FORTUNA METALS LTD — Interim / Quarterly Report 2016

Mar 14, 2016

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FRONTIER RESOURCES LTD

A.B.N. 96 095 684 389

CONSOLIDATED INTERIM FINANCIAL REPORT

HALF-YEAR ENDED 31 DECEMBER 2015

	Page
DIRECTORS’ REPORT	2
AUDITORS’ INDEPENDENCE DECLARATION	6
INDEPENDENT REVIEW REPORT TO THE MEMBERS	7-8
DIRECTORS’ DECLARATION	9
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME	10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	11
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	12
CONSOLIDATED STATEMENT OF CASH FLOWS	13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	14-17

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2015 and any public announcements made by Frontier Resources Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

DIRECTORS’ REPORT

Your directors present their report on the consolidated entity consisting of Frontier Resources Ltd and the entities it controlled at the end of, or during, the half-year ended 31 December 2015.

DIRECTORS

The following persons were directors of Frontier Resources Ltd during the whole of the half-year and up to the date of this report, unless otherwise indicated:

Peter A. McNeil (Chairman & Managing Director) Paige McNeil (Non-Executive Director) Peter Swiridiuk (Non-Executive Director)

RESULTS AND DIVIDENDS

The consolidated entity loss after income tax for the half-year is $356,115 (2014: $1,716,147). There is no dividend paid or recommended.

The result for this half year included exploration expenditure of $43,897 (2014: $484,218) and the impairment of financial assets of $nil (2014: $802,449).

REVIEW OF OPERATIONS

Frontier Resources Ltd is focused on mineral exploration in Papua New Guinea (Figure 1) with a 100% interest in the Bulago Exploration Licence (EL) and the recently granted Muller Range EL, that are both highly prospective for the discovery and delineation of intrusive related high grade gold, copper+/- gold +/-molybdenum porphyries, associated polymetallic skarn and epithermal gold deposits.

On 17 February 2016 Paige McNeil resigned as Managing Director to pursue other opportunities, but remains on the Board as a Non-Executive Director. Chairman, Peter McNeil, has been re-appointed as Managing Director and Chief Geologist. Peter Swiridiuk reverted to a Non-Executive Director role, but assists with geophysical data compilations and project assessments.

Tasmanian and Papua New Guinean Exploration License bond refunds have been received assisting cash flow. $112,000 in Tasmanian bonds remain outstanding and unsettled due to a dispute of ownership of the minor but existing hole capping rehabilitation requirement (holes were left open for downhole surveys etc. Management/ Director Consultants have all taken a 20% or more decrease in their daily rates to assist Frontier's cash flow through a difficult time in the minerals/investment cycle.

Bulago EL 1595

FNT plans to further drill test the Swit Kia East Creek high grade gold Upper and Lower Zones when possible and its CSD500 drill rig remains onsite.

A line of aeromagnetic anomalies (possible skarns) trend from the topographic high SE of the Bulago basin towards the WNW. Downslope from these anomalies at Funutu Prospect are the best gold in both panned concentrate and stream sediment sampling in the EL demonstrating a very strong, cohesive and consistent gold in drainage anomaly. In addition, there are also a number of magnetic skarn signatures from Funutu around the eastern and northern margins of the Bulago basin that are supported by anomalous stream geochemistry and coppergold mineralised rock float samples.

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FIGURE 1
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During the half-year, a geophysical/geochemical data review was completed by Technical Director Peter Swiridiuk, specifically targeting the multiple interpreted skarns (none have been followed-up by FNT or covered by soil geochemistry). Peter noted " The geophysical and geochemical data from Bulago Valley (EL 1595) show the area to be highly prospective for gold, copper and molybdenum. A total of 13 skarn targets are yet to be tested by drilling and sampling .”

The best skarn target delineated by the review and future ground follow-up will be drilled subject to sufficient funding.

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Grant of Muller Range Exploration Licence

Subsequent to the period, on 17 February 2016, the Company advised that the Muller Range Exploration Licence EL 2356 has been granted in the highly geologically prospective Fold/Thrust Belt of PNG.

The Muller Range EL (Figure 2) is along strike to the SE of Frontier's Bulago Project and contains (NW to SE):

• Two known porphyry occurrences (Tingi Valley and Baia Prospect).

