FML.L Regulatory News (FML)

Frontier Mining Ltd

("Frontier" or the "Company")

Intention to Re-domicile

Frontier Mining (AIM:FML), the mineral exploration and development company with assets in Kazakhstan, announces its intention to change the holding company for Frontier and its subsidiaries (the "Group") from a Delaware, USA incorporated company to a Cayman Islands company (the "Proposal"), which is expected to occur in the third quarter of this year.

When the Company was incorporated in 1998, the Group anticipated making acquisitions and establishing operations in the United States as well as the greater C.I.S. region. The Group has since refocused its strategy and now intends to develop by expanding its operations in Kazakhstan. As such, the Board believes that having the Group's holding company incorporated in Delaware is no longer efficient from a commercial or financial perspective. This is due to the fact that trading of the Company's shares which are listed in London is restricted and it could potentially limit access to future opportunities for the Group by rendering the Company's operations and potential future acquisitions inefficient from a tax perspective.

The Board has carefully considered several options and believes the Cayman Islands to be the most suitable place to domicile the Group's holding company together with the enhanced tax efficiency resulting from the incorporation of intermediate holding companies in the Netherlands Antilles and the Netherlands.

Frontier proposes to effect the change in holding company through a merger, conditional on shareholder approval, involving a share exchange with a new Cayman Islands company, incorporated for the purpose of the Proposal ("FML (Cayman)"), whose shares will be admitted to trading on AIM.

The Proposal is subject to a number of regulatory and shareholder approvals and a circular setting out the details of the Proposal will be sent to shareholders in due course.

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