Frontera Resources Regulatory News (FRR)

Frontera Resources Corporation

Frontera Resources Announces New Frac Campaign And Addition Of New Funding

FRONTERA RESOURCES CORPORATION

("FRONTERA" OR THE "COMPANY")

Houston, Texas, U.S.A. - 20 January 2014

Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), today announced that it has successfully completed an equity fund raising initiative of GBP 910,000 designed to complement the U.S. $5,000,000 SEDA-backed Loan Agreement that was previously announced on 31 December 2013. Together with the previously announced loan agreement, the complementary funding will support new operations during the first half of 2014 that are designed to increase oil production at the Company's Taribani Field and Mirzaani Field, and support ongoing development drilling at the Mtsare Khevi Gas Complex, situated within the company's broader portfolio of assets in the country of Georgia.

Gross proceeds of GBP 910,000 have been raised through a subscription (the "Subscription") by YA Global Master SPV, Ltd of 122,807,018 new ordinary shares of US$0.00004 each in the Company (the "Subscription Shares").

Operations:

Taribani Field and Mirzaani Field: As previously announced on December 31, 2013, workovers and stimulation of existing wells at the Taribani Field and Mirzaani Field are continuing in 2014 to increase production from existing wells within the fields.

Together with the previously announced loan agreement, a portion of the net proceeds of the new Subscription will be used to conduct a new workover/stimulation campaign to frac existing wells at the Taribani Field and Mirzaani Field designed to increase overall oil production by approximately 300bbls of oil per day. Frac equipment is in the process of being mobilized from the United States and operations are expected to commence in early April.

The Taribani Field Complex is an area that encompasses approximately 1,400 square kilometres and includes the discovered yet undeveloped Taribani, Kila Kupra, Bayda and Iori fields within Block 12. Internal preliminary analysis suggests that there could be as much as 18 billion barrels of oil in place throughout this complex. Ongoing work throughout the remainder of this year will continue to study and assess the viability of this analysis and larger scale development potential. Independent assessment of the Company's conclusions are expected to take place in 2014.

Situated within the Taribani Field Complex, the Taribani Field proper is a large oil accumulation with 788 million barrels of original oil in place ("OOIP") independently assessed by Netherland, Sewell & Associates ("NSA") in 2005 for Zones 9, 14, 15 and 19. NSA assigns a 15% recovery factor giving "Technical Possible Reserves" of 118 million barrels for the field. An additional 36 million barrels are assessed as un-risked Prospective Resources in five deeper zones in the field.

The Mirzaani Field is located in the eastern portion of the Shallow Fields Production Unit amidst a complex of several existing oil fields. Discovered in 1932, the Mirzaani Field has historically produced oil from a small developed portion of the field but contains extensive undeveloped and underdeveloped areas. After acquiring approximately 100 kilometres of new 2D seismic data as part of an effort to re-map and identify new potential associated with the field, Frontera drilled the Mirzaani #1, #2 and #5 discovery and appraisal wells, which were the first wells to be drilled in the field since the Soviet-era.

In 2010, NSA assigned a "Best Estimate" for gross OOIP for the Mirzaani Field and Mirzaani northwest Extension of 541.7 million barrels, with a "low"-to-"high" range of 343.8-857.3 million barrels; and a "Best Estimate" for remaining recoverable gross contingent and unrisked prospective oil resources of 43.8 million barrels, with a "low"-to-"high" range of 20.5-86.1 million barrels. This assessment is consistent with Frontera's internal estimates.

Mtsare Khevi Gas Complex:

Mtsare Khevi Field: At the Mtsare Khevi Field, a portion of the net proceeds will be used this year to continue new development drilling at the field that is designed to expand the limits of the existing field and add gas production for sales associated with the installation of the infrastructure project that is nearing completion.

The Mtstare Khevi Field is situated within a larger play area of approximately 80 square kilometres referred to as the Mtsare Khevi Gas Complex and encompasses gas targets found between 300 metres and 5,000 metres in depth. Based on Frontera's internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 1.2 tcf of gas in place (28 billion cubic metres) and up to approximately 700 bcf of recoverable gas (19.8 billion cubic metres). During the first half of 2013, ongoing geologic studies related to existing well data associated with the Complex continue to provide support for defining the extent of the identified potential throughout the greater Mtsare Khevi Gas Complex. Gas production from the Mtsare Khevi Field will contribute to the assessment of the Complex's potential. Independent assessment is expected to take place in 2014.

Corporate:

New Subscription: The Subscription Shares will represent approximately 4.8% of the enlarged issued share capital of the Company and the Subscription is conditional on admission of the Subscription Shares to trading on AIM ("Admission"). Application will be made for admission of the Subscription Shares to trading on AIM, and is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8.00 a.m. on 24 January 2014. Following Admission, the Company will have 2,577,214,086 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 Subscription Shares will rank pari passu in all respects with existing ordinary shares of the Company. The aforementioned figure of 2,577,214,086 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.

Enquiries:

Frontera Resources Corporation

Liz Williamson

Vice President, Investor Relations and Corporate Communications

(713) 585-3216

lwilliamson@fronteraresources.com

Nominated Adviser and Joint Broker:

finnCap Limited

Matt Goode/Christopher Raggett

+44 (0) 20 7220 0500

Co-Broker:

Cornhill Capital Limited

Nick Bealer / Stefan Olivier

+44 (0)20 7710 9610

Financial PR:

Buchanan

Tim Thompson / Tom Hufton

+44 (0)20 7466 5000

timt@buchanan.uk.com

Notes to Editors:

1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com.

2. Information on Resource Estimates: The contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Gerard Bono, Frontera's Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved the statements in this announcement.

3. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. There is no assurance that Frontera's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.