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1 ADDRESS PHONE Office J, Level 2, 1139 Hay St. +61 (8) West Perth, WA, 6005 ABN WEBSITE Australia ASX Limited Market Annuncements Platfrm ASX: FNT 31 st Octber 2016 TECHNICAL REPORT QUARTER ENDED 30 SEPTEMBER 2016 Frntier Resurces Ltd (ASX: FNT) (the Cmpany) is fcussed n mineral explratin in Papua New Guinea (PNG) and its 100% interests in the Bulag and Muller Explratin Licences. PNG is recgnised as being highly prspective and the Cmpany is targeting cpper+/- gld +/-mlybdenum prphyries and intrusive related epithermal gld depsits in the Papuan Fld Belt. The Fld Belt cntains the Ok Tedi prphyry cpper-gld Mine (lcated 120km WNW), Prgera intrusive/ epithermal related gld Mine (100km east) and Kili Teke prphyry cpper-gld Depsit (50km east). The giant Grasberg prphyry cpper-gld +skarns is in this same zne in West Papua. Drilling cmmenced at Bulag s Swit Kai Central Lwer Hrizn n 7 September. Fur diamnd cre hles (161.3m ttal f HQ TT) were cmpleted, that targeted flat lying 1630m RL /cnfrmable and mderate SSW dipping gld mineralised znes. The drill rig mved t Pad 2 in East Creek n Octber 6 th, bliquely targeting (dwn strike and acrss dip) a 3.0m wide zne, 50-degree suth dipping zne that graded 45.2 g/t gld in previus jackhammer channel samples. Refer ASX Annuncement 4 July Five diamnd cre hles (153.7m ttal f HQ TT) were cmpleted n the East Creek Lwer Hrizn, targeting a mderate/steep SSW dipping gld mineralised zne. The brief gelgical lgs available frm each hle n Pad 2 indicate significant megascpic sulphide mineralisatin and quartz veining has been intersected in the cre in the upper parts f the hles. Intense quartz sulphide mineralisatin and veining is cncentrated alng the cntact zne f cmpetent black mudstne and intrusive, primarily in the mudstne. The prgram has been paused after cmpletin f drilling wrk n Pad 2 fr field break fr the crew. Cre samples are awaiting airfreight at this stage. Explratin targeting a pssible repetitin f the Swit Kai mineralisatin has been initiated. A hand trench was dug, based n lead/ zinc sil gechemistry and tpgraphic analysis (flat spts). Gssan flat was nted and this is encuraging (nt randm chance), but the trenches may nt be deep enugh and details will be reprted when available. Due t delays in the Swit Kai prgram, it is nw intended t defer drilling a prphyry target in the Valley. An Aster satellite alteratin, structural evaluatin and reprt by P. Swiridiuk - Aimex Gephysics and Frntier Directr was cmpleted. A ttal f 22 targets were defined fr fllw-up, with 8 targets at Swit Kia and 14 in the Bulag Valley. The Cnclusins frm the reprt are quted belw and it is attached. DETAILS The drilling prgram at East Creek prceeded very well frm the same pad, targeting (generally bth alng strike and acrss dip) a 3.0m wide zne, apprx. 50-degree suth dipping zne, that graded 45.2 g/t gld in previus jackhammer channel samples (reprted t ASX 4/2014). An alng strike view t the NW f the utcrp being drilled is shwn in the pht, with the previusly sampled intervals in pink tape. There is excellent strike cntinuity ptential that can nw be easily drill accessed relative t the tpgraphy. Gld in sil anmalies alng trend t bth the east and west f the Lwer Zne, indicate a strike length t 1

2 +480m ttal. Gld anmalies in drainages t the west f Swit Kai indicate its unevaluated strike ptential and drainages t the N and NW have never been sampled. The regin has excellent mineralisatin ptential, with strng radimetric and aermagnetic anmalies that require substantial evaluatin. Many new targets have been prpsed frm the tpgraphic evaluatin and its refinement is nging. Flat spts indicate resistance t ersin and silicified (pssibly brecciated and gld mineralised) intrusive. Multiple hrizntal and dipping levels f gld mineralisatin are predicted. Three suth dipping structural znes have been mapped (with the Swit Kai Zne in the middle) that all cntain knwn gld, zinc and cpper mineralisatin and have been mapped fr >2 kilmetres alng strike. This increases tnnage ptential significantly. The Central Lwer Zne actually crrespnds t the East Creek Upper Zne (bth are subhrizntal gld mineralisatin n the same 'level') and the Central Upper Zne crrespnds mre t the East Creek Lwer Zne (md-high angle suth dipping mineralisatin). Cnceivably, the highest-grade mineralisatin wuld be where they intersect. The best immediate large /reginal target accrding t the aermagnetics, is the next zne upslpe frm Swit Kai. Anther excellent new zne t test is dwnslpe frm Swit Kai and has very strng zinc and lead, plus gld anmalies in grid based sil sampling and an OTML rck utcrp sample t 37 g/t gld. 2