• A possible high sulphidation/ intrusive related gold prospect and a probable buried porphyry copper-gold-molybdenum target (Cecilia River).

• Copper in stream anomalies in the structural zone to/at the Mt Sisa volcanic centre.

The Baia Prospect is drill ready and all areas warrant significant additional exploration. Anticipated exploration to capitalise on the significantly increased US dollar gold price and 'leveraged' Australian dollars /PNG Kina includes:

• A strategic diamond core drilling program as soon as possible at Bulago to evaluate known surficial high grade gold mineralisation with the Company's onsite CSD500 drill rig:

• Targets are Swit Kia Prospect's Upper and Lower Zone eastern strike extensions.

• Surface jackhammer sampling previously demonstrated a 2.0m wide, 55 degree south dipping zone grading 195.0 g/t gold.

• Frontier will assess small scale alluvial gold development opportunities with the Landowners, as currently being advocated by the PNG Mineral Resource Authority.

• Possible skarn mineralised areas proximal to Swit Kia will be evaluated for possible future exploration and drilling.

The Baia Prospect is a large porphyry system that strongly warrants exploratory drilling, with a copper - gold - molybdenum in soil anomaly, a small skarn and the correct geochemical, geological and structural characteristics such as:

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• The copper in soil geochemistry demonstrates a distinct cohesive anomaly that is about 900m long north- south and about 600m wide east -west. There are three smaller, but still large, copper anomalies that are about 500m long and up to 200m wide.

• The contoured zinc and lead soil geochemistry at Baia Prospect demonstrates a typical zinc/ lead halo around a 1,200m diameter core to the porphyry copper system which is approximately

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coincident with the outer margins of the copper anomaly. The zinc/ lead anomaly has a width of about 500m and an outer annulus diameter of about 2,200m.

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• Dominant alteration is propylitic, with structurally controlled phyllic and patchy un-mineralised potassic.

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• The prospect is located on a topographic high in a major ENE trending fault zone/ transfer structure (as per the OK Tedi Mine).

The Cecilia Prospect can be rapidly advanced to drill testing with additional surface exploration. It has demonstrated:

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Tingi
Baia
Cecilia
Mt Sisa
Muller Range EL 2356
Tingi, Baia, Cecilia and Mt Sisa Prospects on
DTM Topography
FIGURE 2
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• Stream sediment geochemistry >250ppm copper and altered rock chip samples returned 0.616g/t gold and 0.12 g/t gold + 710ppm copper. Altered granodiorite float assayed 0.18% copper, with chalcopyrite and bornite and others up to 0.62% copper.

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• High sulphidation epithermal advanced argillic alteration, with vuggy quartz - alunite- pyrophyllite, but no significant gold noted in follow-up.

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• Strong argillic and propylitic alteration, which has been covered by a recent agglomerate and pebble dykes are common, indicating a probable buried porphyry copper-gold-molybdenum target.

CORPORATE

Elliott Bay Agreement (EL 20/1996 and EL33/2010)

Frontier expects to receive $112,000 from the refund of bonds currently held in the name of Frontier Resources Ltd, but there is an Agreement dispute between Torque and the Purchaser regarding responsibility for rehabilitation (hole capping etc).

EVENTS OCCURRING AFTER THE

REPORTING DATE

Subsequent to the period, on 17 February 2016, the Company advised that Paige McNeil had resigned as Managing Director to pursue other opportunities, but remains on the Board as a

Non-Executive Director, and that Chairman Peter McNeil was re-appointed as Managing Director and Chief Geologist.

Other than as set out above there were no other events occurring after the reporting date.

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AUDITORS’ INDEPENDENCE DECLARATION

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 immediately follows this report.

This report is made in accordance with a resolution of the directors.

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Peter A. McNeil

Chairman and Managing Director M.Sc., MAIG

15[th] March 2016

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Level 15 Exchange Tower, 2 The Esplanade Perth WA 6000 PO Box 5785, St Georges Terrace WA 6831 T +61 (0)8 9225 5355 F +61 (0)8 9225 6181

www.moorestephenswa.com.au

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF FRONTIER RESOURCES LIMITED

As lead auditor for the review of Frontier Resources Limited for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

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Suan-Lee Tan Partner

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Moore Stephens Chartered Accountants

Signed at Perth this 15[th] day of March 2016

Liability limited by a scheme approved under Professional Standards Legislation. Moore Stephens ABN 16 874 357 907. An independent member of Moore Stephens International Limited - members in principal cities throughout the world. The Perth Moore Stephens firm is not a partner or agent of any other Moore Stephens firm.

