Frontier Corporate Presentation - Nov 2012

1. DRAFT
Zandkopsdrift – the next major western RE producer
November 2012 Frontier Rare Earths Limited
TSX:FRO

2. Safe Harbour Statement
Forward-looking information
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements”.
Officers and representatives of Frontier Rare Earths Limited (the “Company”) may, in their remarks or in response to
questions regarding this presentation, make certain statements which are “forward-looking statements” and are prospective.
Forward-looking statements are neither promises nor guarantees, but are subject to risks, uncertainties and assumptions
that may cause the actual results, performance or achievements of the Company, or developments in the Company’s
business or its industry, to differ materially from the anticipated results, performance, achievements or developments
expressed or implied by such forward-looking statements. Forward-looking statements are based on management’s beliefs
and opinions at the time the statements are made or presented, and undue reliance should not be placed on any of these
forward-looking statements. There should be no expectation that these forward-looking statements will be updated or
supplemented as a result of changing circumstances or otherwise, and the Company does not intend, and does not assume
any obligation, to update these forward-looking statements.
2│

3. Topics
 Rare Earth Market
 Frontier Rare Earths overview
 Background to the Zandkopsdrift Rare Earth Project
 Preliminary Economic Assessment and Project Development Plans
 Strategic Partnership
 Outlook
 Appendices
3│

4. Rare Earths – Overview
 Series of 15 chemically similar elements that occur and are recovered together
 Distribution of elements varies from deposit to deposit
 Two distinct categories based on atomic weight: Light Rare Earths and Heavy Rare Earths
 Each element has a range of distinctive physical properties which allow them to be
used in a variety of technological applications
 Magnetic, optical, electrical, catalytic and metallurgical
 Underpin the “green” technology economy
 Hybrid motor and battery technology
 Energy efficiency
 Wind power
 Consumer electronics
 Defense
 Transport
 Most have no substitutes and are indispensable in many applications
4│

5. Rare Earths – Uses
 Biggest, fastest-growing use is for magnet applications which, together with
phosphors and metal alloys, accounts for >80% of demand by value
Value of RE usage by application
40%
37%
35%
31%
30%
25%
20%
15% 14%
10%
5%
5% 4% 4%
3%
2%
0%
Magnets Phosphors Metal Alloys Catalysts Ceramics Polishing Other Glass
Source: Roskill
5│

6. Rare Earth Market Developments
Chinese Export Quota China
70,000
 Continued restructuring of export quota system, forced industry
60,000 consolidation and clampdown on illegal mining & processing
likely to have significant price implications
Tonnes REO
50,000
 China has confirmed only 15-20 years reserves of heavy and
40,000
medium REOs and are expected to be a net importer of these
30,000 elements by 2015
20,000  Chinese export quotas have been reduced significantly since 2005
however export quotas have stabilised at c.30kt per annum
10,000
 US/ Europe and Japan have jointly lodged a complaint with the
0
2005 2006 2007 2008 2009 2010 2011 2012E
WTO in respect of China’s quota system and export taxes on rare
earths
Frontier Basket $/kg Since 2010
300
Rest of World
250
 Plans by several countries including China, Japan, South Korea
200
and US announced to stockpile rare earths
150
3 Year Avg FOB  Major industrial users seeking to lock in long-term
Spot Price FOB supply/partnership from credible potential producers i.e.
100 Frontier/KORES, Lynas/Siemens
50
0
6│

7. Rare Earths – Supply/Demand Forecasts
 Demand CAGR projected at 6-10% through 2016 and beyond
 China’s domestic demand, particularly for medium and heavy rare earths, forecast to
increase faster than domestic supply
 Future supply deficit widely forecast
 Significant opportunity for new producers of separated rare earth oxides outside of China
275,000 Global Supply and Demand (tonnes REO)
250,000
225,000
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2015f 2020f
China supply ROW supply China demand ROW demand Total demand
Source: Roskill,Freedonia Group
7│

