Frontera Resources Responds to Media Speculation

Frontera Resources Corporation (AIM: FRR), the European focused independent oil and gas exploration and production company, notes the recent media speculation in respect to arbitration and potential territory relinquishment.

The Company confirms that it has received a request for arbitration ("Request") from Georgian Oil and Gas Corporation and State Agency of Oil and Gas in respect to certain terms of the Company's production sharing contract ("PSC") in Georgia, however, the full statement of the case has not been submitted and the timings for any such hearing, should it occur, are unknown.

The Company considers the Request to be without merit and has engaged legal counsel to protect its rights. The Company intends, if the administrative formalities are followed through and the statement is submitted by the authors of the Request, to respond to each point and ensure that the Company's rights are protected. The Company is confident of its standing and complete compliance with the PSC.