Frontier Rare Earths (TSX: FRO) is a mineral exploration and development company focused on rare earth elements. Its flagship asset is the Zandkopsdrift rare earth deposit in South Africa, one of the largest rare earth deposits under development. Zandkopsdrift has an estimated 950,000 tons of rare earth oxides and favorable economics for development. Frontier signed an agreement with Korea Resources Corporation to jointly develop Zandkopsdrift, with Kores acquiring a 10% stake and off-take rights. Frontier plans to complete a prefeasibility study in Q1 2013 and advance Zandkopsdrift into production by 2015.

1. Symbol: TSX: FRO Shares outstanding: 89.6 million
Recent share price: $0.70 Market capitalization: $63 million
52 week range: $0.43 - $1.44 Cash on hand (Oct 2012): $30 million
Frontier Rare Earths (TSX: FRO) is a mineral exploration and development company that is principally focused on rare earth elements - critically important
minerals in high demand in the fast growing electronics, automotive, energy and clean-tech sectors. Frontier’s flagship asset is the Zandkopsdrift rare earth
deposit, which is located in the Northern Cape Province of South Africa and is one of the largest, code compliant, rare earth deposits under development
worldwide. Zandkopsdrift’s favourable location and geological setting are expected to provide significant advantages in relation to capital costs, operating
costs and development time compared to many other rare earth projects currently being evaluated, and makes Frontier well positioned to become one of
the significant new producers of separated rare earths globally. In December 2011, Frontier signed a definitive joint venture agreement
with Korea Resources Corporation (Kores), which is controlled by the Korean Government, in relation to the development of Zandkopsdrift. Korea has
designated rare earths as a strategic raw material for Korea’s future economic growth and selected Zandkopsdrift as the source of their future rare earth
supply. Under its agreement Kores is acquiring an initial 10%, fully participating interest in Zandkopsdrift, along with off-take rights for 10% of the rare earth
production for $23.8m .Kores has options to acquire up to a further 40% interest in Zandkopsdrift and a 10% interest in Frontier at market price following
completion of a Definitive Feasibility Study on Zandkopsdrift. These options, if exercised, would give Kores an off-take obligation for 50% of rare earth production
from Zandkopsdrift. In March 2012 Frontier completed a Preliminary Economic Assessment on Zandkopsdrift which estimated its Net Present Value at $3.6bn
and confirms the significant economic potential of the project. A Preliminary Feasibility Study on Zandkopsdrift is in progress and is currently scheduled for
completion in Q1 2013.
Rare Earths – A Primer
Rare earths is a term commonly used to describe the 15 chemically
similar lanthanide elements which appear together at the bottom of the
periodic table, together with Yttrium and Scandium.
Rare earths are widely recognized as being among the most valuable
and strategically important minerals in the world. Among their key
properties, rare earths have high thermal and electrical conductivity,
magnetism, luminosity, catalytic and optical properties. Current rare earth
applications include hybrid electric vehicles, cell phones, mp3 players,
personal digital assistant devices, wind turbines, fiber optics, computer and
television screens and compact fluorescent lighting. Rare earths are critical
to maintaining a modern, functioning green economy.
Demand growth for rare earths averaged 5% per annum between
2005-2011 and is expected to grow at 7-9% overall through 2016, and
potentially, grow at a higher rate beyond.
Rare Earths possess a range of distinctive physical and
chemical properties which make them indispensable for many The supply of rare earths has been dramatically impacted by new trade
new technologies and applications. restrictions and policies introduced by China, which in 2011 is estimated
to have accounted for approximately 94% of global rare earths supply.
Frontier’s Growth Strategy & Mid-term Milestones o Over the longer terms, Frontier will be focused on:
Frontier’s mid-term strategy is focused on accelerating the  Completing the development of Zandkopsdrift and targeting annual
development of its Zandkopsdrift Project. Key milestones include: output of 20,000 tons of separated rare earth oxides from lanthanum
to dysprosium, plus yttrium at purities between 99%
 Complete a prefeasibility study in Q1 2013. and 99.999%.
 Advance the Zandkopsdrift rare earth resources into proven and  Securing further long term off-take agreements for Zandkopsdrift
probable reserves at PFS. rare earth production in addition to the (up to) 50% off-take agreed
with KORES.
 Complete a definitive feasibility study 9 -12 months post PFS.
 Working closely with KORES and other leading industry groups to
establish downstream opportunities in the areas of rare earth metals,
 Develop relationships with additional, complimentary strategic
alloys and magnets.
partners.
 Expanding the Company’s rare earth, and selectively other minerals,
 Arrange project finance for Zandkopsdrift and secure all relevant
exploration and development project portfolio in South and Southern
permits for the development.
Africa.
 Undertake regional scale exploration elsewhere in Namaqualand
where Frontier controls prospecting rights totalling 135,000 ha and
selectively develop a new project portfolio.
Frontier – The Next Major Western Rare Earth Producer
Please visit www.frontierrareearths.com or contact ir@frontierrareearths.com for more information.

2. Zandkopsdrift – Africa’s Largest Rare Earth Deposit
 Located on surface in Namaqualand, South Africa’s oldest mining province.
 Low cost environment with good access to modern infrastructure.
 Circa 950,000 tons of total rare earth oxides identified (NI 43-101 compliant).
 Geology very well understood with 80% of the resource in the Indicated
Resource category and PFS expected to advance the existing resources into
the Proven and Probable mineral Reserves.
 97% of rare earths in monazite with elevated levels of the highest value heavy
and light rare earths present: Praseodymium, Neodymium, Europium, Terbium,
and Dysprosium.
 Very low level of radioactivity (thorium and uranium) reducing permit and
process complexity.
 PEA completed and Prefeasibility Study in progress.
 Frontier well-positioned to be an early, significant low cost producer of separated
rare earths from lanthanum to dysprosium, plus yttrium at purities between 99%
and 99.999%.
 Production start-up end 2015 at a total target rate of 20,000 tonnes of separated
rare earth oxides.
Investment Highlights
Zandkopsdrift is one of the largest, highest grade rare earth deposits in the world. Well located, on surface, close to mining and industrial infrastructure.
Demand for rare earths is being driven by their increased use in electronics, automotive, clean-tech and other sectors. Significant demand growth forecast.
Frontier’s partnership with Kores positions it as the only major advanced rare earth developer to have concluded a strategic partnership agreement.
Frontier’s board and management team have extensive expertise in exploration and project and mine development in Southern Africa.
Frontier has no debt and a strong working capital position and is well-positioned to become one of the significant new producers of separated rare earths globally.
Contact Information: Analyst Coverage
ir@frontierrareearths.com Matt Gibson CIBC
Tel. +353–1–4966–006 Jon Hykawy Byron Capital Markets
www.frontierrareearths.com Luisa Moreno Euro Pacific Canada
Edward Otto Cormark
Frontier – The Next Major Western Rare Earth Producer
Please visit www.frontierrareearths.com or contact ir@frontierrareearths.com for more information.