Frontera Copper Corporation

Frontera Copper Corporation

July 26, 2005 17:00 ET

Frontera Copper Signs Mining Contract With Grupo PEAL

TORONTO, ONTARIO--(CCNMatthews - July 26, 2005) - Frontera Copper Corporation (TSX:FCC)(TSX:FCC.NT)(TSX:FCC.WT) is pleased to announce that it has signed an agreement with PEAL OP S.A. for the provision of contract mining services at Frontera Copper's proposed open-pit copper mine at Piedras Verdes in the state of Sonora, Mexico. Under the terms of the agreement, PEAL will provide mining and maintenance services for a six month pre-production period followed by a contract period of five years. PEAL will begin to mobilize its existing fleet to Piedras Verdes immediately with mining scheduled to commence in the third quarter of 2005.

PEAL is a major and well-respected Spanish contractor with extensive experience in mining and civil earthwork projects. Under the terms of the agreement, PEAL will undertake all aspects of the mining operation with their own personnel, including drilling, blasting, loading and hauling. PEAL will provide new, larger equipment to replace the smaller original fleet early in 2006. They intend to fulfill their personnel needs by supplementing the core group they mobilize from Spain with personnel they will recruit and train locally.

"PEAL's ability to mobilize their existing fleet to site on schedule will contribute significantly to achieving our goal of being in production during the second half of 2006," says Gary Loving, President and CEO of Frontera Copper.

Development of the Piedras Verdes copper project is progressing on schedule. M3 Engineering & Technology Inc. have commenced work under an engineering, procurement and construction management contract. Many of the critical infrastructure requirements for construction are currently in place, and procurement of long lead time items for the SX-EW processing facility is proceeding rapidly on schedule.

About Frontera Copper

Frontera Copper was incorporated in March 2002 to purchase and bring into production the Piedras Verdes open pit, run-of-mine, heap leach, SXEW copper project in Sonora, Mexico. Subject to Frontera Copper receiving all necessary permits, the company plans to begin construction activities in the third quarter of 2005. Copper production is expected to commence in the second half of 2006 at an annual rate of 70 million pounds per year of LME Grade A cathode at an average life-of-mine cash operating cost of $0.58 per pound. A total of 942 million pounds of copper is projected to be produced during the 18 year life of the project. Existing resources and prospective exploration targets adjacent to the proposed open pit have the potential to improve the economics and extend the life of the project.

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