LOI Signed To Advance Sandman Gold Project

VANCOUVER, BC - Fronteer Development Group Inc. reported that it has signed a Letter of Intent ("LOI") with its senior Nevada partner, Newmont Mining Corporation, to rapidly advance the Company's Sandman gold project, in Humboldt County, Nevada, to a production decision within 36 months. As part of this agreement, Fronteer also regains an undivided 100% interest in Northumberland, located in Nye County, Nevada.
The LOI gives Fronteer immediate exposure to near-term production in Nevada and increases its attributable gold resource base at Northumberland by 60%. Fronteer now assumes full ownership of Northumberland with a NI 43-101 resource estimate of 2.06 million ounces of gold (measured and indicated), 0.40 million ounces of gold (inferred), and 5.11 million ounces silver (inferred).
"As a result of this new partnership, Fronteer will have potential near-term production funded and operated by Newmont, while retaining 100% ownership of Northumberland and its gold ounces," says Fronteer President and CEO, Mark O'Dea. "In turn, Newmont is provided the quickest access to low-cost gold production and reserve replenishment from a project that has good synergies with its nearby infrastructure."
While Newmont advances Sandman toward a production decision, Fronteer can focus on an aggressive drill program at Northumberland and the Company's 17 other Nevada gold projects.
Sandman currently includes a group of five closely spaced gold deposits, four of which contribute to a combined NI 43-101 resource estimate of 271,900 ounces (measured and indicated) and 38,000 ounces (inferred) gold. The deposits are near-surface and open-pit mineable, with significant resource expansion and exploration upside potential
In addition to regaining a 100% interest in Northumberland, Fronteer has been granted a free license for the use of Newmont's patented N2TEC flotation process technology. In return, Fronteer has granted Newmont preferential ore processing rights for any ore developed from Northumberland. Fronteer will invest approximately US$4M in Northumberland exploration for 2008, including plans to update the project's NI 43-101 resource estimate to include the previous three year's worth of drill results.
The company's address is Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9, 604.632.4677, fax: 604.632.4678, email: [email protected].