DRAFT

Developing Zandkopsdrift- a world-class rare earth deposit

June 2011 James Kenny

Chief Executive Officer

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.

June 2011

Forward-looking information

2 │

Company Overview

Flagship asset is the Zandkopsdrift rare earth deposit

World-class deposit in terms of size, grade, rare earth distribution and value

B Zone has 3rd highest RE grade of major deposits worldwide (ex. China) after

Lynas and Molycorp*

Significant resource expansion potential and regional exploration potential

Potential for rapid development

Straightforward metallurgy and rapid permitting

Objective to become first major new producer after Lynas and Molycorp

Strong financial position

$50m cash and Company fully funded through completion of DFS by end 2012

Experienced management team

* See p11

3 │

Project Location

4 │

► Project well-situated in the Northern

Cape Province of South Africa

► Excellent mining and related

infrastructure available

► More than 150 years of mining locally

► Close to N7 highway from Cape Town

(450 km)

► 30km to nearest railhead (Bitterfontein)

► 250km north of deep water port of

Saldanha Bay

► Strong support in local communities for

the development of the Zandkopsdrift

Project Area

Zandkopsdrift

carbonatite

complex

Bitterfontein rail head

(~44 km by road)

Gravel road to N7

N7 tarred road

to Cape Town

Exxaro Resources

Namakwa Sands Mine

(~45 km)

5 │

Zandkopsdrift Deposit

6 │

Project Overview

A world-class rare earth deposit

Carbonatite complex similar to Lynas‟ Mount Weld deposit

Rare earth mineralization principally contained in monazite

One of the largest known rare earth deposits globally

NI 43-101 compliant resource declared in Oct 2010 (c.60% in the indicated resource category)

High grade zones identified extending from surface

Significant high grade zones identified of which the Zandkopsdrift–B Zone ranks in top three deposits

outside China measured on TREO grade basis*

The highest grade of high value HREO‟s of significant advanced deposits outside China after

Molycorp‟s Mountain Pass and Lynas‟ Mount Weld projects*

Potential for rapid development

Good regional infrastructure will also facilitate development

Aggressive drilling and met testing work programmes underway

Targeting production in 2015 making Frontier one of the early new producers after Lynas and Molycorp

* See p11

7 │

Resource Estimate

Large, high confidence resource (950k TREO) with 56% of the contained TREO resource at the

Indicated Resource level

The deposit contains large higher grade zones, and in particular, the Zandkopsdrift-B Zone (450k

tonnes TREO), which could be exploited as a discrete unit

Zandkopsdrift remains „open‟ laterally and at depth giving scope for significant upgrading of the

estimated resource

1. Relative distribution of individual REOs in Zandkopsdrift is shown on page 19.Resource is NI 43-101 compliant and presented in accordance with CIM definitions

2. The mineral resource estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier‟s 74% 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 74% 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 Zandkopsdri ft 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

95% interest in the Zandkopsdrift Project until such payment has been received.

Cut-off grade

(TREO)

Tonnes

(Millions) Average Grade

(TREO)

Contained TREO („000 tonnes)

