ADDRESS PHONE EMAIL PO Box 7996 +61 (07) 5592 2274 info@frontierresources.com.au Gold Coast Mail Centre FAX WEBSITE Qld 9726 Australia +61 (07) 5592 2275 www.frontierresources.com.au

ABN 96 095 684 389

ASX Code : FNT

17th October 2008

ASX Limited Company Announcements Office

Announcement

Esis Porphyry Copper Prospect, Papua New Guinea

Exploration Update and Project Summary Frontier Resources Ltd is pleased to announce results from a 2 month exploration program conducted at the Esis copper Deposit (EL1351- Mt Likuruanga), in the eastern sector of the island of New Britain in Papua New Guinea (Figure 1). The objectives were to:

• Evaluate logistical and access issues.

• Sample and confirm copper (+/-gold) anomalous intervals in creeks/historic trenches.

• Evaluate the potential for a significant porphyry copper deposit to be defined. Frontier’s trench and outcrop channel / composite rock chip sampling at Esis confirmed broad zones of copper mineralisation north and east of historic BHP diamond drill hole MD23, which intersected 152.6m at a weighted average of 0.39% copper plus 24ppm molybdenum to end of hole (was terminated in 0.37% copper). Highlights of Frontier’s sampling includes 20m grading 0.43% copper, 20m grading 0.38% copper and 10m grading 0.35% copper in historic Trench 4. Channel /rock chip sampling in creeks included 30m grading 0.32% copper, 30m grading 0.29% copper and 20m grading 0.28% copper, in 3 different creeks. Esis is typical of many porphyry copper systems in tropical weathering environments and these results are considered to be highly encouraging. This is because leaching of the bedrock at surface over time results in reduced copper grades (at surface), with the leached copper concentrating at depth in “supergene enrichment zones.” BHP’s drill testing of the marginal copper grades at surface showed significant increases in copper grades down hole. Average weighted copper grades down hole compared to copper grades at surface in a 100m radius of the deep holes drilled (MD21-24) show a ratio of 1.75:1, significantly increasing the overall prospectivity (ie. If the surface grade = 0.2%, then the sub-surface grade should = 0.35%). Frontier is encouraged by the high prospectivity noted and are contemplating drill testing the copper mineralization at the Esis Prospect in 2009, subject to funding.

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ESIS DEPOSIT SUMMARY The Esis porphyry copper Deposit is situated on a north-north-west trending ridgeline, on the western flanks of the 20km long by 6km wide Esis-Sai granitoid complex. Mineralisation is in quartz-diorite and magnetite breccias. The exploration target is 150 to 500 million tonnes grading 0.4 to 0.7% copper or better, from surface. This is based on extensive historic trenching, creek channel sampling, four diamond holes (152.5 to 153.35m each) historically drilled to test the supergene zone and 15 (1 abandoned) shallow ‘Winkie’ drill holes. This is a target only and may not be achieved. Best results from the diamond core drilling included 152.6m grading 0.39% copper + 24ppm molybdenum and 152.4m of 0.28% copper + 12ppm molybdenum, with highest grades of 1.62% copper and 124 ppm molybdenum. Gold content is unknown, but assumed relatively low. The best holes from the Winkie program included DW7 (21.6m of 0.50% copper), DW15 (30.3m of 0.41% copper), at opposite ends of the ridge. This means that the 1,000m strike extent of the mineralized zone remains open to the north and south. There is very good potential for copper-bearing oxide material, with gold credits, lying above an RL of 530m, as well as a potential for hypogene copper mineralisation below the supergene cap. A resource was never estimated by previous workers. Figure 2 shows the EL 1351 ‘Conceptual Regional Mineralisation Model’, which incorporates the Esis Prospect, the Bukuam Prospect porphyry copper plus zinc-gold skarn mineralisation and the Kamarere Prospect (yet to be evaluated by Frontier). Prospect-scale copper and zinc metal zonation in soils and rockchip samples at Esis show a relationship which is common to known island arc porphyry copper systems worldwide (essentially zinc in a halo peripheral to copper).

