Frontera Copper Corporation

Frontera Copper Corporation

March 05, 2007 16:30 ET

Frontera Copper Adopts Limited Hedging Program

TORONTO, ONTARIO--(CCNMatthews - March 5, 2007) -

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

Frontera Copper Corporation (TSX:FCC)(TSX:FCC.NT)(TSX:FCC.NT.A) has completed the first half of a limited hedging campaign adopted to ensure that the Company generates sufficient revenues from its copper cathode sales over the next two years to cover certain financial obligations.

The upcoming financial obligations for Frontera Copper include the repayment of the debt currently issued as free trading notes and planned sustaining capital expenditures. The program provides that the Company may hedge up to 50% of its production through February 2009, which would represent about 7% of the recoverable copper contained in the present 13 year mine plan.

As at February 28, 2007, the Company had entered into the following forward sales contracts with major financial institutions:

Pounds Average
Sold Sales
Forward Price per
Year (000's) Pound

2007 12,511 $2.66
2008 17,582 $2.50
2009 4,299 $2.35

Total 34,392 $2.54

"We believe that the hedging program creates an appropriate balance between providing our shareholders with exposure to market copper prices and taking advantage of the current robust copper markets to help ensure that the Company will have sufficient cash flows to meet our known obligations," says Gary A. Loving, President and CEO of Frontera Copper. "The hedging program ensures that a portion of our revenues from the copper produced at the Piedras Verdes operations will be at a price that is approximately twice the price we had assumed in our 2005 Technical Report."

About Frontera Copper

Frontera Copper is a Canadian mining, development and exploration company whose principle activity is the production of copper cathode from the Piedras Verdes run-of-mine heap-leach copper operation in Sonora, Mexico. Production commenced in October, 2006 and is expected to reach the operations' full annual production capacity of 70 million pounds of copper cathode in 2007. A total of 942 million pounds of copper is projected to be produced during the 18-year life of the operation. Existing resources and prospective exploration targets adjacent to the main 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 operations, 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.

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