Page 1 | Frontier Mining Ltd Significant Development in Kazakhstan

Tuesday 22 May, 2012

FML 2012 Newslett Two ter

52 Week High / Low Shares in Issue Market Cap (11/05/2012) Copper Resources (Benkala) SX/EW NPV (Benkala) Initial Production Capacity (Benkala) 6.35p / 2.55p 1,860,913,973 97.7 million 1.56Mt 1 56Mt (JORC) $190 million 7,000tpa
6.50 6.00 5.50 5.00 4.50 4.00 4 00 3.50 3.00 2.50 03 Jan AIM: FML (GBX)

2012

11 May

High l i g hts B a i t e m i r R e s u l t s & B e n k a l a D e v e l o p m e n t g

Baitemir Assay Results (March, 2012)
First results from the Baitemir drill programme have met expectations and are consistent with previous reports; the copper project continues to demonstrate significant potential. Drilling and data accumulation will continue ahead of the preparation of a preliminary resource estimate, provisionall estimate ly scheduled for the fourth quarter 2012. The Commission certifying start-up is on-site and mining operations are ongoing on a daily basis. Copper Cathode production is fast approaching, a key milestone for Frontier r. Construction and operations teams are working at full capa acity to ensure that commencement of production remains on ta arget, scheduled f June thi year. h d l d for J this get Mining operations have consistently achieved the daily targ of 8,000 tonnes of ore, as planned for normal conditions. Frontier remains on track to achieve Copper production of between 3,500 and 5,000 tonnes in 2012, with the plant operating at its optimal capacity of 7,000tpa.

Benkala Production Imminent (April, 2012)

Benkala Mining Targets Achieved (May, 2012)

BENKALA IMAGES: Copper Oxide Ore, Acid delivered by rail to Benkala terminal.

Page 2 | Frontier Mining Ltd Significant Development in Kazakhstan

Tuesday 22 May, 2012

Benkala production onl y w p weeks away y

Mining has commenced, targets achieved Acid loading terminal fully commissioned and working, two deliveries received All external pipelines completed Crusher completed and tested Agglomeration and stacking has begun Production in June remains on schedule.

BENKALA IMAGES: Left from top: Agglomerated ore, open pit mining, stockpiled ore. R Right from top: Agglomerated ore stacking, crusher and conveyors, solution pipelines.

For further information, please visit our webs site: w w w . f r o n t i e r m i n i n g . c o m

Page 3 | Frontier Mining Ltd Significant Development in Kazakhstan

Tuesday 22 May, 2012

Benkala Plant Technolo gy by Jim Calder y y

The fundamental recovery process is the tried, tested and trusted Heap Leach; taking oxidized copper ore and converting it to metallic copper cathode sheets. The cathode sheets that the Benkala SX-EW plant will produce are 99.99% pure, the highest value and purity attainable, greatly reducing the shipping and transport costs when compared to other copper concentrate processes which require further processing. This product is in high demand and can be fed straight into a number of downstream users processes, in particular high speed drawing of thin copper wire - used for high-tech electronics applications. Benkala presented our team at Calder with an opportunity p pp y to utilise the very latest SX-EW technology and incorporate best of breed equipment from around the world to create a state-of-the-art facility, the first if its kind in the region. France has provided the Cathode Plates and Stripping Machine, using the latest welding techniques to ensure that the lowest possible electrical resistance to current is offered by the join between the stainless steel cathode mother plate blade and the copper hanger bars bars.

(Calder Projects Services)

The Glass Reinforced Plastic Tanks from Chile use vinyl ester resins and filament wound glass fibre reinforcement, developed for worlds largest SX-EW plant. The main Power Rectiformer, converting AC current to DC current to electrowinn the copper, is an efficient 12 pulse solid state rectification unit developed in the US. The Electrolyte Filter uses a triple media of silica, anthracite and garnet to polish the copper electrolyte to ensure a high purity feed to the electrowinning cells, preventing unwanted particles contaminating the cathode. Australia provided the Anodes, the Process Pumps are German, the Heat Exchangers are Danish, Taiwan produced the Process Valves and the FRP Floor Grating is Chinese. I di manufactured th B b t an English Chi India f t d the Busbar to E li h design, the Overhead Cranes are Russian and the EW Cells were made in Poland by a Chilean company Further to sourcing specialist equipment internationally; Calder has worked with KazCopper to ensure that significant general engineering components were supplied by local Kazak companies, such as the Agglomerator, Conveyors and the large steel tanks.

BENKALA IMAGES: From left: Solution tanks, pump house, EW cells.

KazCopper were key to our understanding Kazakh procurement requirements, acid storage regulations and cold weather engineering. I enjoyed working with them, not only did they listen to our recommendations, but also helped us develop our approach where they could see room for improvement, particularly with regard to issues related to the region region. The project has been largely dependent on the expertise of the local Kazakh workforce, who have achieved in a very short space of time what other companies have unsuccessfully attempted for decades. The construction teams work long hours, often in arduous conditions, yet always make good progress.

The engineers we dealt with are hardworking and knowledgeable, products of the high standards proliferated by the excellent Kazakh education system. I was truly surprised at how modern and advanced Kazakhstan really is, my preconceptions based on movie stereotypes were far from the truth. The people are very similar i many ways t A t li i il in to Australians; di t and straightdirect d t i ht talking, they are a small vibrant multicultural population living in a big country, enduring harsh environments, surviving governance by foreign power and emerging as a strong economic force with a commitment to development and modern technology.

Calder Projects Services (CPS) is an Australian owned internatio onal consultancy providing project management and engineering expertise in the fields of metallurgical plant development and mining project infrastructure. Founded in 1991, CPS has accumulated considerable experience in the development of successful projects, overcoming challenging terrain across diverse geographic regions, including; Australia, USA, Mongolia, China, Brazil, Papua New Guinea, New Zealand and Myanmar. For further information about CPS, visit their website at w w w . c a l d e r p r o j e c t s . c o m

Page 4 | Frontier Mining Ltd Significant Development in Kazakhstan

Tuesday 22 May, 2012

BENKALA IMAGES: From top left: Mining operations, solution settling pond, water rese ervoir, crusher and agglomerator.