km diameter quasi donut shaped resistivity anomaly in the centre of the Mt Andewa crater, with ‘holes’ present where the strong chargeability anomalies exist.

• Soil geochemical sampling was undertaken with approximately 4,500 samples collected. Rock channel chip sampling was conducted with ~500 samples collected and very encouraging high–grade gold, plus silver and copper was demonstrated in multiple outcrop rock channel assays.

• Numerous gold mineralised outcrops were discovered and sampled over the 21 sq km gridded area from the limited outcrops in creeks. Peak outcrop assay values were 23 g/t gold, 288 g/t silver, 0.919% copper (float rock), 114 ppm molybdenum, 1.61% lead and 3.59% zinc.

The most common rock type within the crater is andesites and basalts, a suite of pyroclastic lavas intruded in places by a series of pyroxene and hornblende rich rocks which intrude the volcanics. They are in turn intruded by late felsic dykes which appear to be the progenitor for the porphyry copper‐gold‐moly mineralisation within the crater. Reconnaissance mapping and sampling in the creeks indicate gold and copper mineralisation is structure controlled with the several dominant structural directions delineated. Four main regional structure sets have been mapped; they are the a) North West to south east (320‐340), b) the east north east (50‐80) and c) the north to south (350‐020) trends and, d) east west (80‐100). Subordinate fracture sets in the area are the east to west trend and north east to south west trend. The oldest of these structures appear to be the northwest (320‐350) trend which also controls the flow of the Komsen River. This trend is offset in places by a north south (350‐020) trend which appears to control much of the vein style mineralisation. Intrusive activity within the prospect may be related to the East North East (050‐070) and North West fracture set. The Ehgin prospect lies on an east north east trend. The Komsen quartz reef is controlled by the east‐west trending structures.

The creeks are dominated by a propylitic alteration assemblage which is ubiquitous and characterised by the presence of magnetite‐carbonate‐chlorite‐epidote. Some of the disseminated pyrite is considered part of this alteration assemblage. The propylitic alteration is overprinted in places by a potassic assemblage that includes chlorite, magnetite, biotite, potassium‐feldspars and anhydrite. This alteration style appears to be associated with the intrusive rocks, especially microdiorites and felsic dykes. Argillic alteration has been mapped in clay shears, in fracture zones and also associated with areas of extensive brecciation and limonite staining. It is characterised by the presence of clay‐sericite‐pyrite‐fuchsite‐manganese and limonite. Sometimes some argillic alteration is associated with areas of strongly oxidised weathering. Phyllic alteration is commonly associated with the presence of felsic dykes and intrusives and at intrusive contacts and is denoted by pyrite‐clay‐quartz‐ fuchsite and sericite.

Using results of a soil sampling program based on the grid cut for the IP survey, short hand trenches were conducted in areas with anomalous gold assays greater than 0.100g/t Au. At each sample point, hand trenches were cut 20m on either side of the anomalous sample. A total of 52 trenches were cut and many samples collected. Longer trenches were constructed in areas with continuous gold assays.

The access track from the coast was successfully pushed through to the Andewa base camp and thence to the Ehgin and Ekhos prospects. Road side cuts with good geological exposures were mapped and sampled as trenches. The results from the trenches were generally disappointing as most of the hand trenches were usually less than 1m deep and failed to penetrate into the bedrock. They were invariably terminated in the thick, poorly sorted and chaotic colluvium/scree that mantles most of the hill sides.

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A low level airborne magnetic survey was conducted over the entire Andewa exploration licence. This survey was conducted by specialist geophysical consultants, Aeroquest Airborne in March, 2012. The survey was conducted using the WGS 84 coordinate system within zone 55 with line spacing of 100m and a sensor height of 60m from the ground up. The tie in line spacing was 1000m. A total of 1,538 line kilometres was completed.

Magnetic data was collected during the survey along with radiometric information Thorium, Potassium and Uranium. Results from this aeromagnetic survey are very encouraging and confirmed areas of copper and moly anomalism in soil as magnetic highs (small) indicating possible intrusive activity. Major magnetic highs appear to be located on the fringes of the immediate Andewa crater within the crater rim. The lows appear to correlate well with areas of strong structural activity.

Diamond drilling commenced July 1 2011 and was completed in late 2012. See the Table for a summary of drill results. A 2x rig diamond drilling program was initiated to drill test some of the IP chargeability and resistivity anomalies generated. The drilling program was initially started off by the smaller TGD 500 rig which completed 9 holes before two brand new rigs; the CS1800 and CS1800 were introduced. Drill holes were selected in areas with high chargeability/conductivity anomalies with corresponding coherent and anomalous gold, base metal and pathfinder element geochemistry. Drilling began at the Samarung prospect and continued up to Ehgin and Ekhos prospects.

Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts	Summary of Andewa ADH diamond drill hole gold, copper and moly intercepts
Hole Number	Intercept Length	Gold (g/t)	Copper (%)	Moly. (ppm)	From (m)	To (m)	Nominal Gold Cut Off Grade
ADH001	398.8 m	0.35	0.15	8	0.0	398.8	Nil
incl.	106.6 m	0.75	0.30	6	139.2	245.8	0.4
ADH002	372.0 m	0.36	0.10	9	0.0	372.0	Nil
Sum 6 zones=	114.0 m	0.74	0.20	18	5.1	268.0	0.1
incl.	19.0 m	1.86	0.39	14	154.0	173.0	0.5
and	6.0 m	1.30	0.24	6	246.0	252.0	1.0
ADH003	409.1 m	0.30	0.08	9	0.0	409.1	Nil
incl. incl.	7.3 m 1.0 m	2.16 9.40	0.11 0.26	3 7	46.8 52.0	54.1 53.0	0.5 5.0
ADH004	404.6 m	0.24	0.06	9	0.0	404.6	Nil
ADH005	296.2 m	0.29	0.09	6	21.4	317.6	Nil
ADH006	353.5 m	0.13	0.02	2	0.0	353.5	Nil
ADH007	408.4 m	0.09	0.02	1	0.0	408.4	Nil
ADH008	403.5 m	0.27	0.05	5	0.0	403.5	Nil
incl. and and and and	1.0 m 1.5 m 1.0 m 2.2 m 1.1 m	2.19 2.06 2.94 1.10 1.38	0.25 0.23 0.46 0.14 0.08	25 3 2 2 4	159.0 196.5 201.2 226.0 241.6	160.0 198.0 202.2 228.2 242.7	2.0 2.0 2.0 1.0 1.0
ADH009	407.9 m	0.23	0.06	8	0.0	407.9	Nil
incl and	9.3 m 3.0 m	0.72 1.15	0.14 0.05	2 5	219.7 396.0	229.0 399.0	0.3 0.7
ADH010	332.0 m	0.21	0.16	13	0.0	332.0	Nil
incl.	1.0 m	1.99	0.14	12	54.0	55.0	1.0
ADH011 incl. incl.	697.1 m 160.0 m 2.0 m	0.08 0.13 2.24	290 361 227	1 1 3	3.5 188 226	700.6 348 228	nil 0.10 2.00
ADH012	377.0 m	0.20	0.13	14	0.0	377.0	Nil
incl. plus	20.0 m 173.0 m	0.40 0.12	0.25 0.10	20 16	347.0 491.0	367.0 664.0	0.3 0.1
ADH013	625.5 m	0.19	0.02	1.6	0.0	625.5	Nil
incl. and and incl. incl.	4.0 m 2.0 m 9.4 m 3.0 m 1.5 m	2.99 1.89 6.68 20.41 39.30	0.03 0.02 0.03 0.05 0.03	1.6 2.1 1.6 2.9 3.2	28.0 57.6 443.6 448.5 450.0	32.0 59.6 453.0 451.5 451.5	1.0 1.0 0.1 1.0 39.0
ADH014 and and	1,004.0 m 2.0 m 2.0 m	0.09 1.55 1.17	0.05 0.06 0.06	10.3 7.4 3.3	0.0 392.0 544.0	1,004.0 394.0 546.0	Nil 1.00 1.00
ADH015 incl. plus incl. plus	852.7 m 2.0 m 12.0 m 2.0 m 2.0 m	0.08 1.34 0.54 1.26 1.00	0.02 0.09 0.01 0.01 0.03	2.4 2.3 2.6 1.9 0.9	0.0 130.0 134.0 142.0 502.0	852.7 132.0 146.0 144.0 504.0	Nil 1.00 0.50 1.00 1.00
ADH016 incl. incl. plus	918.7 m 12.0 m 2.0 m 5.6 m	0.06 0.96 3.93 0.50	260 379 752 224	4 3 11 2	7.1 706.4 706.4 923.2	925.8 718.4 708.4 925.8	nil 0.20 1.00 0.50
ADH017 plus	993.3 m 2.0 m	0.10 3.95	0.03 0.11	4 1	7.1 986.0	1000.4 988.0	nil 3.0
ADH018 incl.	238.2 m **18.0 m **	0.12 0.37	541 0.15	5 8	1.5 182.0	239.7 200.0	nil 0.10

Forty holes have been completed at Andewa in total for 12,531.6m, with eighteen for 9,907.9m since mid‐2011. The Newcrest diamond core drilling program was terminated at Andewa in November 2012 with eighteen holes completed since the program commenced mid‐2011, for a total of 9,892.9m, of which 4,632.4m was part of the Newcrest Joint Venture program (commencing 1/1/2012).

Holes ADH001, ADH010 and ADH012 drilled to the south of the main Andewa camp in an area of coherent IP chargeability and surface geochemistry had consistent copper mineralisation throughout the entire length of the hole. Holes ADH002‐ADH005 drilled into an anomalous surface geochemical anomaly at the Ehgin prospect

returned encouraging fracture controlled, but porphyry related gold, copper and moly mineralisation. Holes ADH006 and ADH007 were drilled on the fringes of the geophysical anomaly at Ehgin and returned background values in copper mineralisation with occasional high gold values associated with the presence of quartz veins. Occasional elevated gold

intervals associated with quartz veins were noted in holes ADH008 and ADH009 which were drilled closer to the anomaly at Ehgin.