3 SUG001 drill pad Pad 1 drilled 5m f 13.9 g/t gld SUG002 drill pad Rig drilling CLD001 Pad 2 EZL hles Hles CLD are lcated prximal t Equatrial hle 004, whse cllar was dug up and its psitin is nw knwn t be abut 20m t far nrth n the previus plans. Managing Directr Peter McNeil nted: The drilling prgram at Bulag -Swit Kai has been challenging but prceeded well after the initial mechanical (brittle drill chuck seals) issues. The drilling frm Pad 1 was underwhelming because we culdn t intersect the zne in hles 1 and 2; it is a difficult area t be able t get the required inclinatin and azimuth fr the rig relative t either f the mineralised rientatins. Visual gelgical intersectins f hles EZL001- EZL005 are summarised belw. CLD 001 Az. 135 (M) Incl. -43 EOH= 55.3m Started 2/09/16 terminated 24/09/ m: scree/slump material, m: fractured siltstne hrnfels sme hard sectins, chlrite +/- pyrite+/-mt fractured stained fex weakly laminated m: blk massive finely laminated stg fractured xidised and cut by weak white carb quartz veinlets m: blk well indurated finely laminated midst cut by weak irregular calcite veinlets weak mt frac/diss pyrite narrw <5-10cm quartz pyrite breccia zne frm m, m: weakly sericitised chlrite +pyrite-clay altered fine-mg dirite fractured cntrl pyrite < E N RL CLD002 Az.=147 (M) Incl. -45 EOH 47.9m Started 26/09/16 terminated 28/09/ m: scree/slump breccia m: fractured weathered mudstne/siltstne m: weakly prphyritic dirite weakly siliceus fine diss fractured cntrl pyrite (+/-mt) +clay, pyrite 3

4 < m fractured black mudstne weak fractured cntrl pyrite zne <15cm quartz sulphidic m m: pale grey fine-mg dirite weakly prphyritic md-strng chlrite -/p by weak sericite-pyrite +clay fractured pyrite < E N RL1627. CLD003 Az. 210 (M) Incl. -43 date EOH 34.7m Started 30/09/16 terminated 02/10/ m: clluvium/r prly uncnslidated weathered landslide m: bleached sericitised strng xidised very siliceus fine -mg dirite strngly fractured cut by distinct /ccasinal quartz limnitic veins sme up t 1-2cm E N RL1627. CLD004 Az. =255 (M) Incl. -40 EOH 25.2m Started 03/10/16 terminated 04/10/ m: scree/slump material m: pale grey siliceus fine-mg dirite sericitised clay+ pyrite altered ccasinal quartz-pyrite veinlets fractured cntrlled /disseminated pyrite <1-2 fractured xidised m: black mudstne fractured with weak pyrite m: pale grey fractured dirite fractured xidised +weak quartz limnitic veins m: black massive mudstne narrw <10cm quartz sulphidic Breccia 21.10cm E N RL1627 EZL001 Az. 315 (M) Incl. -38 EOH=35.7m Started 06/10/16 terminated 11/10/ m: black mudstne with zne f fracturing + brecciatin, intensely veining by quartz-pyrite- galena- +/-sphalerite+/- adularia vughy frming strng stck wrking, narrw <20cm Breccia zne frm 0.10m-0.30m + strng galena+ sphalerite m: pale grey, weakly prphyritic. dirite, strng sericite chlrite - pyrite- clay altered, 13.0m-16.50m: intensely quartz- sulphidic veined, (quartz-pyrite +/- galena+ sphalerite) veins/veinlets, m: strngly chlritised massive dirite, weak-mid fractured- cntrl pyrite < m t 35.7m chlrite altered hrnblende dirite. (Pad 2 --crdinates still being determined). Hle EZL m-8.4m: blk fractured mudstne md-strng with multiple quartz- pyrite +/- galena +/- sphalerite vein with micr brecciatin frming stck wrk. 5.0m-6.1m: clay- puggy shear zne. 8.4m-17.0m: pale ptassic altered feldspar prphyry at 45 t cre axis n tp cntact, silicified pale green with md-strng quartz sulphide veining. 17.0m-34.6m: massive dirite with narrw (<30cm) quartz- sulphide breccia zne at 19.40m. 34.6m-39.0m: greenish grey siltstne with weak quartz- sulphide veining. 39.0m-49.6m: greenish massive prpylitic altered dirite cut by weak /nil quartz sulphide. Hle EZL m m: gd stckwrk again quartz sulphide veined black mudstne. 6.50m -14.0m: massive chlritised dirite with weak r nil veining. Hle EZL m - 1.8m: pad fill 1.8m - 3.9m quartz-pyrite +/- galena-sphalerite veining < 1-5cm parallel cre axis including sme hairline veinlet frming stckwrking. 5.05m m: strngly silicified hydrthermal breccia its matrix - supprted breccia with predminantly angular black mudstne cast + <1-2% intrusive set in fine grained milky t greyish chalcednic quartz - sulphide+? k-feldspar /? adularia breccia matrix mderate stckwrking. 9.15m 9.54m: mudstne and strngly ptassic altered feldspar prphyry intensely veined with multiple veining/veinlets f quartz-pyrite-galena-sphalerite with intense brecciatin. 9.55m-12m: cntact reign seemed t be fcussed f intense vein + brecciatin, veining ccurs in the rder f 2-3 cm wide cutting t CA, certainly drilling dwn the structure ut f mineralisatin at 20.80m. 4

