Dow Jones Utilities 262.61 -2.41 11:38 am PST, May 17, 2004 Dow Jones Spot 193.94 + 0.00 For info, visit access.smallcapnetwork.com Philadelphia Gold & Silver 81.80 +0.59 VOLUME 01: ISSUE 06 Amex Oil 608.60 -0.44 To be removed, please click here.   Feature: Turkish Gold: Fronteer Group goes Int'l. As noted in our recent Trading Alert on Fronteer Development Group (FRG.TO, FRR Frankfurt), the company has now concluded (release below) an impressive deal with Teck Cominco to option 2 significant epithermal gold bearing properties in a well-established mining area of Western Turkey. The terms for each party are clearly spelled out in the attached press release. Basically, the deal gives Fronteer the right to acquire 100 percent interest in two relatively mature Teck Cominco properties in Western Turkey-- Agi Dagi and Kirazli. As well, Fronteer is working to conclude an agreement for three other early stage Teck Cominco gold properties in Turkey. Fronteer, as operator, plans to initiate an extensive drilling program in Agi Dagi and Kirazli in July. Given the pounding gold and other commodities have taken over the last month, FRG shares have stood up extremely well, moving from our alert price last week of 89 Canadian cents to C$1. With gold seeming to build a base in the $380 area, we believe that companies such as Fronteer represent timely value. Below, we will detail options investors can use to simply and effectively trade Canadian stocks. For those investors who wish exposure to a unique and diversified gold/silver/copper/uranium play, accumulation of Fronteer shares at these levels looks a good bet-- both for gold aficionados as well as those long-term investors who believe--as we do--that every portfolio should have quality gold exploration exposure. Any precious metal company will be volatile, but with Fronteer's lower risk approach of mitigating exploration risk by finding top quality partners, the company stands out as unique among its peers. Turkish Delight Fronteer plans to significantly expand the Agi Dagi property, which has an inferred resource of 435,000 ounces of gold. Teck Cominco has identified a number of targets that are drill ready. The plan is to both expand the property and test for higher grades. The potential of the Kiralzi property seems even more exciting. Fronteer believes that it can considerably expand the impressive intervals found by previous owners. The properties' potential is further validated with the presence of behemoth Newmont (NYSE: NEM) and Eldorado Gold (AMEX: EGO) along the same belt --each boasting significant deposits. (1 million ounce resource, 5.2 million ounce reserve, respectively). Teck Cominco already has a technical team in place in Turkey, which Fronteer will utilize under a separate service agreement. As a major gold producer and with a long-term presence in the region, Teck Cominco is an extremely solid partner for Fronteer.  All for one, one for all, sort of... While the terms of the deal are outlined extensively in the press release below, the bottom line is that the deal is good for both parties, pretty much regardless of the success. If Fronteer makes a discovery under the terms of the deal, it can regain a 70 percent interest in the deposit. Conversely, if a discovery doesn't meet the deal criteria, but is economic and Teck Cominco doesn't back in, Fronteer can retain 100 percent interest and develop or sell a percentage of the project to another partner. Fronteer has a successful history of these types of partnership deals in Canada as evidenced in our last piece. There's little reason to conclude that the approach in Turkey will be any less successful, given the quality of the properties, the expertise of Fronteer's management and the strength of the Teck Cominco relationship. Fundamentally Fronteer is also in a very strong position. The company has no debt, roughly $12 million in working capital and, most importantly, buckets of exploration potential--the main currency of success in the gold mining game.   A Primer for trading Canadian stocks Finding quotes for Fronteer Development Group Our Homepage http://access.smallcapnetwork.com    (symbol T.FRG) Or http://www.smallcapcenter.com    (symbol T.FRG) Or http://finance.yahoo.com    (symbol FRG.TO) AOL members; click the quotes tab, select symbol lookup, then select 'Canadian stocks' from the pull down menu next to the symbol window and put in FRG. As well, the symbol can be put into a portfolio and trading alerts initiated. Or just use your browser and go to one of the other sites noted Canadian Stock trading suggestions: 1. Contact Ben Johnson, President of First Securities in Portland at (800) 547-4898 or (503) 723-4404 or email him with any questions at BENJGOLD@aol.com Ben (who specializes in junior mining shares) and his folks will be able to facilitate your trade in Fronteer Group--or, for that matter, any other domestic or international security. 