Frontier Announces Normal Course Issuer Bid

TORONTO, April 26, 2013 /CNW/ - Frontier Rare Earths Limited ("Frontier") announced today that it intends to make a new normal course issuer bid (the "Bid") to repurchase, through the facilities of the Toronto Stock Exchange ("TSX") certain of its outstanding ordinary shares ("Shares") and to terminate its existing normal course issuer bid ("Prior Bid") due to expire on May 28, 2013.

The number of Shares to be purchased during the period of the Bid from April 30, 2013 to April 29, 2014 will not exceed 1,500,000 Shares being approximately 1.7% of the outstanding Shares as of April 17, 2013. The actual number of Shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of Frontier. As at April 17, 2013 there were 89,562,781 Shares outstanding. Pursuant to the terms of the Bid, Frontier will not acquire on any given trading day more than 25% of the average daily trading volume of Shares for the most recently completed six month period, being 10,256 Shares. All purchases made pursuant to the Bid will be made through the facilities of the TSX or any alternative trading system and Frontier will hold any such Shares purchased pursuant to the Bid in treasury for resale or cancellation as management may determine.

Under the Prior Bid, Frontier purchased an aggregate of 1,000,000 Shares during the period commencing on May 29, 2012 and ending May 28, 2013 at a weighted average price of $0.6055 per Share.  All purchases under the Prior Bid have ceased and the Prior Bid has been terminated.

Frontier will enter into an automatic share purchase plan with its designated broker to allow for the repurchase of Shares at times when Frontier would not ordinarily be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The Bid has been authorized by Frontier's board of directors to allow Frontier to purchase Shares if in the opinion of management the purchases can be made on terms which will enhance the value of the remaining outstanding Shares.

Frontier is undertaking the Bid because it believes that the market may materially undervalue the Shares of Frontier from time to time and that the Shares may trade in a price range which may not adequately reflect the value of such Shares in relation to the business, assets and future prospects of Frontier from time to time.

About Frontier Rare Earths Limited (TSX: FRO):
Frontier Rare Earths Limited (www.frontierrareearths.com) is a mineral exploration and development company principally focused on the development of rare earths projects in Africa. Frontier's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa and is one of the largest, highest grade undeveloped rare earth deposits worldwide. Frontier has a direct 64% interest and a 85% economic interest in Zandkopsdrift following the acquisition by its strategic partner Korea Resources Corporation of an initial 10% interest in Zandkopsdrift. In March 2012 Frontier filed a Preliminary Economic Assessment ("PEA") on the Zandkopsdrift project prepared in accordance with National Instrument 43-101. The results of the PEA indicated that the proposed development of the Zandkopsdrift Project is both technically feasible and economically robust with a low risk profile. In conjunction with the PEA a mineral resource estimate for Zandkopsdrift confirmed 42.5m tonnes at an average grade of 2.23% containing approximately 940,000 tonnes total rare earth oxides (applying a 1% cut-off) and with 78% of the mineral resource in the indicated category. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Fiona Harper, Pr.Sci.Nat, was the independent qualified person from Venmyn Rand (Pty) Ltd. responsible for the PEA. For additional quality assurance program and the quality control measures applied, as well as other relevant technical information in respect of the Zandkopsdrift project, please refer to our technical report entitled "Amended Independent Technical Report on the Results of a Preliminary Economic Assessment of Frontier Rare Earths Limited's Zandkopsdrift Rare Earths Project, Located in the Northern Cape Province Of South Africa", dated March 30, 2012, which is available on SEDAR at www.sedar.com.

Frontier is listed on the main board of the Toronto Stock Exchange and currently has 89,562,781 shares outstanding. Frontier is well funded, with approximately C$50 million in cash (excluding amounts owing by Kores in respect of its obligation under the Strategic Agreement to pay 10% of all operating costs and expenses related to Zandkopsdrift from July 2012 onwards) and no debt, and this strong cash position is expected to be sufficient to fully fund the completion of Prefeasibility and Definitive Feasibility Studies on Zandkopsdrift and work on Frontier's other proposed exploration and development programs.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Readers can identify many of these statements by looking for words such as "will", "intends", "projects", "anticipates", "estimates", "achieving", or similar words or the negative thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Frontier, including, but not limited to, the impact of general economic conditions, industry conditions, commodity prices, availability of financing for Frontier and Frontier's ability to raise additional capital, results of feasibility studies, dependence upon regulatory approvals, the estimation of mineral resources and the realization of mineral reserves based on mineral resource estimates and estimated future development, if any, and possible variations of ore grade or recovery rates; Frontier's development, if any, and possible expectations regarding competition from other producers globally, possible customer and supplier relationships, anticipated trends and challenges in Frontier regarding competition; mineral resource estimates and supply outlook and growth opportunities, the future price of and future demand for rare earth elements, title disputes or claims including Black Economic Empowerment initiatives, and the timing and possible outcome of pending regulatory and permitting matters.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Actual results may differ materially from those anticipated. Readers are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Frontier disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.

SOURCE Frontier Rare Earths Ltd.