5 terminated at 28.30m hle depth in slid mass prphyry altered Hrnblende dirite. Hle EZL m m: black mudstne fractured cut by mderate quartz-pyrite- +/- galena-sphalerite veinlets + minr breccia znes at cm & at m. 7.60m m: ptassic altered feldspar pervasively silicified and cut by veins/veinlets f quartz-pyritesphalerite-galena m m: black mudstne cut by weak- mderate multiple veins f quartz sulphide m m: black mudstne with weak quartz sulphide veining m m: prpylitic altered massive dirite with n quartz sulphide veining. PNG Mining Act f 1992 stipulates renewable 2 year terms fr ELs, with a Warden s Curt Hearing nsite t recrd the attitude f the landwners t explratin and granting /renewal f the tenement. The required Hearing was held successfully n 6 th Octber at Yamb airstrip, with abut 100 landwners in attendance. I walked frm Swit Kai camp t the nly village in the EL area t meet with them (and their spkesman) vernight September 9 th and have a Mm (refer phts) with them. Hle Number Azimuth (magnetic) Inclinatin End f Hle Easting (m) Nrthing (m) RL (m) CLD (M) m CLD (M) m CLD (M) m CLD (M) m EZL (M) m EZL (M) m EZL (M) m EZL 004 na m EZL (M) m Crdinates Crdinates being verified Same pad Same pad Same pad, skid mved 2m t SE n 135 Same site as abve An independent review f the Bulag Valley prphyry cpper gld mineralisatin ptential has been cmpleted and the results are appended. Prcedure: 1. Data was appraised and where pssible cnverted int MapInf/Discver and/r Surpac readable frm. 2. A 3D digital terrain mdel (DTM) f the surface tpgraphy was generated alng with cnturs at 10m intervals in 2D. 3. jpeg/ gif plans were imprted int MapInf. 4. Bulag drill lgs were cded int an Excel database with: a. Primary rck type under LithCde (existing data) b. Intensity f the three majr alteratin styles (taken frm lgs) being: c. Prpylitic; d. Phyllic; and e. Ptassic. 5. Presence r absence f key alteratin minerals (taken frm lgs), including: a. K-feldspar; b. Magnetite; c. Epidte; and d. Actinlite. 6. This lithlgical infrmatin was imprted int an Access database fr use with a 3D gelgical sftware mdelling prgram (Surpac), as well as assay and magnetic susceptibility data. 7. Sil/rck gechemistry fr cpper and gld was draped ver the 3D DTM. 8. Sil/rck assays fr cpper and gld were imprted int MapInf with clur cded pint data and gridded (inverse distance squared) images were generated. 9. The inverted magnetics was imprted int Surpac and the 2D plan view shws utlines f the 0.6 t 0.75 si and >0.75si that were traced and exprted int MapInf. 5

6 6

7 The inverted magnetics defined 4 highs (i.e. at >0.75 si within a brader f si) and they appear t fllw west-nrthwest trend. The nrth-western anmaly has been drill tested by hles BUL001 /BUL003, hwever the ther znes have yet t be drilled. Mdelling f the inverted magnetics suggest that they lie nearer the surface, hwever, dwnhle magnetic susceptibility readings in hle BUL001 suggests the magnetic zne is at depth, questining the depth reliability f the inverted data (Nte that the sharp eastern edge t this anmaly is crrect with data cntinuing t the immediate east). The best alteratin (and cpper + gld mineralisatin) ccurred in hles BUL001 and BUL007, prviding a strng argument fr drilling in between them. Hle BUL006 appears t have split the difference, but it actually lies n the eastern side f the ridge and nt within the strng cpper in sil anmaly n the western slpe that trends west dwn t the Bulag River and then up the ther side. Three znes were defined: 1. A Nrthern zne is defined by the alteratin plus cpper and gld mineralisatin in hle BUL001 plus a west-nrthwest magnetic trend at the junctin f 2 main tributaries (a cnducive structural setting). 2. A Central zne is defined by the best cherent/strngest cpper in sils n hillslpes trending west dwn t the Bulag River, a cincident central magnetic high and the surface prjectin f adjacent hle BUL007 s favurable alteratin. 3. A Suthern Zne is defined by a cherent cpper anmaly n bth sides f the river and a suthern magnetic high, plus the adjacent favurable alteratin in BUL007. Pssible drill hles with acceptable drill site access n the 3D DTM are prpsed and shwn n the attached plans. The pad lcatins are n breaks in slpe (flatter areas) fr sites 1, 2 and 4. Site 5 is n the BUL007 drill pad (but riented SSW and site 3 is next t the Bulag River (if/ as pssible). The pssible hles are shwn as traces 165m lng (i.e. assuming -60 degrees fr 330m). Frntier wuld likely drill at -50 degrees inclinatin t crss mre grund, rather than ging slightly deeper (at -60 degrees). A Ridgeway mine prphyry cpper-gld type target is suggested by petrlgy wrk n drill cre cnducted t date and these highly mineralised prphyry depsits have a narrw but lnger and deeper mrphlgy, cmpared t the OK Tedi Mine. Drilling will traverse acrss strike as much as pssible t test the target ultimately chsen. An Aster satellite alteratin, structural evaluatin and reprt by P. Swiridiuk - Aimex Gephysics and Frntier Directr was cmpleted. A ttal f 22 targets were defined fr fllw-up, with 8 targets at Swit Kia and 14 in the Bulag Valley. The Cnclusins frm the reprt are quted belw and it is attached. Tw Aster satellite imagery scenes have been analysed t utline areas f ptential mineralisatin related t alteratin. The Shrt Wave Infa Red (SWIR) bands were prcessed by GeImage Pty Ltd in rder t help highlight equivalent absrptin peaks similar t the clays in alunite, illite and prpylitic alteratin type assemblages. A ttal f twenty-tw areas were selected as significant and requiring grund inspectin and further gechemical analysis. The fcus f this interpretatin was in the areas where drilling and surface gechemistry have been cmpleted at the Swit Kai prspect and the Idawe Intrusive Cmplex, althugh additinal analysis f the satellite imagery can be cmpleted nce grund truthing and gechemical sampling is cmpleted n sme f the existing target areas. Structural lineaments have been interpreted frm the Aster imagery, which may indicate cnduits fr mineralisatin in bth epithermal gld and prphyry cpper and base metal envirnments. The tw Aster scenes were captured in May and Octber 2002 where clud interference was minimal and different in each scene. As such, interpretatin ver areas unaffected by clud and their grund shadws 7

