Completion of Conversion of Management Debt, Directors’ Dealings and Issue of Equity

Houston, Texas, U.S.A. – 3 July 2017

Frontera Resources Corporation

(“Company”)

 Completion of Conversion of Management Debt, Directors’ Dealings and Issue of Equity

Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company, announces the completion of conversion into equity, and subsequent elimination, of management debt.

As described in the Shareholder Circular dated 18 May 2017 and pursuant to the resolutions passed at the Company’s AGM held on 5 June 2017, directors of the Company, Mr. Steve Nicandros and Mr. Zaza Mamulaishvili, have converted into equity approximately US$26 million related to loans which they had advanced to the Company (“the Conversion”). These loans were previously provided to the Company to support the Company’s on-going operational and working capital requirements. 

The Conversion occurred at a fixed conversion price of 1 pence per share which is a significant premium to the market price as of the date of this announcement.  The shares that Mr. Nicandros and Mr. Mamulaishvili have received as a result of the Conversion are subject to a 12-month lock-in period.

As a result of the Conversion, the Company has issued 2,013,239,300 new ordinary shares (“New Ordinary Shares”) representing 18.01 per cent of the enlarged share capital. Following the issue, the holdings of the directors are as follows:

Name

Holding prior to the Conversion

Shares issued pursuant to the Conversion

Holding following the Conversion

Holding as a percentage of enlarged issued share capital

Mr. Steve Nicandros

200,564,530

1,470,129,400

1,670,693,930

14.9%

Mr. Zaza Mamulaishvili

82,532,443

543,109,900

625,642,343

5.6%

Application will be made for the New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on or around 7 July 2017 (“Admission”). The New Ordinary Shares will rank pari passu with existing ordinary shares of the Company.

Following Admission, the Company will have 11,178,773,693 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 11,178,773,693 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.

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

Enquiries:

Frontera Resources Corporation
Jesse Jefferies
+1 (713) 585-3216
info@fronteraresources.com

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

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

Broker
Cornhill Capital Limited
Nick Bealer
+44 (0) 20 3700 2512