Issuance of New Shares

FRONTERA RESOURCES CORPORATION

Houston, Texas, U.S.A. - 29 July 2011

ISSUANCE OF NEW SHARES

Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR; OTC Market - Symbol: FRTE), an independent oil and gas exploration and production company ("Frontera" or the "Company"), today announces the issue of 4,000,000 new shares of Common Stock to a former Director of the Company, in connection with such Director's retirement in January 2011 (the "Retirement Shares"). The Retirement Shares have been issued as a negotiated settlement of cash amounts which the Director was entitled to receive under his employment agreement upon his retirement from the Company.

Upon completion of the transaction as set out in detail in the admission document published yesterday by Frontera Cayman, the Retirement Shares are expected to be admitted to trading on AIM, as new shares in Frontera Cayman, at 8.00 a.m. on 2 August 2011.

Terms used in this announcement have the same meaning as defined in the announcement dated 28 June 2011, unless otherwise defined.

Enquiries:

Frontera Resources Corporation

Liz Williamson

Vice President, Investor Relations and Corporate Communications

(713) 585-3216

[email protected]

Nominated Adviser:

Strand Hanson Limited

James Harris / Andy Emmott / Paul Cocker / Liam Buswell

+44 (0)20 7409 3494

Joint Brokers:

Arbuthnot Securities Limited

Richard Johnson / Adam Lloyd

+44 (0)20 7012 2000

Old Park Lane Capital Plc

Michael Parnes / Luca Tenuta

+44 (0)20 7493 8188

Financial PR:

Buchanan Communications

Tim Thompson / Ben Romney

+44 (0)20 7466 5000