Frontier Resources : FNT Wins Ballot-Former Sinivit Gold Mine ML / EL

ADDRESS PHONE EMAIL

Unit 5, Ground Floor [phone] [e-mail] 1 Centro Ave, Subiaco ABN WEBSITE

WA, 6005 Australia 96 095 684 3 www.frontierresources.com.au

Market Announcements Platform 16th December 2016

ASX: FNT Frontier Wins Ballot for Former Sinivit Gold Mine ML / EL Areas Plus Highly Prospective Sections of our Former East New Britain EL

Frontier Resources Limited (Frontier) is very pleased to announce that it won the application ballot for the former Sinivit gold Mine (ML) and associated former Exploration Licence (EL), plus much of our former East New Britain EL (formerly Joint Ventured with Ok Tedi Mining Ltd), located on the Gazelle Peninsula, East New Britain Province, Papua New Guinea.

The EL application area has excellent access with an all-weather road from Sinivit to Rabaul (located 50km to the NE) and has landowners that are supportive of exploration and mining. New Guinea Gold Corp (NGG- TSX: V) operated the modest vat leach gold Mine from late 2007 until 2011 and finished processing ore in early 2013.

The quartz vein system is present for about 10 km within the EL application, so exploration potential is excellent. In addition, the area covering Frontier's former EL 1592 contains two large aeromagnetic porphyry copper -gold signatures and various other copper and gold prospects that have never been really explored.

The Application will now go through the normal process involving a Warden's Court Hearing, review /evaluation by the Mining Advisory Council with their recommendation to the Minister for Mining who decides to grant or refuse. The Hearing will likely occur in early February 2017. The Mining, Easement Lease and Exploration Licences were refused renewal 1 month ago, by the Minister for Mining. The expenditure commitment offered is K100,000 in Year 1 and

K150,000 in year 2 (about A$ 42,000 in Year 1 and A$53,0000 in Year 2). There are no assumed liabilities.

The PNG Mineral Resource Authority Assistant Registrar informed me that NGG implied it would undertake a Judicial Review regarding the decision. However, NGG's last release to the TSX is dated November 20, 2015 (13 months ago), they have had multiple issues filing their required TSX regulatory documents, are yet to announce the refusal of the ML to the TSX / their shareholders and thus likely do not have the financial capability to undertake a Judicial Review.

Chairman /Managing Director - Peter McNeil M.Sc. commented:

Frontier is very pleased that we have the opportunity to obtain and potentially re-develop the former Sinivit Gold Mine and explore the surrounding areas to increase total contained resources / reserves to enable a

more efficient and profitable operation in the future. In addition, there are three porphyry copper targets that offer the Company excellent upside to the recently rapidly rising copper price.

I was a founding Director, Former President and Exploration Manager for NGG from 1996 until 2009, when I resigned to concentrate solely on Frontier Resources. The mineralisation was discovered by Esso in the early 1980's, who I started my career with in PNG in 1985. Sinivit was later drilled out by City Resources, for whom I supervised their Wapolu gold Project in Milne Bay. I have a very good understanding of the area and its gold and copper potential, plus already personally own virtually all existing digital and a lot of hard copy exploration data.

The data and intellectual property is mine, hence it is proposed that Exploration & Management Consultants Pty Ltd (EMC -in which I have a 50% interest) will obtain a 10% free carried interest in the EL if it is granted (subject to FNT shareholder approval or reversion of the EL title 100% to EMC).

Mining Associates Pty Ltd prepared an Independent Technical Report (called a 43-101) in October 2011 for NGG on the Indicated Resources on the Sinivit Gold Project, that covered an estimate of the mineral resources remaining at Sinivit Mine (also JORC compliant) and an appraisal of its exploration potential.

In addition, Mining Associates prepared a 43-101 report estimating an Indicated Resource at the Kavursuki gold Deposit (an unmined resource adjoining and to the north the Sinivit pits) in April 2013.

The 43-101 reports relating to the Sinivit and Kavursuki Resources can be obtained from the Canadian regulator SEDAR website, but have also been posted to the Reports section of the Frontier website (they are too large to include herein).

The October 2011 43-101 report noted Resources remaining within the current pit design total 135,000t at 4.44 g/t gold for 19,200 ounces. No mining dilution or loss has been applied. This comes with a penalty of 0.35% copper. These in-situ resources remaining have not been modified with mining or metallurgical factors.

The remaining resources and reserves at the 3 mined Sinivit deposits are unknown, but given the timeframes between issuing the 43-101 Sinivit Resource Estimation and the shutdown of mining, they cannot have been significantly depleted.

A comprehensive summary report will be complied by Frontier relating to the entire application area as soon as possible and will be posted on the Frontier website after completion. Facilities at site are believed to include an 80-man camp, office and core farm.

The EL application covers the strike extensions of the Nengmutka vein system to the north and south of the former ML, as well as a number of other exploration targets for precious and base metals.

In January 2006, NGG announced an Indicated Mineral Resource of 306,000 tonnes having an uncut grade of 5.3 g/t Au (4.0 g/t Au cut) covering the planned Southern, Central and Northern Oxide zone open pits. The Sinivit Gold Mine processed oxide ore from three shallow open pits within the Nengmutka vein system.

Commissioning commenced during the second half of 2007 and commercial production was achieved in April 2008. The mine produced approximately 23,550 oz. to the end of June 2011 and mining of oxide mineralisation was expected to be completed in that year. However, gold production was originally planned for 2,500 oz. to 3,000 oz. per month, but this was not achieved on a consistent basis due to issues with the VAT leach processing method.

