FORTUNA METALS LTD — Capital/Financing Update 2017

Apr 11, 2017

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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

ASX: FNT

12 April 2017

Dear Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE

Frontier Resources Limited ( Company ) has issued a prospectus ( Prospectus ) for a rights issue of one (1) fully paid New Share in the Company ( Share ) for every three (3) existing Shares held by Australian and New Zealand resident shareholders at 5:00pm on 21 April 2017 (the Record Date ) at an issue price of $0.045 per Share to raise up to $1,056,776 ( Rights Issue ). The Rights Issue will result in the issue of a maximum 23,483,912 New Shares in the Company. The Prospectus was lodged with the Australian Securities and Investments Commission and ASX on 12[th] April 2017 and is available on the ASX website for inspection. The timetable for the issue is set out below:

TIMETABLE AND IMPORTANT DATES

TIMETABLE AND IMPORTANT DATES
Lodgement date	12 April 2017
Notice to Security Holders containing information required by Appendix	18 April 2017
3B
Ex-date – Shares trade ex-Entitlement	20 April 2017
Record date to determine Entitlement	21 April 2017
Prospectus with Entitlement and Acceptance Form dispatched	27 April 2017
Offer opens for receipt of Applications	27 April 2017
Closing date for acceptances *	18 May 2017
Deferred settlement trading commences	19 May 2017
Notify ASX of under-subscriptions	23 May 2017
Issue of New Shares	25 May 2017
Deferred settlement trading ends	25 May 2017
Dispatch of shareholding statements	26 May 2017
Normal trading of New Shares expected to commence	26 May 2017

• The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date. As such the date the New Shares are expected to commence trading on ASX may vary.

The capital structure of the Company on completion of the issue will be as follows:

Shares	Number
Share currently on issue	70,451,737
Shares offered pursuant to the Rights Issue	23,483,912
Total Shares on issue*.	93,935,649

*Assumes the offer is fully subscribed

In calculating entitlements under the Rights Issue, fractions will be rounded up to the nearest whole number. Full details of the Issue will be contained in the Prospectus that will be mailed to eligible shareholders with a registered address in Australia and New Zealand as at the Record Date. Shareholders eligible to participate should read the Prospectus carefully.

FRONTIER RESOURCES LTD

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