DRAFT

Zandkopsdrift - Africa’s Leading Rare Earth Project

January 2015

Frontier Rare Earths Limited TSX:FRO US:FREFF

Safe Harbour Statement Forward Looking Statements :Certain information set forth in this presentation may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Readers can identify many of these statements by looking for words such as "will", "intends", "projects", "anticipates", "estimates", "achieving", or similar words or the negative thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Frontier, including, but not limited to, the impact of general economic conditions, industry conditions, commodity prices, availability of financing , Frontier's ability to raise additional capital, results of feasibility studies, dependence upon regulatory approvals, the estimation of mineral resources and the realization of mineral reserves based on mineral resource estimates and estimated future development, if any, and possible expectations regarding competition from other producers globally, possible customer and supplier relationships, anticipated trends and challenges in Frontier regarding competition; mineral resource estimates and supply outlook and growth opportunities, the future price of and future demand for rare earth elements, title disputes or claims including Black Economic Empowerment initiatives, and the timing and possible outcome of pending regulatory and permitting matters. Readers are cautioned that the assumptions used in the preparations of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Actual results may differ materially from those anticipated. Readers are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Frontier disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law. Data used in the Presentation : Frontier's data in this presentation is primarily based on the PEA (as defined below). The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. A mineral reserve has not been estimated for the project as part of the PEA. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Data used in peer comparisons comes from various reports and sources with different levels of confidence attaching to them which may mean that data is not directly comparable and actual production is likely to be different from that shown. The data sources for peer information used in the presentation are as follows: Molycorp - Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the quarterly period ended March 31, 2013 (9 May 2013); Lynas H2 2012 Consolidated Financial Report (22 Feb 2013); Avalon Announces Results of Positive Feasibility Study for the Nechalacho Rare Earth Elements Project (17 Apr 2013); Quest - Preliminary Economic Assessment on the Strange Lake B Zone, Quebec (24 Sept 2010); Arafura Delivers Nolans Project Update - incl. feasibility study update (7 Aug 2012); Tasman - Preliminary Economic Assessment NI 43-101 Technical Report for the Norra Karr (REE-Y-Zr) Deposit Granna, Sweden (11 May 2012); Matamec - Preliminary Economic Assessment Study for Kipawa Project (14 Mar 2012). All output calculations use prices from Metal-Pages (www.metal-pages.com) and REE distributions from Technology Metals Research (www.technologymetalsresearch.com). Technical Information – Details with respect to the scientific and technical information contained in this presentation as it relates to Frontier can be found in a National Instrument 43-101 technical report entitled "Amended Independent Technical Report on the Results Of A Preliminary Economic Assessment of Frontier Rare Earths Limited's Zandkopsdrift Rare Earths Project, located in the Northern Cape Province of South Africa" (the "PEA"), date March 30, 2012, and is available on SEDAR under the Company's profile. Dr Stuart Smith, Frontier's VP Exploration is a "Qualified Person“, as defined by NI 43-101, and has reviewed and approved the scientific and technical information in this presentation.

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Contents Rare Earths - An Introduction

Frontier Rare Earths - Overview

Frontier’s Zandkopsdrift Rare Earth Project

Preliminary Economic Assessment

Zandkopsdrift - Project Development Plans

Kores Resources Corporation Joint Venture

Peer Benchmarking

Management Bios and Summary

Appendices

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Rare Earths - Overview 16 Rare earth elements (REEs), 15 within the chemical group called Lanthanides

Two distinct categories based on atomic weight: Light Rare Earths (LREEs) Heavy Rare Earths (HREEs)

Distribution of elements vary from deposit to deposit

Most have no substitutes and are indispensable in many applications Rare Earths underpin the “green” tech economy:

Hybrid motors and Battery Technology Consumer Electronics Transportation Aerospace and Defense Energy Efficiency Wind and Solar Power

China currently accounts for more than 90% of production of rare earth minerals, although it has only about 30% of the

deposits of rare earths in the Earth's crust

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Periodic Table of the Elements

Rare Earth Application Structure

Rare Earths – Usage by Application Rare earth consumption can be divided into traditional and new material fields

Traditional – metallurgy, machinery, petroleum, chemicals, glass, ceramics, agriculture, light industry and textile New material - permanent magnet materials, luminescent materials, polishing materials and hydrogen storage materials.