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Level 15 Exchange Tower, 2 The Esplanade Perth WA 6000

PO Box 5785, St Georges Terrace WA 6831

T +61 (0)8 9225 5355 F +61 (0)8 9225 6181

www.moorestephenswa.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF FRONTIER RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Frontier Resources Limited and controlled entities (the consolidated entity) which comprises the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity, the consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of Frontier Resources Limited (the Company) are responsible for the preparation and fair presentation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Frontier Resources Limited and controlled entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Liability limited by a scheme approved under Professional Standards Legislation. Moore Stephens ABN 16 874 357 907. An independent member of Moore Stephens International Limited - members in principal cities throughout the world. The Perth Moore Stephens firm is not a partner or agent of any other Moore Stephens firm.

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Independence

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In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act, provided to the directors of Frontier Resources Limited and controlled entities, would be in the same terms if provided to the directors as at the time of this auditor’s review report.

Basis for Qualified Conclusion

The Company’s consolidated statement of financial position as at 31 December 2015 includes plant and equipment with a carrying value as at 31 December 2015 of $403,986. We were unable to obtain sufficient evidence to substantiate the recoverable value and existence of the plant and equipment. Consequently we were unable to determine whether any adjustments were required to the carrying value of these assets.

Except for the effects of the matter described above, based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Frontier Resources Limited and controlled entities is not in accordance with the Corporations Act 2001 including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• (ii) complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

Inherent Uncertainty Regarding Going Concern

In addition to the conclusion expressed above, we draw attention to note 1 of the financial statements which states that the financial statements have been prepared on a going concern basis. The Company’s ability to continue as a going concern for at least the next 12 months will require it to undertake further capital raisings during this period. Based on prior experience the directors of the Company are confident of obtaining the necessary shareholder support if and when required. Notwithstanding this there is significant uncertainty as to whether the Company will continue as a going concern for a minimum period of the next 12 months. Should the Company be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts other than as stated in the financial report.

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Suan-Lee Tan Partner

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Moore Stephens

Chartered Accountants

Signed at Perth this 15[th] day of March 2016

Liability limited by a scheme approved under Professional Standards Legislation. Moore Stephens ABN 16 874 357 907. An independent member of Moore Stephens International Limited - members in principal cities throughout the world. The Perth Moore Stephens firm is not a partner or agent of any other Moore Stephens firm.

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DIRECTORS’ DECLARATION

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 10 to 17 are in accordance with the Corporations Act 2001 , including:

• (i) complying with AASB 134 Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance, as represented by the results of its operations, changes in equity and its cash flows, for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that Frontier Resources Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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Peter A. McNeil Managing Director

15[th] March 2016

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Notes Continuing Operations Revenue Interest income Exploration expenditure Gross employee benefit expense Directors benefits expense Administration and insurance Consultancy Corporate compliance and shareholder relations Depreciation Office rental, communications and consumables Loss on disposal of shares Impairment of financial asset Other expenses Loss from continuing operations Income tax expense Loss after income tax Loss for the half year is attributable to: Equity holders of Frontier Resources Limited Non-controlling interest Total loss for the half year Other comprehensive income Items that may be subsequently reclassified to profit or loss: Movement in foreign currency reserve Total comprehensive loss for the half year attributable to owners of Frontier Resources Limited Total comprehensive loss for the half year is attributable to: Equity holders of Frontier Resources Limited Non-controlling interest Total comprehensive loss for the half year Loss per share for loss attributable to the ordinary equity holders of Frontier Resources Limited Basic and diluted loss per share	Half-year 2015 $ 2014 $ 25,045 2,512 465 95
	25,510 2,607 (43,897) (484,218) - (5,707) - (78,000) (75,946) (73,433) (50,775) (12,825) (44,022) (49,313) (125,457) (161,989) (30,538) (36,897) - (5,283) - (802,449) (10,990) (8,640)
	(356,115) (1,716,147) - -
	(356,115) (1,716,147)
	(356,115) (1,716,147) - -
	(356,115) (1,716,147)
	(15,106) 36,882
	(15,106) 36,882
	(371,221) (1,679,265) - -
	(371,221) (1,679,265)
	Cents Cents (0.08) (0.47)

This Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015

		31-Dec-15	30-Jun-15
	Notes	$	$
ASSETS
Current Assets
Cash and cash equivalents		28,239	216,367
Trade and other receivables		14,725	27,861
Total Current Assets		42,964	244,228
Non-Current Assets
Trade and other receivables		49,811	64,248
Plant and equipment		407,718	546,898
Total Non-Current Assets		457,529	611,146
Total Assets		500,493	855,374
LIABILITIES
Current Liabilities
Trade and other payables		230,466	278,417
Total Current Liabilities		230,466	278,417
Total Liabilities		230,466	278,417
Net Assets		270,027	576,957
EQUITY
Contributed equity		31,197,240	31,132,949
Reserves		3,529,923	3,545,029
Accumulated losses		(34,457,136)	(34,101,021)
Total Equity		270,027	576,957

This Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2015

Contributed Equity Accumulated Losses Share Based Payment Reserve Options Premium Reserve Foreign Exchange Reserve Total Non- Controlling Interest 30,016,736 (31,687,053) 3,939,885 - (518,196) 1,751,372 - - (1,716,147) - - - (1,716,147) - - - - - 36,882 36,882 -	Contributed Equity Accumulated Losses Share Based Payment Reserve Options Premium Reserve Foreign Exchange Reserve Total Non- Controlling Interest 30,016,736 (31,687,053) 3,939,885 - (518,196) 1,751,372 - - (1,716,147) - - - (1,716,147) - - - - - 36,882 36,882 -	Total Equity 1,751,372 (1,716,147) 36,882
- (1,716,147) - - 722,598 -	- - 36,882 (1,679,265) - - 78,000 - 78,000 - - - - 722,598 -	(1,679,265) 78,000 722,598
30,739,334 (33,403,200)	3,939,885 78,000 (481,314) 872,705 -	872,705
31,132,949 (34,101,021) - (356,115) - -	3,939,885 78,000 (472,856) 576,957 - - - - - (356,115) - - - - (15,106) (15,106) -	576,957 (356,115) (15,106)
- (356,115) 64,291 -	- - (15,106) (371,221) - - - - 64,291 -	(371,221) 64,291
	3,939,885 78,000 (487,962) 270,027 -

This consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Notes Cash Flows from Operating Activities Cash receipts from customers Interest received Payments to suppliers and employees Payments for exploration and evaluation activities Net cash outflow from operating activities Cash Flows From Investing Activities Proceeds from sale of equity investments Payment for shares in listed entity Net cash inflow from investing activities Cash Flows from Financing Activities Proceeds from issue of shares (net of share issue costs) Net cash inflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Effect of exchange rates on cash holdings in foreign currencies Cash and cash equivalents at end of the half-year	Half-year 2015 $ 2014 $ 13,006 2,512 465 95 (155,754) (238,703) (39,979) (468,076)
	(182,262) (704,172)
	- 72,907 - (18,200)
	- 54,707
	(3,290) 692,598
	(3,290) 692,598
	(185,552) 43,133 216,367 41,068 (2,576) (21,830)
	28,239 62,371

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.

These interim financial report is intended to provide users with an update on the latest annual financial statements of Frontier Resources Limited and its controlled entities. As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that these financial statements be read in conjunction with the annual financial statements for the year ended 30 June 2015 and any public announcements made by Frontier Resources Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The half-year financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The same accounting policies and methods of computation have been followed in these interim financial statements as were applied in the most recent annual financial statements.

Going concern basis of preparation

The financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities and the realization of assets and extinguishment of liabilities in the ordinary course of business. For the half-year ended 31 December 2015 the Group recorded a loss after tax of $356,115 (2014: $1,716,147) and had a net working capital deficit of $187,502 (30 June 2015: $34,189).

The Directors recognise that the ability of the company to continue as a going concern is dependent on the ability of the company being able to secure additional funding through either the issue of further shares and/or options or convertible notes or a combination thereof as required to fund ongoing exploration and evaluation activities, and for additional working capital.