8. Frontier Overview
 Flagship asset is the Zandkopsdrift Rare Earth project in South Africa
World-class deposit in terms of size, rare earth grade, distribution and value
 Preliminary Economic Assessment competed March 2012
 confirms Zandkopsdrift’s potential to become a major low cost RE producer
 NPV11% of $3.7bn generating a post-tax IRR of 53% and 2 year payback
 Pre-feasibility Study targeted for completion in Q1 2013 and Definitive Feasibility Study
scheduled 9-12 months thereafter
 Strategic Partnership signed with Korea Resources Corporation
Frontier is the only rare earth junior advancing a major rare earth resource with a definitive strategic
partnership agreement in place
Initial Kores investment of $23.8m for 10% interest
Kores option to acquire up to a 50% interest in Zandkopsdrift if arranges project finance for development
 Strong financial position: c.$30m cash (excl. Kores investment) and fully funded through completion
of DFS
 Listed on the Toronto Stock Exchange
 Experienced Board, management and technical teams
8│

9. Zandkopsdrift Project Location
 Zandkopsdrift is well-situated in the
Northern Cape Province, South Africa’s
oldest mining region
 Excellent mining and related infrastructure
available
 Close to N7 highway from Cape Town
(c.450 km)
 35km to nearest railhead (Bitterfontein)
 300km north of deep water port of Saldanha Bay
 Strong support in local communities for
the development of the Zandkopsdrift
 Frontier controls mineral rights over
c.60,000 ha around Zandkopsdrift and
owns the land on which the deposit is
located
9│

10. Cape Town – a first world destination
10 │

11. Satellite Image of Zandkopsdrift Carbonatite
Zandkopsdrift
Gravel road to N7 carbonatite
complex
N7 tarred road
to Cape Town
Exxaro Resources
Namakwa Sands Mine
(c.45 km) Bitterfontein rail head
(c.35 km)
11 │

12. Zandkopsdrift Deposit
12 │

13. The Zandkopsdrift Deposit
 The biggest intrusion in a complex of carbonatite intrusions
 One of the largest known rare earth deposits, containing approx. 950k tonnes TREO
 Contains significant high grade zones extending from surface that will allow preferential mining
 The majority of rare earths in Zandkopsdrift (~ 97%) are contained in monazite
 Proven commercial extraction processes
 Metallurgical test work to optimise process flowsheet on going in Canada, South Africa and China
 Rare earth minerals in many other new RE projects have never had commercial processes developed,
which will increase their development time, cost, and process risk
 Attractive distribution of light and heavy rare earths and very low radioactivity
 Potential for rapid development and production start-up
 Good regional infrastructure available (road, rail, power and water) will also facilitate development
 Targeting total annual production of 20,000 tonnes of separated rare earths
13 │

14. Geological Interpretation
 The Zandkopsdrift deposit is a REE enriched carbonatitic breccia pipe
 Occurs as a 1km diameter circular intrusive rising 40 meters above the surrounding plain
 Extensive drilling in excess of 20,000 meters completed
 313 boreholes drilled for a total of 21,037 meters
 19,166 meters assayed at 1 meter intervals for resource estimation purposes
 Good understanding of geology and controls on mineralisation
 Series of vertical to sub vertical RE-enriched dykes (“REDs”) intruded into a RE bearing carbonatitic
phlogopite breccia phase (“CPB”)
 The CPB and REDs have undergone several stages of alteration and deep weathering resulting in
the development of supergene enriched high grade REE-bearing horizons from surface to 80-100m
depth (see slide 53)
 Geologically similar to Lynas’ Mount Weld deposit in Australia
14 │

15. Zandkopsdrift Geological Map and Drill Locations
Assay results from final phase
of resource drilling (14,200
meters drilling) to be
incorporated into a revised
resource estimate for PFS, and
are expected to upgrade the
majority of the resource into
the Measured and Indicated
resource categories
15 │

16. Zandkopsdrift Resource Estimate
 Large, high confidence resource estimate(c.950k tonnes TREO) with c.80% of the contained TREO at the
Indicated Resource level (2011)
 Final phase of resource drilling (14,200 meters) at Zandkopsdrift completed in Q4 2011
 Assay results from final phase of drilling expected to advance majority of the 2011 resource into the
Measured and Indicated categories and PFS will convert such resources to Proven and Probable reserves
reserves
Relative distribution of REOs in Zandkopsdrift is shown on page 54.The resource estimate is NI 43-101 compliant and presented in accordance with CIM definitions The mineral resource
estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 74% owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the
Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share
capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex (prior to Kores’ initial 10% acquisition), Frontier shall also be
entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from
certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective
95% interest in the Zandkopsdrift Project until such payment has been received.
16 │