The Komsem Prospect, was initially recognised as the principal target and it lies on the western side of the deeply dissected Mt Andewa crater and occupies a roughly circular area of alteration about 2.5 km in diameter. The Kehedie Prospect is a short distance east of the Komsen Prospect and may contain its strike‐ continuation. The Ekhos Prospect is approximately 1 km x 2 km in area and lies in the south‐eastern sector of the crater. The Ehgin prospect lies on the north‐eastern part of the crater just in the shadows of Mt. Andewa. The Samarung prospect consists of the camp area and most of the flat area within the centre of the crater. This area is referred to in some reports as “the great depression”.

A continuous programme of mapping, sampling and drilling by Frontier Resources Ltd, has refined knowledge of the Komsen, Kehedie and Ekhos Prospects, which have been defined more closely as potential hosts for gold in epithermal vein systems trending east to southeast. The mineralisation at the Komsen and Ekhos

Hand Trench Number	Intercept Length and Grade	Total Trench Length	Comments
Central Komsen SPZ 2	21.6m of 4.41 incl. 2m of 24.22	26.6m	>1.0 g/t at one end +	Visible Gold
Central Komsen B2	4.0m of 6.35 incl. 3.0m of 8.28	4.0m	>16.0 g/t and >0.5 g/t	at ends
Central Komsen C4 OC2	8.0m of 3.14 incl. 2.0m of 9.34 plus 1.0m of 4.55	8.0m	>4.0 g/t at each end
Central Komsen SPZ 3	11.5m of 0.91 incl 2.0m of 1.70 plus 2.0m of 1.69	20.5m	Visible Gold
Central Komsen C4	4.5m of 2.23	4.5m	>1.0g/t at both ends
Central Komsen C5	7.0m of 0.48 incl. 1.0m of 1.02 plus 1.0m of 1.4	7.0m	>1.0 g/t and >0.1 g/t	at ends
Central Komsen SPZ 1	1.4m of 1.14	3.4m	>1.0g/t at one end
Central Komsen SPZ 4	10.5m of 0.15	12.0m	>0.1g/t at one end
Central Komsen SPZ 5	6.0m of 0.46 incl. 1.0m of 1.45	6.0m	>0.1 g/t at both ends
Central Komsen B1 Vn1	0.9m of 0.57	5.9m	>0.1g/t at one end
Central Komsen B3 Vn2	7.1m of 0.38 incl. 2.3m of 0.66	7.1m	>0.1 g/t at both ends
E.Kehedie	32.7m of 0.66 incl. 1.4m of 0.59 plus 2.4m of 1.0 plus 15.3m of 1.07 plus 2.0m of 0.50 plus 2.0m of 0.73	32.7m	>0.5 g/t at both ends	, Visible Gold
W.Kehedie 2	5.3m of 2.04 incl. 1.0m of 9.43	5.3m	>0.5 g/t and >0.1 g/t	at ends
W Kehedie	1.1m of 0.51	4.5m	>0.1g/t at one end
Central Ler T1 OC 2	4.0m of 2.63 incl. 1.0m of 9.89	4.0m	>0.1 g/t at both ends
Central Ler T1 OC2	3.9m of 0.66	3.9m	>0.1g/t at both ends
W Ler	1.0m of 1.66	42.0m	weaklyanomalous throughout
TBL	2.0m of 2.43 incl. 1.0m of 3.95	5.0m	>0.1 g/t at both ends
TBL	2.0m of 1.38	13.0m
NB: Silver sporadically to 43 g/t

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Prospects is interpreted as bi‐phasal, with an early, high‐temperature propylitic event, thought related to intrusion of a porphyry, being overprinted by a phyllic event related to the epithermal mineralisation.

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Drill intersections in 2008 defined an east‐striking, steeply north‐dipping vein system at the Komsen Prospect, within the broader zone of alteration, and drill‐cores have indicated that, locally, grades as high as 35g/t can occur. Sphalerite and galena have also been found in veins in the trenches here and in the Kehedie Prospect area, and sphalerite, galena, chalcopyrite, pyrite and silver (together with stibnite and arsenious minerals) have been reported from the drill‐ core. During the 2010/2011 year, an extensive grid (approx. 21 sq km) was surveyed and cut for a 3D‐IP geophysical and soil geochemical exploration program. Soil and rock geochemical sampling was undertaken and approximately 4,500 grid based soils and 500 rock‐chip samples were collected.

The data allowed a comprehensive geological, geochemical and geophysical assessment of the Andewa gold mineralised system and high‐quality, coherent and coincident anomalies were defined for further evaluation/ drill testing.

GEOLOGY

Mt Andewa crater lies in westernmost New Britain and forms part of a chain of Holocene, generally calc‐alkaline volcanoes (Bismarck Volcanic Arc), that extend from Rabaul in the east to Manam Island in the west. They represent the recent expression of volcanism above the northward subducting Solomon Sea microplate south of New Britain and the obliquely subducting Australian plate to the west of New Britain. Many of the volcanoes of the Bismarck Arc are still active, including Mt Gloucester 50km west of Mt Andewa, but those at Mt Schrader and Mt Andewa may be 650 000 years old and are regarded as extinct.