Indicated Resource 1% 22.9 2.32% 532

Inferred Resource 1% 20.8 1.99% 415

8 │

Total Resource – Indicated @ 2.32% TREO

9 │

Zandkopsdrift-B Zone (450k tonnes TREO) – Indicated @ 3.67% TREO

Focus for first 12-15 years of production

10 │

Current REO

($/kg)2

Lynas Molycorp Frontier R.E.R. Arafura Frontier Frontier Avalon Quest

RE Oxide

Mt Weld Mtn Pass Zandkops-

drift B-Zone Bear Lodge Nolans Bore

Zandkops-

drift A-Zone

Zandkops-

drift Nechalacho Strange Lake

Lanthanum $148 2.03% 2.39% 0.93% 1.08% 0.55% 0.67% 0.55% 0.21% 0.13%

Cerium $149 3.63% 3.44% 1.61% 1.63% 1.33% 1.16% 0.96% 0.46% 0.27%

Praseodymium $239 0.40% 0.30% 0.17% 0.14% 0.16% 0.12% 0.10% 0.06% 0.03%

Neodymium $319 1.39% 0.82% 0.58% 0.41% 0.59% 0.41% 0.34% 0.23% 0.11%

Samarium $129 0.20% 0.06% 0.08% 0.08% 0.07% 0.06% 0.05% 0.05% 0.02%

Europium $2990 0.05% 0.01% 0.02% 0.02% 0.01% 0.02% 0.01% 0.01% 0.00%

Gadolinium $175 0.12% 0.01% 0.05% 0.04% 0.03% 0.04% 0.03% 0.05% 0.02%

Terbium $2910 0.01% 0.00% 0.01% 0.01% 0.00% 0.00% 0.00% 0.01% 0.01%

Dysprosium $1485 0.05% 0.00% 0.03% 0.01% 0.01% 0.02% 0.02% 0.04% 0.03%

Yttrium $175 0.17% 0.00% 0.15% 0.03% 0.04% 0.11% 0.09% 0.15% 0.23%

1Erbium to Lutetium $0 0.20% 0.01% 0.18% 0.03% 0.04% 0.13% 0.10% 0.19% 0.28%

Total 8.08% 7.04% 3.65% 3.45% 2.79% 2.63% 2.16% 1.30% 0.90%

“Big 5” Grade 1.89% 1.13% 0.80% 0.59% 0.78% 0.57% 0.47% 0.34% 0.18%

Zandkopsdrift-B Zone:3rd highest grade rare earth deposit outside of China

1. No value is attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to special order and do not

have a regularly published price.

2. Metal Pages June 9 2011

3. Peer group only includes advanced rare earth projects/deposits with >200k TREO calculated on a code-compliant basis

11 │

Significant Resource Expansion Potential

12 │

Primary target areas based on radiometrics

Deeper Exploration Targets also identified

13 │

Operational Update and Drilling Programme 2011

14 │

►Four rigs currently on

site

►5700 meters completed

in 2011 (end April)

►9500 meters of RC and

core drilling planned

over the next 6 months

to focus on: ►Geological controls

►Stratigraphic analysis

►Infill/resource

conversion

►Step out / close out

►Satellite pipes

►Metallurgical samples

shipped to SGS Minerals

Services for testing

(April 2011)

Metallurgical Sample Recovery (Feb 2011)

Drill Sites for met sample recovery

15 │

Key Project Milestones 2011-2012

Q3 2011: Target Preliminary Economic Assessment completion

Q4 2011: Target Pre-feasibility study completion

Q4 2012: Target Bankable feasibility study completion

Metallurgy:

Phase 1 bench-scale metallurgical studies (Q3 2011),phase 2 bench studies(Q4 2011)

and initiate pilot plant metallurgical studies (Q1 2012)

Exploration:

Investigate the 30 satellite pipes around Zandkopsdrift and explore elsewhere in

current 60,000 hectare permit

Updated resource statement (Q4 2011)

Secure new 75,000 hectare prospecting right in Namaqualand (application May 2010)

Note : Frontier is fully funded for its Preliminary Economic Assessment, Pre-feasibility

and Bankable Feasibility studies through 2012

16 │

Project Development Plans 2013-2015 Conceptual development plan

Construction to commence in 2013

Rare earth production commencement in 2015

Target production of up to 20,000 tonnes separated Rare Earth Oxides per annum

Mining, flotation and potentially cracking plant on site at Zandkopsdrift

Rare earth separation plant to be sited at Saldanha Bay (250km south)

17 │

Sichen to Saldanha

iron ore rail line

Exxaro ilmenite smelter Arcelor Mittal steel works

Saldanha Port

Rare Earth Metallurgy

Metallurgy is key to development time, capex and opex for all RE projects

RE minerals in many new projects have never had commercial processes

developed for recovery of the contained rare earths

Zandkopsdrift principally contains “conventional” RE minerals for which

commercial extraction processes exist

Very low levels of thorium (average 178ppm) and uranium (average 47ppm)

