FORTUNA METALS LTD — Capital/Financing Update 2018

May 22, 2018

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

23[rd] May 2018

Cancellation of Unlisted Options and Corporate Update

Frontier Resources Limited ( Frontier ) advises that 2,800,000 unlisted options exercisable at 3 cents each expiring on 30[th] December 2019, and 2,000,000 unlisted options exercisable at 3.4 cents each expiring on 10[th] February 2020 have been cancelled by mutual agreement and for nil consideration.

Following the cancellation of these options, the Company now has on issue the following securities:

• 104,276,813 Fully Paid Ordinary Shares

The Company also announces an update in relation to corporate/financing activities.

Frontier has now completed the requirements of the $6 million Placement Agreement by Forise Investment Sydney Pty Ltd ( Forise ), by cancelling all existing Director and Employee options.

Peter McNeil (and his related entities) have agreed to enter into a voluntary 6 month share sale restriction/ escrow agreement (from completion date) regarding all shares.

Forise has advised the Placement completion date to be on 15 July 2018.

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

FRONTIER RESOURCES LTD

Paige McNeil, B.Ed., Grad DipEd (Trng&Dev), Grad Dip ACG, AGIA, GAICD, FAIM Non-Executive Chairman