Mt Andewa has been mapped as a Pleistocene to Holocene volcano (the Andewa Volcanic Complex of Ryburn (1976)) overlying a series of Pliocene volcaniclastic sediments (Aria beds) to the south. These rocks appear to interdigitate southwards with the Pliocene marine calcareous siltstone units of the Johanna beds, which overly unconformably a basement series of Eocene to Pliocene age. These basement rocks consist of the Miocene‐

Pliocene to Miocene Yalam Limestone and the unconformably underlying Eocene to Oligocene calc‐alkaline volcanics and interbedded sedimentary rocks of the Baining Volcanics.

Further east, the Baining Volcanics are overlain unconformably by the Late Oligocene Merai Volcanics, composed of moderately indurated lapilli tuff, andesitic breccia, conglomerate and minor limestone. Dioritic and microdioritic dykes and stocks intrude the Baining Volcanics. Other basement units include Early to Middle Miocene sedimentary rocks cropping out east of the EL and include the Pali River Conglomerate and the Bergberg Formation (calcareous sandstones and mudstones).

No major faults were recognised in the Mt Andewa region by Ryburn (1976), although aerial photos show possible fault‐controlled lineaments in the general area around EL 1345. The early work of the mining companies since 1976 included reconnaissance mapping in the Mt Andewa‐Schrader region (Wroe, 1987; Wroe, 1988a, b; Harris et al ., 1988, 1989; Harris 1989; Harris and Morrissey, 1990; Harris, 1991, 1992) and confirmed Ryburn’s assessment of the dominant rock‐types in these two volcanoes.

Mt Andewa is a heavily dissected, slightly asymmetric volcanic cone ranging in altitude between 200m in the crater floor to around 1300m at the top of Mt Crater on the northern side of the crater rim which is about 9km across. The relief is steep and in places deeply incised

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Weighted Assay Grades
Hole Intercept
Gold Silver Zinc
Number Length
(g/t) (g/t) (%)
AFD001 1.2 m 4.06 ‐ ‐
AFD002 0.2 m 5.43 95.0 11.10
AFD003 2.5 m 1.43 16.4 0.25
AFD004 6.9 m 1.60 4.6 0.12
incl. 0.7 m 6.28 3.0 0.39
AFD005 4.5 m 5.69 1.4 2.34
incl. 1.0 m 18.45 ‐ 10.30
AFD006 2.9 m 6.39 6.2 ‐
incl. 0.9 m 10.55 ‐ ‐
AFD007 5.9 m 13.07 6.0 0.14
incl. 2.0 m 15.25 ‐ ‐
AFD016 1.0 m 6.41 1.5 ‐
AFD017 10.8 m 6.99 12.4 0.17
AFD018 17.9 m 2.09 0.7 ‐
AFD019 18.6 m 1.13 0.7 ‐
AFD020 3.5 m 6.51 1.5 ‐
incl. 0.9 m 15.10 1.7 ‐
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and the rivers draining the crater are still cutting down, as evidenced by perched fluvial deposits on the sides of gorges cut into the bedrock (Findlay, 2006). This may indicate recent or continuing uplift.

In some past reports, the Mt Andewa volcano has been referred to as a caldera, implying an explosive collapse. Although interpretation of LANDSAT imagery and reconnaissance mapping in the Mt Schrader volcano has led to the suggestion that this volcano may indeed be a caldera, there is no known evidence for explosive collapse at Mt Andewa; this has been assumed but not proved in some early reports.

The Mt. Andewa volcano crater rim has been breached on its northwest side by the Komsen River. Although the crater rim is composed of basalt, the strongly eroded core contains lithology of a more variable range in composition and texture, e.g. lavas, tuffs and pyroclastic rocks of andesitic, basaltic and dacitic composition. Intrusive units have also been mapped in creek exposure and logged in core. They include a suite of mafic intrusive rocks dominated by microdiorite, pyroxene rich and lesser hornblende diorites, and felsic rocks which include dacites, feldspar porphyries and diorites. A unit of intrusive breccia occur in structural intersections.

The most common rock type within the prospect area in creek exposures and in drill core are andesites, dacites and basalts. Differentiation of basalts and andesites is generally based on grain size with andesites being medium grained to coarse grained rocks whereas basalts are generally fine grained with occasional coarse grained porphyritic basaltic rocks with big feldspar phenos in very fine basaltic ground mass. Occasional fragments of other rock types are embedded in the groundmass of these rocks. They are believed to have been caught up on the way to the surface. Both the andesites and basalts are pyroxene rich with main mineral being hypersphene – augite with lesser hornblendes. The groundmass of some of these rocks consists of feldspar and quartz. The dacitic rocks are generally grey green in colour and outcrop mostly in lower elevations at creek level and occur both as pyroclastics and perhaps also as intrusives.

STONELEIGH PROSPECT

The Stoneleigh prospect occurs within an interpreted 5.6 km diameter circular rim identified from SRTM topography.

