FORTUNA METALS LTD — Regulatory Filings 2007

Jun 3, 2007

ADDRESS PO Box 7996 Gold Coast Mail Centre Old 9726 Australia

PHONE +61 (07) 5592 2274 FAX +61 (07) 5592 2275 EMAIL info@frontierresources.com.au WEBSITE www.frontierresources.com.au

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ABN 96 095 684 389

$4^th$ June 2007

Australian Securities Exchange Company Announcements Office

Announcement

HOLE KFD004'S EXTENSION RETURNS ADDITIONAL MINERALISATION AT THE KODU DEPOSIT, PNG

• $\mathcal{L}_{\mathcal{F}}$ Assays from hole KFD004's extension have confirmed that copper gold - molybdenum mineralisation is present in the central-NW sector of the deposit to more than 250m vertical depth.
• $\mathcal{L}_{\mathcal{F}}$ Every hole drilled to date at Kodu by Frontier (and most by previous explorers) have terminated in mineralisation, indicating probable further tonnage expansion potential beyond that currently known and being modelled.
• $\mathbf{r}^{\star}_{\mathbf{r}^{\star}}$ The extension drilled to hole KFD004 supports the above statements:
• Hole KFD004 + Extension returned a total interval of 246.2m $\circ$ grading 0.52% copper equivalent*, from 4m depth (0.32% copper + $0.30$ g/t gold + 105ppm molybdenum).
• The extension to KFD004 returned 88.1m of 0.40% copper $\circ$ equivalent*, from 162m depth $(0.24%$ copper + 0.19 g/t gold + 93 ppm molybdenum).
• Peak assay values in the extension were 0.53% copper, 0.47 g/t $\circ$ gold and 264 ppm molybdenum.
• The mineralisation appears weak megascopically (which is why the $\circ$ hole was stopped initially), but assays show it is still economically significant.

KFD004 + extension was drilled in the central sector of the Kodu Deposit on the 9950N Section. The hole was designed to test the width/depth of the mineralised zone to the NW and it has documented that the deposit is still significantly mineralised to more than 250m depth (in this sector).

The cross section shows the traces of Frontier's five drill holes and historic holes BND002 and 004 with 10m composite mineralised intervals. In addition, it shows the spatial relationship between the porphyry intrusive and the mineralised and un-mineralised wallrock. The mineralised zone at Kodu is still open to the SW, NE (apparently fault offset) and completely at depth.

Hole ID	Intercept Length	Copper Equiv.*	Copper (%)	Gold (g/t)	Molv (Mo) (ppm)	Silver (g/t)	From (m)	Т٥ (m)	Easting I (m)	Northing (m)	RL. (m)	Azi- muth (True)	Dip	EOH Depth (៣)
KFD 004 (incl. extension)	246.2 ml	0.52%	0.32	0.30	105	1.3	4.0	250.2	564399	8972588	934	325	$-65^{\circ}$	250.2
extension only	88.1 m	0.40%	0.24	0.19	93	1.0	162.1	250.2

The weighted assay averages and copper percent equivalents for KFD004 and extension are tabulated below and based on all available assay data.

See note on Cu Equiv.

For additional information relating to the Company and its projects please visit our website at www.frontierresources.com.au or feel free call me on +61 (0) 8 9295 0388.

FRONTIER RESOURCES LTD

$t_{\tau}$ mm

P.A.McNeil, M.Sc. MANAGING DIRECTOR

The information in this report that relates to Exploration Results is based on information compiled by, or compiled under the supervision of Peter A. McNeil, Member of the Aust. Inst. of Geoscientists. Peter McNeil is Managing Director of Frontier Resources and is a consultant to Frontier Resources; he 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 2004 Edition of the Australasian Code of Reporting Exploration Results and consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Notes:

Copper Equivalent is the contained copper, gold, silver and molybdenum that are converted to an equal amount of pure copper and summed (based on assays of mineralised rock and actual metal prices). It is used to allow interpretation of the possible theoretical 'value' of mineralised rock, without consideration of the ultimate extractability any of the metals.

Copper Equivalent is based upon metal prices of US\$3.47/lb Cu, US\$662/oz Au, US\$31/lb Mo (57% MoO₃ conc.) & US\$12.94/oz Ag (21/5/2007).

Island Arc porphyry copper - gold - molybdenum - silver deposits, such as Kodu, typically recover the contained Cu. Au. Mo and Ag (subject to metallurgical characteristics and prevailing metal prices).

Frontier Resources Ltd believe there is good probability that these metals would be recovered if a mining operation were established at Kodu.

The ASX requires a metallurgical recovery be specified for each metal, however, no testwork has ever been undertaken at Kodu and recoveries can only be assumed to be typical for Island Arc porphyry copper - gold - molybdenum - silver deposits.

Drill core was sampled as 2m half core composites for the entire length of the hole. Quality control was assessed via submission of known standards approximately every 10 samples (20m) downhole).

Further, laboratory quality control reported very good repeatability for in-house standards, as well as for duplicate drill core analysis undertaken approximately every 35^th sample.

Assaying was carried out at ALS Chemex in Townsville using the ICP technique with analysis for silver, arsenic, copper, molybdenum, lead, sulphur, antimony, zinc and 25 gram fire assays for gold.