In recent years, driven by downstream demand, the new material field has witnessed rising consumption of rare earths

Source: ResearchInChina– China Rare Earth Industry Report 5 │

In 2015, the forecast

demand for rare earths from new materials will account for circa 80% of the total application demand, of

which, magnetic materials will comprise the largest component at over 61%.

Magnetic Materials, 61.3%

Luminescent Materials 6.3%

Polishing Materials4.5%

Hydrogen Storage Materials 4.1%

Other New Materials 3.7%

Metallurgy Machinery 7.2%

Petroleum / Chemical Industry 4.8%

Glass / Ceramics 4.7% Agriculture / Light

Industry / Textile, 3.5%

Rare Earths – Key Applications

Computer Hard Drives Disk Drive Motors Anti-Lock Brakes Automotive Parts

Frictionless Bearings Magnetic Refrigeration

Microwave Power Tubes Power Generation

Microphones & Speakers Communication Systems

MRI

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Catalysts

Defence

Glass & Polishing

Metal Alloys

Phosphors

Magnetics

Ceramics

NimH Batteries Fuel Cells

Steel Super Alloys

Aluminium / Magnesium

Petroleum Refining Catalytic Converter

Fuel Additives Chemical Processing Air Pollution Controls

Satellite Communications Guidance Systems Aircraft Structures

Fly-by-Wire Smart Missiles

Polishing Compounds Pigments & Coatings UV Resistant Glass Photo-Optical Glass

X-Ray Imaging

Display phosphors - CRT, LPD, LCD Fluorescent Lighting

Medical Imaging Lasers

Fibre Optics

Capacitors Sensors Colorants

Scintillators Refractories

CREOs HREOs LREOs

Nd Pr La, Ce, Pr Ce, Pr La, Ce, Pr Nd, Y Tb, Dy

La, Ce, Pr Nd Gd, Er, Ho

Nd

La, Ce, Pr Nd, Y, Eu Gd, Lu, Dy Nd, Eu, Tb, Dy, Y Pr, La Lu, Sm

Nd, Eu, Tb, Y Er, Gd

Rare Earth Market Outlook Rare earth demand will continue to grow and depending on price and availability, global demand could increase to 160-200k

t.p.a. by 2020 However, growth rates will differ widely both by element and by application Magnet based applications will continue to grow at highest rate (c. 10%+ per annum) The phosphor market and demand for Eu, Tb and Y will be heavily influenced by the speed with which LED substitution takes

place

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Source: IMCOA (Note: Frontier assumes 2017-2020 straight line growth to bottom end 2020 IMCOA estimate and China maintains current stated supply cap)

Forecast Rare Earth Supply and Demand to 2020 t.p.a

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

2005 2006 2007 2008 2009 2010 2011 2012 2013f 2014f 2015f 2016f 2017f 2018f 2019f 2020fChina Supply Global Demand

Widening supply gap to be met by new non-Chinese

supply?

Benchmarking Rare Earth Projects

Rare earths are comprised of light and heavy elements, however the use of “light vs. heavy” ratios is very misleading and should not be the metric to rank/rate RE projects

Ratios do not reflect grade or value and is a flawed metric Not all LREOs are “bad” (low value & in oversupply)

There are 4 LREOs - 2 are critical for magnets (Nd & Pr)

Not all HREOs are “good” (high value & in undersupply) There are 11 HREOs - 4 are critical for magnets (Nd, Pr, Dy & Tb) and

3 for phosphors (Tb, Eu & Y) 5 - negligible value as they are produced and used in limited quantities (Ho, Er, Tm, Yb & Lu) 2 - non-critical and have relatively low values (Sm & Gd)