17. Zandkopsdrift Absolute and Relative RE Distribution
Element Tonnes Relative Distribution
Lanthanum 240,833 25.37%
Cerium 418,225 44.06%
Praseodymium 43,870 4.62%
Neodymium 150,723 15.88%
Samarium 21,538 2.27%
Europium 5,597 0.59%
Gadolinium 13,441 1.42%
Terbium 1,570 0.17%
Dysprosium 7,364 0.78%
Holmium 1,230 0.13%
Erbium 3,015 0.32%
Thulium 377 0.04%
Ytterbium 2,090 0.22%
Lutetium 283 0.03%
Yttrium 39,145 4.12%
TTt 949,301 100.00%
17

18. Zandkopsdrift Resource Block Model (2011)
18 │

19. Zandkopsdrift Sample Geological Section
7.98% TREO over 16 meters
with 17.98% TREO over 1 meter
19 │

20. Weathered CPB intruded by weathered RE enriched REDs
Weathered CPB
1-3% TREO
Weathered REDs
6-8% TREO
20 │

21. Contact Between REDs and CPB in Bulk Sample Trench
Weathered CPB
1-3% TREO
Weathered REDs
4-5% TREO
21 │

22. Bulk Sample Trench for Pilot Testwork (Q1 2012)
Average XRF TREO grade 3% for 174 metre trench
22 │

23. Preliminary Economic Assessment - March 2012
PEA Financial Highlights
Post-Tax Net Present Value @ 11% discount rate $3.65bn
Post-Tax NPV & IRR NPV attributable to Frontier Rare Earths $3.60bn
Post -Tax Internal Rate of Return 52.5%
Pre-Tax Net Present Value @ 11% discount rate $4.3bn
Pre -Tax NPV & IRR
Pre-Tax Internal Rate of Return 57.6%
Average annual revenue $1.1bn
Revenue and Cashflow
Annual after-tax free cashflow in full production $711m
Total construction Capex excluding contingencies $910m
Capital Expenditure Start-up costs excluding contingency $27m
Project payback from commencement of full production 2 years
Revenue/kg and cost/kg “Basket price” per kg of separated REO from Zandkopsdrift $58.23
xSeparated REO
Total cash operating cost/kg separated REO $13.08
23 │

24. Location of Zandkopsdrift Project Components
Mining, flotation and cracking
plants to produce mixed rare
earth carbonate
Mixed rare earth carbonate
transported 300kms by road (N7)
to Saldanha Bay
Saldanha Bay Rare Earth
Separation Plant-20,000 tonnes
p.a. TREO
24│

25. PEA Operating Assumptions and Parameters
PEA Operating Assumptions and Parameters
Target annual mining rate 1 m tonnes
Average stripping ratio* 3:1
Mining Life of mine 20 years
Average production grade 3.1% TREO
Mining dilution 7.50%
Target annual production rate 20,000t separated TREO
Metallurgical recovery 67%
Processing
Production start-up H2 2015
Time to full production 1 year
* including all stockpiled <2% grade material and waste
25 │

26. Zandkopsdrift Preliminary Mine Pit Design (looking southwest)
Pit Dimensions (approx.)
East -West extent 830m
North-South extent 900m
Maximum no. benches planned 12
• 19.5 mt to be mined over 20 years
• Average 3:1 stripping ratio
• Significant LoM extension possible, as only
60% of current resource is exploited
26 │

27. Zandkopsdrift Mine Detailed Layout
27 │

28. Zandkopsdrift Mine Concentrator Plant -
Metallurgical flow sheet
28 │

29. Zandkopsdrift Mine Process Plant Layout
• “Conventional” metallurgical
process
• Crush, grind, float and sulphuric
acid crack
• 99% pure mixed rare earth
carbonate produced
29 │

30. Zandkopsdrift Mine Acid Cracking Plant –
Metallurgical flow sheet
30 │

31. Saldanha Bay- (300km from Zandkopsdrift)
Sichen to Saldanha iron ore export rail line Saldanha Port
Arcelor Mittal Saldanha Steel Works Exxaro ilmenite smelter-Saldanha Bay
31 │

