Frontera Copper Corporation

Frontera Copper Corporation

November 14, 2006 14:57 ET

Frontera Copper Releases Financial Reports for Third Quarter 2006

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 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 third quarter ended September 30, 2006.

Financial Results

Frontera Copper reported a net loss of $5,943,084 ($0.123 per share) for the three months ended September 30, 2006 compared to a net loss of $1,778,374 ($0.037 per share) for the three months ended September 30, 2005. For the nine months ended September 30, 2006, Frontera Copper reported a net loss of $17,188,050 ($0.356 per share) compared to a net loss of $2,740,985 ($0.062 per share) for the nine months ended September 30, 2005. Significant spending on the Piedras Verdes Project began in the third quarter of 2005. The higher losses in the current period are a result of the increased activity and associated financing related to the development of the Piedras Verdes Project. The higher net losses primarily reflect increases in interest and accretion with respect to the notes payable, an increase in administrative expenses, and a foreign exchange loss during the second quarter of 2006.

At September 30, 2006, Frontera Copper had a working capital surplus of $7,588,805 compared to $59,288,602 at December 31, 2005.

At September 30, 2006, the Company had capitalized mineral property and deferred development expenditures totaling $108,157,710, an increase of $74,040,406 from December 31, 2005. Significant expenditures during 2006 include plant construction costs of $58,563,017, field expenses and other of $11,313,924 (primarily Company project management and a pre-production royalty payment) and initially deferred property payments of $3,572,000.

Frontera Copper's consolidated financial statements for the three and nine months ended September 30, 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 Piedras Verdes plant facilities have operated at better than 98% availability since the first introduction of reagents into the circuit. The Company is in the process of ramping up copper production levels, which has taken longer than originally contemplated. The mine plan currently provides for placement of approximately 40,000 tonnes per day of ore on the leach pad. Ore placement is slightly ahead of schedule and progressing well. At September 30, 2006, more than 4.5 million cubic meters of material had been mined and approximately 7.3 million tonnes of ore containing approximately 33.5 million pounds of recoverable copper had been placed on the leach pad.

Achieving design solution flow rates has been slower than anticipated and leach recovery rates are slower than expected. This has been due in part to significant amounts of fine material in the near surface ores. Deep ripping of the ores on the leach pad has substantially enhanced the permeability of the ore and the Company expects the ore to leach as predicted in the December 2005 Technical Report. The Company anticipates that the Piedras Verdes Project will produce approximately 10 million pounds of copper cathode during the fourth quarter of 2006, and that copper cathode production for the first full year of operation in 2007 will be at design capacity of approximately 70 million pounds.

The Company harvested its first copper cathodes in early October and completed the first sale of copper cathode to Gerald Metals, Inc. ("Gerald Metals") on October 16, 2006. In accordance with the terms of a long-term, off-take contract, Gerald Metals will purchase 100% of Frontera Copper's production through the year 2010. The terms of the sales agreement provide for payment for the copper cathode two days after it is available for shipment. As a result, Frontera Copper will record revenue for virtually all of its 2006 fourth quarter copper production in the current year's consolidated financial statements.

"With the commencement of sales of copper cathode in October, Frontera Copper has successfully developed a sophisticated mining and processing operation in a very short period of time," said Gary Loving, President and CEO of Frontera Copper Corporation. "While management is focused on achieving full production as quickly as possible, we are also actively pursuing opportunities for the Company's future growth. Drilling commenced on the Cerro Chato prospect in July of this year and is expected to be well advanced by year end. This prospect is separate from the resource mineralization associated with the current ore body. Cerro Chato has the potential of adding additional ore reserves, which in conjunction with the resource mineralization at depth on the eastern end of the current ore body, could significantly lengthen the life of the mine. In addition, Frontera is evaluating other copper projects in Mexico and elsewhere. The robust cash flows we expect to be generated from continuing operations will allow us to be selective in the pursuit of the right growth project."

About Frontera Copper

Frontera Copper is a Canadian mining 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 full production capacity 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.

For further information, please see Frontera's website at

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