FML.L Regulatory News (FML)

22 November 2010

FRONTIER MINING LTD

("Frontier" or the "Company")

Gold Production Update

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan ("the Company"), today announces that it has signed a $4 million loan facility with HSBC Bank Kazakhstan ("HSBC") for its Benkala project.

HSBC is to provide a $4 million dollar loan facility for a period of 3 years to KazCopper LLP, ("KazCopper"), the Company's 50% owned joint-venture which manages the Benkala Copper development project. 

The loan will be issued in two tranches and is solely tied to being used to purchase capital equipment for the Benkala project by KazCopper. The first tranche has begun to be transferred and the second is dependent on existing mining equipment being collateralised in favour of HSBC, which should be completed in November or early December.

HSBC and Frontier have an indicative agreement that additional funding may be provided to KazCopper for the Benkala project up to a total value of $15 million dollars provided that the Company achieves certain conditions and requirements of HSBC, and subject to HSBC's usual lending requirements.

Erlan Sagadiev, CEO of Frontier, commented: "We are now on a clear path to fully fund Benkala launch, provided we will successfully fulfil the lending requirements of HSBC in the upcoming few months. It is a great bank and we are happy to have them as a key partner with Frontier."

Enquiries:

Notes to Editors:

About Frontier Mining Ltd: 

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 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, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

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 owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt.

A Competent Persons Report ("CPR") valuation report on the oxide section of the Benkala project completed by Wardell Armstrong International ("WAI") in June 2010 has resulted in an NPV of $190 million based on 0.5% diluted copper grade, 63% recovery and 185 000 ton of contained metal and 6,000 USD per tonne copper price. The oxide copper project represents development of approximately 10% of the total resource at Benkala and 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.

Frontier maintains an administrative office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains an office in Semipalatinsk, close to the Naimanjal operations, which is the base for all exploration and development personnel with additional administrative support for exploration. Semipalatinsk is 830 kilometres north of Almaty, connected by regular commercial airline services.

Issued Share Capital

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

Frontier currently has 917,336,206 ordinary shares issued.

For further information please visit; www.frontiermining.com