Piedras Verdes Project NI 43-101 Technical Report, March 2008 (23.48 MB)

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The Piedras Verdes mine is located in the southern part of the state of Sonora, Mexico, 21 kilometers from the town of Alamos.

Frontera Copper Corporation was incorporated in March 2002 to purchase and bring into production the Piedras Verdes run-of-mine heap leach, SXEW copper project in Sonora, Mexico. Commercial production started in October 2006, and between then and the end of 2007, 62 million pounds of "LME Grade A" quality copper cathode was produced. Based on the 2008 Life of Mine plan, a total of 1,018 million pounds of copper are projected to be produced during the 2008 to 2024 time period, at an annual capacity rate of 70 million pounds. Existing resources and prospective exploration targets adjacent to the main open pit have the potential to improve the economics and extend the life of the mine. With copper prices currently in excess of $3.00 per pound and life-of-mine cash costs estimated at approximately $1.32 per pound, Frontera Copper is quickly emerging as one of the most promising new copper producers.

The Piedras Verdes mine is located in the foothills of the Sierra Madre Occidental Mountains. The copper deposit is an elongated porphyry, 4 kilometers long in an east-west direction and 0.5 kilometers wide in a north-south direction. The mineral reserves consist of copper oxides (principally chrysocolla and neotocite/tenorite), chalcocite and mixed oxide-chalcocite mineralization, limonitic copper, copper oxides with native copper and cuprite.

The development of the Piedras Verdes copper mine was led by a team of experienced and proven personnel who have successfully built other similar copper projects. This management team also brings strong operational experience from previous copper production and mining operations with various companies, including Phelps Dodge Corporation, Grupo Mexico and Placer Dome.

Mine site development began with the successful relocation of an Ejido village, which was originally situated directly over and around the ore body. Forty-nine families in the original village agreed to move to a new town site established six miles south of the mine. The new town site was constructed with infrastructure provided by the Company including utilities for the homes (power, water, sewage disposal system and roads), a kindergarten, primary school, secondary school, playgrounds, health clinic and school teachers' houses. Formal delivery of the town site to the municipality of Alamos in October 2005 completed the official relocation.

While the mine site location has excellent infrastructure including power and access to highways, the Company needed to find a new source of water to satisfy the requirements of the process. Frontera Copper, with the assistance of hydrogeologic consultants from the U.S. and the University of Sonora, discovered and developed an entirely new water aquifer. The new source meets the mine's requirements, plus the needs of two local ejido communities. Following this success, Frontera Copper was granted a water consumption permit by the National Water Commission to meet the mine's 4 million cubic meter annual water requirements.

Frontera Copper secured the services and equipment of Spanish mining contractor, Grupo PEAL OP, for the initial five and one half years of mining at Piedras Verdes. PEAL's available equipment and labor force enabled Frontera Copper to maintain its aggressive development schedule and reduce the mine's initial capital requirements.

Frontera Copper has entered into an off-take contract with Gerald Metals, Inc. for the purchase of 100% of Piedras Verdes' copper cathode production from start-up to December 31, 2010. Gerald Metals will market Piedras Verdes copper cathode through its international network of offices in the U.S., Mexico and major overseas markets.

Copper prices are at historical highs due to strong global demand and low metal inventories. Frontera Copper is well positioned to benefit from these strong prices.

Piedras Verdes Overview:

• Projected annual production of up to 70 million pounds of copper cathode for 2008-2019, with declining amounts of copper production in 2020-2024.

• Total projected production of 1,018 million pounds of copper over the remaining 17-year mine life.

• Proven and probable mineral reserves of 193.6 million tonnes, grading 0.36% total copper, as set out in the updated Technical Report dated March 2008.

• Additional 35 million tonnes of resources adjacent to and below the open pit.

• Projected to generate $1,077 million of free cash flow over the life of the mine at average copper prices of $2.76 per pound, based on an updated Technical Report dated March 2008.

• The mine has significant leverage to copper prices - a $0.25 per pound increase in average copper price would increase the mine's free cash flow by $178 million.

• Projected life-of-mine cash operating cost of $1.32 per pound, including royalties.


Resources and Reserves (as per updated Technical Report filed in March 2008)

Piedras Verdes Proven and Probable Mineral Reserves Based on $1.65/Lb. Copper Price

	Ore Tonnes (000)	Total Cu Grade %	Contained Cu Tonnes (000)	Contained Cu Pounds (millions)
Proven	158,063	0.36	564	1,243
Probable	35,576	0.40	141	311
Proven and Probable	193,639	0.36	705	1,554

Piedras Verdes Mineral Resource at $2.00/Lb. Copper Price
(In Addition to Proven and Probable Reserves)

Measured		Indicated		Measured Plus Indicated		Inferred
ktonnes	TCu%	ktonnes	TCu%	ktonnes	TCu%	ktonnes	TCu%
23,519	0.28	11,262	0.30	34,781	0.29	17,049	0.33

This information contained herein that is not current or historical factual information may constitute forward-looking information or statements within the meaning of applicable securities laws. Implicit in this information, particularly in respect of statements as to future operating results and economic performance of the Company, and resources and reserves at the Piedras Verdes operations, are assumptions regarding projected revenue and expense, copper prices and mining costs. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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