Frontera Copper Corp. Provides Financial Update in Respect of Its Senior Notes

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Dec. 5, 2011) - Frontera Copper Corporation ("Frontera" or the "Company") (TSX:FCC.NT.B) provides the following update to holders of its 10% Senior Secured 1A Notes due September 30, 2013 (the "Notes") on the Company's cash position, borrowings under the Company's Banco Azteca bank facility (the "Facility") and a related potential breach of a covenant concerning that Facility under the terms of the indenture for the Notes (the "Indenture"), and the Company's ability to meet the first semi-annual principal payment on the Notes due on March 31, 2012 in the amount of $20,627,667.50 (the "Payment").

The Company advises holders of the Notes and all potential investors therein ("Investors") that:

1. As stated in its third quarter 2011 Management Discussion and Analysis of Financial Statements, operational difficulties in the operation of the Piedras Verdes Mine crushing system negatively affected production of copper to a substantial degree. In combination with the decline in the market price of copper, the Company's cash flow has been below expectations.

2. As of September 30, 2011, the Company had drawn its full availability under the Facility. Since September 30, 2011, the Company negotiated an expansion of the Facility to approximately US$118,900,000, and subsequently drew down the full amount of the expanded Facility.

3. With respect to the Payment due on March 31, 2012, while the Company does not currently have sufficient cash or committed financing to make the Payment, the Company is actively seeking financing to enable it to make the Payment when due, and is confident that it will be able to make the Payment when due on March 31, 2012.

As referenced, the Company has increased its borrowings under the Facility to approximately US$118.9 million, which is in excess of the Project Secured Indebtedness Limit under the Indenture for the Facility of US$110 million. While the Company remains below the aggregate limit under the Indenture for senior borrowings under the Facility and under capital leases of US$128,300,000, the increased borrowing under the Facility to approximately US$118.9 million may represent a technical breach of the Project Secured Indebtedness Limit of US$110 million for the Facility under the terms of the Indenture. As a result, an event of default could occur under the terms of the Indenture if the Company fails to cure the possible breach within 60 days after having received written notice from the indenture trustee or the holders of 25% or more in aggregate principal amount of the Notes.

For further information, please visit the Company's website at www.fronteracopper.com.



This news release contains forward-looking statements which are typically preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements may involve, but are not limited to, the completion of financing necessary to make the Payment when due, comments with respect to our objectives for 2011 and beyond, our strategies or planned future actions, and our targets or expectations for our financial performance and condition. All statements, other than statements of historical fact, contained in this news release are forward-looking statements, including, without limitation, statements regarding the future financial position and operations, business strategy, plans and objectives of or involving the Company. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. In particular, while the Company is confident that it will be able to obtain the financing necessary to make the Payment, there can be no assurance that this will in fact occur.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake to update any forward-looking statement, whether written or oral, that the Company may have made or that may be made, from time to time.



Contact Information

Frontera Copper Corporation
John Detmold
CFO
+52 55 1579 4900

Frontera Copper Corporation
1188 West Georgia Street Suite 1080
Vancouver, BC
V6E 4A2
www.fronteracopper.com