FML.L Regulatory News (FML)

21 March 2011

Frontier Mining Ltd

("Frontier" or the "Company")

Key decision on Coville acquisition

Tauken-Samruk waives pre-emptive right

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, is pleased to announce that Tauken-Samruk, the Kazakhstan Government owned mining company, has taken the key decision to waive its pre-emptive right to acquire Coville Intercorp Ltd's ("Coville") 50% interest in Benkala.

As reported previously, the Company is awaiting the approval of the Ministry of Industry and Trade of Kazakhstan' (the "MIT" or the "Ministry") to complete the acquisition. The essence of that approval is a written statement by the MIT that the Government of Kazakhstan will not exercise its preemptive right to acquire Coville's 50% interest in Benkala.

As reported on March 9 2011, the transaction had been referred to Tauken-Samruk, a government owned mining Company, for review and subsequent ruling on whether or not it would like to be a part of the transaction. Tauken-Samruk has now completed this review and its Investment Committee ruled on Thursday that it does not wish to exercise its pre-emption right.

Tauken-Samruk's decision will now be sent to the MIT and subsequently presented to the next Inter Ministerial Committee. Frontier cannot say when the next IMC will take place. However, Frontier is hopeful that there will be a meeting in March or April 2011, whereupon its application for the acquisition will be presented for final approval. It is expected that there should be no more than two to three weeks between the IMC ruling and the Ministry's statement.

Erlan Sagadiev, CEO of Frontier Mining, commented: "We are very happy to have received this key decision from Tauken-Samruk. We now expect rapid and straightforward progress towards receipt of final approval so that we can complete the acquisition and consolidate 100% of the Benkala Project into the Frontier Group."

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, 50% of U.S. Megatech BVI which holds the Benkala licence, via KazCopper LLP. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.

Frontier has one producing gold mine, Koskuduk; and a 50% interest in the Benkala copper mine, currently under development with initial production planned in 2011. The remaining 50% of Benkala is owned by Coville Intercorp Ltd. ("Coville"), a private Kazakh mining group with whom the Company has previously announced a proposed merger which is conditional on the granting of certain government consents and approvals.

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 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.