Frontera Resources Corporation has completed a new phase of drilling operations at the Mirzaani and Mtsare Khevi Fields within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

Highlights

• Completed drilling, coring and logging two new discovery wells in undeveloped areas of the Mirzaani Field. - Mirzaani #1 well was drilled to a depth of 1,500 meters and encountered multiple oil and gas shows throughout 146 meters of net sandstones, in primary as well as deeper, secondary reservoir targets. - Mirzani #5 well was drilled to a depth of 1,125 meters and encountered multiple oil and gas shows throughout 120 meters of net sandstones, in primary as well as deeper, secondary reservoir targets. - Reservoir sections in both wells exhibited higher than expected porosity and permeability values and yielded new geologic data that enhances previously held views regarding potential reservoir attributes. - Early stage production testing operations are underway at the Mirzaani #1 well and are about to commence at the Mirzaani #5 well. • Completed drilling four new oil and gas development wells at the Mtsare Khevi Field, all of which encountered expected oil and gas reservoirs. - Completion of gas pipeline and associated facilities has been delayed, such that first gas sales are expected to occur late in the first quarter of 2010. - Multi-faceted production maintenance program has been implemented in existing oil wells. • A new Competent Persons Report is being prepared for Mirzaani and Mtsare Khevi Fields.

Mirzaani Field

Frontera's recently completed drilling campaign at the Mirzaani Field consisted of two new wells designed to be drilled in undeveloped or underdeveloped portions of the field. The wells targeted primary reservoir Zones 12 and 13 and deeper, secondary reservoir Zones 14-18 in the Lower Pliocene age Shiraki formation.

Mirzaani #1 Well In the southeastern portion of the field, the Mirzaani #1 well finished drilling operations in late November of last year. The well was drilled to a total depth of approximately 1,500 meters, and log analysis indicated that the well penetrated approximately 146 meters of total net sandstones with average porosity values of approximately 20-25% and a rock density indicating mainly a quartz composition. These Lower Pliocene age Shiraki formation sandstones are distributed among seven known field reservoir horizons, Zones 12-18, that are situated at depths between approximately 1,200 meters and 1,490 meters. Multiple oil and gas shows were encountered while drilling.

In addition to log analysis, an important 17 meter core sample was taken from Zone 12 in order to obtain detailed reservoir data that is essential for optimizing the design of well completions and quantifying reserve potential. Laboratory analysis of this first core to be taken in the field since the 1970s was conducted during the month of December. The core encountered approximately eight meters of oil saturated reservoir with average porosity values of 19%. Permeabilities were in the range of 0.2 to 20 mD, with an average value of 5 mD. The core recovery is characterized by splay sand bars deposited in the context of a complex fluvial sedimentary environment, indicating a more attractive depositional environment than previously hypothesized.

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