DRAFT

Zandkopsdrift – the next major western RE producer

TMS Conference

Toronto, April 2013

Frontier Rare Earths Limited

TSX:FRO

Safe Harbour Statement

Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements”.

Officers and representatives of Frontier Rare Earths Limited (the “Company”) may, in their remarks or in response to

questions regarding this presentation, make certain statements which are “forward-looking statements” and are prospective.

Forward-looking statements are neither promises nor guarantees, but are subject to risks, uncertainties and assumptions

that may cause the actual results, performance or achievements of the Company, or developments in the Company’s

business or its industry, to differ materially from the anticipated results, performance, achievements or developments

expressed or implied by such forward-looking statements. Forward-looking statements are based on management’s beliefs

and opinions at the time the statements are made or presented, and undue reliance should not be placed on any of these

forward-looking statements. There should be no expectation that these forward-looking statements will be updated or

supplemented as a result of changing circumstances or otherwise, and the Company does not intend, and does not assume

any obligation, to update these forward-looking statements.

2 │

Forward-looking information

The Zandkopsdrift Rare Earth Project

The Zandkopsdrift rare earth project is

Frontier’s flagship project and is very well-

situated in the Northern Cape Province, South

Africa’s oldest mining region

Excellent mining and related infrastructure

available locally and regionally

Close to N7 highway from Cape Town (450 km)

35km to nearest railhead (Bitterfontein)

300km north of deep water port of Saldanha Bay

Strong support in local communities for the

development of the Zandkopsdrift

Frontier controls mineral rights over c.60,000haa

around Zandkopsdrift and owns the land in and

around where the deposit is located

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Satellite Image of Zandkopsdrift Carbonatite

4 │

Zandkopsdrift

carbonatite

complex

Gravel road to N7

N7 tarred road

to Cape Town

Bitterfontein rail head

(c.35 km)

Exxaro Resources

Namakwa Sands Mine

(c.45 km)

Zandkopsdrift

5 │

The Zandkopsdrift Deposit

The Zandkopsdrift deposit is a REE enriched carbonatitic intrusion

Occurs as a 1km diameter circular intrusive rising 40 meters above the surrounding plain

One of the largest known rare earth deposits, containing approx. 950k tonnes TREO

The majority of rare earths in Zandkopsdrift (~ 97%) are contained in monazite for which

commercially proven metallurgical extraction processes exist

The majority of western rare earth projects being developed have their rare earths contained in host

minerals for which proven extraction process do not exist creating significant process risk

Potential for rapid development and production start-up

Good regional infrastructure available (road, rail, power and water) will also facilitate development

Targeting total annual production of 20,000 tonnes of separated rare earths commencing in 2016

6 │

Zandkopsdrift Geological Map and Drill Locations

7 │

Assay results from completed

final phase of resource drilling

(14,200 meters drilling) to be

incorporated into a revised

resource estimate for PFS, and

are expected to upgrade the

majority of the resource into

the Measured and Indicated

resource categories

Series of vertical to sub vertical REE-enriched dykes intruded into a

REE bearing carbonatitic phlogopite breccia phase

Weathered CPB intruded by weathered RE enriched REDs

8 │

Weathered CPB

1-3% TREO

Weathered REDs

6-8% TREO

Zandkopsdrift Resource Block Model

9 │

10

Zandkopsdrift Absolute and Relative RE Distribution

Element

Tonnes

Relative Distribution

Lanthanum 240,833 25.37%

Cerium 418,225 44.06%

Praseodymium 43,870 4.62%

Neodymium 150,723 15.88%

Samarium 21,538 2.27%

Europium 5,597 0.59%

Gadolinium 13,441 1.42%

Terbium 1,570 0.17%

Dysprosium 7,364 0.78%

Holmium 1,230 0.13%

Erbium 3,015 0.32%

Thulium 377 0.04%

Ytterbium 2,090 0.22%

Lutetium 283 0.03%

Yttrium 39,145 4.12%

TTt 949,301 100.00%

Bulk Sample Trench for Pilot Testwork (2012)

11 │

Average XRF TREO grade of 3% for 174 metre trench

Recent Developments

Preliminary Economic Assessment competed March 2012

confirmed Zandkopsdrift’s potential to become a major low cost RE producer

NPV11% of $3.7bn generating a post-tax IRR of 53% and 2 year payback

Pre-feasibility Study targeted for completion in Q3 2013 and Definitive Feasibility Study

scheduled 9-12 months thereafter

Strategic Partnership completed in December 2012 with Korea Resources Corporation

Initial Kores investment of $23.8m for 10% interest in Zandkopsdrift (December 2012)

Kores option to acquire up to a total 50% interest in Zandkopsdrift if it arranges project finance for the full

development and provides 50% of equity required (see page 21)