A better metric than a HREO/LREO ratio is needed

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Rare Earth Oxide REO price * ($/kg)

LREO

Lanthanum $5 Cerium $5 Praseodymium $117 Neodymium $58

HREO

Samarium $5 Europium $705 Gadolinium $47 Terbium $615 Dysprosium $340 Holmium $0 Erbium $0 Thulium $0 Ytterbium $0 Lutetium $0 Yttrium $13

* Metal-Pages 1 January 2015

Critical Rare Earth Oxides All rare earths are not created equally The focus on ‘light’ versus ‘heavy’ rare earths is simplistic and can be misleading The elements for which there is likely to be the greatest demand growth and potential shortage, and which are of the greatest

importance for a modern, functioning clean energy economy, are the “Critical Rare Earth Oxides” (“CREOs”) - Neodymium, Europium, Terbium, Dysprosium and Yttrium

The importance of rare earths, and CREOs in particular, has been highlighted by both the US Government and, more recently, the EU Commission in its Critical Raw Materials Review published in May 2014

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Source: US Department of Energy, Critical Materials Strategy Report 2011 Source: The European Commission Critical Raw Materials review – May 2014

Frontier Rare Earths - Overview Flagship asset is the Zandkopsdrift Rare Earth project in South Africa

High quality deposit in terms of size, rare earth grade, distribution and value

Preliminary Economic Assessment Confirms Zandkopsdrift’s potential to become a major producer of separated rare earth oxides NPV11% of $3.7bn generating a post-tax IRR of 53% and 2 year payback

Pre-feasibility Study well advanced stage and due for completion end Q1 2015 Strategic Partnership signed with Korea Resources Corporation

The only rare earth junior advancing a major rare earth resource with a definitive strategic partnership agreement in place Initial Kores investment of $23.8m for 10% interest Kores option to acquire up to a total 50% interest in Zandkopsdrift if it arranges project finance for development and provides 50% of equity required

Strong financial position: c.$25m cash and fully funded through completion of PFS and DFS Listed on the Toronto Stock Exchange (TSX)

Experienced Board, management and technical teams

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Frontier Rare Earths - Corporate Summary

TSX: FRO / US: FREFF Shares Outstanding: 89.6m

Market Cap c.$17m

Recent Share Price $0.18

(52 week hi/low $0.45 - $0.17)

Working Capital c.$25m (no debt)

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Share Price Rebased Frontier vs. Peers

Frontier Share Price

Peer Average (RER, Quest, Arafura & Avalon)

Industry Leader Average (Molycorp + Lynas)

The Zandkopsdrift Rare Earth Project

Situated in the Northern Cape Province, South Africa’s oldest mining region

Mining / related infrastructure available locally and regionally

450km from Cape Town on N7 highway 35km to nearest railhead (Bitterfontein) 300km north of deep water port of Saldanha Bay

Strong support for development in local communities

Frontier controls 15,000 ha mineral rights in the Zandkopsdrift area

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Cape Town – A First World Destination

The Zandkopsdrift Deposit The biggest intrusion in a complex of carbonatite intrusions One of the largest known rare earth deposits, containing approx. 950k tonnes TREO

Contains significant high grade zones extending from surface that will allow preferential mining

The majority of rare earths in Zandkopsdrift (approx. 97%) are contained in monazite Proven commercial extraction processes exist Metallurgical test work optimisation on going in Canada, Australia, South Africa, Korea and China Rare earth minerals in many other new RE projects by contrast have never had commercial processes developed, which will

increase their development time, cost, and process risk

Attractive distribution of CREOs distribution and very low levels of radioactivity Potential for rapid development and production start-up

Good regional infrastructure available (road, rail, power and water) will also facilitate development Currently targeting annual production of 17,000 tonnes of separated rare earth oxides (at full production utilizing two lines of

8,500 tpa to be developed on a phased basis)

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Zandkopsdrift Deposit

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Satellite Image of Zandkopsdrift Carbonatite

