HSBC Project Funding

28 February 2011

Frontier Mining Ltd

("Frontier" or the "Company")

HSBC Project Funding

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, announces that it has today received $4 million, the second tranche of a loan facility from HSBC Bank Kazakhstan ("HSBC") for its Benkala project. The first tranche was also $4 million and was received in late November 2010.

HSBC and Frontier have an indicative agreement of a total value of $15 million loan facility provided that the Company achieves certain conditions and requirements of HSBC, and subject to HSBC's usual lending requirements. The loan is solely tied to being used to purchase capital equipment for the Benkala project by KazCopper.

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Notes to Editors

About Frontier Mining Ltd:

Frontier Mining Ltd. is a mineral exploration and development Company that is incorporated in the Cayman Islands 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, via KazCopper LLP. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.

Frontier has one producing gold mine, Koskuduk; and a 50% interest in the Benkala copper mine, currently under development with initial production planned in 2011. The remaining 50% of Benkala is owned by Coville Intercorp Ltd. ("Coville"), a private Kazakh mining group with whom the Company has previously announced a proposed merger which is conditional on the granting of certain government consents and approvals.

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 represents development 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 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 maintains an administrative and technical office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains offices in Semipalatinsk and Aktyubinsk, close to the Naimanjal and Benkala operations respectively.

Issued Share Capital

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

Frontier has 1,860,913,973 ordinary shares issued.

For further information please visit: www.frontiermining.com.