Holding(s) in Company

18 January 2012

Frontier Mining Ltd

("Frontier" or the "Company")

Frontier share trading

Frontier Mining Ltd (AIM: FML), the AIM quoted copper exploration and development company focused on Kazakhstan, wishes to update the market on the trading volume of its shares over the last few months of 2011.

The Company has been advised by two of its significant shareholders, BMF International Ltd ("BMF") and Teratorn International Ltd ("Teratorn"), that last year they entered into a number of three year hypothecation loan agreements whereby their shares in Frontier were transferred to the lenders as collateral for the loans. The shares involved are approximately 77 million for BMF International Limited (representing approximately 4.1% of the issued share capital of the Company) and 98 million for Teratorn International Limited (representing approximately 5.3% of the issued share capital of the Company). Under the terms of the loan agreements, the lenders may trade the pledged shares in the market. However, as long as BMF and Teratorn adhere to the terms and conditions of the conditions of the loans, the lenders are obliged to return the full amount of the shares to BMF and Teratorn on the redemption of the loans at the end of the loan period.

The Company has undertaken an analysis of the share register and considers that, in the period from March to December 2011, the loan counterparties have sold over 160 million of the pledged shares in Frontier into the market. Frontier was at no time notified by the lenders of the share sales into the market.

The Company confirms that the other substantial shareholders and directors holdings remain as per previously notified to the market.

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