12 │

Preliminary Economic Assessment - March 2012

13 │

PEA Financial Highlights

Post-Tax NPV & IRR

Post-Tax Net Present Value @ 11% discount rate $3.65bn

NPV attributable to Frontier Rare Earths $3.60bn

Post -Tax Internal Rate of Return 52.5%

Pre -Tax NPV & IRR Pre-Tax Net Present Value @ 11% discount rate $4.3bn

Pre-Tax Internal Rate of Return 57.6%

Revenue and Cashflow Average annual revenue $1.1bn

Annual after-tax free cashflow in full production $711m

Capital Expenditure

Total construction Capex excluding contingencies $910m

Start-up costs excluding contingency $27m

Project payback from commencement of full production 2 years

Revenue/kg and cost/kg

xSeparated REO

“Basket price” per kg of separated REO from Zandkopsdrift $58.23

Total cash operating cost/kg separated REO $13.08

Location of Zandkopsdrift Project Components (PEA)

14│

Saldanha Bay Rare Earth

Separation Plant-20,000 tonnes

p.a. TREO

Mixed rare earth carbonate

transported 300kms by road (N7)

to Saldanha Bay

Mining, flotation and cracking

plants to produce mixed rare

earth carbonate

PEA Operating Assumptions and Parameters

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PEA Operating Assumptions and Parameters

Mining

Target annual mining rate 1 m tonnes

Average stripping ratio* 3:1

Life of mine 20 years

Average production grade 3.1% TREO

Mining dilution 7.50%

Processing

Target annual production rate 20,000t separated TREO

Metallurgical recovery 67%

Production start-up H2 2015

Time to full production 1 year

* including all stockpiled <2% grade material and waste

Zandkopsdrift Preliminary Mine Pit Design (looking southwest)

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• 19.5 mt to be mined over 20 years

• Average 3:1 stripping ratio

• Significant LoM extension possible, as only

60% of current resource is exploited

Pit Dimensions (approx.)

East -West extent 830m

North-South extent 900m

Maximum no. benches planned 12

Saldanha Bay- (300km from Zandkopsdrift)

17 │

Sichen to Saldanha iron ore export rail line

Exxaro ilmenite smelter-Saldanha Bay Arcelor Mittal Saldanha Steel Works

Saldanha Port

Saldanha Bay Industrial Development Zone

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5,083

8,833

910

3,154

462 118 288 34 154

814

4,274

-

2,000

4,000

6,000

8,000

10,000

To

nn

es p

er

An

nu

m

Illustrative Projected Output of Separated Rare Earths

19│

Based on 20ktpa TREO target output

Revenue contributions are calculated using FOB China prices from Metal Pages as at 11 April 2013

No value is attributed to the five heavy rare earths from Holmium to Lutetium

CREOs comprise

22% of projected

output by

volume, but

contribute circa

70% of project

revenue**

Ce and La

contribute only

17% of potential

project revenue,

so the project’s

economics are

not significantly

sensitive to their

prices

Production – tonnes per annum

Relative contribution to revenue

6.2% 10.7% 9.6%

29.3%

1.3%

20.4%

1.7% 5.0%

12.1%

3.7%

70.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Co

ntr

ibu

tio

n t

o v

alu

e

Korea Resources Corporation

Korea Resources Corporation (“KORES”) is wholly-owned by the Korean government

Objective of becoming a global top 20 mining company by 2020, principally through

international investments and joint ventures

Policy mandate to further Korea's access to strategically important mineral resources

Works with major Korean industry groups and assembles consortia of Korean companies to

participate with KORES in commercial ventures

Korean government has designated rare earths as a strategic raw material for Korea’s future

economic growth and selected Zandkopsdrift source of their future rare earth supply

“In order to support Korea’s high technology, automotive and other industries, the development of

Zandkopsdrift will be a strategic priority project for the KORES Consortium and a critical element of

KORES’ efforts to secure a long term, stable source of rare earth supply for Korean industry.”

Shin-Jong Kim, Kores President and CEO (Dec 2011)

20 │

KORES Joint Venture Summary Highlights

KORES acquired an initial 10% interest in Zandkopsdrift for $23.8m in cash (completed Dec 2012)

On completion of a positive Definitive Feasibility Study on Zandkopsdrift:

Kores may increase participation up to a 50% interest* in Zandkopsdrift, together with an off-take right

and obligation for up to 50% of production from Zandkopsdrift (the “50% Option”)

Kores required to arrange project finance for entire Zandkopsdrift development on best available market

terms and, provide its pro rata equity funding for the portion of Zandkopsdrift development costs not

covered by the project finance

Kores will provide technical and operating support for the design, construction and operation of the

Zandkopsdrift facilities

Frontier and Kores will cooperate in relation to downstream opportunities in the area of rare earth

metals, alloys and magnets

Frontier may introduce an Alternative Strategic Partner into Frontier/Zandkopsdrift prior to the

exercise of the option by Kores and in such event the 50% Option will be cancelled

Zandkopsdrift is Kores’ only investment in a rare earth mine development worldwide.

