Fronteer Advancing Pipeline Of Gold Projects 

VANCOUVER - "We continued our steady progress during the first quarter in advancing our pipeline of gold projects towards production," says Fronteer Gold President and CEO Mark O'Dea. "We remain firmly focused on building an enduring gold growth business and made several key advances in the first quarter of 2010. Development work progressed at each of our three key Nevada gold projects, and we continued to see promising results from exploration activities at our Halilaga copper-gold project in Turkey. At the same time, we maintain a strong financial position from which to fund the growth and development of Fronteer Gold."

For the first quarter of 2010, we spent $0.8 million at Northumberland located in Nye County, Nevada,  as compared to a revised budget of $5.2 million (US$4.9 million) for Northumberland in 2010. The budget was increased in Q1 to provide for US$756,000 for drilling of additional high-grade targets. During first quarter we announced Northumberland sulphide gold mineralization can be processed with good recoveries using proven treatment methods. We also reported that drilling has further defined and extended high-grade gold mineralization, clearly demonstrating the presence of high-grade gold domains. Work will focus on metallurgical testing to optimize gold recoveries and minimize capital and operating costs; and approximately 2,500 metres of drilling to further define and expand high-grade zones. Engineering and mining studies are also to be completed. At Long Canyon, also in Elko County, Nevada, Fronteers 51% share of project expenditures (including non-cash expenses, net of joint venture recoveries) for the first quarter of 2010 were $0.4 million. The share of planned project expenditures for 2010 is $10.1 million. Drilling resumed in April with two core rigs and two reverse circulation rigs. Fronteer Expects to complete approximately 45,000 metres of drilling in 2010. An updated independent resource estimate, incorporating approximately 30,000 metres of infill and step-out drilling completed in 2009, is expected by the end of Q2. In first quarter, the company reported that 400-metre step-out drilling continues to intersect high-grade, oxide gold mineralization, clearly demonstrating the deposit's potential for resource growth and enhanced project scope. Fronteer continues to optimize the project economics through the evaluation and completion of a number of other studies for the project including pit slope evaluations, and an opportunities and risk analysis. The objective is to advance the project through to pre-feasibility as soon as possible. During the first quarter of 2010, Newmont USA expended approximately US$450,000 at the Sandman project in Humboldt County, including the commencement of a 19-hole drill program on the Silica Ridge deposit. Newmont's planned expenditure for 2010 is US$3 million. We continue to report exceptionally high-grade, near-surface gold intercepts at Sandman. Approval for an expanded Plan of Operations was received in May 2010, which will allow Newmont USA to complete exploration drilling to test up to eight new targets. Ongoing development drilling and additional geotechnical and metallurgical work are also expected in 2010. As of March 31, 2010, Newmont USA has spent approximately US$9.25 million at Sandman out of US$14 million (or 66%) of the required amount to earn an initial 51% interest. To earn its 51% interest, in addition to its expenditures, Newmont USA must make a production decision supported by a bankable feasibility study by June 2011.

HIGHLIGHTS

- Cash and short-term deposits at March 31, 2010, totaled $170.3 million, up 15% from $147.9 million at Dec. 31, 2009, while long term investments increased to $22.7 million or 36% from $16.6 million at December 31, 2009.

 

- Recorded net income of $9.8 million or $0.08 per share for the quarter ended March 31, 2010, compared to a net loss of $5.5 million or $0.06 per share for the quarter ended March 31, 2009.

 

-Completed the sale of our 40% interest in the Agi Dagi and Kirazli gold deposits in Turkey, to Alamos Gold Inc. for US$16.0 million and 1,600,000 common shares of Alamos (valued at $12.76 per share), recording a net gain of $18.4 million on the sale.

  - Continued advancing our three key gold projects in Nevada, with the following highlights: Extended domains of near surface high-grade gold mineralization at Northumberland. Metallurgical results indicate that sulfide gold can be processed with good recoveries (up to 87%) using proven treatment methods. - Step-out drilling intersected high-grade, oxide gold mineralization at Long Canyon, demonstrating the deposit's potential for resource growth and enhanced project scope. - Intersected additional high-grade, near-surface oxide gold at Sandman. Newmont USA continue to meet earn-in obligations. - Strengthened our development and operations team with the hire of a General Manager for Long Canyon and a Manager of Environmental Permitting for Nevada. - Reported that drilling continues to intersect significant widths of copper-gold mineralization at our Halilaga porphyry project in Turkey. In addition, metallurgical test work indicates that the mineralization responds consistently well to flotation and produced a high-grade concentrate. Subsequent to March 31, 2010, Fronteer Gold acquired Nevada Eagle Resources LLC, adding 52 properties in total including 44 gold properties to its large Nevada growth pipeline. The company's address is Suite 1650, 1055 West Hastings, Vancouver, BCV6E 2E9, 604.632.4677, fax: 604.632.4678, email: [email protected].