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Zandkopsdrift carbonatite

complex Gravel road to N7

N7 tarred road to Cape Town

Bitterfontein rail head (c.35 km)

Exxaro Resources Namakwa Sands Mine

(c.45 km)

Zandkopsdrift Geological Interpretation

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The Zandkopsdrift deposit is a REE enriched carbonatitic breccia pipe Occurs as a 1km diameter circular intrusive rising 40 meters above the surrounding plain

Extensive drilling at Zandkopsdrift with in excess of 20,000 meters completed 313 holes drilled for a total of 21,037 meters 19,166 meters assayed at 1 meter intervals for resource estimation purposes More than 19,000 chemical assays undertaken

Very good understanding of geology and controls on rare earth mineralisation Series of vertical to sub vertical RE-enriched dykes (“REDs”) intruded into a RE bearing carbonatitic phlogopite breccia

phase (“CPB”) Enriched high grade REE-bearing horizons from surface to 80-100m depth Geologically similar to Lynas’ Mount Weld deposit in Australia

Geological and Resource risk removed No additional drilling or resource development work planned or required

Zandkopsdrift Geological Map and Drill Locations

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Assay results from final phase of resource drilling (14,200 meters drilling) to be incorporated into a revised resource estimate for PFS, and will upgrade the majority of the resource into the Measured and Indicated resource categories

Zandkopsdrift Resource Estimate

Large, high confidence resource estimate (c.950k tonnes TREO) with c.80% of the contained TREO at the Indicated Resource level

Final phase of resource drilling (14,200 meters) at Zandkopsdrift completed and will advance majority of the

resource into the Measured and Indicated categories and PFS expected to convert such resources to Proven and Probable reserves

Relative distribution of REOs in Zandkopsdrift is shown on page 44.The resource estimate is NI 43-101 compliant and presented in accordance with CIM definitions The mineral resource estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 64% owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 64% shareholding in Sedex, Frontier shall also be entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. Giving Frontier an effective 85% interest in the Zandkopsdrift Project until such payment has been received.

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Resource Estimate

Zandkopsdrift Resource Block Model (PEA)

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Zandkopsdrift Sample Geological Section

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7.98% TREO over 16 meters with 17.98% TREO over 1

meter

Historical & Phase 1 RC Drilling

Legend

TREO%

Weathered CPB Intruded by RE Enriched REDs

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Weathered CPB

1-3% TREO

Weathered REDs

6-8% TREO

CPB - Carbonatitic phlogopite breccia REDs - Rare earth enriched dykes

Contact Between REDs and CPB in Bulk Sample Trench

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Weathered REDs

4-5% TREO

Weathered CPB

1-3% TREO

Bulk Sample Trench for Pilot Testwork

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Average XRF TREO grade of 3% for 174 metre trench

Preliminary Economic Assessment - Financial Highlights*

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* The PEA is preliminary in nature. Please refer to safe-harbour statement at beginning of this presentation

Post-Tax NPV & IRR Post-Tax Net Present Value @ 11% discount rate $3.65bn NPV attributable to Frontier Rare Earths $3.60bn Post -Tax Internal Rate of Return 52.50%

Pre -Tax NPV & IRR Pre-Tax Net Present Value @ 11% discount rate $4.3bn Pre-Tax Internal Rate of Return 57.60%

Revenue and Cashflow Average annual revenue $1.1bn Annual after-tax free cashflow in full production $711m

Capital Expenditure Total construction Capex excluding contingencies $910m Start-up costs excluding contingency $27m Project payback from commencement of full production 2 years

Operating (cost/kg) Separated REO Total cash operating cost/kg separated REO incl. contingency $15.04

Location of Zandkopsdrift Project Components

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Saldanha Bay Rare Earth Separation Plant Phase 1: 8,500 tonnes

