Placing to raise £4 million

20 December 2010

Frontier Mining Ltd (AIM: FML)

("FML", "Frontier" or "the Company")

Completion of Placing

PLACING TO RAISE £4 MILLION

Following the announcement on 17 December regarding the completion of the re-domicile of the holding company of the group to the Cayman Islands, the Board of Frontier announces that it has today completed a round of fundraising in order to provide finance for further investment in the Benkala copper deposit and provide the group with additional working capital.

The Company has placed 66,669,340 new ordinary shares of $0.01 each in FML Cayman, the new Cayman Islands holding company, at a price of 6p per Ordinary Share to raise £4,000,161 before expenses.

In addition, the Company will issue 1,806,000 new ordinary shares of $0.01 each in FML Cayman at the placing price of 6p to Calder Maloney Pty Ltd, trading as Calder Projects Services ("CPS"). CPS is the engineering company providing Frontier with the technical design for the SX-EW processing plant for the Benkala Copper Project. This issue of equity to CPS is in part payment of fees under the contract, as previously announced on 21 June 2010.

Application has been made to the London Stock Exchange for the 68,475,340 new shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM on the 23 December 2010.

Commenting on the fundraising Erlan Sagadiev, CEO of Frontier Mining, said: "The funds raised will help to ensure that we maintain sufficient capital resources between receipt of HSBC funding tranches, enabling us to acquire Benkala plant equipment as the project schedule requires.

"I'd like to thank all new shareholders for investing in FML at this time. Your support is greatly valued and together we can look forward to the continued progress of the Company."

For further details please contact:

Notes to Editors

 About Frontier Mining Ltd:

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 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.

The Company announced on 18 October its intention to re-domicile the holding company of the Group from Delaware, USA to the Cayman Islands (the "Re-domicile") and the proposed acquisition of interests in the Benkala copper deposit in northern Kazakhstan currently under development (the "Benkala Copper Project") and the Maminksaya gold deposit in the southern Ural region of Russia currently under exploration (the "Maminksaya Gold Project") (the "Asset Acquisition"). The Proposals were duly passed by shareholders in a Special Meeting held on 8 November 2010.

When the Re-domicile becomes effective on 22 December 2010, as announced on 17 December, each outstanding ordinary share of the Company will be converted into and represent the right to receive one share in the new Cayman Company ("FML (Cayman)") save that each outstanding ordinary share of the Company whose holder is not an "accredited investor", as such term is defined in Rule 501 of Regulation D promulgated under the United States Securities Act, will be converted into and represent the right to receive a cash payment in U.S. Dollars. The shares of the Company will then be admitted to trading on AIM. Upon the Re-domicile becoming effective, ordinary shares in the Company will be cancelled, resulting in the respective holdings of shareholders in the FML (Cayman) (excluding holders who are not "accredited investors") being the same as the respective holdings of shareholders in the Company immediately prior to the Merger becoming effective.

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. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

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 owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt.

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 representsdevelopment 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 maintains an administrative office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains an office in Semipalatinsk, close to the Naimanjal operations, which is the base for all exploration and development personnel with additional administrative support for exploration. Semipalatinsk is 830 kilometres north of Almaty, connected by regular commercial airline services.

 Issued Share Capital

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

Following the completion of the re-domicile and the placing, Frontier will have up to 985,811,546 ordinary shares in issue.

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