32. Saldanha Bay Industrial Development Zone
32 │

33. Rare Earth Separation Plant Location and Layout
33 │

34. Saldanha Separation Plant-Metallurgical flow sheet
34 │

35. Saldanha Separation Plant-Illustrative Production and
Revenue Contribution by REO
10,000
8,833
 Assumes production of
8,000 20k tonnes separated
Tonnes per Annum
REOs p.a. and elemental
recovery in line with in
6,000
5,083 situ Zandkopsdrift
4,370
distribution
4,000 3,154
 Zandkopsdrift has an
2,000 attractive distribution of
910 814 both the high value light
462 288
118 34 154 150
and heavy rare earth
-
elements (the “Big 5”)
 These Big 5 elements
represent c.22% of
illustrative production
0.0% volumes but contribute
0.0%
2.3% 2.2%
c.69% of project revenue**
10.0% 5.2% 5.6%
7.4% 7.4%
 Cerium and lanthanum
Contribution to revenue
13.6% 11.7%
20.0% would represent c.70% of
19.2% the illustrative production
30.0% 25.4% volume but contribute only
21% of potential project
40.0%
revenue**
50.0%
60.0%
70.0% 68.9%
*Big 5 – Neodymium ,Praseodymium ,Europium, Terbium and Dysprosium
**Revenue contributions are calculated using current FOB China prices from Metal Pages as at 1 November 2012
No value is attributed by Frontier to the five heavy rare earths from Holmium to Lutetium 35│

36. Environmental Assessments Completed for PEA
 Preliminary Environmental Assessments completed
 Botany
 Archaeology
 Air and water quality
 Human health risk and radiology impact
 Uranium and Thorium are at very low levels
 Although the rare earths at Zandkopsdrift are contained (97%) in monazite the grades of
both uranium (60-70ppm) and thorium (215-235ppm) are unusually low
 Uranium and thorium removed by precipitation and disposed to double-lined tailings
disposal facility at Zandkopsdrift
 Environmental studies concluded that “the environmental impact of the radionuclides will
be negligible”
36 │

37. Zandkopsdrift Project Capital Expenditure Estimate
Sulphuric acid
 Total construction Capex PEA plant, $87.7m
(9.6%)
estimate of $910m* (including Mining and
Separation plant, infrastructure at
c.$100m for sulphuric acid and $498.4m (54.8%) Zandkopsdrift,
$79.4m (8.7%)
seawater desalination plants)
 Split 67% for the Saldanha Bay
rare earth separation plant &
infrastructure and 33% for
Concentrator
Zandkopsdrift mining, Plant, $132.1m
concentration plant, sulphuric (14.5%)
acid plant and infrastructure
 Additional $27m required in
start-up and indirect Capex on
commissioning
Infrastructure at
Saldanha,
$112.6m (12.4%)
*excludes contingency but contingency is
included in the PEA financial model and valuation
37 │

38. Zandkopsdrift Project Capex versus Western Peers
Actual & Forecast Capex of Projects to produce separated REOs
 Total Capex for
Zandkopsdrift compares well
2,500
$2,046m
with similar scale projects
worldwide
2,000
 Circa 2/3rds of Capex relates
to the Saldanha Separation
1,500 $1,213m Plant and data from peers
$1,128m
US$m
$937m
indicates comparable capital
$895m
1,000
split
$645m
500
-
(1) Capex based on refurbishment of existing mine and infrastructure Separation Plant
(2) US$/A$ exchange rate of 1.07 Mine & Concentrator
Start-up Capex
38 │

39. Zandkopsdrift Project Operating Cost Breakdown (PEA)
$15.00
 PEA estimates total cash
$7.03 operating cost per
kg/separated REO from
Zandkopsdrift at $13.08
 The main opex components are
$10.00 c.54% for the separation plant
and c.39% for the
concentration plant, the bulk of
which comprises reagent costs
$0.06 $0.07
and the operation of the
$5.06
sulphuric acid plant
$5.00  Mining and shipping costs are
low due to the ease of mining,
the high grade and the
availability of infrastructure
$0.86  Opex estimate excludes 15%
contingency but this
$0.00
Mining Concentrator Other costs Transport Separation contingency has been included
& H2SO4 Plant in the Zandkopsdrift PEA
Plant
financial model and valuation
39 │