Will reduce environmental, permitting and related issues

18│

Differing REO Prices and Distributions make Project Comparisons Difficult

Average

price 1

($/kg REO)

Current

price 2

($/kg REO)

Frontier Lynas Molycorp

Rare

Element Arafura Avalon Quest

RE Oxide Zandkops Mt Weld4 Mtn Pass

Bear

Lodge

Nolan's

Bore Nechalacho

Strange

Lake

LR

EO

Lanthanum $12 $148 25.42% 25.14% 34.00% 31.27% 19.78% 15.83% 14.44%

Cerium $10 $149 44.17% 44.97% 48.80% 47.19% 47.63% 35.72% 30.00%

Praseodymium $29 $239 4.55% 4.90% 4.20% 4.05% 5.83% 4.51% 3.33%

Neodymium $30 $318 15.77% 17.18% 11.70% 11.87% 21.24% 17.83% 12.22%

Samarium $8 $129 2.31% 2.44% 0.79% 2.35% 2.37% 3.91% 2.22%

HR

EO

Europium $494 $2990 0.59% 0.56% 0.13% 0.55% 0.40% 0.49% 0.00%

Gadolinium $13 $175 1.44% 1.54% 0.21% 1.22% 1.00% 3.71% 2.22%

Terbium $515 $2910 0.17% 0.17% 0.02% 0.17% 0.08% 0.54% 1.11%

Dysprosium $148 $1485 0.77% 0.58% 0.05% 0.41% 0.33% 2.71% 3.33%

Holmium $0 $0 0.13% 0.08% 0.02% 0.03% 0.00% 0.48% 1.11%

Erbium $0 $0 0.32% 0.22% 0.02% 0.06% 0.00% 1.26% 2.22%

Thulium $0 $0 0.04% 0.02% 0.02% 0.00% 0.00% 0.17% 0.00%

Ytterbium $0 $0 0.23% 0.09% 0.02% 0.03% 0.00% 1.01% 2.22%

Lutetium $0 $0 0.03% 0.02% 0.02% 0.00% 0.00% 0.14% 0.00%

Yttrium $18 $175 4.07% 2.08% 0.02% 0.81% 1.32% 11.69% 25.56%

Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

19 │

1. Based on average FOB China prices for 2008-2010. Source: Roskill

2. Based on current FOB China prices. Source: Metal Pages June 9 2011

3. No value is attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as they have small markets and are typically produced to

special order and do not have regularly published prices.

4. Mount Weld distribution calculated as a weighted average of the Central and Duncan deposits

Equivalent Grade-A Better Metric for Comparing Rare Earth Projects

Simplistic LREO/HREO ratios or $/kg 'basket prices' are misleading as they ignore

absolute grade and also due to the wide range of individual rare earth prices

Equivalent grade is a better metric

Allows standardised comparisons between multi-commodity deposits containing different

distributions of minerals with different values.

Converts individual mineral grades into a single, dominant mineral grade

„Metal equivalent‟ grade commonly used in other multi-commodity deposit environments

Using three year historic average pricing data, neodymium is the largest or second largest

revenue contributor in the majority of Frontier‟s peer group

Neodymium equivalent grade provides a direct proxy for in situ revenue per tonne

and allows for a standardised relative ranking of rare earth projects

Approach endorsed by Ontario Securities Commission (October 2010)

20 │

Project Comparison on an Equivalent Grade Basis

The following assumptions have been made in calculating Nd equivalent grades:

a) Calculated on an oxide-equivalent basis. Data is for Measured and Indicated Resource, except for deposits which contain inferred resources only

b) Assumes 100% metallurgical recovery

c) Based on the REO distributions and grades as set out in slide 19

d) Based on average REO prices from 2008-2010 as set out in slide 19

e) Only projects with > 200 kt TREO calculated on code compliant basis included

f) Non-REO by products excluded

Neodymium equivalent grade provides a relative ranking of deposits and is a proxy for In situ revenue/tonne

21 │

Greenland Quest Avalon Frontier Frontier Arafura Rare Element Frontier Molycorp Lynas

