Convertible Notes and Operations Update

FRONTERA RESOURCES CORPORATION

Houston, Texas, U.S.A. - 25 July 2016

CONVERTIBLE NOTES AND OPERATIONS UPDATE

Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), today releases the following update.

Convertible Notes

On 21 July 2016, Frontera Resources Holdings LLC ("FRH"), a wholly-owned subsidiary of the Company, initiated liquidation through a Chapter 7 proceeding in the United States. As at 31 December 2015, FRH had approximately $30 million of 10% convertible notes due 1 August 2016. These convertible notes were issued by FRH on an unsecured basis and without a parent company guaranty, with FRH as the sole obligor and without recourse to the Company.

As FRH's schedule of assets in the proceeding lists a potential claim against the Company for repayment of the notes, for which advice has been taken and which the Company denies, the Company has initiated an associated adversary proceeding seeking a declaration confirming that the Company is not liable for their repayment. This matter is now under the jurisdiction of the court and, as of this date, neither the court nor FRH's Chapter 7 trustee has issued a timetable for proceedings. Further updates will be provided when available and further details of the convertible notes can be found in the Company's report and accounts for the year ended 31 December 2015.

Operations

Since the Company's last update on 30 June 2016, work has continued in accordance with the announced work programs and activities as described in the Company's announcement of 10 June 2016.

Operations are advancing with respect to the previously announced 15 existing well stimulation program and 6 new well drilling program at the South Kakheti Gas Complex and the Shallow Fields Production Unit. Of note, the Company is pleased with the results of well stimulation operations at the Niko #1 and Dino #2 wells at the South Kakheti Gas Complex as early results have produced flow rates consistent with designed expectations and, most importantly, continue to validate the technical basis for the Company's ongoing work programs. The Company expects that this year's work, as well as the previously announced workover, stimulation, drilling and infrastructure expansion programs for 2017, should be completed as planned. Further updates will be made as the programs advance.

Further procurement of additional oil field equipment to expand the Company's current fleet in order to undertake larger well-stimulation completions in the planned work programs is in progress.

The Company expects that this program will lead to an increased production of oil and gas and, as such, will result in increased revenue from exploration related pilot production programs for oil and gas.

Steve C. Nicandros, Chairman and Chief Executive Officer commented:

"As we continue to progress our work in Georgia, as well as our other Greater Black Sea initiatives, we are very encouraged by ongoing results from our operations and, because of this, we remain focused to implement the work programs which were supported by shareholders at the recent General Meeting on June 28th. I look forward to sharing updates as all of our work continues to advance in the weeks and months ahead."

Enquiries:

Frontera Resources Corporation

Jesse Jefferies

(713) 585-3216

info@fronteraresources.com

Nominated Adviser:

Cairn Financial Advisers LLP

61 Cheapside, London EC2V 6AX

Jo Turner / Liam Murray

+44 (0) 20 7148 7900

Broker

Cornhill Capital Limited

Nick Bealer

+44 (0) 207 710 9610

Financial PR:

Buchanan

Ben Romney/Hannah Brandstaetter

+44 (0) 20 7466 5000

frontera@buchanan.uk.com

Notes to Editors:

About Frontera Resources Corporation

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.

1. Information on Resource Estimates: The independent 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). Internal resources estimates were determined by the Company. 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 both independent and internal estimates in this announcement.

2. 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 stated countries of business; 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.

3. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF - means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet of gas. OOIP - means Original Oil in Place. Bopd - means Barrels of Oil Per Day.