Completion of Transaction

For immediate release 15 August 2011

Houston, Texas, U.S.A.

FRONTERA RESOURCES CORPORATION

"Frontera" or "the Company"

COMPLETION OF TRANSFORMATIONAL TRANSACTION

COMMENCEMENT OF NEW OPERATIONS

Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company, today announces that, following the successful completion of the equity fundraising package and debt exchange announced on 2 August 2011, with a significantly strengthened balance sheet it is this month commencing its new workplan on the Mtsare Khevi and Mirzaani fields within its Shallow Fields Production Unit in the country of Georgia.

The equity financing package could provide up to £26.8 million (US$43.5 million) for Frontera's planned development drilling and operations campaigns throughout its portfolio in Georgia. In addition to which, the balance sheet has been strengthened by the conversion of US$112.6m of debt, including US$9.2m of management debt, into equity and substantially all of the remaining US$18.4m of old loan notes into new convertible notes maturing in 2016. Overall, the transaction serves to simplify and strengthen the Company's balance sheet, as well as enhance Frontera's operating and financial flexibility.

The net proceeds of the equity funding raising of £6.8 million (US$11.0 million) before expenses, coupled with a £21.5 million (US$35.0 million) Standby Equity Distribution Agreement ("SEDA"), could provide up to approximately £26.8 million (US$43.5 million) of new funds for investment. In both the fundraising and the debt conversion, the new shares were issued at a price of 4p per share.

Frontera's assets

The Company's core assets are located in an extensive underdeveloped onshore basin in eastern Georgia, with an inventory of discovered fields with significant exploration upside. Frontera operates a 100% interest in Block 12 within which its asset portfolio is situated, a block equivalent in size to approximately four UK North Sea Blocks. The Company intends to increase production from 225b/d to c.5,000b/d over 2 years, supported by the established oil and gas transportation infrastructure and favourable trading environment in Georgia.

An update on progress at these fields and further progress updates on the workplan will be provided in September 2011.

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

"We are pleased to have completed our funding plan which provides Frontera with a firm footing in advancing oil and gas production at our Shallow Fields and Taribani Field Units. The next few months will be a transformational time for the Company as we continue to realize value from historical investments and accelerate our growth plans. We look forward to providing further updates on progress in the near future."

Enquiries:

Frontera Resources Corporation

Liz Williamson

Vice President, Investor Relations and Corporate Communications

(713) 585-3216

[email protected]

www.fronteraresources.com

Nominated Adviser:

Strand Hanson Limited

James Harris / Andrew Emmott / Paul Cocker / Liam Buswell

+44 (0)20 7409 3494

Brokers:

Arbuthnot Securities Limited

Richard Johnson / Adam Lloyd

+44 (0)20 7012 2000

Old Park Lane Capital Plc

Michael Parnes / Luca Tenuta

+44 (0)20 7493 8188

Financial PR:

Buchanan Communications

Tim Thompson / Ben Romney

+44 (0)20 7466 5000

[email protected]

Notes to Editors:

1. Frontera Resources Corporation is an independent international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets around the world. Frontera currently operates in the country of Georgia where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com

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 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.