Phase 2: 17,000 tonnes

Mixed rare earth carbonate transported 300kms by road (N7) to Saldanha Bay

Mining, beneficiation and cracking plants to produce mixed rare earth carbonate

"Our strategy [at Saldanha] is aimed at strengthening the maritime support capacity to create economic opportunities from the gas and oil mining activities along the African west coast, as well as the expansion of iron ore mining production and beneficiation in the Northern Cape.“ Jacob Zuma – President of South Africa

The Saldanha Bay Industrial Development Zone, where Frontier proposes to construct a rare earth

separation facility was formed in Oct 2013

Zandkopsdrift Preliminary Mine Pit Design

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- Life of mine increased to 30+ years in current mine design - A low average stripping ratio of 1:1 - Three stage pit development: pit 1 for first 8 years, push back (pit 2) for the next 8 years and push back (pit 3) for the following 17 years

Pit Dimensions (approx.) East -West extent 830m North-South extent 900m Maximum no. benches planned 12

Zandkopsdrift Mine Detailed Layout (PEA)

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Legend

Zandkopsdrift Mine Acid Cracking Plant Metallurgical flow sheet (PEA)

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Saldanha Bay - Separation Plant Location

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Sichen to Saldanha iron ore export rail line

Exxaro ilmenite smelter-Saldanha Bay Arcelor Mittal Saldanha Steel Works

Saldanha Port

Saldanha Bay Industrial Development Zone

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Legend

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Rare Earth Separation Plant Location and Layout (PEA)

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Legend

Legend

Saldanha Separation Plant Satellite Image

Saldanha Separation Plant Metallurgical Flow Sheet (PEA)

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Environmental Impact Assessments Preliminary Environmental Assessments completed

Botany, Archaeology, Air and water quality, Human health risk and radiology impact

Uranium and Thorium are at very low levels Although the rare earths at Zandkopsdrift are contained (97%) in monazite the grades of both uranium (60-70ppm) and thorium

(215-235ppm) are unusually low Uranium and thorium removed by precipitation and disposed to double-lined tailings disposal facility at Zandkopsdrift Environmental studies concluded that “the environmental impact of the radionuclides will be negligible”

Saldanha Bay

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0%

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Contr

ibutio

n to v

alue

Projected Output of Separated Rare Earths

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* Revenue contributions are calculated using FOB China prices from Metal Pages as at 1 January 2015 - Based on 17ktpa TREO target output at full production - No value is attributed to the five heavy rare earths from Holmium to Lutetium

CREOs comprise 22% of projected output by volume, but would contribute circa 65% of project revenue*

Ce and La would contribute only 12% of project revenue at current FOB China prices

Tonn

es pe

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Relative contribution to revenue*

4066

7066

728 2523

370 94 230 27 123 651

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Euro

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linium

Terb

ium

Dysp

rosiu

m

Yttri

um

CREO

Production – tonnes per annum

65.1%

4.5% 7.6%

19.8%

34.2%

0.5%

15.6%

2.4% 3.8% 9.5% 2.0%

Zandkopsdrift Current Estimated Project Timeline

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2013 2014 2015

PFS/DFS Resource

PEA

Pre Feasibility Study

Definitive Feasibility Study

Financing

Construction

Production Start-up*

2016 2017 2012 2018

Korea Resources Corporation Joint Venture Korea Resources Corporation (“KORES”) owned by the Korean government Works with major Korean industry groups and assembles consortia of Korean companies to participate with

KORES in commercial ventures Korean government has designated rare earths as a strategic raw material for Korea’s future economic

growth and selected Zandkopsdrift as a key source of their future rare earth supply KORES acquired a 10% interest in Zandkopsdrift for $23.8m in cash - December 2012

KORES are obliged to pay 10% of all capital and operating costs and will purchase 10% of overall Zandkopsdrift rare earth production at open market prices

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Frontier’s Senior Management Team Frontier’s team have extensive experience of exploration and development of mineral projects in Southern Africa, rare earths, financing and corporate development

