Fronteer Gold Inc.
TSX : FRG
AMEX : FRG

Fronteer Gold Inc.

November 22, 2006 19:26 ET

Fronteer Development Group Inc. Purchases Common Shares and Warrants of Latin American Minerals Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 22, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Fronteer Development Group Inc. (TSX:FRG)(AMEX:FRG) ("Fronteer") is pleased to announce that it has acquired 17.42% of the issued and outstanding common shares of Latin American Minerals Inc. (TSX VENTURE:LAT) ("Latin American").

This strategic investment gives Fronteer immediate exposure to a pipeline of advanced stage projects in the mining friendly jurisdiction of Argentina at a relatively low cost of entry.

Pursuant to a private placement which closed on November 20, 2006, Fronteer has purchased 4,932,000 units of securities ("Units") of Latin American. Each Unit was purchased for $0.25 and is comprised of one common share in the capital of Latin American (a "Common Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.35 for a period of 12 months from the closing of the private placement.

As of November 20, 2006, the Common Shares comprising part of the Units acquired by Fronteer pursuant to the Offering represented 17.42% of the issued and outstanding Common Shares of Latin American and the Warrants comprising part of the Units acquired by Fronteer represented 28.45% of all of the outstanding Warrants of Latin American. If all the Warrants of Latin American were exercised, the number of Common Shares owned by Fronteer would represent 20% of all of the issued and outstanding Common Shares.

The acquisition of the Common Shares and Warrants comprising the Units were made for investment purposes. Fronteer may from time to time acquire additional securities of Latin American, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.

ABOUT FRONTEER

Fronteer is a rapidly evolving company committed to building long term value through ongoing discoveries, and strategic acquisitions. Fronteer currently has 10 drill rigs operating in Turkey on four gold projects, one drill rig operating in Mexico on two gold-silver projects. Fronteer also has a prominent foothold in an emerging uranium-copper-gold district in the northern Yukon where it has just completed an extensive exploration program. Fronteer holds a 47.24% interest in Aurora Energy Resources (TSX:AXU), which has a current market capitalization of approximately CDN$914 million. Fronteer has a strong balance sheet with approximately CDN$41 million in cash and marketable securities.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to, the stage of exploration of the Latin American project. Such factors include, among others, the political stability of Argentina, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of ore reserves and mineral resources, changes in project parameters as plans continue to be refined, future prices of gold, silver and copper,, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Fronteer's Annual Information form and Fronteer's latest Form 20-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although Fronteer has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Fronteer disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Fronteer Development Group Inc.
    Dr. Mark O'Dea
    President & CEO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Fronteer Development Group Inc.
    Dr. Rick Valenta
    VP Exploration & COO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    Email: info@fronteergroup.com
    Website: www.fronteergroup.com