Half Yearly Report

FRONTIER MINING LTD

('Frontier' or 'the Company')

Interims Results for the six months ended 30 June 2012

Frontier Mining Ltd (AIM: FML), the AIM quoted gold and copper exploration and development company focused on Kazakhstan, is pleased to announce its Interim Results for the six months ended 30 June 2012.

This report represents the first time Frontier has reported its financial results post its transition from an exploration and development company into a copper producer.

Operational and financial highlights

·; Benkala opencast pit developed to a depth of 30 metres and commenced ore stockpiling

·; Constructed leaching pads and completed pipeline at Benkala

·; Completed Benkala SX/EW plant construction with all regulatory approvals and permits

·; Completed Governmental sign off on the acquisition of South Benkala

·; Successful assay results from Baitemir

·; Secured a loan and credit facility to KazCopper LLP to the value of $28m

·; Total borrowings increased by $23.8m during the period

Post-period end

·; First copper cathodes produced at Benkala

·; First copper shipment of 130 tonnes despatched

·; Secured additional Sberbank funding of $6m

·; Arranged for $5m of short-term debt, due in 2012, to be extended to 1Q13

Erlan Sagadiev, CEO of Frontier, commented:

"Success at Benkala heralds the Company as an established copper producer and I would hope our shareholders join me in celebrating the first shipment of copper from our new state-of-the-art facility. Maintaining momentum will help continue to drive Frontier towards becoming the premier independent copper producer in Kazakhstan."

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Frontier Mining Ltd

Chairman & Chief Executive Officer's Statement

Summary

2012 is arguably the most exciting year in the history of Frontier and I am delighted to have this opportunity to share with our shareholders and investors the recent events that have given us a rare opportunity to celebrate in the current climate of austerity.

Evolutionary is perhaps the maxim that would best describe the Company. The gold and silver assets at Naimanjal provided our foundations in 1998 and yielded some success, yet now lie dormant in favour of the superior copper resources and world class plant at Benkala. Building upon the work of the previous management team over the last three years, I have been very fortunate to have had the support of newly appointed directors and senior management, bringing significant experience and talent to bear on the challenges posed by the transition from exploration and development to autonomous production.

This transition has presented the team with many challenges and the achievement in overcoming them should not be underestimated; the majority of AIM mining players shrink at the spectre of production and not without good reason. Developing Benkala from a remote barren landscape into a deep open pit mine, supported by a cutting-edge SX-EW plant connected to major transport hubs by both road and rail, was a huge undertaking.

Frontier benefitted from the services of design and engineering experts, delivering the specialist knowledge required for the technically advanced aspects of the project. Yet despite the combined expertise of our management and consultants, progress was often undermined by unforeseen logistical issues that could only exist when combining the very specific elements at Benkala. Fundamentally, boundaries were broken when the Company brought this technology to the region and we are justifiably proud to have been successful in our endeavour.

Frontier is now well placed to fulfil the promise of significant revenue, which we intend to increase substantially in 2013 and 2014. The Company has recently secured additional funding required to expand production at Benkala and commence a program of confirmation drilling at South Benkala, another achievement that should not be underestimated in light of the modern economy. The long-term future for production at the SX-EW plant is assured by the South Benkala deposit, providing substantial returns on the initial investment and greatly exceeding our original expectations for the facility.

Further to our success at Benkala and focus on copper as the Company's primary resource, we have now returned to Naimanjal to develop assets that were previously overshadowed by the gold and silver mines. Evaluation of the Baitemir deposit continues, now confirmed as a significant new discovery, upon which we are planning to develop production facilities using the knowledge gained from our experiences at Benkala.

Operating & Financial Highlights

There was no revenue for the first six months (2011: $1.1m) and the net operating loss was $3.9m (2011: $2.8m). Operating expenses of $2.0m were broadly in line with previous years (2011: $1.7m) with finance costs of $1.8m (2011: $1.6m) representing the main contributor to the operating loss.

Capital expenditures for the Benkala project totalled $18m for the period and the Company has now invested a total of $96.5m into the development of the Benkala deposit.