40. PEA Rare Earth Pricing Methodology (March 2012)
 At 1 November 2012, the Zandkopsdrift basket price (China FoB) was $47.81/kg
 Applying the trailing 3 year FoB China prices, the Zandkopsdrift “basket price” per kg of separated REO is $85.49/kg
 Applying the mid-point of Roskill’s 2015 price forecast ranges for the principal REOs, the Zandkopsdrift basket price is $52.10/kg
 The PEA utilised the average of the 3 year China FoB price (to Dec 2011) and the mid-point of Roskill’s 2015 price forecast. This
methodology reduces the impact of the high rare earth prices in 2011 and resulted in a Zandkopsdrift PEA basket price of $58.23/kg
 No value assumed in Zandkopsdrift price basket for five heavy rare earths (holmium, erbium, thulium, ytterbium and lutetium)
Rare Earth Oxide FOB China Price FOB China 3yr Avg China Domestic Price Roskill 2015 Price
(1 Nov 2012) (Nov 2009-Nov 2012) (1 Nov 2012) forecast
Lanthanum 12 49 7 20-35
Cerium 15 48 7 10-15
Praseodymium 82.5 115 54 80-120
Neodymium 82.5 129 54 80-120
Samarium 29.5 59 8 *
Europium 1810 1877 812 1,000-1,200
Gadolinium 64.5 84 18 *
Terbium 1300 1555 607 1,000-1,200
Dysprosium 615 866 379 800-1000
Yttrium 52.5 82 18 40-60
Zandkopsdrift ‘Basket Price’/kg $47.81 $85.49 $26.04 $52.10
40 │

41. Korea Resources Corporation
 Korea Resources Corporation (“KORES”) is wholly-owned by the Korean government
 Objective of becoming a global top 20 mining company by 2020, principally through
international investments and joint ventures
 Policy mandate to further Korea's access to strategically important mineral resources
 Works with major Korean industry groups and assembles consortia of Korean companies to
participate with KORES in commercial ventures
 Korean government has designated rare earths as a strategic raw material for Korea’s future
economic growth and selected Zandkopsdrift source of their future rare earth supply
“In order to support Korea’s high technology, automotive and other industries, the development of
Zandkopsdrift will be a strategic priority project for the KORES Consortium and a critical element of
KORES’ efforts to secure a long term, stable source of rare earth supply for Korean industry.”
Shin-Jong Kim, Kores President and CEO (Dec 2011)
41 │

42. KORES Joint Venture Highlights
 KORES to acquire initial 10% interest in Zandkopsdrift for $23.8m in cash (Nov 2012)
 KORES options on completion of a positive Definitive Feasibility Study for Zandkopsdrift:
 Kores may increase participation up to a 50% interest* in Zandkopsdrift, together with an off-take right and
obligation for up to 50% of production from Zandkopsdrift (the “50% Option”)
 The exercise of the 50% Option will be conditional upon Kores arranging project finance for entire
Zandkopsdrift development on best available market terms and, if such project finance is accepted by the
Frontier Board in its absolute discretion, Kores providing its pro rata funding for the portion of Zandkopsdrift
development costs not covered by the project finance
 Alternatively, Kores may acquire an additional 10% interest in Zandkopsdrift at the DFS project valuation
(NPV) and, if so acquired, Kores may then also acquire 10% shareholding in Frontier at market price. If
these options are exercised by Kores in full it will also procure an off-take right and obligation for 31% of
production from Zandkopsdrift
 Frontier may introduce an Alternative Strategic Partner into Frontier/Zandkopsdrift prior to the exercise of
the above options by Kores and in such event the 50% Option will be cancelled
 Kores will provide technical and operating experience for the design, construction and operation of the
Zandkopsdrift facilities
 Frontier and Kores will cooperate in relation to downstream opportunities in the area of rare earth metals,
alloys and magnets
 Zandkopsdrift is Kores’ only investment in a rare earth mine development worldwide.
 *Full details of the Frontier Kores JV are set out in the news release dated October 23 2012
42 │

