Tuesday 23 April, 2013

Operational Update

Following improved weather conditions at Benkala, operations have now recommenced.

Start-up Process

The operations team have been on site over the past weeks preparing for operational restart to allow leaching to begin.

Agglomerated ore was loaded onto pads before December to facilitate an immediate start-up, without the need for crushing stockpiled ore, or depending on activity resuming at the mine.

Frontier anticipates shipping of cathodes to begin in the first week of June.

Capital Expenditure

In 2013 Frontier will continue to work on the expansion of the Benkala site to 10,000tpa capacity and will spend an additional US$6 million of Capex on additional leach pads, improvements to the crushing and agglomeration process and general site enhancements.

Conclusion

Preparations made in 2012 will ensure rapid restart of production in 2013 and allow cathode production to continue alongside enhancement and expansion activities at the SX-EW plant.

Yerlan Aliyev, Chairman and CEO, commented,

"We are keen to resume operations at Benkala with all haste. Continued development of the site offers considerable benefits to both the Company and our shareholders, and I am in no doubt that is a prudent investment.



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