2. US residents can't easily trade Canadian stocks online. Instead, you're advised to call your online/discount broker and ask them to facilitate the trade. Full service brokers, as well as the likes of Ameritrade, Schwab and Waterhouse should be able to place the order. Execution may cost you a bit more than online, but worth it, especially if you are using limit orders. 3. One online broker we've been alerted to: www.mytrack.com, claims to be able to trade Canadian Stocks online. We have no relationship with the site, nor have we tried it. Check it out and let us know your experience. Exchange rate considerations C$1= US$0.71 cents Multiply any Canadian trading prices both for Fronteer quotes and/or orders by .71 to get the US$ equivalent. For example: Fronteer trades at roughly C$1.00 a share. The US$ equivalent is C$1.00 multiplied by .71 which equals US$0.71 a share. (All calculations approximate, but close). Also note that the Canadian dollar can be volatile. Whenever you trade in any foreign currency, there are exchange rate risks. In the short term, depending on size of trade, these are fairly minimal, but if you plan a large commitment in any foreign denominated security, those rates should be watched closely.   Press Release May 17, 2004 FRONTEER SIGNS OPTION AGREEMENTS WITH TECK COMINCO FOR TWO GOLD PROJECTS IN TURKEY Fronteer Development Group Inc.(FRG-TSX, FRR-Frankfurt) announced today that it has signed two independent formal option agreements with Teck Cominco Arama ve Madencilik Sanayi Ticaret A.S. ("Teck Cominco") to acquire a 100% interest in each of the Agi Dagi (pronounced Ah-Dah) and Kirazli gold projects located in Western Turkey.  These advanced properties have preliminary gold resources outlined, with the potential for expansion.  Fronteer is in the process of concluding a third agreement with Teck Cominco to option three early-stage gold properties in the same vicinity as Agi Dagi and Kirazli, considered to be outstanding exploration targets. THE PROJECTS 1. The Agi Dagi Property is a large epithermal gold bearing system that measures 4 kilometres by 2 kilometres.  Teck Cominco partially tested the property with wide-spaced drill holes as well as a grid of shallow vertical holes in part of this system.  An inferred resource (compliant with NI 43-101) of 11.3MT @ 1.2 g/t gold, or 435,000 ounces of gold was calculated in this zone.  The future potential of this property is to expand the resource along strike and test for higher grade feeder structures akin to those suggested at Kirazli (see below).  A number of targets have been identified in Teck Cominco's geophysical data and are drill ready. 2. The Kirazli Property is a high grade epithermal gold system characterized by a large alteration footprint.  Some high grade intervals (>15g/t gold) were intersected by a previous owner as well as broader intervals of 1-2 g/t gold.  This is interpreted to be a feeder structure to broader, potentially bulk mineable mineralization.  There is potential to expand the mineralization considerably. "The acquisition of these projects is a milestone in Fronteer's commitment to building solid assets and creating real value for its shareholders," according to Dr. Mark O'Dea, Fronteer President and CEO.  "Our geological team believes that the likelihood of a major discovery emerging from this Turkish portfolio, in the next 12-24 months, is high.  Turkey has great potential to be a strong player in the world gold industry and the maturity of its gold industry is comparable to that of Peru fifteen years ago." With this new portfolio in the same belt as Newmont's Ovacik Deposit (1.0 million ounce gold resource) and Eldorado Gold's Kisladag Deposit (5.2 million ounce gold reserve), Fronteer's projects have an excellent geological address with proven endowment. EXPLORATION PLANS In July 2004, Fronteer plans to commence a comprehensive exploration program on Agi Dagi and Kirazli, involving four weeks of multidisciplinary target definition followed immediately by an estimated 5,000 metres of drilling.  Fronteer will be the operator of these exploration programs and, under a separate Services Agreement, it will utilize Teck Cominco's technical team already based in Turkey to implement and manage these programs. THE COMMERCIAL TERMS Under the terms of the option agreements, Fronteer must issue to Teck Cominco a total of 650,000 of its shares upon signing.  