Interim Results

FRONTIER MINING LTD

("Frontier" or "the Company")

Interim Results for the six months ended 30 June 2014

Frontier Mining (AIM:FML), the AIM listed exploration, development and production Company focused on Kazakhstan, is pleased to announce its Interim Results for the six months ended 30 June 2014.

Operational and Corporate Highlights

· Production for the first six months of 2014:

o 181,326 tonnes of ore were mined

o 165,947 tonnes of ore were stacked

o 511 tonnes of copper cathode were sold

· Financial performance:

o Average sales price of US$6,784 per tonne

o Average cash cost of production, excluding general and administrative costs, of US$4,353 per tonne. The increase in cash cost compared to 2013 was mainly due to higher costs during the winter months.

· Contractor hired to conduct stripping at a cost of 273 KZT (1.5 USD) per m3 (excluding VAT), which has reduced operating costs further at Benkala.

o The ore mining contract was awarded as a result of positive working experience with stripping and we now have considerable confidence in this contractor being able to deliver on time and on budget.

· Second agglomeration line commissioned and now operational

· Copper cathode production from Benkala operations is expected to be in the range between 1,500 and 2,000 tones for the 12 months to 31 December 2014

Post period end

· Regulatory approval from the Ministry of Industry and New Technology of the Republic of Kazakhstan ("RoK") to proceed with the sale of Naimanjal licence area to Union Transnationale Miniere S.A. ("UTM").

Yerlan Aliyev, Chairman and Chief Executive of the Company, said: "While all of the operating cash flow is being used to finance ongoing operations, during the first half of 2014 Company continued conversations with financing institutions and counterparties in order to negotiate extensions of debt repayment obligations. The sale of Naimanjal is viewed as a source of financing to pay down part of the loans and provide finance for the purchase of new equipment required to improve production levels; however, the transaction has yet to be completed and so we were not able to use the sale proceeds to prepare for the 2014 production season.

"Over the course of the last 24 months of exploration and evaluation of data obtained on Benkala, South Benkala and other opportunities in very close proximity, it has been determined that the best course of action that will maximise shareholder value will be through joint partnership with an experienced well capitalised operator which can bring expertise to the project both in large scale project management and complimentary technical capabilities on the ground. Frontier has had several approaches over the past few years from interested parties wishing to participate in this project and has appointed advisers to identify and engage with the most appropriate partner who can deliver the required expertise and support."

Chairman and Chief Executive's Statement

Copper Production and Sales

Revenue from copper sales is continuing to cover production cost related to Benkala. For the first six months of 2014, more than 181,326 tonnes of ore was mined, 165,947 tonnes of ore was stacked and 511 tonnes of copper cathode was sold. Revenues from current production are sufficient to cover the mine operating costs, but do not yet cover the Company's interest and debt repayment obligations and other administration costs.

It should be noted that, during the first half of 2014, production has been exclusively from ore stacked before the end of the 2013 financial period.

Stripping

In order to further optimise copper production, the Company has recently hired an experienced contractor to conduct stripping at a cost of 273 KZT (1.5 USD) per m3 (excluding VAT), which will reduce operating costs further at Benkala. Furthermore, as a direct result of the positive and productive experience of working with this particular contractor, the Company has decided to also award this contractor an ore mining contract.

Crushing and Agglomeration

Currently, production personnel are continuing to improve the performance of the crushing and agglomeration facilities in order to achieve targeted figures for ore stacking. In the first half of this year, the second agglomeration line was launched, which should allow uninterrupted stacking of ore onto leach pads. At the same time, the technology team is continuing laboratory and field testing to establish optimal parameters to improve leaching of copper.

The outsourcing of the ore mining and stripping during the remainder of the current financial year will allow Company to focus on continuing to improve the performance of the crushing and agglomeration facilities in addition to enhancing other production areas at Benkala.

Corporate

While all of the operating cash flow is being used to finance ongoing operations, during the first half of 2014 Company continued conversations with financing institutions and counterparties in order to negotiate extensions of debt repayment obligations. The sale of Naimanjal is viewed as a source of financing to pay down part of the loans and provide finance for the purchase of new equipment required to improve production levels; however, the transaction has yet to be completed and so we were not able to use the sale proceeds to prepare for the 2014 production season.

Strategic Partner and Outlook

Over the course of the last 24 months of exploration and evaluation of data obtained on Benkala, South Benkala and other opportunities in very close proximity, it has been determined that the best course of action that will maximise shareholder value will be through joint partnership with an experienced well capitalised operator which can bring expertise to the project both in large scale project management and complimentary technical capabilities on the ground. Frontier has had several approaches over the past few years from interested parties wishing to participate in this world class project and has appointed advisers to identify and engage with the most appropriate partner who can deliver the required expertise and support.