Kvanefjeld Str. Lake Nechalacho Zandkops Zandkops A-Zone Nolans Bear Ldg. Zandkops B-Zone Mtn. Pass Mt Weld

Potential Capital Cost

* Includes capex for a 10ktpa mine & processing plant and 25ktpa separating plant

** Quest capex of $562m only brings product to a 99% mixed RE concentrate

Cost Drivers Frontier‟s position

Size of plant/economies of scale The anticipated plant size at the Zandkopsdrift project is of globally significant scale (20,000 tpa TREO)

Geographic location South Africa is a mining friendly, lower cost jurisdiction with a benign (arid) year-round climate

Available Infrastructure Zandkopsdrift is located in South Africa‟s oldest mining province, close to transport and other relevant infrastructure

Mining method As the Zandkopsdrift deposit outcrops, it could be mined on an open pit basis with a low/zero strip ratio

Ore type and process complexity The principal Rare Earth host mineral at Zandkopsdrift is monazite for which commercial extraction processes exist

Rare Earth Grade & geological setting The deposit contains higher Rare Earth grade zones which should reduce throughput & capex to achieve target production

Announced Rare Earth Project Capex costs (US$m)

Potential Zandkopsdrift capex range

22 │

Company Lynas Molycorp Frontier Rare

Element Arafura Avalon Quest Greenland

Deposit Mt Weld Mtn Pass Zandkops

B Zone

Zandkops

A Zone Zandkops Bear Lodge

Nolan's

Bore Nechalacho Strange Lake Kvanefjeld

Location Australia California South Africa Wyoming Australia NW

Territories Quebec Greenland

Neodymium

equivalent

grade3

5.23% 3.43% 2.38% 1.71% 1.41% 2.06%1

1.74% 1.13% 0.76%

0.7%

Size of Resource

(TREO Mt) 1.414 2.072 0.946 0.548 0.848 4.298 1.149 4.899

Market

Capitalisation2 $ 3,749 m $ 4,441 m $197m

$ 412 m $ 390 m $ 565 m $ 347 m $ 151m

Project stage Construction Construction PFS 2011 PFS 2011 BFS in

progress PFS PFS 2011 PEA

Deposit type Pipe Pipe Pipe Dykes Veins Tabular Veins Massive

Mining method Open Pit Open Pit Open Pit Open Pit Open Pit Under-

ground Open Pit Open Pit

Climate Arid Arid Arid Cold Arid Arctic Cold Arctic

Infrastructure Poor Good Good Good Poor Poor Poor None

Comparative Valuation-Overview

Revenue

driver

Principal

time and

cost

drivers

b) Assumes 100% metallurgical recovery

c) Based on the REO distributions and grades in slide 19

d) Based on average REO prices for 2008-2010 in slide 19

e) Non-REO by-products excluded

1. Measured and Indicated Resources shown where available; Inferred shown for projects with no M&I

2. Market Capitalisations as at June 9 2011

3. These assumptions have been made in calculating Neodymium equivalent grades:

a) Calculated on an oxide-equivalent basis

23 │

Capital Structure

TSX:FRO (Listed November 17 2010)

Shares Outstanding: 89,562,781

Fully Diluted Shares: 90,072,765 (June 1 2011)

Market Cap $197m

Share Price $2.20 (52 week high/low $3.75 -$1.97)

Working Capital $50m (no debt)

Research Coverage:

CIBC initiated coverage March 6 2011 - 12/18 month target price $7.30

Byron Capital initiated coverage March 17 2011 – 12/18 month price target $4.80

Jacob Securities initiated coverage June 8 2011 – 12 month price target $9.83

24 │

Summary

World-class, high grade rare earth deposit

Aggressive work programme underway with multiple defined milestones

Potential for lower cost, rapid development and early production (2015)

Experienced management and technical team

Location in South Africa attractive to industry partners, strategic investors

and potential customers

Strong financial position and work programme fully funded

Trading at significant discount to peers

25 │

DRAFT

Appendices

Senior Management Team

Management team with extensive experience of exploration and development of mineral

projects in Southern Africa, financing and corporate development

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.

