Half Yearly Report

FRONTIER MINING LTD

('Frontier' or 'the Company')

Interim Results for the six months to 30 June 2010 and Operational Update

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, announced Interim Results for the six months to 30 June 2010 and provides an Operational Update.

Highlights

·; Significant progress despite traditionally quieter H1 (due to winter closure of operations)

·; Completed the construction and commissioning of the Koskuduk gold leach plant

·; Assembled the mining fleet at Benkala, began pit construction and further progressed other infrastructure work

·; Signed an engineering design contract with Calder Maloney Pty Ltd for detailed design of the Benkala SE-EW plant

·; Announced merger discussions were underway with Coville Intercorp Ltd to acquire their 50% interest in the Benkala deposit and their Maminskoye gold deposit in Russia

·; £6.1 million was received from the exercise of warrants and was used to repay the Zere Group JSC financial facility loans. The facility was subsequently extended for a further 12 months

Post-period end

In the period after June 30th, the Company announced that it had achieved initial gold production at Koskuduk and also that the Company intends to re-domicile in the Cayman Islands. We expect to provide shareholders with details of these proposals in the next month.

Commenting on Outlook, Erlan Sagadiev, CEO of Frontier, said:

"With the additional assets and the 100% ownership of Benkala that we anticipate will be acquired following the re-domicile and the acquisition of interests from Coville Intercorp Ltd, the Company will have a world class asset base. Excellent progress has been made so far in 2010 at all active deposits and the Board is confident that the outlook for Frontier is extremely positive."

Enquiries

CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT

Summary

As Chairman and CEO of Frontier Mining Ltd, I am pleased to report the Financial Results of Frontier for the 6 months ended 30 June 2010. Traditionally the first six months of the year are a quiet period with operations being shut down for the winter period but, during this period the Company has undertaken significant work. At both our Koskuduk and Benkala properties, substantial construction and assembly work was undertaken and at a corporate level there were several major achievements. During the period we achieved a number of important objectives:

·; Completed the construction and commissioning of the Koskuduk gold leach plant

·; Assembled the mining fleet at Benkala, began pit construction and further progressed other infrastructure work

·; Signed an engineering design contract with Calder Maloney Pty Ltd for detailed design of the Benkala SE-EW plant

·; Announced merger discussions were underway with Coville Intercorp Ltd to acquire their 50% interest in the Benkala deposit and their Maminskoye gold deposit in Russia

·; £6.1 million was received from the exercise of warrants and was used to repay the Zere Group JSC financial facility loans. The facility was subsequently extended for a further 12 months

In the period after June 30th, the Company announced that it had achieved initial gold production at Koskuduk and also that the Company intends to re-domicile in the Cayman Islands. We expect to provide shareholders with details of these proposals in the next month.

Operating and Financial Highlights

As expected there was no sales revenue for the first six months of the year. The operating loss for the period was $1.5 million (2009 $1.2 million) with a further loss of $9.0 million, relating to the fair value of the warrants issued on 30 April 2009 and exercised on 15 January 2010 (the "Warrants") and finance and other costs of $0.6 million resulting in a total loss of $11.1 million for the period (2009: $1.9 million).

With the exercise of the Warrants in January the funds received were immediately used to repay the draw downs made from the Zere Group JSC facility. The $10 million facility was renewed, for another year, providing the Company with sufficient working capital for 2010. During the six month period including the above transaction, a total of $11.4 million of debt and overdue payables was retired.

The exercise of the Warrants resulted in a further fair value accounting loss of $9.0 million but cleared the $26.4 million financial derivative liability that had been on the Company's balance sheet since December 31, 2009. As part of the transaction, shareholders equity increased from $5.3 million to $39.5 million.

Project Review

Benkala

We have continued to make excellent progress at Benkala. As announced in June, KazCopper, the Benkala Joint Venture management company signed a consulting engineering contract with Calder Maloney Pty Ltd, a design and engineering group based in Brisbane, Australia with extensive SX-EW plant experience. Design of the plant is virtually complete and tenders have been issued for all long lead construction items. Contracts for approximately 30% of the plant have already been awarded and contracts for a further 30% are expected to have been awarded by the end of October. With site construction ongoing and a total of $4.4 million invested in capital to date in 2010 we remain on course to have initial production by the end of the second quarter of 2011.

The mining fleet purchased in 2009 was assembled on site over the winter period and commissioned in early spring, with around 90% of the required fleet now at site. In June construction began on the open pit, with the commencement of removal of the overburden. To date, 2.2 million tonnes of waste ore have been removed to a depth of 18-20 metres. Approximately 15 metres of overburden remains to be removed before productive ore is reached. This is on schedule to occur in February/March 2011. At that point ore will begin to be stockpiled.

Drilling operations continue at Benkala with 35 holes and over 5,600 metres drilled to date in 2010. Work is underway on pit optimisation and reserve modelling and we anticipate that the JORC resource statement will be released before the end of the year.

Koskuduk

As previously announced, the new gold leach plant was built and mining preparation work carried out at Koskuduk over the 2009/10 winter. Despite an unusually cold winter with record temperatures and snow levels, gold production commenced in July and 6,000 ounces of gold is expected to be produced in 2010. To date 2,100 ounces have been produced.

Naimanjal

During the period the Company restarted the leaching process for ore mined in 2009 at Naimanjal. This leaching will shortly finish and operations will then be mothballed as announced in 2009. The Company will continue to ensure that the Naimanjal licence remains in good standing.

Baitemir

After the review of the Company's assets in 2009 Baitemir was identified as an attractive deposit that justified further exploration and analysis work. We have therefore undertaken a drilling programme at Baitemir to confirm the size and grades of the deposit. Year to date over 4,000 metres have been drilled with over 700 samples sent for laboratory analysis. We expect to have an initial confirmed indication of the size of the deposit by year end and we are working on producing a conceptual model for the development of the Baitemir, Koskuduk and Beschoku deposits together as a single cluster of deposits. The Baitemir deposit will play the lead role and we believe this combination of associated deposits will become one of the key assets of the Company.

Outlook

With the additional assets and the 100% ownership of Benkala that we anticipate will be acquired following the re-domicile and the acquisition of interests from Coville Intercorp Ltd, the Company will have a world class asset base. Excellent progress has been made so far in 2010 at all active deposits and the Board is confident that the outlook for Frontier is extremely positive.

Erlan K Sagadiev,

Chairman and Chief Executive Officer

Notes to Editors:

About Frontier Mining Ltd: 

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 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. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

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 owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt.

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 representsdevelopment 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 maintains an administrative office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains an office in Semipalatinsk, close to the Naimanjal operations, which is the base for all exploration and development personnel with additional administrative support for exploration. Semipalatinsk is 830 kilometres north of Almaty, connected by regular commercial airline services.

Issued Share Capital

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier has 917,336,206 ordinary shares issued.

For further information please visit; www.frontiermining.com