FML.L Regulatory News (FML)

FRONTIER MINING LTD

('Frontier' or 'the Company')

Interim Results for the six months ended 30 June 2011

Frontier Mining Ltd (AIM: FML), the AIM quoted gold and copper exploration and development company focused on Kazakhstan, is pleased to announce its Interim Results for the six months ended 30 June 2011.

Highlights

·; Acquisition of Coville Intercorp Ltd's 50% interest in the Benkala Copper Project brings Frontier's ownership to 100% of the project

·; Significant progress in the construction of the SX-EW plant at Benkala

·; Updated JORC resource estimate for Benkala project issued by Wardell Armstrong

·; Bankable Feasibility Study team assembled, BFS progressing well and close to publication

·; Acquisition of Subsurface Use Contract for South Benkala deposit for US$2.5 million

·; 10,000m drilled at Baitemir deposit on Naimanjal licence with encouraging results

Post-period end

·; Funding secured for the Benkala project transition to production with the sale for the Maminskoye gold deposit in Russia for US$37.45 million

Erlan Sagadiev, CEO of Frontier, commented:

"The Company is now entering a very exciting period. At Benkala, Frontier will be transformed from an exploration and development company into a copper producing enterprise. With funding secured, our construction team is committed to ensuring plant commissioning this year with full capacity production to commence in 2012.

"We are confident that Frontier is fully on-track towards its goal of becoming a mid-tier copper producer and has a solid project pipeline for future growth."

For further details please contact:

FRONTIER MINING LTD

CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT

Summary

As Chairman and CEO of Frontier, I am pleased to report the financial results for the six months ended 30 June 2011. The period under review and the subsequent months have seen much activity by the Company, with progress being made both operationally and financially. In April, the Company acquired the remaining 50% of the Benkala Copper Project ("Benkala") as well as 100% of the Maminskoye gold deposit ("Maminskoye") in Russia. Despite unrest in the global markets, Frontier subsequently sold Maminskoye for $ 37.45m in cash thereby securing the full funding required to bring the Benkala SX-EW project into production. In May, the Company signed an agreement to purchase the South Benkala copper deposit, just south of Frontier's existing Benkala operation. In August, Frontier launched an extensive drilling programme at its Baitemir porphyry copper deposit. The Board is excited to be on track with Frontier's strategic plan to become a significant regional copper producer.

Operating and Financial Highlights

Frontier completed the acquisition of Coville Intercorp Ltd's ("Coville") 50% interest in the Benkala copper project in April. This completion came in the form of a decision from both the Ministry of Industry and Trade of Kazakhstan and the Inter-Ministerial Committee not to use their pre-emptive right to acquire the project. Prior to this decision being made Frontier and Coville had been operating as a single unit, allowing the transition to 100% ownership by Frontier to proceed fluently.

Previously Frontier's accounts have included the Benkala Joint Venture only as a 50% investment. These are the first financial statements that report the 100% investment in Benkala and this change is reflected by increased values in both assets and liabilities. The accounts also include the investment in Maminskoye.

Revenue for the first six months was $1.2m (2010: nil) with a net operating loss of $2.8m (2010: $11.1m) Operating expenses of $1.7m are in line with previous years (2010: $1.5m) and finance costs of $1.6m for the period (2010: $0.6m) were the main contributor to the operating loss.

The Company issued 3,166,667 new shares in January in payment for professional services rendered in relation to the change of domicile in 2010.

Borrowings during the period increased by $16m due to the 100% inclusion of Benkala ($2m existing loan and $4m new loan), the issuing of loan notes ($9m), and additional funding by New Technology Group (a related party entity) ($1m).