There has been effectively no exploration work conducted over this prospect which is associated with a ~50 km[2] window of weakly molybdenum mineralised volcanics at the NW end of the major crustal Lamogai Structure at the juncture of a NNE trending structure. A recent major earthquake on the Lamogai Structure occurred at 70km depth, demonstrating the 'plumbing' system is well developed to enable the potential formation of significant mineral deposits.

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CRA completed regional reconnaissance stream sampling in the area in the 1960s. BHP completed rock sampling at the Aria River prospect and their extremely limited work 21 years ago showed copper >0.1% in two different rock types (0.1% was the analysis method maximum reading and the actual value was not later determined by a method capable of reading a higher limit), along with effectively all the samples collected being anomalous in molybdenum and arsenic with trace gold. The limestones that overlie the volcanics are quartz veined and arsenic and molybdenum anomalous, demonstrating close proximity to a mineralising system.

The average of the 36 reconnaissance samples was 165 ppm arsenic + 25 ppm molybdenum + 0.02 g/t gold + 96 ppm copper. This shows the area is significantly molybdenum and arsenic anomalous, being proximal to porphyry copper or porphyry gold mineralising systems. Anomalous stream sediment samples (> 100 ppm arsenic) occur within the interpreted circular rim of the Stoneleigh prospect and eight stream panned concentrate samples reported visible gold.

Mineralised rock types sampled included:

• Basalt, (or tuff, unaltered).

• Tuffaceous andesite .

• Epithermal quartz vein .

• strongly silicified and acid leached rock, with minor pyrite.

• Strong silicification, disrupted chalcedonic quartz, ~1% strong haematite.

• Altered microdiorite.

• Volcanic breccia and tuff.

Additional conceptual targets occur in the tenement within the lightly explored volcanics and under limestone cover rocks at other major structural intersections. Limestone at Stoneleigh contains molybdenum and strong arsenic associated with quartz veining demonstrating that the limestones were in contact with mineralising fluids

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Au Mo As Cu Sample Lithologic Description
0.05 50 160 >1000 GWE06RF8 [Basalt] [, if not tuff. Unaltered. 2‐5% quartz veining with 1% pyrite and strong 2‐5% magnetite, possibly 1‐2% chalcopyrite. The ]
chalcopyrite mineralisation is likely associated with the quartz veining; quartz veining also introduced the magnetite.
0.02 10 340 >1000 GWE11RF8 [Tuffaceous andesite] [. Phenocryst replacement of the plagioclase to clay; 4:1 mafic/felsic ratio. 1%pyrite restricted to veins, strong ]
limonite coating in fracture, minor quartz veins. Open spaced quartz ‐ chalcedony veins.
0.06 18 230 27 GWE06RF12 [Silicified acid leached rock] [. Strong silicification, acid leaching, disrupted patches of chalcedonic quartz. 1‐2% pyrite, strong ]
haematite (speckle and earthy), goethite, limonite. Original texture completely obliterated, cavities infilled by fine
0.04 18 60 17 GWE08RF6 [Epithermal quartz vein] [. Silica replacement of carbonate, epithermal textures: lattice & cockscomb texture, vuggy quartz. 1‐2% ]
pyrite, possibly compact pyrite. Petrology analysis shows the rock to be part of a pyritic epithermal quartz/chalcedonic silic
0.15 15 210 92 GWE06RF5 [Intermediate intrusive] [. Possibly phlogopite alteration overprinted by quartz>>sericite>>pyrite, vugs infill by quartz and euhedral ]
pyrite. 1‐2% pyrite, No magnetite, no other sulphides.
0.01 36 <50 146 GWE06RF10 [Intermediate intrusive (microdiorite)] [. Weak chlorite/epidote alteration, 1% quartz micro veinlets. 1‐2% disseminated pyrite, no ]
magnetite. Quite strong surficial limonite.
<0.005 84 150 9 GWE11RF5 Limestone . Chalcedony silica veinlets. Vuggy.
0.01 16 70 17 GWE06RF11 [Biomicritic limestone] [. (petrology: fossiliferous marine limestone). Vein controlled chalcedonic quartz replacement. No visible ]
sulphides. Petrological analysis showed the rock to be silicified fossiliferous (bryozoal foramineferal) marine limestone
0.02 59 420 19 GWE06RF13 [Altered microdiorit] [e. Strong Sericite>pyrite>quartz. Strong Silicification.>2%pyrite fracture coating and disseminated limonite >> ]
goethite. No magnetite. Strongly fractured
0.02 52 270 38 GWE06RF9 [Altered pyroclastic ] [ Possible sericite>>quartz>>pyrite, strong surficial limonite coating. Pyrite is the only sulphide. Both clasts and ]
matrix undergo clay pyrite alteration.
0.01 18 220 94 GWE04RF1 [Volcanic breccia] [. Weakly chloritised, carb‐epidote‐chlorite veining, surficial limonite coating. >2%disseminated pyrite, << 1% ]
magnetite, no other sulphides. Possibly propylitically altered rock, clast of glass, quartz and lithic fragments in chl
0.01 16 170 61 GWE03RF2 [Volcanic breccia] [. Strong pervasive chlorite/epidote alteration, both in matrix and clast. 1‐2% pyrite, possible >1% Matrix supported ]
breccia, clasts strongly rotated, no magnetite.
0.01 23 130 58 GWE06RF1 [Volcanic breccia] [. Strong porphyry alteration (epidote>>chlorite). Clasts comprised dominantly volcanolithic and lithic fragments ]
and mineral grains in a strong propylitic altered matrix
0.02 64 170 31 GWE03RF3 [Altered tuff.] [ 50% rock displaying epidote with strong chlorite alteration, possible garnet. No sulphide visible. Clasts and ]
phenocryst of the original rock totally replaced by epidote/Chlorite alteration. Original texture obliterated, likely syn‐volcanic
0.01 14 130 36 GWE04RF2 [Volcanic tuff] [. Massive epidote garnet. Quartz vein possibly replacement alteration. 1% pyrite surficial limonite coating, strong ]
magnetite. Epidote‐garnet. Quartz vein propagate fractures.
0.02 14 310 14 GWE11RF7 Andesitic Fragmentation. Quartz/sericite pervasive. 4% disseminated pyrite.
0.01 11 140 6 GWE03RF4 [Weak chlorite alteration in the groundmass, phenocryst unaltered. 3‐5% magnetite, trace dissemination pyrite. No other sulphides. ]
Huge euhedral phenocryst of feldspar, in a chloritised groundmass, Possible andesite if not a high level of porphyry .
0.01 13 150 33 GWE04RF3 [Intermediate intrusive] [. Strong pervasive chlorite >> epidote alteration, possible rare phlogopite, if not fine hematite. 5% pyrite, ]
strong surficial limonite, no magnetite, no other sulphides. Possibly high level intrusive.
0.01 9 180 23 GWE03RF1 [Epidote, strong goethite & limonite in fractures and phenocryst and clastic replacement. >5% pyrite disseminated and fracture ]
coating. Possible intermediate intrusive or dacitic volcanic or high porphyry . Brown staining appear to be alteration biotite
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Aster satellite imagery was acquired over the tenement and Image enhancements were created to help discriminate between clay types as a result of possible alteration.