8 within the Bulag Valley culd be maximised. 1.0 EXECUTIVE SUMMARY Tw Aster satellite scenes were acquired and rthrectified by GeImage Pty Ltd ver the Bulag Valley cmplex (Figure 1). GeImage als prduced image enhancements t highlight areas f ptential alteratin which may be assciated with mineralisatin. Figure 1 Figure 2 8

9 The Aster satellite cllects data in the fllwing frequency ranges: 1. Very Near Infa-Red (VNIR) 2. Near Infa-Red (NIR) 3. Middle Infa-Red (MIR) 4. Shrt Wave Infa-Red (SWIR) 5 bands 5. Thermal Infa-Red (TIR) Within the SWIR range there are five channels which can be used t highlight spectral infrmatin related t reglith clays and irn. The dense jungle canpy and clud cver in PNG can reduce the effectiveness f much f the spectral infrmatin frm the reglith, hwever this reprt presents sme infrmatin which is interpreted frm the fllwing scenes prduced by GeImage Pty Ltd: a. Tp 1 percent f prpylitic image intensity and general prpylitic imagery which shws ptential mineral assemblages related t prpylitic alteratin. b. Tp 1 percent f Illite image intensity and Illite imagery, shwing clays similar t illite. c. Alunite and Kalinite images which shw similar clays which may be related t alteratin. The area arund Swit Kai prspect was analysed in the first instance, as it is subject t cntinuing drilling effrts (Figure 3) where a ttal f eight areas f ptential alteratin were identified. Mst f the areas are less than 60m acrss with tw areas related t anmalus gld in rck samples. These areas are recmmended fr grund inspectin t determine if any alteratin is visible at surface. Figure 1: Swit Kai Prspect Aster Targets On a mre reginal scale, particularly arund the Idawe Intrusive Cmplex (Figure 1 and 2), a ttal f 14 areas were identified fr ptential alteratin. Fr target areas related t anmalus gechemistry in sil samples n the margins f the Idawe Intrusive, surface mapping and sampling is recmmended prir t trench sampling and drilling. Targets have been selected away frm effects due t clud cverage and assciated shadws. In additin, a number f Aster linear structures have been identified. Additinal interpretatin can be cmpleted if sme f the selected targets shw a crrespnding pattern f alteratin r anmalus gechemistry frm grund 9