In addition, Fronteer's option requirements thereafter are as follows: 1. To earn its 100% interest on the Agi Dagi Project, Fronteer must spend US$5 million on exploration and issue 300,000 additional shares over four years, with a first year firm commitment of US$1.0 million on exploration and 50,000 shares. 2. To earn its 100% interest on the Kirazli Property, Fronteer must spend US$3 million in exploration and issue 200,000 additional shares over four years, with a first year firm commitment of US$250,000 on exploration and 25,000 shares. Upon Fronteer earning its 100% interest, Teck Cominco will retain a Net Smelter Return Royalty of 1% on the Agi Dagi Project and 2% on the Kirazli Project.  In consideration of the preliminary ounces currently outlined on the properties, Fronteer will also pay to Teck Cominco, within sixty days following commencement of commercial production, a production bonus of US$10 per ounce for every ounce, up to a maximum of 600,000 ounces on Agi Dagi and 250,000 ounces on Kirazli, produced from within the currently defined resource areas.  If Teck Cominco does not back-in (see below) to the Agi Dagi Project, it may elect to have the 600,000 ounces currently outlined, subject to either the production bonus or the 1% NSR, but not both. Teck Cominco's Back-In Rights As part of the agreements, Teck Cominco may elect to back-in, one time only, to each project, though the terms of the back-in differ depending on when the back-in election is made. At any time prior to Fronteer earning its 100% interest, Teck Cominco may elect to retain a 60% interest in each project, independently, by spending the greater of: two times Fronteer's accrued expenditure at the time of its election to back-in; or, $US 5.0 million (for Agi Dagi); or, $US3.0 million (for Kirazli). Teck Cominco must spend the foregoing amounts within two years of electing to back in with at least 50% spent in year 1.  If Teck Cominco earns back an interest it will relinquish its NSR royalty.  Teck Cominco may earn an additional 10% interest in either project by completing a final feasibility study within 4 years of meeting its expenditure commitment above and by arranging project financing for Fronteer's 30% portion of the production capital costs. Up to 60 days after Fronteer earns its 100% interest, Teck Cominco may elect to back-in for a 60% interest in each project, independently, by spending US$10 million for Agi Dagi and US$6.0 million for Kirazli.  Teck Cominco must spend the foregoing amounts over two years and complete a final feasibility study within 5 years of electing to back-in.  Teck Cominco may also earn an additional 10% interest by arranging project financing for Fronteer's 30% portion of the production capital costs.  Teck Cominco relinquishes its NSR royalty upon earning back an interest in a project. The business terms outlined above are beneficial to both parties, and are consistent with Teck Cominco's publicly stated aim to be an industry leader in partnering and strategic alliances worldwide.  For example, if Fronteer earns its 100% interest and makes a discovery that meets Teck Cominco's economic hurdles, Teck Cominco can regain up to a 70% interest in the deposit.  Under this scenario Fronteer has a built-in financing, and would therefore, not be required to raise its 30% of the capital costs, thus minimizing share dilution and eliminating the difficulties surrounding project debt financing of a minority partner.  In addition, Fronteer has a gold producer as a partner with a long standing presence in Turkey and expertise in deposits of this type. Conversely, if Fronteer earns its 100% interest and makes a discovery that does not meets Teck Cominco's threshold, but is economic nonetheless, and Teck Cominco does not back-in, Fronteer will retain a 100% interest in the project.  This would allow Fronteer to sell a percentage of or the entire project to another party or it can retain 100% interest in the project and develop the project itself. Fronteer also owns and operates five active exploration projects in Canada focused on the discovery of gold and uranium-copper-gold-silver deposits.  Fronteer has no debt, approximately $12 illion in working capital and 30,554,967 shares outstanding.   For further information on Fronteer visit www.fronteergroup.comor contact: Mark O'Dea, President & CEO Telephone: (604) 632-4677 E-mail: modea@fronteergroup.com   We Value Your Feedback Got comments, questions or suggestions? 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