Philip Kenny B Eng, MBA Co-founder and Chairman 25+ years experience in natural resource sector. Founder and former Executive Chairman and CEO of Firestone Diamonds plc, an AIM-listed diamond mining company which built and operated diamond mines in South Africa, Botswana and Lesotho. Derick de Wit B Tech, Chem. Eng. Vice President, Project Development 15+ years experience in minerals industry. Has managed or prepared more than 30 independent reviews, scoping, pre-feasibility and definitive feasibility studies in Africa and Canada. Ms Vivian Wu B Sc, EMBA Business Development Director- Greater China 20+ years experience in rare earth industry in senior roles with China Minmetals Corporation, Rhodia (China) Investment Co and Treibacher Industrie AG.

James Kenny B Comm, MBS Co-founder and Chief Executive Officer 25+ years experience in natural resources sector as an executive, adviser and broker. Co-founder of Frontier and centrally involved in all aspects of Frontier's development, corporate, strategic and financing activities since incorporation. Paul McGuinness B Comm, ACA Chief Financial Officer 15+ years experience in investment banking and financial control with Arthur Anderson, Salomon Brothers, Schroders, Collins Stewart and MG Capital. Dr. Stuart Smith B Sc, PhD Vice President, Exploration 30+ years experience in mineral exploration with particular experience in rare earths, uranium, base metals and diamonds.

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Summary

Zandkopsdrift is a high quality rare earth deposit high grade monazite deposit, attractive CREO distribution, large tonnage, on surface, low radioactivity and near infrastructure

Well positioned to become the next major western producer of separated rare earth oxides

Only advanced RE junior with proven metallurgy Plan to produce 14 separated rare earth oxides in purities up to 99.999% Only RE junior with strategic industry partner and off-take agreement One of the largest potential producers of CREOs outside of China

Experienced management and technical teams

Strong financial position and fully funded to complete PFS and DFS

Share price trading at significant discount to peers For further information visit www.frontierrareearths.com

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Appendices

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Absolute CREO Grade is Key Absolute grade is more important than relative distribution (i.e. % HREO or % LREO or % CREOs)

A deposit with a high proportion of CREOs could have a very low grade, and as a result be less attractive and produce less CREOs than a deposit that has a lower proportion of CREO but a higher overall TREO grade

Some “LREO projects” will produce more CREOs/t ore processed than certain high profile, so called “HREO projects”

Absolute CREO grade and projected CREO production levels ($m) provide more meaningful metrics to compare Rare Earth projects and a better benchmark with which to rate these projects

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Quest Frontier Lynas Arafura Tasman Avalon Rare Element Matamec Molycorp

Potential Western CREO Production (Relative value per annum)

- Based on REO prices from Metal Pages in 1 January 2015 - Assumes all project’s production distribution equals their in-situ distribution except Avalon where c.50% of HREO are not extracted under current flowsheet - Data for peers is sourced from various documents. Please refer to safe harbour statement at beginning of this presentation - At full production - Quest, Tasman, Rare Element and Matamec will produce an intermediate rare earth product and not separated rare earth oxides

Frontier would be the 2nd largest producer of CREOs by value of any of the current or leading prospective RE producers outside China, including Lynas and Molycorp

Note: Columns with solid

colours indicate projects where the contained RE minerals have a commercially proven extraction process

Potential Western MCREO and PCREO Production

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- Based on REO prices from Metal Pages in 1 January 2015 - Assumes all projects production distribution equals their in-situ distribution except Avalon where c.50% of its HREO will not be extracted under current flowsheet - Data for peers is sourced from various documents. Please refer to safe harbour statement at beginning of this presentation - At full production

020406080

100120140160

Relative MCREO value per annum

020406080

100120

Relative PCREO value per annum

It is also useful to further break down CREOs into: Magnet CREOs (MCREOs) – Neodymium (Nd), Terbium (Tb), Dysprosium (Dy) Phosphor CREOs (PCREOs) – Europium (Eu), Terbium (Tb), Yttrium (Y)

