Wardell Armstrong International (WAI) have published an independent expert report entitled Review and Preliminary Valuation of Baitimir Project Located within the Naimanjal License Territory NE Kazakhstan.

WAI is an independent engineering and environmental Consultancy, providing the mineral industry with specialised geological, mining, and processing expertise since 1987.

WAI was commissioned by Frontier to prepare a scoping report on the Baitemir project, including a preliminary financial evaluation, based on data provided in December 2012. The project is located within the Naimanjal license, comprising the Baitemir, Yubileiny and Beschoku copper deposits.

The report documents geological block preliminary modeling and mineral resources as at October 2012, and is a non JORC (2004) compliant desktop report.

The results of the financial modeling show that, when applying various discount rates between 8% and 20% the model produces a NPV (post tax) of US$17 million and US$67 million respectively, based on income from the recovery of copper, silver, gold, magnetite and molybdenum.

The internal rate of return (IRR) for the Baitemir and Beschoku projects are approximately 40%, with a payback period of approximately two and a half years. Wardell Armstrong estimates that the cash operating costs over the life of mine are approximately US$10.01 per ton of oxide ore and US$19.79 per ton of sulphide ore.

The report supports Frontier's view that Baitemir is an attractive project with robust economics and will establish the optimal strategy for the project, with potential to development through joint venture or through the sale of the project to a third party.

distributed by