43. Zandkopsdrift Current Estimated Project Timeline
2011 2012 2013 2014 2015
PEA Resource
PEA
PFS/DFS Resource
Pre Feasibility
Study
Definitive
Feasibility Study
Financing
Construction
Production
Start-up
43 │

44. Corporate Information
 TSX:FRO
Frontier Relative Share Price (rebased)
 Shares Outstanding: 89,562,781
120
 Market Cap c.$53m
 Share Price $0.60 (52 week hi/low $1.44 - 100
$0.43)
 Working Capital c.$30m (excl. Kores $23.8m) 80
 Research Coverage:
60
 CIBC
 Euro Pacific Capital
40
 Cormark Securities Frontier Share Price
 Byron 20
Peer Average (RER, Quest, Arafura & Avalon)
Industry Leader Average (MCP + LYC)
0
44 │

45. Frontier Peer Comparison
Company Lynas Molycorp Avalon Rare Element Quest Arafura Tasman Frontier
‘Central Zandkops
Deposit Mt Weld Mtn Pass Nechalacho Bear Lodge Strange Lake Nolan's Bore Norra Karr
Zone’ drift
Location Australia California NW Territories Wyoming Quebec Australia Sweden South Africa
TREO Grade 8.08% 7.04% 1.70% 3.45% 1.20% 2.80% 0.54% 3.12% 2.28%
Tonnes per annum 11kt / 22kt 19kt / 40kt 10kt 10kt 12kt 20kt 6kt 20kt
Rare Earth Product Separated REO Separated REO Separated REO Concentrate Concentrate Separated REO Concentrate Separated REO
Project stage Commissioning Commissioning PFS PEA PEA PFS PEA PEA
Ancylite & Fluorapatite &
Primary RE Mineral Monazite Bastnaesite Fergusonite Kainosite Eudialyte Monazite
bastnaesite Cheralite
Deposit type Pipe Pipe Tabular Dykes/veins Veins Veins Tabular Pipe
Mining Method Open Pit Open Pit Underground Open Pit Open Pit Open Pit Open Pit Open Pit
Climate Arid Arid Arctic Cold Cold Arid Moderate Good
Infrastructure Poor Good Poor Good Poor Poor Good Good
Industry Partner Yes Yes No No No No No Yes
Start-up year (est.) 2012 2012/13 2016 2016 2017 Unknown 2016 2015
Market Cap $1,222m $1,054m $171m $185m $76m $86m $85m $53m
Enterprise Value ($m) $1016m $684m $111m $149m $60m $59m $74m $23m
45 │

46. Summary
 World-class rare earth deposit
 high grade, attractive REE distribution, large tonnage, on surface, low radioactivity
 Well positioned to become the next major, low cost producer of separated rare earth
aoxides and the largest non-Chinese producer of separated heavy rare earth oxides
 Confirmed by results of PEA
 PFS in progress and targeted for completion in Q1 2013
 Only rare earth junior with a definitive agreement with a strategic industry partner
 Experienced management and technical teams
 Strong financial position and fully funded to complete PFS and DFS
 Share price trading at significant discount to peers
Share buy-back commenced late Q2 2012
46 │

47. DRAFT
Appendices

48. Senior Management Team
Senior Management team with extensive experience of exploration and development of
mineral projects in Southern Africa, rare earths, financing and corporate development
James Kenny B Comm, MBS Philip Kenny B Eng, MBA
Chief Executive Officer Chairman
20+ years experience in natural resources sector as an 25+ years experience in natural resource sector.
executive, adviser and broker. Co-founder of Frontier and Founder and former Executive Chairman and CEO of
centrally involved in all aspects of Frontier's Firestone Diamonds plc, an AIM-listed diamond mining
development, corporate, strategic and financing activities company focused which built and operated diamond
since incorporation. mines in South Africa, Botswana and Lesotho.
Derick de Wit B Tech, Chem. Eng.
Paul McGuinness B Comm, ACA Vice President, Project Development
Chief Financial Officer
15+ years experience in minerals industry. Has managed
15+ years experience in investment banking and
or prepared more than 30 independent reviews, scoping,
financial control with Arthur Anderson, Salomon Brothers,
pre-feasibility and definitive feasibility studies in Africa
Schroders, Collins Stewart and MG Capital.
and Canada.
Dr. Stuart Smith B Sc, PhD Ms Vivian Wu B Sc, EMBA
Vice President, Exploration Business Development Director- Greater China
30+ years experience in mineral exploration with 20+ years experience in rare earth industry in senior
particular experience in rare earths, uranium, base roles with China Minmetals Corporation, Rhodia (China)
metals and diamonds. Investment Co and Treibacher Industrie AG.
48 │

