FML.L Regulatory News (FML)

FRONTIER MINING LTD

("Frontier" or "the Company")

Benkala Production Update

Frontier Mining Ltd (AIM: FML), the AIM quoted copper company operating in Kazakhstan, announces the sale and shipment of 590 tonnes of LME grade A copper-cathode in the 90 days since production commenced at Benkala. Deliveries have been made under the off-take agreement with Red Kite generating revenue of over US$4 million.

Production has predominantly been undertaken in a pilot test environment, operating successfully for sustained periods at planned capacity without any significant issues. To date, the Company has been trialling crushing, agglomeration and leach processes under different operating parameters to determine the optimal performance and operational efficiencies of the 7,000 tonnes per annum SX-EW plant. Frontier is now confident it has identified the optimal operating parameters and production will commence under this regime in 2013.

With the onset of winter conditions, the daily production rate is decreasing in line with expectations and it is likely that primary production processes will cease from January, until warmer weather returns in April. During this period, the Company will be engaging in further trials to determine optimal winter operating parameters, with the intention of minimising the winter production disruption and producing limited volumes of copper accordingly. Leach pads currently hold ore with approximately 1,500 tonnes of recoverable copper.

Mining operations are currently unaffected by the weather and continue as planned. The open pit is now at a depth of approximately 50 metres and no significant issues have been encountered. The mining of ore will stop in conjunction with the slowing and eventual cessation of production during winter months, preventing a build-up of stockpile ore inventory. However, waste stripping will ramp-up on the northern pit wall cutback in preparation for the resumption of ore extraction in 2013.

The operational focus is now shifting to ensure rapid re-start when winter subsides and the continuation of stripping activities. The latest operational photographs can be found on the Company's website at www.frontiermining.com 

Erlan Sagadiev, CEO of Frontier commented: "I am delighted to report that we have achieved significant revenue and shareholders will no doubt join me in congratulating the operations team at Benkala. The management team are focused on optimising SX-EW operations in preparation for full capacity production in 2013 and expansion towards 10,000 tonnes per annum thereafter. Testing and trials continue to deliver excellent results and we can look forward to improved operational performance during our first full year of production in 2013."

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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 SX-EW project to finance further evaluation and technical studies required to further expand production beyond 10,000 tonnes per annum and extend production from the oxides in addition to advancing development of the significant Benkala sulphide resources.

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).

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