Frontera Copper Corporation

Published : December 18th, 2008

Board of Directors Recommends Rejection of Unsolicited Offer From Invecture ...

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News Release Thursday, December 18, 2008
Frontera Copper Board of Directors Recommends Rejection of Unsolicited Offer from Invecture Group

Toronto and Phoenix, AZ - December 18, 2008 - Frontera Copper Corporation (FCC:TSX, FCC.NT:TSX, FCC.NT.A:TSX) today announced that its Board of Directors has unanimously recommended that shareholders REJECT the unsolicited offer from Invecture Group, S.A. de C.V. ("Invecture"), to purchase all of the outstanding common shares of the Company for Cdn$0.59 per share (the "Offer").

In its Directors' Circular being filed today on SEDAR and mailed to shareholders, the Board strongly recommended that all Frontera shareholders REJECT the Offer and not tender their shares for the following reasons:

  • Superior proposals delivering greater value for shareholders may emerge
  • The Offer undervalues Frontera's assets
  • The timing of the Offer is opportunistic given the recent decline in the price of copper and in the price of Frontera shares
  • The Offer is highly conditional and discretionary
  • There is uncertainty with respect to Invecture's intentions
  • The Company's financial advisor has provided an opinion that the consideration offered pursuant to the Offer is inadequate, from a financial point of view, to Frontera shareholders other than Invecture and its affiliates
As previously announced, RBC Capital Markets has been retained as the Company's financial advisor to assist in the examination and consideration of various corporate strategic alternatives, including the evaluation of all prospective purchase offers that may be received for the Company. The process of identifying and engaging other potential acquirers is currently well underway.

Shareholders are encouraged to read the Directors' Circular in its entirety and to carefully consider the reasons for the Board's recommendation. The Board wishes to reaffirm its commitment to ensuring that maximum value is achieved for shareholders of the Company.

ABOUT FRONTERA COPPER CORPORATION

Frontera Copper is a Canadian mining, development and exploration company whose principal activity is the production of copper cathode from the Piedras Verdes run-of-mine heap-leach copper operation in Sonora, Mexico. Based on the January 1, 2008 ore reserves and the estimated recoverable copper contained on the leach pads at December 31, 2007, approximately 1 billion pounds of copper are projected to be produced over the remaining 17-year life of the operation.

For further information, please see Frontera Copper's website at www.fronteracopper.com or contact:

Rodney Prokop
Vice President, Investor Relations
(602) 424-5483
ir@fronteracopper.com

Alan Edwards
President and Chief Executive Officer
(602) 424-5488

Frontera Copper Corporation

DEVELOPMENT STAGE
CODE : FCC.TO
CUSIP : 359043106
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Frontera Copper is a copper producing company based in Canada.

Frontera Copper holds various exploration projects in Mexico.

Its main asset in development is PIEDRAS VERDES in Mexico and its main exploration property is CERRO CHATO in Mexico.

Frontera Copper is listed in Canada and in United States of America. Its market capitalisation is CA$ 47.7 millions as of today (US$ 41.0 millions, € 30.6 millions).

Its stock quote reached its highest recent level on December 31, 2007 at CA$ 7.86, and its lowest recent point on October 31, 2008 at CA$ 0.22.

Frontera Copper has 64 518 000 shares outstanding.

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Nominations of Frontera Copper Corporation
12/1/2008Announces the Appointment of Hugh Snyder as Chairman of the ...
3/24/2008 Announces The Appointment Of Rodney Prokop As Vice Presiden...
8/14/2007ANNOUNCES THE APPOINTMENT OF ALAN EDWARDS AS PRESIDENT AND C...
5/28/2007Executive Appointments
Financials of Frontera Copper Corporation
11/12/2008Reports on Financial Results and Operational Performance for...
8/7/2008Reports on Financial Results and Operational Performance for...
5/15/2008Reports on Financial Results and Operational Performance for...
3/20/2008 Reports Annual and Fourth Quarter 2007 Results
9/24/2007FRONTERA COPPER REPORTS CASH BALANCES OF $55 MILLION AND PRO...
5/15/2007REPORTS FIRST QUARTER 2007 RESULTS
Project news of Frontera Copper Corporation
7/21/2008(Piedras Verdes)Provides Update on Operations
1/15/2008(Piedras Verdes) Updates 2007 Production Guidance, Reports an Increase in Or...
Corporate news of Frontera Copper Corporation
2/16/2009Board of Directors Unanimously Recommends That Shareholders ...
2/4/2009Enters Into Definitive Agreement in Support of Southern Copp...
1/22/2009Announces a Reduction in its Estimate of Recoverable Copper ...
12/22/2008Provides Update on Operations
12/19/2008Announces Waiver of Application of Shareholder Rights Plan
12/18/2008Board of Directors Recommends Rejection of Unsolicited Offer...
12/12/2008Announces Effect of Share Acquisition by Invecture Group on ...
12/3/2008Responds To Unsolicited Offer From Invecture Group
12/2/2008RETAINS RBC CAPITAL MARKETS AS FINANCIAL ADVISOR
11/28/2008and Invecture Group, S.A. de C.V.
5/5/2008Comments On Recent Developments Affecting Its Primary Suppli...
1/22/2008Reduces Hedging Program
4/24/2007OPERATIONS AND CORPORATE UPDATE
3/29/2007Reports Year End 2006 Results and Outlook for 2007
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