49. Independent Non-executive Directors
Anu Dhir (Canada) B.A., J.D. Eamonn Grennan (Ireland) B.Sc, M.Sc
Former VP Corporate Development and Company (Ireland)
Secretary of Katanga Mining Limited. Managing Director Independent consulting geologist with over 40 years
of Miniqs Limited, Non-executive Director of Anooraq experience as an exploration manager, geologist,
Resources Corporation and Non-executive Director of consultant and senior lecturer. Former President of the
Compass Asset Management. Irish Association for Economic Geology and member of
the Consultative Committee of the Irish Geological
Crispin Sonn (South Africa) B.A., B.Comm Survey.
Executive Director of Old Mutual South Africa, the largest
integrated financial services company in South Africa.
Chairman of the Old Mutual Foundation, founding
Chairman of Foodbank South Africa and Non-executive
Director of Capespan (Pty) Ltd.
49 │

50. Principal Zandkopsdrift Consultants
Consultant Responsibility
Archaeological, botanical, air quality, human health risk and radiological impact assessments
Africa Geo-Environmental Services Mine closure plan and estimate of financial provision
Water fatal flaw analysis and water baseline study
Africa Remediation Technologies Sea water desalination plant scoping study
Benchmark Risk Advisory Independent risk assessment
Cameron Cross Incorporated Environmental permitting legal opinion
Corli Havenga Transportation Engineers Access routes and logistics surveys
EHL Consulting Engineers Eskom bulk power supply application
Epoch Resources Tailings disposal facility design
KPMG Tax and corporate structure
Metallurgical Development Services Independent process consultant
MSA Group Geological model and mineral resource estimation
SGS Minerals Services and
Beneficiation and hydrometallurgical studies
Mintek SA
Design of the concentrator, acid cracking, sulphuric acid and separation plants, including
SNC Lavalin Group
associated infrastructure and services, and capital and operating cost estimates
Sound Mining Solution Geotechnical assessment and mine design
Technical and economic review of the project, preparation of financial model and project
Venmyn Rand
valuation, preparation of independent technical report on the results of the PEA and the PFS
50 │

51. Zandkopsdrift opex versus peers
Opex of Projects planning to or producing separated REOs  Zandkopsdrift’s concentrator and
30.00
separation plant opex compares
well with other rare earth projects
Separation cost per kg
globally
US$ per Kg of Separated REO
25.00
Mining, conc. & transport cost per kg  Opex primarily driven by reagent
20.00 and energy costs
15.00  The PEA assumes that HCL for the
Saldanha Separation plant will be
10.00 purchased at market rates and that
a sulphuric acid plant will be built at
5.00 the mine site which will also provide
power to operate the mine and
0.00
concentrator
Lynas (2) Frontier (2) Arufura (2) Molycorp (1)
 Frontier will continue to further
optimise the Zandkopsdrift Project
(1) Molycorp Q1 2012 actual cost. Molycorp forecasts a 90% reduction in opex but does not
break down costs between separation and other operating costs opex including looking at ‘over the
(2) Based on a US$/A$ exchange rate of 1.07 and a USD/ZAR rate of 7.8
fence’ reagent supply opportunities
51 │

52. Opex versus peers producing a mixed RE concentrate
Projected Opex of projects producing RE concentrate
20  Frontier’s operating cost for the
18 17.27 production of a mixed rare earth
16
concentrate is considerably lower than
US$ per Kg of Concentrate
for other projects that are planning on
14
producing a concentrate
12 10.93 11.28
10
10.09
 The Opex cost advantage of
Zandkopsdrift deposit is driven by its
8
6.05 favourable location, relative ease of
6
mining, the monazite host mineral, and
4 the nature of the deposit.
2
0
Frontier (1) Rare Element Tasman Quest Matamec
(1) Based on a USD/Rand rate of 7.8
52 │