Interpretation of the Aster image enhancements outlined areas of potential mineralisation related to alteration, structure and silica. A total of 41 target areas were selected within or near the interpreted 5.6km diameter circular topographic rim, collectively called the Stoneleigh prospect and nearby to panned gold in historical creek sample.

Enhancements also utilised higher resolution band of 15m pixel size and the lower resolution 90m pixel size bands to show quartz or silica. The SRTM topography and higher resolution (15m pixel size) infa‐red images were used to interpret structures. These interpreted targets help locate areas of possible alteration and mineralisation. Interpreted zones of silicification and linear silicified structures have been identified from the quartz and silica ratio images. These target areas of silicification require follow‐up stream and rock chip/float sampling.

A total of 41 separate target areas (S1 to S41) have been interpreted from Aster images as zones of silicification or alteration. Linear features have also been identified and may represent zones of epithermal activity along structures.

Visible gold was panned in eight sites within the circular rim of the Stoneleigh prospect and target areas have been interpreted from the Aster imagery with a view that they may be potential sources of alteration and mineralisation.

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TIR quartz ratio image over the Stoneleigh prospect SWIR image over the Stoneleigh prospect

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Alunite/kaolinite greyscale image over the northern half of the Stoneleigh prospect

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Alunite/kaolinite greyscale image over the southern half of the Stoneleigh prospect

