FORTUNA METALS LTD — Capital/Financing Update 2017

Apr 11, 2017

ADDRESS PHONE EMAIL Unit 5, 1 Centro Avenue +61 (08) 9486 4036 pmcneil@frontierresources.com.au SUBIACO WEBSITE WA, 6009, Australia ABN: 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

12 April 2017

Dear Option holder,

NON-RENOUNCEABLE RIGHTS ISSUE

Frontier Resources Limited (the Company ) today lodged a prospectus ( Prospectus ) with ASIC and ASX for a nonrenounceable pro rata offer to shareholders with a registered address in Australia or New Zealand of 23,483,912 fully paid ordinary shares on the basis of one (1) new share for every three (3) existing share held as at 5:00pm (AWST) on 21 April 2017 ( Record Date ), at an issue price of $0.045 per share ( Rights Issue ). Pursuant to the Rights Issue, the Company may raise a maximum of approximately $1,056,776 (before costs).

Offers under the Rights Issue will be made under the Prospectus, a copy of which is available on the ASX website http://www.asx.com.au.

The Prospectus will be dispatched to eligible shareholders soon after the Record Date. Eligible shareholders wishing to acquire shares under the Rights Issue will need to complete the personalised entitlement and acceptance form that will accompany the Prospectus.

The purpose of this letter is to give you notice that if you wish to participate in the Rights Issue with respect to your options, you must exercise your options in time for new shares to be allotted and to be entered on the Company’s register of members in advance of the Record Date.

If you do not wish to participate in the Rights Issue (in respect of your options), you do not need to take any action.

Before deciding whether to exercise all or any of your options, you should consider the Prospectus carefully and if in any doubt, consult with your professional advisor.

FRONTIER RESOURCES LTD

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