Frontier Mining Ltd Additional Benkala Project Funding

Frontier Mining Ltd, the AIM quoted copper exploration and development company focused on Kazakhstan, is pleased to announce thatSberbank Kazakhstan (“Sberbank”) has signed an agreement to provide a loan and credit facility to KazCopper LLP (Frontier’s wholly owned subsidiary through which it holds the Benkala license) to the value of $29 million dollars.  Sberbank is the largest bank in Russia and the CIS.

The facility is in two components, a $20 million investment loan and a $9 million working capital credit facility.  The investment loan has already been partially drawn on to fully repay the Company’s $8 million existing loans with HSBC Kazakhstan and for capital purchases.  In addition, the loan will be used for the Benkala project’s expansion, working capital requirements and the ongoing drilling programs at Benkala and South Benkala.  The loan is for a period of 48 months, with a grace period of 12 months and an interest rate of 9%.  The working capital credit facility is for 36 months with an interest rate varying from 7.5 to 8.5%.  The loan and facility are secured by a registered charge over the assets and share capital of KazCopper LLP.

Erlan Sagadiev, CEO of Frontier Mining, said: “In spite of the worsening credit markets we have been able to significantly increase the credit available to the Company and improve its terms.  We believe these new facilities reflect the progress achieved in construction to date; as well as in the financial and technical robustness of the Benkala project and represent an excellent start to 2012”.