Frontier would be the 3rd largest producer of MCREO and second largest producer of PCREO by value of

any of the current or prospective rare earth producers outside China, including Lynas and Molycorp

Rare Earth Oxide REO price ($/kg)**

Frontier Rare Element Arafura Avalon Quest Tasman Matamec

Zandkopsdrift Bear Lodge Nolans Bore Nechalacho Strange Lake Norra Karr Kipawa

LREO

Lanthanum $5 0.70% 0.80% 0.50% 0.20% 0.13% 0.06% 0.06% Cerium $5 1.22% 1.31% 1.28% 0.46% 0.27% 0.14% 0.13% Praseodymium $117 0.13% 0.15% 0.16% 0.06% 0.03% 0.02% 0.02% Neodymium $58 0.44% 0.54% 0.54% 0.23% 0.11% 0.07% 0.06%

HREO

Samarium $5 0.06% 0.08% 0.06% 0.04% 0.02% 0.02% 0.01% Europium $705 0.02% 0.02% 0.01% 0.00% 0.00% 0.00% 0.00% Gadolinium $47 0.04% 0.04% 0.03% 0.03% 0.02% 0.02% 0.01% Terbium $615 0.00% 0.00% 0.00% 0.00% 0.01% 0.00% 0.00% Dysprosium $340 0.02% 0.01% 0.01% 0.02% 0.03% 0.03% 0.02% Holmium* $0 0.00% 0.01% 0.00% 0.00% 0.01% 0.01% 0.00% Erbium* $0 0.01% 0.00% 0.00% 0.01% 0.02% 0.02% 0.01% Thulium* $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Ytterbium* $0 0.01% 0.00% 0.00% 0.01% 0.02% 0.02% 0.01% Lutetium* $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Yttrium $13 0.11% 0.03% 0.04% 0.08% 0.23% 0.21% 0.09%

Total – TREO 2.77% 3.00% 2.63% 1.15% 0.90% 0.60% 0.42% Total – HREO 0.28% 0.20% 0.15% 0.20% 0.36% 0.32% 0.15% Total – CREO 0.59% 0.60% 0.60% 0.33% 0.38% 0.31% 0.17% Total – MCREO 0.46% 0.55% 0.55% 0.25% 0.15% 0.10% 0.08% Total – PCREO 0.13% 0.05% 0.05% 0.08% 0.24% 0.21% 0.09%

In Situ REO Grade of Advanced Western Deposits

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* No value attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to order and do not have regularly published prices. ** REO prices from Metal Pages 1 January 2015. Data for peers is sourced from various documents. Please refer to safe harbour statement at beginning of this presentation.

Frontier Peer Comparison - Summary

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Company Lynas Molycorp Frontier Avalon Arafura Rare Element Quest Tasman Matamec

Deposit Mt Weld Mtn Pass Zandkopsdrift Nechalacho Nolan's Bore Bear Lodge Strange Lake Norra Karr Kipawa

Location Australia California South Africa NW Territories Australia Wyoming Quebec Sweden Quebec

Est. Tonnes p.a. 22kt 19kt 20kt 10kt 20kt 10kt 12kt 6kt 5kt

Rare Earth Product Separated REO

Separated REO

Separated REO

Separated REO

Separated REO Concentrate Concentrate Concentrate Concentrate

Stage in process Production Production PFS DFS PFS PFS PFS PFS DFS

Primary RE Mineral Monazite Bastnaesite Monazite Fergusonite Fluorapatite & Cheralite

Ancylite & Bastnaesite Kainosite Eudialyte Eudialyte &

Mosandrite

Industry Partner Yes No Yes No No No No No Yes

Start-up year (est.) 2012/13 2012/13 2018 2019 Unknown 2018 2019 Unknown Unknown

Cash/(Net Debt) est. ($317m) ($1182m) $25m $3m $18m $16m $3m $4m $0m

Market Cap (Jan 2015) $183m $134m $15m $26m $21m $17m $7m $30m $2m

Enterprise Value ($m) $500m $1316m $-10m $23m $3m $1m $4m $26m $2m

Data sources for peers include the documents listed in the safe harbour statement, financial statements, publicly available market data and Frontier’s analysis.

