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Gold and Copper in Kazakhstan

Gold and Copper in Kazakhstan. Important Notice.

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Gold and Copper in Kazakhstan

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  1. Gold and Copper in Kazakhstan

  2. Important Notice • The information in this document is subject to updating, revision and amendment. This document does not constitute or form, and should not be construed as constituting or forming, part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for, any securities in Frontier Mining Ltd (“ the Company”) or any other body corporate or an invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 nor shall it or any part of it form the basis of or be relied on in connection with any contract therefor. This document does not constitute an invitation to effect any transaction with the Company or to make use of any services provided by the Company. No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company or Evolution Securities Limited (“Evolution”), any of their subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or opinions contained in this document or expressed in the presentation and no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the presentation. • The information and opinions contained in this document and the presentation are provided as at the date of this document and the presentation and are subject to change without notice. • In the United Kingdom, this document is only being distributed to persons who are reasonably believed to be persons who fall within Articles 19, 47, 48, 49, 50 or 60 of The Financial Services and Markets Act 2000 (Financial Promotions) Order 2001 and Schedule 11 to the Financial Services and Markets Act 2000 or to other persons to whom this presentation may otherwise be lawfully distributed. The contents of this document must not be copied or distributed by recipients and its contents are confidential. In particular, neither this document nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States of America, its territories or possessions or passed to US Persons (as defined in Regulation S of the United States Securities Act of 1933 (as amended)), United States residents, corporations or other entities, save pursuant to an applicable exemption. Neither this document nor any copy of it may be taken or transmitted into any jurisdiction outside the United Kingdom or distributed to persons with addresses outside the United Kingdom. Distribution of this document in the United States may constitute a violation of United States securitieslaw. • Evolution (which is regulated by the Financial Services Authority) is acting for the Company and no one else in relation to the proposals set out in this document and will not be responsible to any other person for providing the protections afforded to customers of Evolution nor providing advice in relation to the contents of this document. Evolution does not have any authority to make any representation or warranty on behalf of the Company or any other person in connection with theCompany. • No recipient of the information in this document or the presentation should deal in or arrange any dealing in or otherwise base any behaviour (including any action or inaction) in relation to any securities or other qualifying investments to which this document relates (including behaviour referred to in section 118(6) of the Financial Services and Markets Act 2000) which would or might constitute market abuse (as defined in section 118 of the Financial Services and Markets Act 2000). This document and the presentation contain price sensitive information and accordingly recipients of this document or attendees at the presentation will not be able to deal in any securities of the Company before the information is made public, in accordance with the insider dealing provisions of Part V of the Criminal Justice Act 1993. By virtue of making this document available no individual within the Company, its associates or Evolution is encouraging recipients of the information in this document to deal in accordance with section 52(2)(a) of the Criminal Justice Act 1993 • By attending the presentation you agree to be bound by the foregoing provisions.

  3. Frontier Mining Ltd • Formed August 1998 • US Delaware Corporation • Gold and copper exploration and development • Evaluating acquisition opportunities in uranium, gold and copper • Kazakhstan & CIS countries • Admitted to Alternative Investment Market London Stock Exchange Sep 2, 2004 • Ticker symbol: FML • IPO raised £3.5 million • Second offering March 10, 2005 raised £4.375 million • Exercise of warrants to date raised £2.088 million • Third offering December 2005 raised £8.0 million • Two contracts held by wholly owned Frontier subsidiaries • FML Kazakhstan LLP (Naimanjal exploration/mining contract) • Baltemir LLP (Baltemir exploration contract) • Four commercial discovery areas, and one exploration licence area

  4. KazakhstanFrontier Licence Areas (Indicative Location) RUSSIA RUSSIA Kurchatov Astana Semipalatinsk KAZAKHSTAN Almaty CHINA KYRGYSTAN UZBEKISTAN TURKMENISTAN TAJIKISTAN

  5. Kazakhstan • The ninth largest country in the world (2.7m sq km, population 15m) • Declared independence in 1991 following break-up of the Soviet Union • Stable government • Actively encouraging foreign direct investment (1993 - 2005 US$46 billion) • President Nazarbayev in office since election in 1991, confirmed by referendum in 1995 and further election in 1999 and 2005 • IMF describes fiscal regime as “a model of trade and currency openness” • First FSU republic to repay all debt to IMF - seven years ahead of schedule • Investment grade country credit rating from Moody’s and foreign currency credit rating from Standard & Poor’s • 7th largest copper reserves in the world, 2nd largest uranium reserves in world, underdeveloped gold sector

  6. Company Overview • Management has extensive experience in the mining industry and in Kazakhstan • Naimanjal • Producing gold mine • Satellite deposit extensions • Koskuduk • Pre-feasibility stage gold project • Baltemir • Exploration stage gold prospect • Baitimir • Pre-feasibility stage copper porphyry project • Associated gold and molybdenum credits • Several copper/gold prospects along a 25km trend, including both VMS and porphyry types • Beschoku • Kotansor • Yubileiny • Currently evaluating acquisition opportunities in uranium, gold, and copper Diagram prepared by management based on independent third party data.