53. Capex versus peers producing mixed RE concentrate
Mine & Concentrator - Total Costs
600
 Several of Frontier’s peers plan to produce a mixed
500 rare earth concentrate rather than separated rare
Total Cost US$m
earth oxides
400
 The production and sale of rare earth concentrate
300
may be a more challenging business model as, at
200 present, there are no available western separation
100
plants that can toll separate rare earth concentrate.
In addition sales of RE concentrate to China may
- be impacted by the export quota system (and
Frontier Matamec Rare Element Quest (12kt)
(20kt) (5kt) (10kt) therefore the price achievable for the RE
Mine & Concentrator Costs per kt of RE product concentrate could be based on a discount to the
70 China domestic price rather than the China FOB
Total Cost Per Kt REO - US$m
60 price as many projects have assumed)
50  The cost advantage of the Zandkopsdrift Project
40 can also be seen in the Capex cost of the
30
Zandkopsdrift mine and concentrator plants to
produce a mixed rare earth concentrate .
20
10
-
Frontier Rare Element Quest (12kt) Matamec
(20kt) (10kt) (5kt)
53 │

54. Relative REO Distribution of Major Western Deposits
Lynas Molycorp Frontier Rare Element Arafura Avalon Quest
REO price
Rare Earth Oxide ($/kg)2
Mt Weld Mtn Pass Zandkopsdrift Bear Lodge Nolans Bore Nechalacho Strange Lake
Lanthanum $14 25.2% 34.0% 25.4% 27.1% 19.8% 17.1% 14.4%
Cerium $15 45.2% 48.8% 44.2% 43.7% 47.6% 39.5% 30.0%
LREO
Praseodymium $83 4.9% 4.2% 4.5% 5.1% 5.8% 4.9% 3.3%
Neodymium $83 17.1% 11.7% 15.8% 18.0% 21.2% 19.2% 12.2%
Samarium $33 2.4% 0.8% 2.3% 2.7% 2.4% 3.8% 2.2%
Europium $1810 0.6% 0.1% 0.6% 0.7% 0.4% 0.5% 0.0%
Gadolinium $65 1.5% 0.2% 1.4% 1.4% 1.0% 3.1% 2.2%
Terbium $1400 0.2% 0.0% 0.2% 0.0% 0.1% 0.4% 1.1%
Dysprosium $735 0.5% 0.1% 0.8% 0.3% 0.3% 1.8% 3.3%
HREO
Holmium* $0 0.1% 0.0% 0.1% 0.0% 0.0% 0.3% 1.1%
Erbium* $0 0.2% 0.0% 0.3% 0.0% 0.0% 0.8% 2.2%
Thulium* $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Ytterbium* $0 0.1% 0.0% 0.2% 0.0% 0.0% 0.6% 2.2%
Lutetium* $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Yttrium $58 2.0% 0.0% 4.1% 1.0% 1.3% 7.8% 25.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total – HREO 5.1% 0.5% 7.8% 3.4% 3.1% 15.5% 37.8%
Total – ‘Big 5’ 23.3% 16.1% 21.8% 24.1% 27.9% 26.8% 20.0%
*No value attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to order and do not have regularly published prices.
REO prices from Metal Pages 1 November 2012
Peer group includes selected advanced rare earth projects with >200k TREO calculated on a code-compliant basis
54 │

55. Metallurgical Sample Recovery Sites ( Q1 2011)
Metallurgical sample recovery sites
55 │

56. Frontier/KORES
Joint Venture Signing December 2011
Shin-Jong Kim, President and CEO of KORES (seated lhs) said:
“In order to support Korea’s high technology, automotive and other industries, the
development of Zandkopsdrift will be a strategic priority project for the KORES Consortium
and a critical element of KORES’ efforts to secure a long term, stable source of rare earth
supply for Korean industry.”
56 │

57. Transition from Weathered to Fresh CPB (circa 90 meters depth)
Transition from Weathered CPB
High Grade Weathered CPB
Lower Grade Fresh CPB
57 │