FRONTIER MINING LTD

STATEMENT OF CHANGES IN EQUITY

1. BACKGROUND

FRONTIER MINING LTD. ("FRONTIER" or the "Company") was incorporated under the laws of the state of Delaware on August 5, 1998 for the purpose of exploring, and if warranted, developing gold and copper deposits in the Republic of Kazakhstan. Group's principal activities are the exploration, mining and processing of copper ores.

As of June 30, 2014 the Group owns the following subsidiaries (thereafter together - the "Group"):

During the 6 months of 2014, FRONTIER has completed the process of closing its inactive subsidiaries, including Frontier Mining Finance BV, Frontier Mining Antilles NV and Frontier Mining Co-operative (registered in the Netherlands. The number of employees of the Group as of June 30, 2014 was 497 people (2013: 449 employees).

Functional and presentation currencies

The presentation currency of the Group consolidated financial statements is US Dollar. The functional currency for each entity in the Group is determined as the currency of the primary economic environment in which it operates. Transactions in currencies other than the functional currency are initially recorded at the functional currency rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange at the balance sheet date. Exchange gains and losses on settlement of foreign currency transactions translated at the rate prevailing at the date of the transactions, or the translation of monetary assets and liabilities at period end exchange rates, are taken to the income statement. Non-monetary assets and liabilities denominated in foreign currencies that are stated at historical cost are translated to the functional currency at the foreign exchange rate at the date of the transaction.

The functional currency of the Company is the US Dollar as the majority of the operating activities are conducted in US Dollars.

The functional currency of exploration and service entities operating in Kazakhstan (KazCopper LLP and Kazakhstan Chemical Company LLP) is the Kazakhstan Tenge (KZT).

All balance sheet items were recalculated according to the exchange rate as on the reporting date, revenue/expenditure items were recalculated at the average exchange rate.

At the reporting date, the exchange rate of the National Bank of Kazakhstan was used:

2. SHORT-TERM AND LONG-TERM ASSETS (US dollars)

2.1 Exploration and evaluation assets

The exploration and evaluation expenses as of June 30, 2014 amounted to 196 million US dollars, these costs are associated with the exploration of Benkala and South Benkala deposits. According to IAS 23 «Borrowing costs» loans received directly to finance qualified assets are allowed to capitalize. During exploration of Benkala FRONTIER received loans from RedKite, New Technologies LLP, Nursultan Nazarbayev Educational Fund SF, Central Asian Educational Services S.A., Nikfar Holding Limited, Casterwal Invest Ltd., Aliyev Y., and Riverhouse Consults Limited. All interests related to above loans are capitalized and included to the cost of the asset. Interests related to Sberbank JSC loans are treated as operating expenses.

2.2 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

The initial cost of other property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use.

Capital work in progress is carried at cost, less any recognised impairment loss. Construction cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the accounting policy. Such items of the property assets are classified to the appropriate category of property, plant and equipment at the time of completion and readiness for its intended use.

Additional investments totaled to $1.4 million for the acquisition and construction of assets. However, devaluation of Kazakhstan Tenge in February 2014 had a significant impact on outstanding balance of assets, which caused a revaluation of the assets by more than 8 million US dollars.

2.4 VAT recoverable

Outstanding balance of VAT had not changed since 31.12.2013. Difference which is reflected in the balance is due to an increase in the KZT/USD foreign exchange rate.

2.4 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost, including an appropriate portion of fixed and variable overhead expenses, is assigned to inventories by the method most applicable to the particular class of inventory. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

2.5 Cash and cash equivalents

Cash includes cash on hand and cash on current accounts in banks.

2.5.1 Restricted Cash

Cash deposits with banks are made pursuant to requirements of the Group's subsoil use contracts. The Group accumulates such cash deposits restoration provisions related to obligations to restore and make the mines safe after use and the estimated costs of cleaning up any chemical leakage.

3. EQUITY AND LIABILITIES (US dollars)

There are no movements in the issued share capital for the 6 months ended June 30, 2014 and year ended December 31, 2013.

3.1 Current and non-current liabilities

Borrowings

Partial repayments of principal and loan interests were carried out during the first half of the year:

Trade accounts payable

4. Consolidated Statement of Comprehensive Income (US dollars)

4.1 Revenue

4.2 Cost of sales

Increase in cost of sales for the 6 months of 2014 compared to 6 months of 2013 was due to changes in overhead cost accounting approach. During 2013, the Company used standardized distribution of fixed overhead costs accrued during the winter period in the cost of sales calculation for the entire year. In 2014, since the Company continued operating throughout the winter months, all fixed overhead costs were recognized in the cost of sales during the period they were accrued in.

4.3 Selling, general and administrative expenses

4.4 Financial and other operating expenses

Devaluation of Kazakhstan Tenge in February 2014 had a significant impact on foreign exchange loss during the 6 months of 2014.