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| |   Cerro Chato Exploration Early in 2005, Frontera Copper carried out a program of serface mapping, trenching and sampling to evaluate the exploration potential of Cerro Chato, and area located approximately 1.9 km west of the main Piedras Verdes open pit. During 2006 and 2007, the Company conducted a diamond drilling program at Cerro Chato, which is approximately 1.5 kilometers from the main Piedras Verdes ore body. A total of 3,377 meters of diamond drilling was completed in 27 holes. Final analytical results for all holes were received in July 2007. The exploration drilling program was successful in discovering approximately 15 million tonnes of oxide mineralization at Cerro Chato. However, the drill hole density is insufficient to allow for estimation of a mineral resource at this time. Additional infill drilling on 50 meter centers will be required in order to delineate 43-101 compliant resources.  Click to enlarge The mineralized zones tested at Cerro Chato appear to be similar in grade to the ores currently being mined at the Piedras Verdes operation. In addition, preliminary metallurgical test results indicate that the Cerro Chato mineralization has metallurgical characteristics, which are similar to the ores currently being mined at Piedras Verdes and could therefore potentially add to the life of the operation. More extensive testing is needed to adequately quantify the recovery and acid consumption properties of the Cerro Chato material.
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