Fundraise via Placing and Directors’ Subscription

29 August 2017

Frontera Resources Corporation

(“Company”)

 Fundraise via Placing and Directors’ Subscription

Frontera Resources Corporation (AIM: FRR), a European focused independent oil and gas exploration and production company, today announces it has raised (before expenses) £500,000 by way of a placing (“Placing”) of 512,820,512 new ordinary shares of US$0.00004 each (“Placing Shares”) with various investors at a fixed price of 0.0975 pence per Placing Share. Cornhill Capital Limited has acted as placing agent for this Placing.

Concurrently with the Placing, directors of the Company, Mr Steve C Nicandros and Mr Zaza Mamulaishvili (“Directors”), have subscribed for £250,000 in total comprising 40,207,166 and 216,203,090 new ordinary shares of US$0.00004 each respectively, (“Subscription Shares”) at a fixed price of 0.0975 pence per share (“Directors’ Subscriptions”).

The Directors’ Subscriptions are classified as related party transactions in accordance with the AIM Rules. Accordingly, with the exception of Mr Nicandros and Mr Mamulaishvili, the Company’s directors consider, having consulted with its nominated adviser, Cairn Financial Advisers LLP, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Following the issue of the Placing Shares and the Subscription Shares, holdings of the Directors are as follows:

Name

Holding Prior to Directors’ Subscription

Shares issued pursuant to the Directors’ Subscription

Holding following the Directors’ Subscription

Holding as a percentage of enlarged issued share capital

Mr Steve C Nicandros

1,670,693,930

40,207,166

1,710,901,096

12.7%

Mr Zaza Mamulaishvili

625,642,343

216,203,090

841,845,433

6.3%

Application will be made for the Placing Shares and the Subscription Shares to be admitted to trading on AIM, which is anticipated to occur on 4 September 2017 (“Admission”). The Placing Shares and the Subscription Shares will rank pari passu with existing ordinary shares in the Company.

Following Admission, the Company will have 13,439,016,384 ordinary shares in issue with voting rights. The Company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 13,439,016,384 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.

Proceeds for both the Placing and the Directors’ Subscription will be used to accelerate the Company’s ongoing operations at Udabno-2 well on Block 12 in Georgia.  As stated in the Company’s operations update of 22 August 2017, the Company continues its operations in Udabno-2 well which encompass setting the bridge plug at 3340m, perforation and testing of three gas-bearing intervals located between 2620m and 3320m. Of these intervals, two are in the Gareji formation and one interval is in the Oligocene age source rock (Maykop). Work-over operations are expected to be completed by end of September followed by perforation, mechanical stimulation and testing in October. 

In addition to the foregoing, in respect to the share capital reorganization, as previously announced, the Company expects to be in a position to convene its general meeting soon and will update the market in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

Frontera Resources Corporation
Jesse Jefferies
(713) 585-3216
info@fronteraresources.com

Nominated Adviser:
Cairn Financial Advisers LLP
Jo Turner / Liam Murray
+44 (0) 20 7213 0880

Broker:
WH Ireland Limited
James Joyce / Alex Bond
+44 (0) 207 220 1666

Financial PR:
Abchurch
Tim Thompson
+44 (0) 20 7398 7700
fronterainfo@abchurch-group.com