  7. Highlights • Naimanjal gold mine • First gold and silver produced 1st September 2005 • Measured and indicated resource 150,000 oz gold and 3.4 million oz silver to JORC standards* • Management believes potential for 2+ million oz of gold • Lead, zinc, gold, silver sulphide mineralization at depth • Koskuduk gold deposit • 250,000 oz C1 + C2 category resource • Management believes potential for 1+ million oz of gold • Baltemir gold exploration prospect • 7 km long multiple quartz veins • Baitimir porphyry copper-gold deposit • Inferred geologic resource (C2-P1) 840,000 t contained copper, includes 252,000 t of oxide • Includes gold and molybdenum mineralization • Management believes significant upside to increase above this resource • A 25 km trend including both VMS and porphyry type copper/gold deposits • 170,000 t of ore @ 0.75%Cu • Metallurgical test work confirms copper is recoverable from oxide ore at Beschoku and Yubileiny * Western Services Engineering

  8. Commercial Discovery Areas • 4 Commercial Discovery Areas – 528.5 km2 • Naimanjal Complex • Koskuduk • Baitimir • Beschoku-Yubileiny • 1 Exploration License Area – 154 km2 • Baltemir Diagram prepared by management based on independent third party data.

  9. Naimanjal ‘Cluster Mining’ DevelopmentTargeted IP Survey: Sulphide at Depth Diagram prepared by management based on independent third party data.

  10. Naimanjal and Satellites Naimanjal and Satellites Naimanjal mine development

  11. Naimanjal Open Pits View northwest along strike Naimanjal pit design

  12. Naimanjal ‘Cluster Mining’ DevelopmentHeap Leach Pad, Stockpiled Ore, Ore Mining & Gold Pour

  13. Koskuduk Gold Project • 250,000 oz C1/C2 oxide resource • Management believes: • 1 million oz potential • Sulphide mineralization at depth • Potential open pit / heap leach operation • Minimize initial capital expenditure • Plan initial production rate 25,000opy • Plan to increase production rate Diagram prepared by management based on independent third party data.

  14. Koskuduk Gold ProjectGeology & Oxide Gold Mineralization Extracted from SRK report dated August 2004.

  15. Baltemir Licence • Licence covers 154 sq km • Gold occurs in 1km wide quartz veins, extending 7 km along strike • 19 core holes totalling 1,941m • Plan to do additional exploration Diagram prepared by management based on independent third party data.

  16. 4 Copper/Gold DepositsBaitimir, Beschoku, Yubileiny and Kotansor • Baitimir copper porphyry deposit • Beschoku, Yubileiny, and Kotansor deposits • Along a 25 km-long copper/gold trend • Management estimates that there are approx 1.0 MMt copper resource • Approximately 252,000 t (25%) contained in oxide copper ore • Copper in oxide ore can be extracted using low cost SXEW technology • Beschoku: 90% recovery of copper at -10mm crush size • Yubileiny: 75% recovery of copper at -40mm crush size 11.

  17. Copper/Gold DepositsBaitimir • Kazakhstan Geologic Survey assessed the potential for copper porphyry type mineralization in the region as favourable • Frontier confirmed Baitimir as a copper porphyry system with associated gold and molybdenum mineralization • 2005 exploration program included 6 km2 alteration mapping, geochemistry (2,059 grid samples), IP geophysics (4.3 km2) and 1,785m drilling in 15 holes. • Preliminary management resource estimate includes 840,000 t of contained copper at 0.40% • Management believes oxide zone extends to a depth of 50 m followed by potentially leachable sulphide enrichment blanket to a depth of 65 m Diagram prepared by management based on independent third party data.

  18. Copper/Gold DepositBeschoku • Oxide copper first discovered in late 19th century, production record 1,000 t • Gold was intercepted by a single drill hole in 1950’s • Frontier drilled 5 core holes totalling 434.2 m • Discovery of hydrothermal breccia, with high-grade gold and copper • Management estimates gold resource of 141,500 oz (C2-P1) • Management believes that geology and geochemistry indicate several more high grade breccias in the immediate area Diagram prepared by management based on independent third party data.

  19. Copper/Gold DepositBeschoku: 19th Century Mine & Bulk Metallurgical Sampling=SXEW Leachable Cu Cathode

  20. Copper/Gold DepositBeschoku: Hydrothermal Breccia Diagram prepared by management based on independent third party data.

  21. Copper/Gold DepositBeschoku: Management Estimate of Resources

  22. Copper/Gold DepositYubileiny • Discovered in the late 19thcentury • Approx 1,000 t of copper extracted in 1870s with oxide copper grades 5% to 10% • Frontier drilled 27 core holes totalling 2,460 m • 100,400 t of contained copper with an average grade of 0.63% • Oxide copper recovery reached 75% at ­40 mm crush size Diagram prepared by management based on independent third party data.

  23. Copper/Gold DepositYubileiny: High-Grade Copper Oxide Ore & Targeted IP Survey: Sulphide at Depth

  24. Summary • Management believes potential for a number of substantial gold and copper/gold production centres in a low cost environment • 4 commercial discoveries covering 529 sq km • 1 producing gold mine with satellite deposit extensions • 1 pre-feasibility stage gold deposit • Several copper/moly/gold projects • 1 exploration licence covering 154 sq km • 1 gold exploration target • Naimanjal gold mine forecast to produce 10,000 oz @ $300/oz in 2006 • Frontier currently plans to double gold production to 25,000 oz in 2007 • Frontier currently plans to triple gold production again to 75,000 oz in 2008 • Plan to evaluate potential for oxide copper project development • Currently evaluating acquisition opportunities in uranium, gold, and copper

  25. 2006 & 2007 Exploration and DevelopmentUse of Proceeds

  26. Current Share Structure

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