SOURCE: Frontera Copper Corporation

February 25, 2008 08:44 ET

Frontera Copper Provides Update on Operations

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

TORONTO--(Marketwire - February 25, 2008) - Frontera Copper Corporation (TSX: FCC) (TSX: FCC.NT) (TSX: FCC.NT.A) today provided an update on the Piedras Verdes operations.

The ongoing strike at the Company's major sulfuric acid supplier, which started in July 2007, continues. However, during the 2008 first quarter, the operation has purchased sufficient acid from alternate sources to meet its current requirements and to partially make up for past shortfalls.

The past shortage of acid associated with the ongoing strike has resulted in less than optimal leach solution chemistry, which has reduced the rate of copper recovery and the current level of production. During the 2008 first quarter, the operation temporarily reduced the mining and ore placement rates to allow time for the leach pad solution chemistry to return to levels necessary for optimal recovery of copper. The Company plans to begin increasing the mining rate to normal levels by the end of the quarter as a result of the increased availability of acid and thus improving characteristics of the leach solution chemistry.

The Company expects that production during the 2008 first quarter will be below the levels achieved during the fourth quarter of 2007. In addition, as a result of the lower production and higher costs associated with the additional acid that has been purchased from alternate sources, the Company expects that acid costs will be approximately $1.00 per pound of copper produced higher in the 2008 first quarter compared to the fourth quarter of 2007.

The Company's current cash balances are more than adequate to meet its obligations during the 2008 first quarter. The primary uses of cash during the 2008 first quarter will be for the payment of approximately $14 million of Mexican income tax installments related to the 2007 earnings of the Piedras Verdes operations, higher than normal operating costs due to the higher volumes and unit prices of acid, and capital expenditures of approximately $6 million. The Company expects to return to a positive cash generating position during the second quarter of 2008.

Until a steady supply of acid at more reasonable prices is available, the Company is unable to provide more accurate guidance for 2008.

Alan Edwards, President and Chief Executive Officer, said, "I believe that the steps we have taken, while expensive in the short run, are necessary to ensure that we continue to advance the Piedras Verdes operation to its full annual production capacity."

The Company is currently in the process of finalizing an update to its December 2005 Technical Report. The new Technical Report, which will be filed with the Company's Annual Information Form in late March, will reflect updated cost information and the January 1, 2008 ore reserves but will not show any material changes in mining or processing methods from those contained in the previous technical report, dated December, 2005.

The Company will report its full 2007 financial and operating results when it releases its 2007 fourth quarter earnings in mid-March.

About Frontera Copper

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 is projected to be produced over the remaining 17-year life of the operation.

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.