Friday 07 December, 2012

New CEO Appointed

Erlan Sagadiev [left] has stepped down from the board and resigned as CEO. Yerlan Aliyev [inset, right] , current Non-Executive Director and principal of Coville Intercorp Ltd ("Coville"), will assume the duties of CEO and Chairman on an interim basis while the Board searches for a permanent replacement to both the CEO and Chairman positions.

Mr Sagadiev has recently been appointed Economic Policy Advisor to the Prime Minister of Kazakhstan, in recognition of his services to business and as one of the country's most successful entrepreneurs. Accordingly, he can no longer hold any position in a company with operations in Kazakhstan.

The Board of Directors wishes to acknowledge the great strides taken by the Company during his tenure. In the three years and nine months since joining Frontier, Mr Sagadiev solidified the Company's financial position, securing all necessary funding for development, and coordinated the successful transition from exploration activities to cutting-edge copper production.

During this period he also significantly increased reserves, consolidating ownership of Benkala by negotiating the acquisition of Coville's 50% interest in the Benkala project (February 2010 to April 2011) and purchasing the subsurface use contract for the neighbouring deposit at South Benkala (May 2011 to January 2012).

Mr Sagadiev remains a significant shareholder in FML and supporter of the Company.

Commenting on his departure, Mr Sagadiev said;

"It was with great pride that I accepted the honour of advising my country's government, but it was not an easy decision to relinquish my position at Frontier. I could not have made such progress without the skilled dedication of the management team and workforce. Although saddened not to be on the Board to witness the realisation of the Company's full potential, I have great confidence in Yerlan's ability to build on our successes and meet the expectations of shareholders and investors".

Mr Aliyev (43) brings significant financial and strategic management experience to the position. Mr Aliyev was integral to the successful and smooth acquisition of assets from Coville in 2010, the subsequent sale of Maminskoye for $37.5m and the initiation of the relationship with Sberbank which has resulted in a $35m financial facility.

With an MSc in Computational Mathematics and Cybernetics, Mr Aliyev chose to focus his intellect on business and banking, completing an MBA at Moscow State University. He quickly rose through the ranks of several large Kazakh institutions, holding senior positions at JSC Mangistaumunaigaz, KazakhTeleCom, KazCommertsBank and most recently serving as Chairman of the Russian commercial bank JSC Starbank.

Frontier will benefit from his extensive knowledge of international finance, resource and banking operations, in addition to the significant management expertise that has led him to be regarded by his peers as a pragmatic and dynamic leader. During this interim period, Mr. Aliyev intends to further develop the long-term strategic vision for the Company and continue developing close relations with the investment community.

Upon his appointment as CEO, Mr. Aliyev said;

"My objective is to join the FML team of management and shareholders in developing the significant potential offered by Frontier's assets, primarily improving the financial parameters of the Company. I am very fortunate to have inherited outstanding management and operations teams, united by their continued commitment to profitable growth and long-term expansion".

Frontier mining holds its AGM today at 10.30am GMT at the London Capital Club, 15 Abchurch Lane, London EC4N 7BW.



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