FML.L Regulatory News (FML)

FRONTIER MINING LTD

("Frontier" or "the Company")

Additional Benkala Funding

Frontier Mining Ltd (AIM: FML), the AIM quoted copper exploration and development company focused on Kazakhstan, is pleased to announce that Sberbank Kazakhstan ("Sberbank") has signed an agreement to provide an additional loan and credit facility to KazCopper LLP (Frontier's wholly owned subsidiary through which it holds the Benkala license) to the value of $6 million dollars under its existing loan arrangements. Sberbank is the largest bank in Russia and the CIS and the Company entered into its existing loan facility of $29 million with them on 12th January 2012.

The new facility is in two components, a $5 million increase in the investment loan and a $1 million increase in the working capital credit facility. All other conditions of the existing loan arrangement remain the same. The loan will be used for the Benkala project's expansion from 7,000 tonnes per annum capacity to 10,000 tonnes, working capital requirements and the on-going drilling programs at Benkala and South Benkala.

Erlan Sagadiev, CEO of Frontier commented: "The new facilities reflect the progress achieved at Benkala to date; With the successful commencement of copper cathode production this month, Sberbank have agreed to finance the expansion of the plant from 7,000 to 10,000 tonnes per annum. We now have the finance in place to continue at full pace which is a good external vote of confidence in Frontier and its KazCopper management team."

Latest operational photographs can be found on the Company's website www.frontiermining.com 

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Notes to Editor

Frontier Mining Limited is a copper exploration and development company with a focus on Kazakhstan. The Company's main activity is the Benkala Copper Project in North West Kazakhstan, which forms part of the Urals copper gold ore belt. Frontier has a 100% interest in Benkala through its subsidiary KazCopper LLP.

Frontier, through its wholly owned subsidiary FML Kazakhstan, also owns Baitemir, a potential copper gold porphyry deposit with associated gold and molybdenum situated on the Naimanjal exploration licence area in North East Kazakhstan.

Frontier maintains an administrative and technical office in Almaty, the former capital city of Kazakhstan and the main business centre in the South East. The Company also maintains offices in Aktyubinsk and Semipalatinsk, close to the Benkala and Baitemir operations respectively.

Benkala

A Competent Persons Report completed by Wardell Armstrong International ("WAI") in June 2010, estimated the oxide section of the Benkala project, which represents development of only ~10% of the total resource at Benkala, to have a NPV of $190 million, based on 0.5% diluted copper grade, 63% recovery and 185,000 tonnes of contained metal at a 6,000 USD per tonne copper price. Frontier will use the production platform of the SX-EW project currently under construction to finance further evaluation and technical studies required to advance development of the significant Benkala sulphide resources. Frontier expects first production at Benkala in the second quarter of 2012.

WAI updated their Joint Ore Reserves Committee resource estimate in February 2011, significantly increasing the measured and indicated resource for both oxide and sulphide ores. The oxide resource has increased by a total of 9.72kt to 174.38kt (+5.9%) and the sulphide resource by 65.54kt to 779.28kt (+9.2%) of copper. As well as the overall increase, both ore types now have significantly more resource in the measured category and there has been an increase in the average oxide grade percentage. In addition, the overall inferred resource has also increased by 42.8kt to 607.70kt of copper (+7.6%).

In January 2012 Frontier added the South Benkala mining area to its existing Benkala licence. The South Benkala area is approximately 10 kilometres south of Benkala and has a GKZ resource estimate of 94.5kt of oxide and 515.1kt of sulphide copper.

Baitemir

Baitemir was identified as the most attractive deposit on the Naimanjal licence area and an exploration drill program was developed to confirm the size and grades of the deposit. Frontier has now drilled almost 16,000 metres and, on the basis of positive results, has an additional 1,000 metre drilling programme for 2012. The Company is working to further define the mineral inventory, anticipating the generation of a mineral resource prepared in accordance with the guidelines of the JORC Code (2004) in 2012.

Issued Share Capital

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier has 1,860,913,920 ordinary shares issued.

For further information please visit: www.frontiermining.com