The figures tables and text below are derived /quoted from Mining Associates' 43-101 reports. Geology and Mineralisation

The mineralisation at Sinivit, with current resources, is considered to be an epithermal style vein system with both low and high sulphidation alteration and mineralogy styles. Low sulphidation gold-telluride mineralisation was deposited within fractured silicified host rocks that are more typical of a high sulphidation system.

The Sinivit gold project consists of the Nengmutka vein system, which is hosted by the Nengmutka Volcanics, a flat-lying, epiclastic sequence of volcanic sandstone and conglomerate. The Nengmutka Volcanics are thought to represent a caldera margin deposit. There are indications from mapping and sampling (e.g. circular breccia targets with advanced argillic alteration) within the larger Sinivit project that the area may be prospective for buried diatreme-related gold-copper mineralisation (e.g. Wafi, PNG).

The Wild Dog structure has been traced at surface over a strike length of about 3 km, of which a central 900m makes up the strike length of the Sinivit resource area (Sinivit Gold Deposit). This vein system is hosted within the regional scale Nengmutka vein system which has a strike length of at least 10 km. It is estimated that some seventy per cent of the Nengmutka vein system within a 3-km radius of the Sinivit resource is non-outcropping, being capped by hydrothermal clays and younger volcanic ash. The parallel Gunsap Mountain structure lies approximately 1 km west of the Wild Dog structure and is predominantly clay covered although outcropping veins are present at its southern mapped extent.

The mineralisation at Sinivit occurs in multi-phase steeply dipping hydrothermal quartz tension veins which cross cut the more moderately dipping northwest trending silicified zones. Mineralisation is best developed near local cross structures. Later mineralisation fills open fractures and cavities in the quartz veins as dark sulphide stringers comprising copper sulphides (chalcopyrite with minor bornite, chalcocite and tennantite) with local occurrences of a wide variety of Cu-Bi-Pb-Ag sulphide, telluride and selenide minerals. Gold generally occurs as Au-Ag telluride minerals, and native 'mustard' gold occurs as a weathering product of these tellurides.

Intense tropical weathering and leaching has developed a surface profile depleted in copper and silver minerals. The Sinivit operation is currently mining this oxide material in three pits (northern, central and southern) on the Wild Dog structure. Further oxide resources are currently being delineated along strike at the Kavursuki Vein.

Exploration

Recent exploration carried out by NGG includes a 3D IP (induced polarisation) survey to define zones of sulphide mineralisation (chargeability) and/or silica mineralisation (resistivity). This work has highlighted some areas for future exploration. The results of the 3D IP survey, when taken in conjunction with the previous mapping of geology and alteration and previous surface sampling, provide ample justification for a substantial drilling program targeted at:

• Magiabe anomaly (possible diatreme related copper gold mineralisation);

• Gorocha Hill anomaly (interpreted dilational jog);

• Wild Dog & Kavursuki (potential depth extent of hybrid high-low sulphidation mineralisation);

• Shallow fences across strike length of Nengmutka vein system penetrating clay alteration cap and targeting vuhgy silica alteration; and

• Further 3D IP should be extended south throughout the tenement based on Wild Dog structure as intrusive hosted mineralisation (i.e. Regess Intrusive) along the structure may be resistive to IP.

Metallurgy

The oxide ore from the current operations is processed via vat and heap leaches. There are currently 17 vats and 2 heaps over vats reported by NGG to contain approximately 280,000 tonnes of material. Each vat has been leached with cyanide for varying time spans with gold recoveries estimated by NGG of about 66%.

Metallurgical testing was carried out in 2010 by a third party to determine distribution and possible recovery of gold remaining in the vat leached ore and to determine a recovery method for tellurium. Results indicated Tellurium would require an acid leach, subsequent gold leaching would require a basic leach.

There has been little metallurgical testing to determine the required process for optimum treatment of the primary sulphide ore, although recovery of this is likely to be based on a floatation circuit due to the copper and telluride mineralisation.

Resource Estimates

The Mineral resources for the Sinivit Gold Project have been estimated by MA for the preparation of this report and quoted above a 1.5g/t Au cut off. Southern

Oxide, Central Oxide, Western Oxide (part of central oxide pit) and Northern Oxide are equivalent to the Southern Area as quoted in the 2005 Resource Estimates. These resource estimate figures have been classified as defined in the Canadian National Instrument 43-101.

Inferred Resources by Area above 1.5g/t cut off
Area	K tonnes	Gold capped (g/t)	Copper capped (%)	Gold (koz)
Southern Oxide	47	2.8	0.40	4.2
Central Oxide	26	5.5	0.32	4.6
Northern Oxide	7	2.8	0.08	0.6
Northern Sulphide	1,004	4.0	0.37	129.8
Kavursuki	613	2.3	0.03	44.5
Total	1,697	3.4	0.25	183.7
Indicated Resources by Area above 1.5g/t cut off
Area	K tonnes	Gold capped (g/t)	Copper capped (%)	Gold (koz)
Southern Oxide	103	4.4	0.67	14.6
Central Oxide	184	3.8	0.17	22.7
Northern Oxide	67	3.1	0.06	6.5
Northern Sulphide	-	-	-	-
Kavursuki	-	-	-	-
Total	354	3.8	0.29	43.8
Indicated Resources Remaining within Designed Pit Shell

PIT	Weathering	Tonnes	Gold (g/t)	Au Oz	Copper (%)
Oxide	8,600	5.32	1,460	0.64
SOX	Fresh	29,300	6.77	6,370	0.97
Oxide	33,200	3.06	3,260	0.10
COX	Fresh	54,600	3.91	6,860	0.16
Oxide	1,500	2.52	120	0.03
NOX	Fresh	7,800	4.64	1,160	0.08
TOTAL	135,000	4.44	19,230	0.35

figures have been reported to significant figures; (discrepancies may occur in the addition of rounded figures) No inferred or measured has been defined with the Designed Pit Shells