SOURCE: Frontera Copper Corporation

December 18, 2008 08:00 ET

Frontera Copper Board of Directors Recommends Rejection of Unsolicited Offer From Invecture Group

TORONTO and PHOENIX, AZ--(Marketwire - December 18, 2008) - Frontera Copper Corporation (TSX: FCC) (TSX: FCC.NT) (TSX: FCC.NT.A) today announced that its Board of Directors has unanimously recommended that shareholders REJECT the unsolicited offer from Invecture Group, S.A. de C.V. ("Invecture"), to purchase all of the outstanding common shares of the Company for Cdn$0.59 per share (the "Offer").

In its Directors' Circular being filed today on SEDAR and mailed to shareholders, the Board strongly recommended that all Frontera shareholders REJECT the Offer and not tender their shares for the following reasons:

--  Superior proposals delivering greater value for shareholders may
    emerge
--  The Offer undervalues Frontera's assets
--  The timing of the Offer is opportunistic given the recent decline in
    the price of copper and in the price of Frontera shares
--  The Offer is highly conditional and discretionary
--  There is uncertainty with respect to Invecture's intentions
--  The Company's financial advisor has provided an opinion that the
    consideration offered pursuant to the Offer is inadequate, from a financial
    point of view, to Frontera shareholders other than Invecture and its
    affiliates
    

As previously announced, RBC Capital Markets has been retained as the Company's financial advisor to assist in the examination and consideration of various corporate strategic alternatives, including the evaluation of all prospective purchase offers that may be received for the Company. The process of identifying and engaging other potential acquirers is currently well underway.

Shareholders are encouraged to read the Directors' Circular in its entirety and to carefully consider the reasons for the Board's recommendation. The Board wishes to reaffirm its commitment to ensuring that maximum value is achieved for shareholders of the Company.

ABOUT FRONTERA COPPER CORPORATION

Frontera Copper is a Canadian mining, development and exploration company whose principal activity is the production of copper cathode from the Piedras Verdes run-of-mine heap-leach copper operation in Sonora, Mexico. Based on the January 1, 2008 ore reserves and the estimated recoverable copper contained on the leach pads at December 31, 2007, approximately 1 billion pounds of copper are projected to be produced over the remaining 17-year life of the operation.

For further information, please see Frontera Copper's website at www.fronteracopper.com or contact:

Contact Information

  • Rodney Prokop
    Vice President, Investor Relations
    (602) 424-5483
    Email Contact

    Alan Edwards
    President and Chief Executive Officer
    (602) 424-5488