10 inspectin and sampling, in which case the imagery can be calibrated t imprve analysis. 2.0 SWIT KAI PROSPECT AREA ALTERATION TARGETS Eight target areas (Table 1) have been selected in the vicinity f the Swit Kai prspect and its surrunding sil sampling (Figure 3). This area is subject t nging drilling t define extensins f gld in trenches and drill hles. The alteratin targets (Illite and prpylitic assemblage type clays) are utlined t help lcate znes related t mineralisatin (Figures 4 and 5). Figure 2: Swit Kai Prspect Aster Illite Image and Targets Swit Kai alteratin target areas have been mstly defined frm Aster enhancements related t Illite type clays (Figure 4) and prpylitic alteratin type clay assemblages (Figure 5). Tw different Aster scenes have been analysed, each with different culd cverage t help maximise the cverage and interpretatin f areas unaffected by clud and clud affected shadws n the grund. Table 1: Interpreted Alteratin in the Swit Kai Prspect Area Target Lcatin Descriptin (AGD66, Z54) AST e, n This area is within the tp1 percent f intense prpylitic alteratin imagery and is assciated with anmalus gld in sil samples. It exists at the divergence f the interpreted sub-hrizntal gld zne and central upper zne, 50m west f gld AST e, n AST e, n AST e, n AST e, n intersected in drillhle SUG002. Anmalus area in the tp 1 percent f prpylitic alteratin intensity. The target is cincident with drillhle DDH_S3 and anmalus gld in rck samples. It ccurs near the junctin f the East and Central branch f the Upper Suguma Creek. Anmalus in the tp 1 percent f illite related alteratin image intensity. It ccurs 50m west f drillhles EZU001 and EZU003. Prpylitic anmaly in the tp percent f imagery intensity, 200m sutheast f drillhles EZU001&003. It ccurs at the eastern end f the interpreted subhrizntal gld hrizn. An east-west tending illite anmaly recgnised frm the tp 1 percent f intensity in the Illite imagery. This target ccurs 40m nrth f AST04. 10

11 AST e, n AST e, n AST e, n Anmalus in the tp1 percent f prpylitic alteratin image intensity. It is in Kapia Creek and cincident with anmalus gld (16.7g/t) in rck samples. An elngated zne f prpylitic alteratin in the tp 1 percent f image intensity, n the western margin f the Swit Kai sil sampling lines n an OTML interpreted structure running WNW. Occurring 450m suthwest f the sub-hrizntal gld zne, this Alunite and Kalinite anmaly ccurs n an OTML interpreted structure. Figure 3: Swit Kai Prspect Aster Prpylitic Image and Targets 3.0 BULAGO VALLEY AND IDAWE ALTERATION TARGETS A ttal f 14 alteratin target areas have been selected arund the Idawe Intrusive Cmplex and further dwnstream west frm Bulag Valley (Figure 1 and 2). Alteratin target areas related t the Idawe Intrusive Cmplex and its margins, which are cincident with anmalus sil gechemistry (AST-09,10,11,12,14 & 15), have a higher pririty than ther selected target areas in Table 2. These higher pririty targets are recmmended fr surface mapping and trench sampling prir t drilling (Figure 7 and 8). Histrical drilling assciated with the margins f the Idawe Intrusive intersected significant cpper and mlybdenum including 124m at 0.13% cpper frm 119m and 1.8m at 128ppm M frm 113m depth in BUL001 (Figure 6). An interpreted 300m diameter alteratin hal (AST-15 in Table 2) als has an inner alteratin cre (Figure 8) which is cincident with the histrical drillhle BUL006. This drillhle intersected gld related t shears and faults, including 1.5m at 3.19g/t gld. Further surface mapping and trenching is recmmended ahead f additinal drill testing. 1km west f the Idawe Intrusive, Aster targets AST18 and 19 (Table 2) were selected frm the tp 1 percent f intense prpylitic alteratin (Figure 9). A further 2km west, three alteratin targets (AST20, 21 & 22 in Table 2) were selected (Figure 10). These three targets hwever are nt cvered by gechemical sampling. 11

12 Additinal targets can be selected nce grund truthing f the existing targets has been cmpleted. Figure 4 (belw): Idawe Intrusive Cmplex Drilling Results Figure 5: Aster Satellite Image ver the Idawe Intrusive 12

13 Figure 6: Aster Illite Imagery with Targets ver the Idawe Intrusive Figure 7: Aster Illite Imagery with Targets ver the Idawe Intrusive 13

14 Figure 8: Aster Illite Imagery with Targets ver the Idawe Intrusive Table 2: Bulag Valley Areas f Interpreted Alteratin Target Lcatin Descriptin (AGD66, Z54) AST e, n On the nrth-western bundary f the Idawe Intrusive Cmplex, this prpylitic anmaly is in the tp 1 percent f imagery intensity and cincident with anmalus mlybdenum in sil samples. This area is recmmended fr trenching and drilling. AST e, A small tp 1 percent prpylitic anmaly near (50m away) anmalus mlybdenum in n AST e, n AST e, n AST e, n AST e, n AST e, n AST e, n sils and 150m frm the western margin f the Idawe Intrusive Cmplex. A subtle illite type alteratin anmaly n the nrth-eastern margin f the Idawe Intrusive Cmplex. It is 40m nrth f anmalus mlybdenum in sils and is recmmended fr trench sampling and drilling. An illite alteratin anmaly assciated with anmalus gld in rck samples and mlybdenum in sil samples lcated n the bundary f the Idawe Intrusive Cmplex. It is 300m east f the tw drillhles BUL001&003 in Orlupe Creek. A prpylitic anmaly in the tp 1 percent f image intensity n the edge f the Idawe Intrusive Cmplex, 50m east f the BUL001&003 drillhles in Orlupe Creek. Within the Idawe Intrusive Cmplex, this tp 1 percent prpylitic anmaly is 70m nrtheast f anmalus gld in rck trench samples. This 300m diameter hal f illite alteratin with a central anmaly f illite & prpylitic alteratin ccurs directly ver drillhle BUL006 within the Idawe Intrusive Cmplex. BUL006 intersected gld mineralisatin including 1.6m at 2 g/t frm 83.9m depth and 1.5m at 3.19 g/t frm 20.5m depth within narrw shears and faulting. Additinal structural mapping and trench sampling is recmmended at this site. A 270m linear prpylitic anmaly trending nrtheast and cutting thugh anmalus gld in sil samples n the edge f the Idawe Intrusive Cmplex. The anmaly ccurs in the upper reaches f the Bulag River and is a medium pririty target. AST e, A tp 1 precent prpylitic anmaly 200m west f the Idawe Intrusive Cmplex n AST e, A tp1 percent prpylitic anmaly n the suthern side f Bulag Valley and n the 14

