Frontera Resources Corporation provides an update of operations at the Lloyd #1 well at its Basin Edge Play Unit, Block 12, Georgia.

Since issuing the most recent Operations Update of November 27, 2007 for drilling operations at the "C" Prospect, ongoing analysis has revealed that the Lloyd #1 well has encountered multiple potential reservoirs as well as multiple hydrocarbon shows throughout the Tertiary age section of the well. In addition, geologic core samples have been observed to contain oil and vertical fractures.

Within this Tertiary age section, drilling has also revealed the unexpected discovery of the presence of important additional lower-Tertiary age geologic formations within the "C" Prospect. These formations, which consist of Oligocene and Eocene age rocks, are known to contain prolific reservoirs in fields that are situated on-trend to the west and south of the "C" Prospect within the upper Kura Basin.

The deepest and oldest interval encountered thus far is of Eocene age, which is expected to be situated stratigraphically above the Cretaceous age formations that are primary target objectives within the "C" Prospect.

At this time, drilling operations continue with the objective of ultimately reaching target depth in Cretaceous age formations within the next three weeks. Based on analysis of drilling and logging results during the past two weeks, it was determined that the well was drilling through highly dipping lower Tertiary rocks. When calibrated to 3D seismic data, it was noted that the Lloyd #1 well-bore was on a trajectory further down-dip, or lower on the flank of the "C" Prospect structure than originally desired.

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