Figure 1

Figure 2

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Copper mineralization at Esis is associated with extensive intrusive breccias, which may be “pipe-like” in their dimensions, indicating a potential for a great vertical extent (See schematic geological model in figure 3). The Esis Prospect was the locus of extensive exploration work in the 1970’s by BHP. Systematic stream sediment sampling, augering, pitting and trenching defined extensive supergene and primary copper anomalism /mineralisation in drainages and bedrock. Figures 4, 5 and 6 show some results from this work and the areal extent of the main mineralised zones. Figure 4 shows trench and rock-chip copper geochemistry for the entire area, plus gold in limited ridge and spur soil lines. Figure 5 shows copper in trenches and figure 6 shows corresponding molybdenum in trenches. These figures show that the mineralised zone is known to be more than 1,000m long and up to 1,000m wide, but is generally about 400m wide. Extensive costeaning returned significant results including 90m grading 0.4% copper and 20ppm molybdenum (weighted average) in magnetite breccia at 7750mE and 7400mN on the local grid. BHP drilled 15 shallow (generally less than 30m)

Figure 4

Figure 3

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‘Winkie’ diamond reconnaissance holes (DW1-DW15, with DW11 aborted) and four deeper diamond core holes (MD21-MD24). Six of the fourteen shallow holes contained a weighted copper average for their entire length greater than 0.2% and were terminated in copper mineralisation. The peak grade encountered was 1.3% copper.

Figure 5

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Figure 6

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The four deeper diamond core drill holes all contained significant copper mineralization. Figure 7 shows schematic soil geochemistry with hot colours being higher grade and cold colours lower grade. It also shows 2 target zones based on soil geochemistry. Drill hole MD23 contained 0.39% copper (weighted average) over its entire 152.6m length. MD23 graded 0.42% copper over 66m in the zone of primary mineralization zone (see figure 8), to the end of hole and was terminated in substantial (0.37%) copper grades. The mineralisation potential and thus possible total tonnage, is completely untested at depth. BHP geologists noted that copper grades were underestimated in several cases, due to core loss, and that copper grades were actually the highest in intervals with the best core recovery (i.e. DW7).

Supergene enrichment zones (indicated by the presence of chalcocite and chalcopyrite) were identified by BHP geologists in drillholes MD23 and MD24 with weighted copper grades of 0.66% from 30-56m in hole MD23 (2.45m core loss), and 0.37%Cu from 35-53m in MD24 (Figure 8). BHP suggested there was potential for 20Mt of supergene ore at Esis grading approximately 0.7% Cu based on their sampling and identified potential to increase the supergene tonnage to 40 or 60

Figure 8

Figure 7

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million tonnes by additional work in the north and east of the prospect area. Frontier believe this is a valid target but make no claim that it can be achieved. In addition, there is significant primary copper potential at depth, which has not been evaluated and definitely warrants and requires it. A priority exploration target is an untested gold zone in soil at the Pele Prospect, located 750m north of the northern end of Esis under/in the volcanics located between Esis and Pele. This area is labelled “Follow Up Area” in Figure 4, showing the extent of copper in soil geochemistry. A zone of jarosite alteration nearly joins Esis to Pele and is about 650m long and up to 150m wide, with coincident copper in soil and rock anomalism indicative of possible sub-surface copper mineralisation (see figure 9). No significant work has been done at Esis for about 34 years.

A prospect scale magnetics survey was recommended by a consulting geologist to BHP, in 1974. This survey was never completed and Frontier intend to undertake such a survey. The survey will provide valuable drill targeting information. Several zones of soil and bedrock anomalism, with significant copper grade and areal extent (see Figure 7), were not drill tested and the extensively copper mineralized zone already tested by MD23 (terminated in 0.37% copper), remains completely open at depth. In addition, the northern strike extent of the mineralisation where it is covered by volcanics and trending towards the Pele Prospect is unevaluated (see Figure 9). BHP terminated work on the prospect in 1975, after a massive copper price drop and left the prospect inadequately tested. EXPLORATION PROGRAM DETAILS A prospect scale program at Esis (historically also known as the Ulete/Esis Copper Prospect) of rockchip sampling was conducted by Frontier over exposed creek outcrops and some historic trenches. Results have confirmed a broad and significant zone of copper mineralization in the target area.

Figure 9

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The first phase involved sampling at 10m intervals of zones in the creeks showing porphyry style alteration irrespective of previous copper and/or gold assay grades and the second phase involved re-sampling of old BHP trenches with anomalous grades. A total length of 1.01 km of channel /rock chip samples were collected in four creek traverses in (nominally) 10m long samples. The results from Esis basically confirmed the work by BHP and CRA with the highest copper assay of 0.76% and the highest gold assay of 0.36 g/t from Toguwe Creek. At the Esis River, a 100m+ zone yielded an average copper assay of 0.17% copper, with the highest being 0.26% copper. A summary table of significant results is shown below (note that not all creek areas were conducive to continuous sampling and hence the lack of some assay continuity).

