FORTUNA METALS LTD — Capital/Financing Update 2017

Jan 18, 2017

ADDRESS PHONE EMAIL Unit 5, Ground Floor +61 (8) 9486 4036 pmcneil@frontierresources.com.au 1 Centro Ave, Subiaco ABN WEBSITE WA, 6005 Australia 96 095 684 389 www.frontierresources.com.au

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ASX: FNT

Market Announcements Platform

19[th] January 2017

Rights Issue Raises $330,150 for Drilling and Exploration In Papua New Guinea

Frontier Resources Limited ( Frontier ) is very pleased to advise the Rights Issue announced on November 29[th] 2016 closed on Monday, 16[th] January 2017, with 230 applications for 11,005,001 shares totalling $330,150.16.

Commenting on the successful Rights Issue, Frontier’s Managing Director, Mr Peter McNeil said:

The Board of Frontier is delighted with the support shown by 230 of the Company’s shareholders in a difficult market, especially for junior exploration companies. The funds raised will enable Frontier to continue to drill test high priority exploration targets at Bulago, commencing as soon as possible.

The Frontier exploration / drilling team is anticipated to mobilise to Bulago in early February for a 3 month, multiple hole drilling program that will include two high priority porphyry copper -gold holes, in addition to further substantial drilling of the high-grade gold at the Swit Kai Prospect.

The Company also hopes to be able to undertake additional general exploration at Bulago including hand trenching topographic +/- lead/ zinc/gold soil anomalies, undertaking pan concentrate /stream sediment to the northwest and north of Swit Kai and reconnoitring and hand trenching of the major gold/zinc/lead soil anomaly in the central north of the Bulago Valley.

Frontier will also initiate exploration at the Muller EL as soon as practical/ possible.

The Rights Issue offered eligible shareholders registered on the Record Date the ability to subscribe for New Shares on the basis of one (1) fully paid ordinary share for every three (3) held at an issue price of $0.03 per New Share.

The results of the Rights Issue are as follows:

Number of Entitlement Shares:	5,748,544
Number of Additional Shares:	5,256,457
Shortfall Shares:	4,657,864
Total Number of Shares:	15,662,865

The Board of Frontier reserves the right to place the shortfall from the Rights Issue within the next three months. For further information, please contact the Company on (08) 9486 4036.

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

FRONTIER RESOURCES LTD

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