15 n AST e, n AST e, n AST e, n AST e, n same RL1630m as Swit Kai. This prpylitic anmaly is in the tp 1 percent f intensity and next t anmalus mlybdenum and lead in sils. It ccurs 170m upstream in a tributary f Bulag River. Within the Pampalu Creek skarn target, this is a prpylitic tp 1 percent target ccurring next t Yhgwa Creek. A 200m linear Alunite-Kalinite alteratin anmaly n Bulag river. It is nt cvered by gechemical sil and rck sampling. A distinct alunite-kalinite anmaly 250m suthwest f the Yhgwa Creek. It is nt cvered by gechemical sil and rck sampling. 4.0 CONCLUSION Tw Aster satellite imagery scenes have been analysed t utline areas f ptential mineralisatin related t alteratin. The Shrt Wave Infa Red (SWIR) bands were prcessed by GeImage Pty Ltd in rder t help highlight equivalent absrptin peaks similar t the clays in alunite, illite and prpylitic alteratin type assemblages. A ttal f twenty-tw areas were selected as significant and requiring grund inspectin and further gechemical analysis. The fcus f this interpretatin was in the areas where drilling and surface gechemistry have been cmpleted at Swit Kai prspect and the Idawe Intrusive Cmplex, althugh additinal analysis f the satellite imagery can be cmpleted nce grund truthing and gechemical sampling is cmpleted n sme f the existing targets areas. Structural lineaments have been interpreted frm the Aster imagery, which may indicate cnduits fr mineralisatin in bth epithermal gld and prphyry cpper and base metal envirnments. The tw Aster scenes were captured in May and Octber 2002 where clud interference was minimal and different in each scene. As such, interpretatin ver areas unaffected by clud and their grund shadws within the Bulag Valley culd be maximised. Technical infrmatin regarding Bulag was released t the ASX n 27/10/2016, 16/6/16, 11/6/16, 10/5/16, 21/4/16, 12/12/14, 5/12/14, 4/7/14, 11/6/14, 1/4/14, 18/10/12, 24/5/12, 17/5/12, 28/2/11 and 16/3/10; it is als summarised in Quarterly Reprts. Frntier placed 3,366,666 shares at 3 per share t raise an additinal $101,000 fr drill testing the prphyry cpper-gld targets in additin t the Swit Kai high grade gld at the Bulag EL. Managing Directr, Mr Peter McNeil M.Sc. cmmented: Cmpany Cnsultants, Sharehlders and investrs wh participated in the ver-subscribed Placement are thanked very much fr their supprt; the funds raised will enable Frntier t undertake an expanded drilling prgram at Bulag, with team mbilising in late August. Frntier will nw be able t drill test sme high pririty prphyry cpper -gld targets, in additin t high-grade gld at Swit Kai. The placement was made utilising the Cmpany s existing 7.1 capacity. In additin, Chairman and Managing Directr Peter McNeil has agreed, subject t sharehlder apprval, t subscribe fr a further 2,075,827 shares at 3 per share t raise a further $62,275. In additin t the placement, the Cmpany has issued 2,521,667 shares t cnsultants in lieu f utstanding fees pursuant t the Cmpany s listing rule 7.1 capacity. Technical releases submitted t the ASX during the Quarter included: 27th Octber th Octber th August 2016 Swit Kai East Creek Prgram Drills Significant Quartz Veining and Sulphide Mineralisatin EL Bulag Drilling and Hearing Update. Mbilisatin fr Bulag High Grade Gld and Prphyry Cpper Drilling Prgram. 15

