FML.L Regulatory News (FML)

 16 May 2011

Frontier Mining Ltd

("Frontier" or the "Company")

Benkala Pit Optimisation Study released

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development Company focused on Kazakhstan and Russia, today releases the Pit Optimisation Study for its Benkala deposit. This study is a key component of the Bankable Feasibility Study ("BFS") being undertaken by KazCopper LLP on the oxide section of the Benkala deposit.  A mineable oxide reserve has been estimated by Wardell Armstrong from the compliant oxide resource previously disclosed.

The study has been undertaken by Wardell Armstrong and shows these mineable reserves as per the below table:-

The full Wardell Armstrong Open Pit Design and Scheduling Study for the Benkala Deposit is available on Frontier's website www.frontiermining.com.

WAI has generated a mining schedule for the designed open pit. The schedule is targeting full operational capacity of the processing facilities (18,000t Cu per annum) to be met, with appropriate ramp-up in production during the first two years and giving a life of mine model of seven years on the above defined reserves.

Erlan Sagadiev, CEO of Frontier Mining, commented: "The Pit Optimisation Study is a key part of the BFS. The report confirms and further reinforces the quality of the Benkala deposit and shows more than acceptable mining parameters. This allows us to continue the ongoing development of the deposit while we wait for the completion of the remaining components of the BFS."

For further details please contact:

Notes to Editors

About Frontier Mining Ltd:

Frontier Mining Ltd. is a mineral exploration and development Company that is incorporated in the Cayman Islands for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties.

Frontier currently owns two licenses in Kazakhstan. They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and U.S. Megatech BVI which holds the Benkala licence, via KazCopper LLP. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.

In Kazakhstan, Frontier has one producing gold mine, Koskuduk; and a 100% interest in the Benkala copper mine, currently under development with initial production planned in 2011. Frontier also owns the Maminskoye gold deposit in the southern Ural region of Russia currently under exploration.

A Competent Persons Report ("CPR") 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 tons of contained metal at a 6,000 USD per tonne copper price. Frontier will use the production platform of the SX-EW project to finance further evaluation and technical studies required to advance development of the significant Benkala sulphide resource.

The Maminskoye license area is situated in the southern Ural region of Russia and consists of three deposits: Maminskoye, Gabievskoye and Bezimyanny-Vostochny. Of these, the Maminskoye deposit is the most explored but is the smallest at 300m wide, 650m long and to a known depth of over 250m. The other two deposits are considerably larger and display similar geological characteristics to the Maminskoye deposit but have not had extensive exploration as yet.

The Gabievskoye deposit has a strike length of 5km with an average width of between 500-700m. The Bezimyanny-Vostochny deposit hosts three veins which have previously been mined on a small scale with reported gold grades of between 6-63g/t. The structure of this deposit is analogous to Gabievskoye. However, at this time, the strike extent and width of this target remains unknown.

The Maminskoye ores have been subjected to extensive metallurgical analysis with gold recovery estimated at 93.5% for the oxide ore and 92.5% for the primary ore. The CPR, completed by WAI in June 2010, evaluated a preliminary project model contemplating development of an open pit mine operating at an initial mining rate of 700ktpa for the first three years, increasing to 1Mtpa for a 14 year project life. Based on an estimated capital cost of $75 million and a $950/oz gold price WAI estimated an attractive project, with a NPV of $110.9 million using a 10% discount rate and IRR of 48% with a 3 year payback.

Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types. Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.

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

Issued Share Capital

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

Frontier has 1,860,913,973 ordinary shares issued.

For further information please visit: www.frontiermining.com.