FORTUNA METALS LTD — Interim / Quarterly Report 2007

Jul 30, 2007

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Name of entity

FRONTIER RESOURCES LTD

FRONTIER RESOURCES LTD
ACN OR ARBN 095 684 389	Quarter ended("currentquarter")
095 684 389	30June 2007

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other - Expenditure reimbursable by JV partner Other - Expenditure reimbursable by others Net Operating Cash Flows	Current quarter $A'000	Year To Date (12 Mths) $A'000
	6 (1,018) - - (117) - 40 - - - (45)	94 (2,640) - - (592) - 60 - - - (324)
	(1,134)	(3,402)
Cash flows related to investing activities 1.8 Payment for purchase of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other - Mines Dept deposits Net Investing Cash Flows 1.13 Total operating and investing cash flows (carried forward)	- - (608) - - 260 - - 1	- - (961) - - 738 - - 1
	(347)	(222)
	(1,481)	(3,624)

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

FRONTIER RESOURCES LTD

1.13 Total operating and investing cash flows (brought forward)	(1,481)	(3,624)
Cash flows related to financing activities 1.14 Proceeds from issue of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Subscriptions re Rights issue Net financing cash flows	5,534 - - - - (959)	7,484 - - - - -
	4,575	7,484
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to 1.20 1.22 Cash at end ofquarter	3,094 1,066	3,860 300
	$4,160	$4,160

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

related	entities
1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of payments to the parties included in item 1.10	Current quarter $A'000
		103
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Directors: salaries and consulting fees

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows.

• 2.2 Details of outlays made by other entities to establish or increase their shares in projects in which the reporting entity has an interest.

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Appendix 5B Mining exploration entity quarterly report

FRONTIER RESOURCES LTD

Financing facilities available

Add notes as necessary for an understanding of the position

Financing facilities available Add notes as necessary for an understanding of the position
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A'000		Amount used $A'000
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development		$A'000
		950
		-
Total		950

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other : fixed term deposits	Current quarter $A'000	Previous quarter $A'000
	4,160	1,066
Total: cash at end ofquarter (item 1.22)	4,160	1,066

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement Reference	Nature of Interest (note(2))	Interest at beginning ofQuarter	Interest at end of Quarter

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Appendix 5B Mining exploration entity quarterly report

FRONTIER RESOURCES LTD

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates

	Total number	Numberquoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs redemptions	Nil	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	132,732,912	132,732,912
	330,000 44,134,304	330,000 44,134,304	10 cents 13 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	Nil	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired/cancelled during quarter	83,092,820 1,600,000 1,645,000 1,630,000	83,092,820	Exercise price 20 cents 20 cents 10 cents 14 cents	Expiry date 30-Nov-07 31-Dec-07 01-Dec-08 20-Oct-11
	44,134,304	44,134,304	20 cents	30-Nov-07
	330,000		10 cents	01-Dec-08
7.11 Debentures (totals only)	Nil	Nil
7.12 Unsecured notes (totals only)	Nil	Nil

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Appendix 5B Mining exploration entity quarterly report

FRONTIER RESOURCES LTD

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4)

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

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Sign here: Date: July 31, 2007
( Director/ Company secretary)
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Print name: Garry M. Edwards

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. Any entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and Quoted Securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of , AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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