16 30th August th August th August D Gephysical and Gechemical Prphyry Cpper - Gld Drill Targeting Evaluatin Cmpleted. Prpsal t Partner with the Hela Prvincial Gvernment t Cut a Track frm Kpiag t Bulag. Aster Satellite Evaluatin Cmpleted & Twenty-Tw Targets Defined Fr Fllw Up. 3 August 2016 Placement Raises an Additinal $101,000 t Drill Test Prphyry Cpper-Gld Targets in Additin t Swit Kai High-Grade Gld. Fr additinal infrmatin please visit ur website at FRONTIER RESOURCES LTD P.A. McNeil, M.Sc., MAIG Chairman and Managing Directr Cmpetent Persn Statement: The infrmatin in this reprt that relates t Explratin Results is based n infrmatin cmpiled by, r cmpiled under the supervisin f Peter A. McNeil - Member f the Aust. Inst. f Gescientists. Peter McNeil is the Managing Directr f Frntier Resurces, wh cnsults t the Cmpany. Peter McNeil has sufficient experience which is relevant t the type f mineralisatin and type f depsit under cnsideratin t qualify as Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde f Reprting Explratin Results, Mineral Resurces and Ore Resurces. Peter McNeil cnsents t the inclusin in the reprt f the matters based n the infrmatin in the frm and cntext in which it appears. Frntier Resurces Ltd Explratin Licence Infrmatin Licence N. Date Frm Date T Area (SQ KM) Lat. Sub Blcks Bulag River* EL /07/2014 6/07/ % Frntier Gld PNG Ltd Muller Range EL /12/ /12/ % Frntier Cpper PNG Ltd * Under renewal Ownership 287 SQ KM NB: The Papua New Guinea Mining Act f 1992 stipulates that ELs are granted fr renewable 2 year Terms (subject t Wrk and Financial Cmmitments) and the PNG Gvernment maintains the right t purchase up t 30% prject equity at "Sunk Cst" if/when a Mining Lease is granted. JORC CODE 2012 Sectin 1 -- Sampling Techniques and Data Criteria Explanatin Cmmentary Sampling techniques Nature and quality f sampling (e.g. cut channels, randm chips, r specific specialised industry standard measurement tls apprpriate t the minerals under investigatin, such as dwn whle gamma sndes, r handheld XRF instruments, etc.). These examples shuld nt be taken as limiting the brad meaning f sampling. As nted herein Drilling techniques Drill sample recvery Include reference t measures taken t ensure sample representivity and the apprpriate calibratin f any measurement tls r systems used. Aspects f the determinatin f mineralisatin that are Material t the Public Reprt. In cases where 'industry standard' wrk has been dne this wuld be relatively simple (e.g. 'reverse circulatin drilling was used t btain 11m samples frm which 3 kg was pulverised t prduce a 30g charge fr fire assay ) In ther cases mre explanatin may be required, such as where there is carse gld that has inherent sampling prblems. Unusual cmmdities r mineralisatin types (e.g. submarine ndules) may warrant disclsure f detailed infrmatin. Drill type (e.g. cre, reverse circulatin, pen-hle hammer, rtary air blast, auger, Bangka, snic, etc.) and details (e.g. cre diameter, triple r standard tube, depth f diamnd tails, face-sampling bit r ther type, whether cre is riented and if s, by what methd, etc.). 16 Supervised by Explratin Manager As nted herein. Methd f recrding and assessing cre and chip sample recveries and results assessed Linear arithmetic Measures taken t maximise sample recvery and ensure representative nature f the samples. As nted herein. Whether a relatinship exists between sample recvery and grade and whether sample bias may have N ccurred due t preferential lss/gain f fine/carse material. Lgging Whether cre and chip samples have been gelgically and getechnically lgged t a level f detail t supprt apprpriate Mineral Resurce estimatin, mining studies and metallurgical studies. Yes Whether lgging is qualitative r quantitative in nature. Cre (r cstean, channel, etc.) phtgraphy. As nted herein. The ttal length and percentage f the relevant intersectins lgged All Sub-sampling techniques and sample preparatin If cre, whether cut r sawn and whether quarter, half r all cre taken. Quarter cre sampled If nn-cre, whether riffled, tube sampled, rtary split, etc. and whether sampled wet r dry. NA Fr all sample types, the nature, quality and apprpriateness f the sample preparatin technique. Apprpriate