*Full details of the Frontier Kores JV are set out in the news release dated October 23 2012

21 │

Benchmarking Rare Earth projects

The use of “light vs. heavy” ratios is very misleading

and should not be the metric to rank/rate RE projects

Ratios do not reflect grade or value and is a flawed

metric

Not all LREOs are “bad” (low value & in oversupply)

There are 4 LREOs of which 2 are critical for magnets (Nd & Pr)

Not all HREOs are “good” (high value & in undersupply)

There are 11 HREOs

4 are critical for magnets (Dy & Tb) and phosphors (Tb, Eu & Y)

5 have negligible value as they are produced and used in

limited quantities (Ho, Er, Tm, Yb & Lu)

2 are non-critical and have relatively low values (Sm & Gd)

A better metric than a HREO/LREO ratio is needed

22 │

Rare Earth Oxide REO price *

($/kg)

LR

EO

Lanthanum $10

Cerium $10

Praseodymium $83

Neodymium $73

Samarium $23

HR

EO

Europium $1350

Gadolinium $47

Terbium $1150

Dysprosium $615

Holmium $0

Erbium $0

Thulium $0

Ytterbium $0

Lutetium $0

Yttrium $36

* Metal-Pages 11 April 2013

A better benchmark-Critical Rare Earth Oxides (CREOs)

Critical Rare Earths Oxide grade is a better metric to benchmark RE projects

Term was defined in the US Department of Energy “Critical Materials Strategy”, 2010

Similar to the ‘Critical REEs’ terminology employed by Gareth Hatch and Jack Lifton

CREOs defined as Nd, Eu, Tb, Dy & Y, with Nd being the largest of the CREOs by value and volume

Criticality of CREOs is based on their importance to sustainable clean energy and the supply risk of such

elements over the short (0-5yrs) and medium term (5-15yrs)

23 │

Absolute CREO grade is key

Use of relative grades (% HREO or % LREO or % CREOs) can be misleading

Absolute grade is more important than relative distribution .

A deposit with a high proportion of CREOs could have a very low grade, and as a result be less

attractive and produce less CREOs than a deposit that has a lower proportion of CREO but a higher

overall TREO grade

Some “LREO projects” will produce more CREOs/t ore processed than certain high profile, so called

“HREO projects”

Absolute CREO grade and projected CREO production levels ($m) provide more

meaningful metrics to compare RE projects and a better benchmark with which to rate

RE projects

Also useful to break down CREO into

Magnet CREOs - “MCREOs”

Phosphor CREOs – “PCREOs”

24 │

Rare Earth Oxide REO price

($/kg)**

Frontier Rare

Element Arafura Avalon Quest Tasman Matamec

Zandkopsdrift Bear Lodge Nolans Bore Nechalacho Strange

Lake Norra Karr Kipwa

LR

EO

Lanthanum $10 0.70% 0.80% 0.50% 0.20% 0.13% 0.06% 0.06%

Cerium $10 1.22% 1.31% 1.28% 0.46% 0.27% 0.14% 0.13%

Praseodymium $83 0.13% 0.15% 0.16% 0.06% 0.03% 0.02% 0.02%

Neodymium $73 0.44% 0.54% 0.54% 0.23% 0.11% 0.07% 0.06%

Samarium $23 0.06% 0.08% 0.06% 0.04% 0.02% 0.02% 0.01%

HR

EO

Europium $1350 0.02% 0.02% 0.01% 0.00% 0.00% 0.00% 0.00%

Gadolinium $47 0.04% 0.04% 0.03% 0.03% 0.02% 0.02% 0.01%

Terbium $1350 0.00% 0.00% 0.00% 0.00% 0.01% 0.00% 0.00%

Dysprosium $615 0.02% 0.01% 0.01% 0.02% 0.03% 0.03% 0.02%

Holmium* $0 0.00% 0.01% 0.00% 0.00% 0.01% 0.01% 0.00%

Erbium* $0 0.01% 0.00% 0.00% 0.01% 0.02% 0.02% 0.01%

Thulium* $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Ytterbium* $0 0.01% 0.00% 0.00% 0.01% 0.02% 0.02% 0.01%

Lutetium* $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Yttrium $36 0.11% 0.03% 0.04% 0.08% 0.23% 0.21% 0.09% Total – TREO 2.77% 3.00% 2.63% 1.15% 0.90% 0.60% 0.42%

Total – HREO 0.28% 0.20% 0.15% 0.20% 0.36% 0.32% 0.15%

Total – CREO 0.59% 0.60% 0.60% 0.33% 0.38% 0.31% 0.17%

Total – MCREO 0.46% 0.55% 0.55% 0.25% 0.15% 0.10% 0.08%

Total – PCREO 0.13% 0.05% 0.05% 0.08% 0.24% 0.21% 0.09%

In Situ Absolute REO Grade of Advanced Western Deposits

25 │

* No value attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to

order and do not have regularly published prices.