Table 1: Trench Sampling Significant Result Summary

Trench From To Interval (m) Cu (%)

PT04 0 10 10 0.31

PT04 10 20 10 0.54

PT04 60 70 10 0.26

PT04 70 80 10 0.50

PT04 140 150 10 0.35

PT06 40 50 10 0.20

PT06 50 60 10 0.26

PT09 50 60 10 0.27

Table 2: River Outcrop Sampling Significant Result Summary

Channel From To Interval (m) Cu (%)

Ulete River 1120 1130 10 0.40

Ulete River 1340 1350 10 0.26

Ulete River 1370 1380 10 0.27

Ulete River 1380 1390 10 0.45

Ulete River 1390 1400 10 0.24

Pele River 60 70 10 0.22

Pele River 70 80 10 0.35

Pele River 80 90 10 0.31

Lokete River 0 10 10 0.32

Lokete River 10 20 10 0.24

Lokete River 30 40 10 0.26

Lokete River 80 90 10 0.22

Esis River/DS 80 90 10 0.22

Esis River/DS 190 200 10 0.27

Esis River/DS 200 210 10 0.30

Esis River/DS 210 220 10 0.25

Frontier are contemplating drill testing the known and significant copper mineralization at depth below historic hole MD23 and other untested portions of the Esis prospect in 2009. For additional information relating to the Company and its projects please visit our website at www.frontierresources.com.au or feel free contact me. FRONTIER RESOURCES LTD

P.A.McNeil, M.Sc. MANAGING DIRECTOR

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The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by, or

compiled under the supervision of Peter A. McNeil - Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of

mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2004 Edition of the

Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

About Frontier Resources

� Frontier is focused on exploring for and developing mineral deposits in the highly mineralised Pacific ‘Rim of Fire’ in Papua New Guinea and the highly prospective Mt Read Volcanics of Tasmania.

� The Company is presently evaluating the possible development of the Narrawa and Stormont Deposits in Tasmania

and is undertaking commercial drilling to assist cash-flow. � Frontier has a 100% interest in 4 Exploration Licences covering approx. 1,460 km² in PNG and 3 Exploration Licences

+ 2 Retention Licences covering 134 km² in Tasmania. � The portfolio offers excellent mineral deposit potential, with primary targets being World Class gold/silver

epithermal, gold– base metal skarn, copper-gold-molybdenum porphyry and polymetallic VMS (zinc-lead-silver-gold) deposits.

� The projects all have high-grade exploration results in rock, trenches and/or drill hole and are in the same or similar

geological terranes as existing World Class and/or major mines. � The Inferred Resource for the Narrawa Deposit contains 30,850 ounces of gold equivalent* grading 5.05 g/t gold

equivalent, within 190,000 tonnes grading 2.74 g/t gold + 1.21% zinc + 1.59% lead + 22g/t silver.

♦ The Inferred Resource contains 16,740 ounces of gold + 2,300 tonnes of zinc + 3,020 tonnes of lead + 134,400 ounces of silver.

♦ It is contained within 3 on or near surface, potentially open-pitable lodes and is based on all historic drilling to date and estimated in accordance with the 2004 JORC code.

♦ Excellent metallurgical testwork results have been obtained. This information has been incorporated into a Conceptual Mining Study (CMS) to evaluate the project’s potential to be placed into development. The CMS (and metallurgical testwork results) will be released forthwith.

♦ Future drilling will target extensions to the mineralisation to increase the total size of the resource and thus improve possible ‘economics’. There is excellent exploration potential, particularly to the NW. Additional mineralisation is likely to be documented in the general project region also, from the many existing drill targets.

♦ The resource will be re-estimated when the current exploration program has been completed and will likely be re-classified as Measured, Indicated and Inferred. The CMS will then be updated to evaluate changes in the projects’ economics. The nearby Stormont Deposit will be included in the revised CMS, following completion of its drilling and estimation of a resource.

♦ The Tasmanian Government is very supportive of mining and exploration. The RLs are in ‘good’ locations for possible development and there are no known social or alternative land use issues.

� Frontier’s Directors and management team have more than 300 years combined experience in PNG and Australia to

serve the interests of the Company and its shareholders. � Frontier operates with a general policy of ‘DRILLING’ our quality projects using our purpose built and self

manufactured, cost effective, environmentally friendly, man-portable diamond core rigs. � We ‘own’ and operate all the major required means of exploration including a long term and very competent human

resources team, drilling, earth moving and transport equipment, magnetic surveys etc, to maximise exploration success, while minimising costs in a very competitive environment.

� The Company is an ASX listed junior mineral explorer whose shares also trade on the Frankfurt, Berlin and Munich

Stock Exchanges.