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

review, scoping, pre-feasibility and feasibility

studies in Africa and Canada.

James Kenny B Comm, MBS

Chief Executive Officer

20+ years experience in natural resources sector

as an executive, adviser and broker. Centrally

involved in Frontier's corporate strategy and

development activities since incorporation.

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.

27 │

Non-executive Directors

Philip Kenny B Eng. MBA (Chairman)

(UK)

25 years experience in natural resource sector.

Executive Chairman, and former CEO of

Firestone Diamonds plc, an AIM-listed diamond

mining company focused on Southern Africa and

with operating kimberlite mines in Botswana and

Lesotho.

Eamonn Grennan B.Sc, M.Sc

(Ireland)

Independent consulting geologist with over 40

years experience as an exploration manager,

geologist, consultant and senior lecturer. Former

President of the Irish Association for Economic

Geology and member of the Consultative

Committee of the Irish Geological Survey.

Anu Dhir B.A., J.D.

(Canada)

Former VP Corporate Development and

Company Secretary of Katanga Mining Limited.

Managing Director of Miniqs Limited, Non-

executive Director of Anooraq Resources

Corporation and Non-executive Director of

Compass Asset Management.

Crispin Sonn B.A., B.Comm

(South Africa)

Executive Director of Old Mutual South Africa, the

largest integrated financial services company in

South Africa. Chairman of the Old Mutual

Foundation, founding Chairman of Foodbank

South Africa and Non-executive Director of

Capespan (Pty) Ltd.

28 │

Rare Earths – Overview

Series of 15 chemically similar elements that occur and are recovered together

Distribution of elements varies from deposit to deposit

Two distinct categories based on atomic weight: Light Rare Earths and Heavy Rare Earths

Each element has a range of distinctive physical properties which allow them to be

used in a variety of technological applications

Magnetic, optical, electrical, catalytic and metallurgical

Underpin the “green economy”

Hybrid motor and battery technology

Energy efficiency

Wind power

Consumer electronics

Defence

Most have no substitutes and are indispensable in many applications

29 │

37%

31%

14%

5% 4% 4%

3% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Magnets Phosphors Metal Alloys Catalysts Ceramics Polishing Other Glass

Value of RE usage by application

Rare Earths – Uses

Biggest use is for magnets, phosphors and metal alloys and accounts for 82% of

demand by value (2008)

Source: Roskill

30 │

Global Supply (tonnes REO)

Rare Earths – Historical Supply

China has dominated world rare earths supply since mid 1990‟s; currently controls

97% of supply

No increase since 2005 despite steadily increasing demand

China‟s supply dominance likely to continue

Source: Roskill

31 │

Global Supply and Demand (tonnes REO)

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f 2015f

China supply ROW supply China demand ROW demand Total demand

Rare Earths – Supply/Demand Forecasts

Demand projected to grow at 10-15% CAGR from 2010 to 2015

China‟s domestic demand continues to increase faster than its supply

Supply deficit widely forecast

55kt of REO required from non-China sources by 2015, up from 5kt in 2010

Significant opportunity for new producers

Source: Roskill

32 │

Recent Rare Earth Market Developments

Chinese pricing and export policy changes dominate the rare earth market

Significant increase in REO prices in last 12 months and continued price growth

forecast

Restructuring of Chinese export quota system likely to have significant price

implications for certain rare earth prices

China has confirmed only 15-20 years reserves of Heavy and Medium REOs and

clear indications that it will be a net importer by 2015

Plans by countries including China, Japan, South Korea announced and more

recently US and EU, to stockpile rare earths widely reported

Major industrial users seeking to lock in long-term supply/partnership from credible

potential producers

33 │

Core Drilling at Zandkopsdrift

34 │

Gradation from Weathered to Fresh Carbonatite Visible in Core

35 │

Weathered Carbonatite

Fresh Carbonatite

High Grade Weathered

Carbonatite

Zandkopsdrift Main Pipe

„Satellite‟ Resource Expansion Potential

30 satellite intrusives

already identified

around Zandkopsdrift,

a number of which are

proven to be RE-

bearing

36│