Total borrowings during the period increased by $23.8m, consisting of drawings under the company's facility with Sberbank (2011: $19.5m), the issuance of new loan notes (2011: $1.6m), and additional funding provided by New Technology Group (2011: $2.7m). Funds were primarily allocated to the construction of the Benkala SX/EW plant and supporting operations although $2.5m was applied to extinguish all debt owed to Sokol. During the period agreements were also made to extend existing loan notes of $3.8m by an additional 12 months with all conditions remaining the same.

Post period, Frontier has secured additional Sberbank funding of $6m, and arranged for $5m of short term debt due in 2012 to be extended to first quarter 2013 thereby easing pressure on existing financial resources ensuring they are targeted at supporting Benkala capital and operational expenditure.

Project Review

Benkala

The first copper cathodes were produced at the SX-EW plant on 11 August 2012 and the first shipment of 130 tonnes of copper cathodes left the plant by rail on 11 September 2012.

With an initial annual capacity of 7,000 tonnes, the state-of-the-art facility utilises the very latest SX-EW technology, incorporating "best of breed" equipment from around the world, the first if its kind in the region. The designers, Calder Engineering (Brisbane, Australia) worked with KazCopper to ensure that significant general components were supplied by local Kazak companies, such as the agglomeration circuit, conveyors and steel tanks.

Production is currently being undertaken in a pilot testing environment, re-installing circuits under different parameters to determine optimal performance and ensure operational efficiencies, before commissioning sustained production at full operational capacity. When the operations team have gained full appreciation of the operating capacities and parameters of the new facility, the Company will provide investors with forecasts and related market guidance.

Coincident with commissioning activities, the Company has initiated expansion of the plant's design capacity from 7,000 tonnes to 10,000 tonnes per annum. A significant amount of the infrastructure was engineered to allow for the expansion and incremental stages of development can be undertaken over a relatively short time period with minimal interruption to output.

The Company has an off-take agreement in place with Red Kite that covers sales and marketing of 100% of the first 50,000 MT of KazCopper's LME Grade A copper production. The off-take agreement provides for Red Kite to receive a $60 discount on the spot price of Grade A copper at the time of sale. Preliminary assays of the Company's cathodes produced show the copper to be LME Grade A.

South Benkala

The acquisition of the South Benkala deposit for US $2.5m in late 2011 added significantly to the Company's copper resource in the region, located approximately 8 kilometres south of the Benkala license area. South Benkala has a GKZ resource estimate resource of 609,600 tonnes of contained copper including 94,500 tonnes of oxide copper, which Frontier plans to incorporate into the Benkala project development. Infill drilling commenced in 2012 to further define the oxide resource of the deposit; 2,000 metres of a 9,000 metre program have been completed to date. Initial indications show an excellent correlation to previous Soviet data and the Company expects to publish an updated resource estimate upon completion of the program.

Baitemir

The Baitemir exploration project is the focus of Frontier's effort at Naimanjal. In March 2012 the Company announced the discovery of a significant new mineralised copper footprint (plus associated gold, silver and molybdenum) with a total length of 2,000m and width of 400m. This was the result of company geologists assessing a drill program undertaken in prior years and our team is currently advancing work to further define the mineral inventory to calculate a resource estimate consistent with the Kazakh GKZ standard. We intend to submit a report to government agencies later this year, followed by a JORC standard estimate.

Further exploration will be undertaken at Baitemir in the final quarter of 2012, incorporating trenching, geophysics and an additional 3,000 metres of drilling. Upon gaining an initial understanding of the resource and prospective project economics, the outline strategy is for further exploration and metallurgical testing. Geologists will also begin assessment at the nearby Beschoku deposit to determine its potential as a satellite feeder for potential facilities at Baitemir.

Outlook

Success at Benkala establishes the Company as a copper producer and I would hope our shareholders join me in celebrating the first shipment of copper from our new state-of-the-art facility.

The outlook is bright; a solid project pipeline promising continued growth. Frontier can now generate substantial revenue, allowing us to further develop assets that demonstrate significant potential, rewarding the continued loyalty of our shareholders and creating exciting new opportunities for the future.

The next stage in the Company's development is to establish a certified estimate for resources at Baitemir, adding considerable reserves to the Company's growing base and maintaining momentum that continues to drive Frontier toward becoming the premier independent copper producer in Kazakhstan.