Post period end, Frontier secured full funding for the Benkala project's move into production. This was achieved primarily through the sale of the Maminskoye gold deposit in Russia to Stanhigh Limited of Cyprus for $37.45 million in cash. Following the consolidation of Frontier and Coville, management had been evaluating options for the development of the Maminskoye deposit and had received a number of approaches. Given the location of the property, the development capital required to covert the resource and property into a financeable project, Frontier's strategic focus on copper, and the Company's 100% commitment to developing Benkala, this sale was an excellent opportunity to realise a return on Frontier's investment and secure the immediate aims of the Company in regard to Benkala.

Project Review

Benkala

Significant progress has been made at Benkala, with the mine and infrastructure largely complete, construction of the SX-EW plant is progressing well with full commissioning of the plant scheduled in October/November this year. The Company will consult with its advisers, and depending on weather conditions, determine the optimal start of operations.

In February, the Company issued an updated Joint Ore Reserves Committee resource estimate for the project, prepared by Wardell Armstrong, which significantly increased the measured and indicated resource for both oxide and sulphide ores (the full report is available on Frontier's website www.frontiermining.com). The oxide resource has increased by a total of 9.72kt (+5.9%) and the sulphide resource by 65.54kt (+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 of Copper (+7.6%). Frontier expects first production before the end of 2011.

In March, Frontier put together a team of widely experienced consultants to undertake a Bankable Feasibility Study ("BFS") at Benkala, led by David Chilcott of Wardell Armstrong International. Progress on the BFS has been substantial and it is close to publication. The results so far are encouraging. A small number of parameters have yet to be agreed (specifically; leach pads no higher than two metres, winter operating conditions and sulfuric acid consumption) and further testing to confirm these parameters is currently taking place. The BFS is not required for funding of the project and so the Company will take the appropriate time to ensure the BFS is completed to the highest level.

South Benkala

In May, the Company significantly added to its copper resource in the Benkala region with the acquisition of the Subsurface Use Contract for the mining deposit known as South Benkala from PromSnab2030 LLP for a total consideration of US $2.5 million. The South Benkala deposit is located approximately 8 kilometers south of the Company's existing Benkala licence area. Frontier expects to receive the Republic of Kazakhstan government's decision to decline to use its pre-emptive right to acquire the project (as it did with Benkala) shortly. Frontier will then proceed with one of two options: either extend the life of the SX-EW project at Benkala from 7 to 11 years, or increase the production capacity of the Benkala plant from 20,000 to 30,000 tonnes a year.

Baitemir

The Company has always considered Baitemir to be the most valuable asset in the Naimanjal licence. To keep Baitemir prospects in good order, the Company had to undertake operations at Naimanjal and Koskuduk to meet its licence commitments. At the same time an exploration drilling programme was developed to confirm the size and grades of the Baitemir deposit. 10,000 metres have now been drilled and on the basis of positive indications from these initial results, the Company has initiated an additional 10,000 metre drill programme for 2011/12.

Frontier is confident that Baitemir will be a substantial copper asset. We are working to further define the mineral inventory, anticipating the generation of a JORC compliant resource in 2012, as previously announced. Frontier also believes there is potential to use the other deposits within the Naimanjal licence area as satellite feeders to Baitemir. The Company's strategy for Baitemir is to gain an initial understanding of the resource and prospective project economics and to plan further exploration and metallurgical testing.

Koskuduk

In the first six months of the year, 735 oz of gold and 2,555 oz's silver were produced generating $1.2m of revenue. Operations at Koskuduk continue but the Company's strategy is now firmly focused on copper, bringing the Benkala mine into production and continuing exploration at Baitemir.

Outlook

The Company is now entering a very exciting period over the next 3-12 months. At Baitemir we are cautiously optimistic that our drilling programme will show a significant deposit in excess of our previous estimates. At Benkala, the Company will see itself transformed from exploration and development into a copper producer. With funding secured, our construction team is committed to ensuring plant commissioning this year with full capacity production to commencing in 2012.

We are confident that Frontier is fully on-track towards its goal of becoming a mid-tier copper producer and has a solid project pipeline for future growth.