No.	Location (AGD066, Zone 55)	Stoneleigh Prospect Area Aster targets Description
S1	747220e, 9356840n	Circular anomaly in the TIR quartz image on a linear NE trending structure.
S2	747220e, 9356640n	Anomalous in alunite, kaolinite and illite, 80m in length trending northwest along the edge of a creek.
S3	746500e, 9355790n	Circular anomaly in the TIR quartz band 600m in length and cutting across a creek upstream from reported visible gold in pan con samples.
S4	747080e, 9355760n	Anomalous in possibly phlogopite in a 150m long northwest trending anomaly 140m from a creek.
S5	748040e, 9356420n	Anomalous in alunite and kaolinite over 150m in length.
S6	749110e, 9357360n	Oval shaped anomaly in the TIR quartz band ratio and 200m in length.
S7	749340e, 9356300n	Circular 100m diameter anomaly in the TIR quartz band ratio.
S8	749470e, 9355690n	Small chlorite‐illite anomaly.
S9	749770e, 9355320n	Circular anomaly in the TIR silica ratio band.
S10	749990e, 9354870n	A 500m elongated area anomalous clays indicating possible alteration.
S11	750490e, 9354630n	North‐south trending target anomalous in illite and next to a creek where 5 grains of visible gold were panned.
S12	749320e, 9354480n	Elongated alunite‐kaolinite anomaly trending northwest, 200m in length and lying across a creek.
S13	749170e, 9354190n	A 300m in length, elongated alunite‐kaolinite anomaly which continues across a creek.
S14	748620e, 9354210n	Linear northeast trending structure anomalous in the phlogopite and propylitic alteration ratios.
S15	748800e, 9355040n	A 70m diameter circular alunite anomaly.
S16	748690e, 9355020n	A small 50m diameter circular alunite‐kaolinite anomaly.
S17	748730e, 9354840n	A northeast trending anomaly in the propylitic ratio.
S18	748210e, 9354340n	Linear 400m long northeast trending structure anomalous in phlogopite and propylitic alteration ratio at the headwater of a creek.
S19	747940e, 9354060n	Linear 350m long northeast trending structure anomalous in alunite‐kaolinite at the headwaters of a creek.
S20	748080e, 9354000n	Linear 300m long northeast trending structure anomalous in alunite‐kaolinite at the headwaters of a creek, 70m south of anomaly S19.
S21	747420e, 9353400n	Minor circular target anomalous in the quartz ratio.
S22	749580e, 9353750n	A 200m diameter annulus of phlogopite also anomalous in the propylitic ratio, next to a creek.
S23	749860e, 9353570n	Linear 700m long zone of propylitic alteration trending northeast.
S24	746220e, 9355010n	Low carbonate halo 370m in diameter cutting across a creek.
S25	746350e, 9354800n	Small discrete alunite anomaly.
S26	746500e, 9354840n	Small discrete alunite anomaly.
S27	747150e, 9354800n	Discrete circular anomaly in the TIR quartz ratio.
S28	746630e, 9352830n	Two discrete anomalies in the TIR silica ratio occurring between creeks.
S29	746820e, 9352130n	Discrete oval shaped TIR quartz ratio anomaly on the south‐western section of the interpreted circular rim.
S30	747410e, 9352100n	Two discrete circular anomalies in the TIR quartz ratio.
S31	748590e, 9353060n	Circular 410m zone of anomalous quartz and illite.
S32	748280e, 9352400n	Linear 250m long zone of anomalous alunite + kaolinite trending northeast and cutting through a creek.
S33	748240e, 9352000n	An east‐west 400m long elongated zone, anomalous in the TIR quartz ratio.
S34	748940e, 9352400n	Linear 1200m zone in the TIR quartz ratio, trending northeast.
S35	749140e, 9352240n	Linear 600m long zone anomalous in ferric iron ratio.
S36	749720e, 9352700n	Circular zone anomalous in the TIR quartz ratio.
S37	750040e, 9352980n	Oval target anomalous in the TIR quartz ratio and illite.
S38	748220e, 9351600n	Discrete circular anomaly in the TIR quartz ratio.
S39	747710e, 9351650n	A 100m long zone, anomalous in the phlogopite equivalent band.
S40	746570e, 9351360n	A 160m long zone anomalous in alunite, trending east‐northeast.
S41	747100e, 9351150n	Circular zone of anomalous alunite where 5 grain of visible gold were reported from a pan con stream sample.

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

Frontiers 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 Exploration Manager was generally onsite for the entire Exploration program and if he was not onsite there was always a Senior Geologist or the Managing Director onsite to supervise. 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

Komsen core was drilled HQTT (triple tube) by a an RB37 ‘man‐portable’ drill rig and was removed from the inner tube into 1m long core trays, being broken to fit as appropriate. The holes at Eghin, Ekhos and elsewhere were driklled by CS1800 and CS1000 drill rigs 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, combined with the fact that we utilise our own rig and drillers who are not paid meterage (speed) bonuses and are therefore more careful with core recovery than normal commercial drillers (working on meterage bonuses).

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.

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. We do not get a gain in material.

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

The core has 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.

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

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.

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.

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.

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.

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.

All analyses were appropriately requested relative to the target type and expected assay ranges and were undertaken by Intertek in Jakarta, INdonesia.

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

Base metals were determined by a 4 acid ICP‐OES finish. The sample is digested with nitric, hydrochloric, hydrofluoric and perchloric acids to effect as near to total solubility of the sample as possible. With most silicate based material, solubility is to all intents and purposes complete, however, elements such as Cr, Sn, W, Zr and in some cases Ba, may prove difficult to bring into solution. Some minerals may dissolve, or partly dissolve and precipitate the element of interest. Examples are silver, lead in the presence of sulphur/sulphate, barium in the presence of sulphur/sulphate, Sn, Zr, Ta, Nb through hydrolysis.

The solution from the digest is presented to an ICP‐OES for the quantification of the elements of interest. with detection limits of: Ag 0.5 – 200 ppm, Cu 5 – 10000 ppm, Ni 5 – 10000 ppm, Te 10 – 10000 ppm, Al 100 – 400000 ppm, Fe 100 – 1000000 ppm, P 20 – 100000 ppm, Th 10 – 10000 ppm, As 3 – 10000 ppm, Hf 20 – 10000 ppm, Pb 5 – 5000 ppm, Ti 10 – 20000 ppm, Ba 5 – 10000 ppm, K 100 – 200000 ppm, Rb 5 – 10000 ppm, U 10 – 10000 ppm, Be 0.5 – 5000 ppm, La 0.5 – 10000 ppm, S 20 – 50000 ppm, V 1 – 10000 ppm, Bi 5 – 10000 ppm, Li 1 – 10000 ppm, Sb 2 – 5000 ppm, W 10 – 10000 ppm, Ca 50 – 400000 ppm, Mg 20 – 1000000 ppm, Sc 0.5 – 500 ppm, Y 0.5 – 5000 ppm, Cd 1 – 5000 ppm, Mn 5 ‐ 10000 ppm, Se 10 – 10000 ppm, Zn 5 – 10000 ppm, Ce 10 – 10000 ppm, Mo 5 ‐ 10000 ppm, Sn 2 – 1000 ppm, Zr 1 – 10000 ppm, Co 1 – 10000 ppm, Na 50 – 200000 ppm, Sr 1 – 10000 ppm, Cr 10 – 20000 ppm, Nb 10 – 10000 ppm, Ta 20 – 10000 ppm.