** REO prices from Metal Pages 11 April 2013

Potential Western CREO Production

26│

Based on REO prices from Metal Pages in April 11 2013

Assumes all projects production distribution equals their in-situ distribution except Avalon which has recently

announced that 50% of its HREO cannot be extracted using their current process

Frontier would be the second

largest producer of CREOs by

value of any of the current or

prospective RE producers

outside China, including

Lynas and Molycorp

Note: Columns with solid

colours indicate projects

where the contained RE

minerals have a commercially

proven extraction process -

100

200

300

400

500

600

700

CREO $M/annum

Zandkopsdrift Current Estimated Project Timeline

27 │

PEA Resource

2011 2012 2013 2014 2015

PFS/DFS Resource

PEA

Pre Feasibility

Study

Definitive

Feasibility Study

Financing

Construction

Production

Start-up

Corporate Information

TSX:FRO

Shares Outstanding: 89,562,781

Market Cap c.$48m

Share Price $0.54 (52 week hi/low

$0.96 - $0.43)

Working Capital c.$50m

Research Coverage:

CIBC

Euro Pacific Capital

Cormark Securities

28 │

Frontier Relative Share Price (rebased)

0

20

40

60

80

100

Frontier Share Price

Peer Average (RER, Quest, Arafura & Avalon)

Industry Leader Average (MCP + LYC)

Summary

Zandkopsdrift is a world-class rare earth deposit

high grade, attractive REO and CREO distribution, large tonnage, on surface, low radioactivity

Well positioned to become the next major, low cost producer of separated rare earth

oxides Only advanced RE junior with proven metallurgy available

Lower capex and opex compared to many peers

Only RE junior with a completed strategic industry partner and off-take agreement (Kores)

One of the largest potential Western producer of separated CREOs

Experienced management and technical teams

Strong financial position (c.$50m in cash) and fully funded to complete PFS and DFS

Share price trading at significant discount to peers Share buy-back commenced Q2 2012 and is continuing

29 │

Cape Town – a first world destination

30 │

Appendices

31│

Senior Management Team

Senior Management team with extensive experience of exploration and development of

mineral projects in Southern Africa, rare earths, financing and corporate development

Philip Kenny B Eng, MBA Chairman

25+ years experience in natural resource sector.

Founder and former Executive Chairman and CEO of

Firestone Diamonds plc, an AIM-listed diamond mining

company focused which built and operated diamond

mines in South Africa, Botswana and Lesotho.

Derick de Wit B Tech, Chem. Eng. Vice President, Project Development

15+ years experience in minerals industry. Has managed

or prepared more than 30 independent reviews, scoping,

pre-feasibility and definitive feasibility studies in Africa

and Canada.

Ms Vivian Wu B Sc, EMBA Business Development Director- Greater China

20+ years experience in rare earth industry in senior

roles with China Minmetals Corporation, Rhodia (China)

Investment Co and Treibacher Industrie AG.

James Kenny B Comm, MBS Chief Executive Officer

20+ years experience in natural resources sector as an

executive, adviser and broker. Co-founder of Frontier and

centrally involved in all aspects of Frontier's

development, corporate, strategic and financing activities

since incorporation.

Paul McGuinness B Comm, ACA Chief Financial Officer

15+ years experience in investment banking and

financial control with Arthur Anderson, Salomon Brothers,

Schroders, Collins Stewart and MG Capital.

Dr. Stuart Smith B Sc, PhD Vice President, Exploration

30+ years experience in mineral exploration with

particular experience in rare earths, uranium, base

metals and diamonds.

32 │

Zandkopsdrift Resource Estimate

Large, high confidence resource estimate (c.950k tonnes TREO) with c.80% of the contained TREO at

the Indicated Resource level (2011)

Final phase of resource drilling (14,200 meters) at Zandkopsdrift completed in Q4 2011

Assay results from final phase of drilling expected to advance majority of the resource into the Measured

and Indicated categories and PFS will convert such resources to Proven and Probable reserves

Relative distribution of REOs in Zandkopsdrift is shown on page 10.The resource estimate is NI 43-101 compliant and presented in accordance with CIM definitions The mineral resource

estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 64% owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the

Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share

capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 64% shareholding in Sedex, Frontier shall also be entitled to, in consideration for Frontier’s

funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE Shareholders following the

completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective 85% interest in the Zandkopsdrift Project until

such payment has been received.

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