FORTUNA METALS LTD — Capital/Financing Update 2017

Feb 22, 2017

ADDRESS Unit 5, Ground Floor 1 Centro Ave, Subiaco WA, 6005 Australia

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

==> picture [114 x 80] intentionally omitted <==

ASX: FNT

Market Announcements Platform

23[rd] February 2017

Bulago Mobilisation Underway and Drilling to Commence Saturday 25th

Frontier Resources Limited ( Frontier ) is very pleased to announce that the drilling/exploration team commenced the general fixed wing aircraft mobilisation into the Bulago region yesterday and it is continuing today. The B407 helicopter will sling and/or shuttle the equipment /supplies and staff to site today and tomorrow.

A 2 ½ month exploration and drilling program is anticipated to commence on Saturday 25[th] February, using our own rig that is still onsite. Multiple core holes will initially be drilled at the Swit Kai high-grade gold Prospect and then a hole at a high priority porphyry copper -gold target in the Bulago Valley. Additional hand trenching will be undertaken on possible high-grade gold repetitions and on known strike extensions to the Swit Kai mineralisation.

In addition, we will undertake stream sampling of the effectively unexplored but highly prospective area located to the west, northwest and north of Swit Kai, along with drainage float and outcrop sampling as soon as possible. There are known gold anomalies in the parts of these drainages that have been sampled and some significant gold in rocks noted by previous explorers, but Frontier has never evaluated this region.

An aeromagnetic anomaly located proximal and to the north of Swit Kai (labelled Suguma Creek Skarn in the plan), could represent pyrrhotite related gold mineralisation and it will be evaluated. Note that parts of the Swit Kai high grade gold mineralisation contain substantial quantities of pyrrhotite, as seen in high sulphide sections in outcrop (photo) and core in East Creek Upper Zone hole EZU001 (5.0m grading a weighted average of 13.92 g/t gold released to the ASX 13[th] June 2016).

==> picture [460 x 336] intentionally omitted <==

Subsequent to the Sinivit Wardens Court Hearing next Thursday, I will be onsite at Swit Kai for the early drilling and anticipate carrying back the first round of core samples from site for assaying and having them available for release by about March 23[rd] .

For additional information relating to Frontier, please visit the website at www.frontierresources.com.au

FRONTIER RESOURCES LTD

==> picture [112 x 32] intentionally omitted <==

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

==> picture [218 x 170] intentionally omitted <==

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.