Based on the above, the company is confident that it will successfully raise additional funds, if required, to meet its financial obligations in future periods. As a result the financial report has been prepared on a going concern basis. However should the consolidated entity be unsuccessful in securing further working capital, the consolidated entity may not be able to continue as a going concern.

The financial statements do not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the company not be able to continue as a going concern.

New and revised accounting requirements applicable to the current interim period

The Group has considered the implications of the new or amended Accounting Standards applicable to the Group for the first time in the current half-year reporting period 1 July 2015 to 31 December 2015 but determined that their application to the financial statements is either not relevant or not material.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

2. LOSS FOR THE PERIOD

2. LOSS FOR THE PERIOD
	Half-year
	2015	2014
The following expense items are relevant in explaining the financial
performance for the interim period:
Exploration expenditure	43,897	484,218
Directors benefit expense (options)	-	78,000
Impairment to Available for Sale Investments	-	306,500
Impairment to Receivables	-	495,949

3. OPERATING SEGMENTS

The consolidated entity operates predominantly in the mining industry. This comprises exploration and evaluation of gold, silver and base metals projects. Inter-segment transactions are priced at cost to the consolidated entity.

Segment assets include the cost to acquire the tenement and the capitalised exploration costs of those tenements.

For the Half Year to 31 December 2015 Segment Revenue Segment Results Amounts not included in segment results but reviewed by Board: Corporate Expenses Share-based Payments Expense Loss before Income Tax As at 31 December 2015 Segment Assets Segment Liabilities	Papua New Guinea Exploration $ Treasury $ 25,045 465	Consolidated $ 25,510
	(167,275) (7,106)	(174,381) (181,734) -
	439,808 60,685
		(356,115)
		500,493
	4,151 226,315	230,466

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

3. OPERATING SEGMENTS (Cont.)

For the Half Year to 31 December 2014 Segment Revenue Segment Results Amounts not included in segment results but reviewed by Board: Corporate Expenses Directors benefits expense Loss before Income Tax As at 30 June 2015 Segment Assets Segment Liabilities 4. EQUITY SECURITIES Ordinary shares – fully paid Balance at 1 July Consolidation of Capital 20:1 Share Issue Balance at end of the period Options to purchase ordinary shares Balance at 1 July Issue of directors’ options Consolidation of Capital 20:1 Balance at end of the period		Australian Exploration $ -	Papua New Guinea Exploration $ Treasury $ 2,512 95
		(512,103)	(659,250) (311,593)
		-	562,202 293,172
		-	46 278,371
		Dec 2015 Shares 581,971,496 (552,871,850) 3,470,000
		32,569,646	581,971,496 31,197,240 31,132,949
			Dec 2015 Jun 2015 Options Options 28,000,000 18,000,000 - 10,000,000 (26,600,000) - 1,400,000 28,000,000

.

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FRONTIER RESOURCES LTD & ITS CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

5. RESERVES

Share based payment reserve Options premium reserve Foreign currency translation reserve Movements – Share based payment reserve Balance at 1 July Option expense Balance at end of the period Movements – Options premium reserve Balance at 1 July Options issued to directors Balance at end of the period Movements – Foreign currency translation reserve Balance at 1 July Currency translation differences arising during the period Balance at end of the period	Dec 2015 $ Jun 2015 $ 3,939,885 3,939,885 78,000 78,000 (487,962) (472,856)
	3,529,923 3,545,029
	3,939,885 3,939,885 - -
	3,939,885 3,939,885
	78,000 - - 78,000
	78,000 78,000
	(472,856) (518,196) (15,106) 45,340
	(487,962) (472,856)

6. COMMITMENTS AND CONTINGENT LIABILITIES

The Group’s commitments remain consistent with those noted at 30 June 2015. The Group has no contingent liabilities at 31 December 2015.

7. DIVIDENDS

There were no dividends paid or recommended during the financial period ended 31 December 2015.

8. EVENTS OCCURRING AFTER THE REPORTING DATE

Subsequent to the period, on 17 February 2016, the Company advised that Paige McNeil had resigned as Managing Director to pursue other opportunities, but remains a Non-Executive Director. Chairman, Peter McNeil, was re-appointed as Managing Director and Chief Geologist.

Other than as set out above there were no other events occurring after the reporting date.

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