17 Quality f assay data and labratry tests Verificatin f sampling and assaying Lcatin f data pints Data spacing and distributin Orientatin f data in relatin t gelgical structure Quality cntrl prcedures adpted fr all sub-sampling stages t maximise representivity f samples. Supervised by Explratin Manager Measures taken t ensure that the sampling is representative f the in situ material cllected, including fr instance results fr field duplicate /secnd-half sampling. Supervised by Explratin Manager Whether sample sizes are apprpriate t the grain size f the material being sampled. Supervised by Explratin Manager The nature, quality and apprpriateness f the assaying and labratry prcedures used and whether the technique is cnsidered partial r ttal. Nature f quality cntrl prcedures adpted (e.g. standards, blanks, duplicates, external labratry checks) and whether acceptable levels f accuracy (i.e. lack f bias) and precisin have been established. Fr gephysical tls, spectrmeters, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and mdel, reading times, calibratins factrs applied and their derivatin, etc. Apprpriate. Quarter diamnd blade cut drill cre was 50 gm fire assayed fr gld +40 element ICP with ttal 4 acid digestin Acceptable accuracy levels established As nted herein. The verificatin f significant intersectins by either independent r alternative cmpany persnnel. All by J. Kirakar The use f twinned hles. Nil Dcumentatin f primary data, data entry prcedures, data verificatin, data strage (physical and As nted electrnic) prtcls. herein. Discuss any adjustments t assay data. Nne Accuracy + quality f surveys used t lcate drill hles (cllar + dwn-hle surveys), trenches, mine NA wrkings and ther lcatins used in Mineral Resurce estimatin. Specificatin f the grid system used. Map datum is AGD 066. Quality and adequacy f tpgraphic cntrl. 40m cnturs - 1:100,000 plans, 10m -DTM cnturs. Data spacing fr reprting f Explratin Results. As nted herein and refer t any attached plans fr details. Whether the data spacing and distributin is sufficient t establish the degree f gelgical and grade Yes cntinuity apprpriate fr the Mineral Resurce and Ore Reserve estimatin prcedure(s) and classificatins applied Whether sample cmpsiting has been applied. N Whether the rientatin f sampling achieves unbiased sampling f pssible structures t the extent this is knwn, cnsidering the depsit type. If the relatinship between the drilling rientatin and the rientatin f key mineralised structures is cnsidered t have intrduced a sampling bias, this shuld be assessed and reprted. If and as stated in text. If and as stated in text Sample security The measures taken t ensure sample security Nrmal baggage-freight prcedures Audits r reviews The results f any audits r reviews f sampling techniques and data. N specific audits r reviews f sampling techniques and data have been undertaken. Sectin 2 -- Reprting f Explratin Results Criteria Explanatin Cmmentary Tenure The security f the tenure held at the time f reprting alng with any knwn impediments t btaining a licence t perate in the area. Explratin dne by thers Acknwledgment and appraisal f explratin by ther parties. Gelgy Depsit type, gelgical setting and style f mineralisatin. Drill hle infrmatin Data aggregatin methds Relatinship between AS nted herein Explratin in the regin was initiated in the late 1960s as part f a PNG prphyry cpper depsit search. It was explred fr gld initially in the mid 1980's. Gld intrusive -epithermal related targets, prphyry cpper-gld - mlybdenum and higher grade gld -silver-zinc-lead skarns. A summary f all infrmatin material t the understanding f the explratin results including a tabulatin f the fllwing infrmatin fr all Material drill hles: Easting and nrthing f the drill hle cllar Elevatin r RL (Reduced Level- elevatin abve sea level in metres) f the drill hle cllar Dip and azimuth f the hle Dwn hle length and interceptin depth Hle length If the exclusin f this infrmatin is justified n the basis that the infrmatin is nt Material and this exclusin des nt detract frm the understanding f the reprt, the Cmpetent Persn shuld clearly explain why this is the case. In reprting Explratin Results, weighting averaging techniques, maximum and/r minimum grade truncatins (e.g. cutting f high grades) and cut-ff grades are usually Material and shuld be stated. Where aggregate intercepts incrprate shrt lengths f high grade results and lnger lengths f lw grade results, the prcedure used fr such aggregatin shuld be stated and sme typical examples f such aggregatins shuld be shwn in detail The assumptins used fr any reprting f metal equivalent values shuld be clearly stated. These relatinships are particularly imprtant in the reprting f Explratin Results. Drilling underway and Infrmatin tabulated herein. Infrmatin nted herein. Infrmatin nted herein. Infrmatin nted herein. Infrmatin nted herein. Infrmatin nted herein. Nt applicable Tables f results included shw data aggregatin if applied. Is this ccurs, it is stated in the text. N metal equivalent values are reprted. Mderately understd 17

18 mineralisatin widths & intercept lengths If the gemetry f the mineralisatin with respect t drill hle angle is knwn, its nature shuld be reprted. If it is nt knwn and nly the dwn hle lengths are reprted, there shuld be a clear statement t this effect (e.g. 'dwn hle length, true width nt knwn'). Diagrams Apprpriate maps and sectins (with scales) and tabulatins f intercepts shuld be included fr any significant discvery being reprted These shuld include, but nt be limited t a plan view f drill hle cllar lcatins and apprpriate sectinal views. Balanced reprting Other substantive explratin data Further wrk Where cmprehensive reprting f all Explratin Results is nt practicable, representative reprting f bth lw and high grades and/r widths shuld be practiced t avid misleading reprting f Explratin Results. Other explratin data, if meaningful and material shuld be reprted including (but nt limited t): gelgical bservatins; gephysical survey results; gechemical survey results; bulk samples - size and methd f treatment; metallurgical test results; bulk density, grundwater, getechnical and rck characteristics; ptential deleterius r cntaminating substances The nature and scale f planned further wrk (e.g. tests fr lateral extensins r depth extensins r large-scale step-ut drilling). Diagrams clearly highlighting the areas f pssible extensins, including the main gelgical interpretatins and future drilling areas, prvided this infrmatin is nt cmmercially sensitive. Reprted Apprpriate maps, sectins and tabulatins f intercepts are included. Cmprehensive reprting f Explratin Results has been previusly cmpleted and released. All meaningful explratin data has been included in this and previus releases. Future wrk is dependent capital and prgram results. Apprpriate plans will be included, as sn as pssible in a later release dcumenting apprved future wrk prgrams. 18