Zandkopsdrift Relative Rare Earth Distribution

Element

Tonnes

Relative Distribution

Lanthanum 240,833 25.37%

Cerium 418,225 44.06%

Praseodymium 43,870 4.62%

Neodymium 150,723 15.88%

Samarium 21,538 2.27%

Europium 5,597 0.59%

Gadolinium 13,441 1.42%

Terbium 1,570 0.17%

Dysprosium 7,364 0.78%

Holmium 1,230 0.13%

Erbium 3,015 0.32%

Thulium 377 0.04%

Ytterbium 2,090 0.22%

Lutetium 283 0.03%

Yttrium 39,145 4.12% 949,301 100.00%

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45│

Planned Rare Earth Product Specifications & Quantities*

* Based on recovery in line with in situ distribution and 17,000 tpa production ** Didymium tonnage includes respective percentages of praseodymium and neodymium *** To be sold together or separated to order

Product Purity Proportion of output Tonnes per annum *

Lanthanum 2N-3N 75% 3336

5N 25% 1112

Cerium 2N 30% 2319 3N 30% 2319 3N5 40% 3091

Praseodymium 3N 50% 398

to Didymium 50% 398

Neodymium 3N 55% 1028

to Didymium 45% 1242 Didymium ** 2N 100% 1640 Samarium 2N-3N 100% 404 Europium 4N 100% 103 Gadolinium 2N-3N 100% 252 Terbium 4N 100% 30 Dysprosium 3N 100% 135 Yttrium 5N 100% 712 Holmium, Erbium, Thulium, Ytterbium, Lutetium *** 100% 131

Potential Western CREO Production (tonnes/annum)

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- No value attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to order and do not have regularly published prices. - Molycorp is currently not separating its HREO, however analysis above assumes it does so. - Data for peers is sourced from various documents. Please refer to safe harbour statement at beginning of this presentation - Rare Element, Quest, Tasman and Matamec do not currently plan to produce separated rare earth oxides * Assumes all projects production distribution equals their in-situ distribution except Avalon which has announced that 50% of its HREO cannot be extracted using their current process.

Rare Earth Oxide Lynas Molycorp Frontier Rare Element Arafura Avalon Quest Tasman Matamec

Mt Weld Mtn Pass Zandkopsdrift Bear Lodge Nolans Bore Nechalacho Strange Lake Norra Karr Kipawa

Lanthanum 5,245 6,310 5,083 2,775 3,807 1,896 1,350 668 541 Cerium 10,468 9,320 8,833 4,544 9,747 4,371 3,850 1,503 1,049 Praseodymium 1,130 810 910 520 1,218 544 460 191 131 Neodymium 3,979 2,286 3,154 1,873 4,112 2,125 1,400 755 482 Samarium 543 145 (1) 462 277 457 209 * 200 199 113 Europium 113 26 (1) 118 69 76 25 * 13 25 15 Gadolinium 249 43 (1) 288 139 213 172 * 360 211 115 Terbium 23 3 (1) 34 0 17 23 * 80 42 22 Dysprosium 45 10 (1) 154 35 70 100 * 600 283 144 Other 589 162 (1) 612 341 0 310 * 1,060 652 233 Yttrium 158 29 (1) 814 104 281 433 * 4,250 2,307 913

Total – TREO 22,000 19,000 20,000 10,400 20,000 10,000 13,623 6,637 3,758 Total – HREO 1,177 274 2,020 688 1,115 1,064 6,563 3,520 1,555 Total – CREO 4,318 2,356 4,274 2,081 4,557 2,706 6,343 3,412 1,576 Total – MCREO 4,047 2,300 3,342 1,908 4,199 2,248 2,080 1,080 648 Total – PCREO 294 59 966 173 375 481 4,343 2,374 950