If the sample contained more of the element than the method was capable of determining it was re‐run using and ‘Over‐Range’ method 4 acid – ore grade, assay grade method. The sample weighing 0.2g (df=500) is digested with nitric, hydrochloric, hydrofluoric and perchloric acids to effect as near to total solubility of the sample as possible.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

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 occiasonaly 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 by Frontier 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.

Two geologists were onsite at all times and verified the intercepts drilled. The Managing Director verified intersections by inspecting all core via photography and in person.

The use of twinned holes

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

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

The Exploration Manager manually entered the primary data into his laptop in the field and later transferred it to the Managing Directors laptop via USB memory stick. Assay data is provided by the laboratory as a CSV file that the Managing Director manipulated to produce weighted average assay results depending on specific cut‐off grades and intervals. This data is stored on the Managing Director’s laptop as the primary database. Physical hardcopy data and representative core and rock specimens are stored at the Frontier office in Perth, WA with backup copies onsite at the project area.

Any adjustments to assay data.

No adjustments were made to any assay data, however, where available the assay results were averaged and the average result was reported. All gold assay results are reported herein. ICP assaying produces 1 result per element unless it is over‐range, in which case an over‐range method was utilised to obtain the actual assay value, as noted above.

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.

No sample compositing was undertaken

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.

The sampling conducted achieves unbiased sampling of possible structures to the extent this is known and /or possible relative to physical constraints on the location of the drill rig and / or the orientation of the outcrop sampled relative to its strike and dip. The diagrams and plans contained show relatively what the angle of incidence is relative to the structure being drilled.

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.

The orientation of the holes is noted above and the orientation of the outcrops are noted where possible in the body of the text. Where possible the true widths have been estimated, and indicated in the text. There is no attempt to introduce sampling bias, but in very steep and difficult areas it is often difficult/impossible to be able to drill in the best location and therefore you must drill from where you can. All reasonable attempts are made to drill in the best location possible, however, drilling from one pad is much more economical than drilling for separate pads and as such it is routinely undertaken in that manner producing vertical and /or horizontal fans of drill holes.

SAMPLE SECURITY

The measures taken to ensure sample security

Samples were retained in the custody of company staff onsite until despatched by boat for freighting via an accredited fright handler to the laboratory.

AUDITS OR REVIEWS

Industry standard practices are used and no audits or reviews of sampling techniques and data have been undertaken to date.

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, but can be insecure if the region is deemed ‘in the National Interest’ for some reason. Terms are ‘infinitely’ renewable 2 year periods and are subject to a Wardens Court Hearing to ascertain the landowners attitude toward the exploration.

EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.

EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.	EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.	EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.	EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.	EL 2416 was granted on 15/11/2016. Full details of Frontiers tenements are tabulated below.
Frontier Resources Ltd Exploration Licence Information
	Licence No.	Date From	Date To	Ownership	Area (SQ KM)	Lat. Sub Blocks
Bulago River*	EL 1595	7/07/2014	6/7/2016	100% Frontier Gold PNG Ltd	100	30
Muller Range	EL 2356	31/12/2015	30/12/2017	100% Frontier Copper PNG Ltd	187	56
Sewatupwa River	ELA 2476	Application only		90% Frontier Copper PNG Ltd	436	131
Lake Lavu	ELA 2477	Application only		90% Frontier Copper PNG Ltd	839	252
Gazelle	ELA 2515	Application only		90% Frontier Copper PNG Ltd	703	211
* Under renewal ‐ Hearing completed					2,264 SQ KM
NB: The Papua New Guinea Mining Act of 19 and the PNG Government maintains the right		92 stipulates that ELs are granted for renewable 2 year Terms (subject to Work and Financial Commitments) topurchase upto 30%project equityat "Sunk Cost" if/when a MiningLease isgranted.

EXPLORATION DONE BY OTHERS

Exploration completed by previous explorers has been systematically and comprehensively documented in previous releases and Quarterly Reports to the ASX under EL 1345.

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

All assays are tabulated herein so the reader can visually see what each assay result is within each reported intercept. Higher grade intercepts within the weighted assay average tabulated results are all noted.

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.

The diagrams and plans contained herein show relatively what the angle of incidence is to the structure being drilled. The orientation of the holes and the outcrops are noted as possible in the body of the text. Intercepts are noted as downhole intercept but where possible the true widths have been estimated, and also indicated.

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 previously under EL 1345.

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.