FORTUNA METALS LTD — Capital/Financing Update 2017

Apr 11, 2017

==> picture [102 x 72] intentionally omitted <==

ADDRESS PHONE EMAIL Unit 5, 1 Centro Avenue +61 (08) 9295 0388 pmcneil@frontierresources.com.au SUBIACO WEBSITE WA, 6009, Australia ABN: 96 095 684 389 www.frontierresources.com.au

ASX: FNT

12 April 2017

Dear Shareholder,

NOTICE TO INELIGIBLE SHAREHOLDERS OF NON-RENOUNCEABLE RIGHTS ISSUE

We write to you as the registered holder of Frontier Resources Limited ( Frontier or the Company ) shares whose registered address is outside of Australia and New Zealand as of today's date.

As detailed by the Company in the Prospectus lodged with ASIC and ASX on 12 April 2017, Frontier is undertaking a non-renounceable pro-rata rights issue to Eligible Shareholders of ordinary fully paid shares in the Company at an issue price of $0.045 per share on the basis of one (1) share for every three (3) existing shares held at 5.00pm (AWST) on the Record Date of 21 April 2017 (the Offer ).

The Offer is available to all Frontier shareholders registered as shareholders as at 5.00pm (AWST) on the Record Date of 21 April 2017 whose registered address is in Australia or New Zealand ( Eligible Shareholders ).

The Offer is not being extended to Frontier shareholders whose registered address is outside Australia or New Zealand ( Ineligible Shareholders ). The Company has determined that it would be unreasonable on this occasion to extend the Offer to you as an Ineligible Shareholder having regard to:

• (a) the number of shareholders in your jurisdiction;

• (b) the number and value of shares the shareholders in your jurisdiction would be offered; and

• (c) the cost of complying with the legal requirements and the requirements of the regulatory authorities in your jurisdiction.

This letter is to inform you that you are not an Eligible Shareholder for the purposes of the Offer and consequently you will not be able to subscribe for shares under the Offer. This letter is not an offer to grant shares to you, nor an invitation to apply for shares. You are not required to do anything in respect of this letter.

For your information only, details of the Offer are contained in the prospectus lodged with ASIC and ASX on 12 April 2017 which is available on the Company’s ASX platform at www.asx.com.au.

If you have any questions in relation to the Offer, please contact the Company Secretary on +61 8 9486 4036 between 8.30am and 5.00pm (AWST) Monday to Friday.

FRONTIER RESOURCES LTD

==> picture [111 x 31] intentionally omitted <==

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