FORTUNA METALS LTD — Capital/Financing Update 2017

Feb 27, 2017

ADDRESS Unit 5, Ground Floor 1 Centro Ave, Subiaco WA, 6008 Australia

PHONE EMAIL +61 (8) 9486 4036 pmcneil@frontierresources.com.au ABN WEBSITE 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

Market Announcements Platform

28[th] February 2017

Muller Mobilisation Underway for First Exploration Program

Frontier Resources Limited ( Frontier ) is very pleased to announce that the Muller (EL 2356) exploration team is in Tari, Hela Province, PNG and they met with landowners and the regions’ councillor (representative of the Local Level Government) on Sunday to gain access to the Tinga (Tingi) Prospect area. The helicopter mobilisation into the Tinga Prospect is scheduled for this week.

A 5-week exploration program is anticipated to better define drilling targets and will include: establishing a camp, relocating areas of interest defined from soil geochemistry (gold, copper, zinc and molybdenum plans are attached showing thematic contouring of elements with geology or alteration) /rock outcrop /float sampling, evaluation of creek geology and hand trenching along possible strike extensions to previously defined mineralisation. This will greatly assist in allowing meaningful field visits by possible JV partners, if /when they progress to the next phase of project evaluation and prior to detailed discussions.

Exploration targets are:

• Porphyry style copper-gold mineralisation (in Angali and Andiria Creeks).

• Skarn gold —base metal on the intrusive margins with the limestone.

• Epithermal higher grade gold + silver mineralisation.

• Breccia hosted base metal stockwork veining (at Hogo Creek).

• NE-SW fault controlled massive epidote-pyrite, massive pyrite and massive magnetite-pyrite mineralisation (at Angali Creek, Hogo Creek and Magnetite Creek).

Exploration results (released to the ASX 26[th] April 2016) at Tingi by previous explorers include:

• Strong gold in soil anomalies (including 90m of 2.14 g/t gold, to a high of 6.09 g/t gold), plus strong leadzinc ridge soil anomalies (including 390m of 0.17% lead + 0.33% zinc) on the northern half of the main target, reflecting stratabound base metal skarn mineralisation along the base of the Darai Limestone. The tropical setting may have leached copper from the surficial soils and rocks and provided low copper assay results.

• A 250m x 200m soil–rock chip anomaly (>300 ppm copper and >0.1 g/t gold) was delineated coincident with phyllic-altered diorite.

• Gold assays from float rock include 30 g/t gold, 12 g/t gold and 4.9 g/t gold.

• Outcrop rock grab samples include 1.1g/t gold + 0.26% copper + 0.29% lead + 8.8% zinc and 3.72g/t gold + 1.55% zinc + 0.53 g/t lead.

• Pyrite altered quartzite outcrops had assays to 0.97 g/t gold + 58 g/t silver + 0.24% copper, that probably represents low sulphidation epithermal quartz-sulphide gold + copper mineralisation that formed marginal to the porphyry copper-gold intrusions.

• Channel sampling along strike of Jerry’s skarn (6m thick x 30m long + an additional 50m in gossan outcrop to the southwest) returned an average for 20 non-continuous outcrop channel samples of 1.18g/t gold. A total of 15 x 2m channel samples were taken with best results of 2m continuous chip sampling showing 28m of 0.78 g/t gold including 2m of 4.36g/t gold and 2m of 2.58g/t gold.

• 10m of polymetallic massive sulphide assayed 3.3 g/t gold + 0.12% copper + 0.8% lead+ 1.9% zinc, within potassically and phyllicly altered diorite, representing a feeder for the base metal skarn mineralisation.

• 24m zone of andesite porphyry 0.085% copper with up to 10% pyrite + minor chalcocite.

• A 3m channel sample of brecciated massive sulphide magnetite skarn at the andesite porphyry / Darai Limestone contact assayed 1.17 g/t gold + 33 g/t silver + 0.16% copper + 1.80% lead + 3.50% zinc.

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For additional information relating to the Muller EL or 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

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Peter A. McNeil M.Sc. - 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.