Frontera Copper Corporation

Frontera Copper Corporation

May 12, 2006 15:35 ET

Frontera Copper Reports Results For First Quarter 2006

TORONTO, ONTARIO--(CCNMatthews - May 12, 2006) -

(All dollar amounts are expressed in United States currency unless otherwise noted)

Frontera Copper Corporation (TSX:FCC) (TSX:FCC.NT) (TSX:FCC.NT.A) (TSX:FCC.WT) reports results for the first quarter ended March 31, 2006.

Financial Results

Frontera Copper reported a net loss of $2,916,068, ($0.06 per share) for the first quarter ended March 31, 2006 as compared to a net loss of $399,870 ($0.01 per share) for the first quarter ended March 31, 2005. The year over year difference represents project activity as Frontera Copper advances construction, toward bringing Piedras Verdes into production in the second half of 2006. Interest and accretion of notes payable ($2,069,377), as well as office and general administrative expenses which include the addition of staff to service the operations in Alamos ($1,157,689), account for the significant increase. These expenses are partially offset by higher interest income and a gain in foreign exchange earned on the Company's cash and short-term investment balances.

At March 31, 2006, Frontera Copper had a working capital surplus of $50,678,055 as compared to $59,288,602 at December 31, 2005. The current amount includes net proceeds (after deducting escrowed interest) of $19,234,353 (C$22,368,250) from a public debt offering completed in March, 2006.

The Company capitalized mineral property and deferred development expenditures totaling $60,962,460, an increase of $26,845,156 from December 31, 2005. Significant expenditures during the quarter include plant construction costs of $20,979,829. Field expenses and other expenses which include Company project management and a pre-production royalty payment totaled $3,199,721. As well, the Company made scheduled property acquisition payments of $2,500,000 which were due upon commencement of construction.

Frontera Copper's consolidated financial statements for the three months ended March 31, 2006 and related management discussion and analysis are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at and on the Company's website at

Company Developments and Outlook

The first quarter of 2006 continued with construction activity on the Piedras Verdes copper project. Ore placement on the leach pad from the Phase 1 pit has commenced, with over 1,400,000 tonnes placed to date. Wetting operations are scheduled to commence in June. The Company has signed multiyear contracts for various reagents, including sulphuric acid, with long term contracts for electric power and diesel fuel expected to follow shortly.

Site and mechanical construction has progressed on both the solvent extraction and electro-winning facilities. The stripping machine from Japan, the rectifiers, the stainless steel cathode blanks and other typically long lead items are on site. The tank farm, power substation, raffinate pond and PLS pond are in advanced stages of completion.

Over 670 construction workers are on site and are maintaining an accelerated construction schedule. Manpower levels are expected to peak during May and begin to decrease significantly beginning in June.

Frontera Copper has reached an agreement in principle with Gerald Metals, Inc. which provides for an off-take contract for the purchase of its copper cathode. A definitive sales agreement is pending approval of the parties' respective Board of Directors.

"Copper prices have reached $4.00 per lb this year as demand in all major markets remains robust, mine production by many major producers remains below expectations and investor participation in commodity markets continues to grow," says Gary Loving, President and CEO Frontera Copper Corporation. "All of these factors are contributing to the continuation of one of the longest upward cycles for commodities in recent history. With our imminent entry into the market, Frontera Copper is well positioned to benefit from this strong commodity cycle."

About Frontera Copper

Frontera Copper was incorporated in March 2002 to purchase and bring into production the Piedras Verdes run-of-mine heap leach, SXEW copper project in Sonora, Mexico. Production is expected to commence during the second half of 2006 at an annual rate of 70 million pounds per year of LME Grade A copper cathode. A total of 942 million pounds of copper is projected to be produced during the 18 year life of the project. Existing resources and prospective exploration targets adjacent to the proposed open-pit have the potential to improve the economics and extend the life of the project.

Information in this news release that is not current or historical factual information may constitute forward-looking information or statements within the meaning of applicable securities laws. Implicit in this information, particularly in respect of statements as to future operating results and economic performance of the Company, and resources and reserves at the Piedras Verdes project, are assumptions regarding projected revenue and expense, copper prices and mining costs. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information, please see Frontera's website at

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