Frontera Resources Regulatory News (FRR)

4 October 2017

Frontera Resources Corporation

("Frontera" or the "Company")

Conversion of Series A Preferred Convertible Shares into Ordinary Shares

Frontera Resources Corporation (AIM: FRR), the European focused independent oil and gas exploration and production company, today announces that on 4 October 2017 it received a conversion notice for the month of October from YA II PN, Ltd. ("YA") to convert 400 Series A Preferred Convertible Shares ("Convertible Shares") out of its outstanding total of 5600 Convertible Shares.

Pursuant to the agreement with YA, the Company negotiated with YA a conversion price of 0.55 pence, which will result in the issue of 54,880,000 new ordinary shares ("New Ordinary Shares") to YA.

The agreement with YA contains a limitation of a maximum of 1,300,000,000 ordinary shares ("Ordinary Shares") that YA is entitled to convert before 16 June 2018. Following this conversion, 905,290,253 Ordinary Shares out of agreed 1,300,000,000 will have been converted and issued to YA. Accordingly, YA may only convert a further 394,709,747 Ordinary Shares before 16 June 2018.

Application will be made for New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on or around 11 October 2017 ("Admission"). The New Ordinary Shares will rank pari passu with the existing Ordinary Shares of the Company.

Following Admission, the Company will have 13,894,350,432 Ordinary Shares in issue with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 13,894,350,432 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.

Zaza Mamulaishvili, President and Chief Executive Officer, commented:

"The Company is pleased that it has again negotiated with Yorkville a better conversion price relative to what Yorkville would have been entitled to taking into consideration the pricing period applicable to the October conversion. Yorkville's good faith and constructive approach towards this conversion is much appreciated."

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