Fronteer Finalizes Newmont Deal

VANCOUVER, BC - Fronteer Development Group Inc. reported that it has finalized an option and joint-venture agreement with its senior Nevada partner, Newmont Mining Corporation ("Newmont"), to advance the Company's Sandman gold project to a production decision within 36 months.
The final terms give Fronteer exposure to potential, near-term U.S. production in partnership with one of the world's largest gold producers. Newmont may earn up to a 60% interest in Sandman by investing $23 million in advancing the project.
Infrastructure surrounding Fronteer's Sandman project is excellent. The property is close to Newmont's Twin Creeks mine, eliminating the need for a stand-alone milling facility and other significant capital expenditures if the project were to proceed to production.
"This deal is important to Fronteer because it maximizes Sandman's near-term production potential by leveraging Newmont's proven experience, expertise and nearby infrastructure," says Fronteer President and CEO Dr. Mark O'Dea. "The agreement also frees up both our human resources and financial capital to focus on advancing our other high-priority Nevada gold projects."
Sandman, currently includes a group of five closely spaced resource areas, 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.
As part of the agreement, Newmont has also contributed over eight new sections (approximately 5,440 acres) of adjacent mineral interests to the Sandman Property, many of which have untested drill targets.
The company's address is Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9, 604.632.4677, fax: 604.632.4678, email: [email protected].