Newmont Mining Corp. and Fronteer Gold Inc. have entered into an agreement in which Newmont will acquire all of the outstanding common shares of Fronteer Gold.

Per the agreement, shareholders of Fronteer Gold will receive Cdn$14 in cash, a 37 percent premium over the closing price of Fronteer Gold common shares on the Toronto Stock Exchange as of February, 2, 2011. In addition, Fronteer Gold shareholders will receive one common share in a new company, Pilot Gold, which will own certain exploration assets of Fronteer Gold. The deal equates to a value of approximately Cdn$2.3 billion for Fronteer Gold (excluding Pilot Gold).

Fronteer Gold owns a 100 percent interest in the development-stage Long Canyon project, located about 100 miles from Newmont’s existing infrastructure in Nevada. Newmont said the close proximity opens the door for significant development and operating synergies. Fronteer Gold also owns a 100 percent interest in the Northumberland project and a joint-venture interest with Newmont in the Sandman project in Nevada. The company has aggregate gold resources pinned at 4.2 million ounces and Inferred resources of 1.7 million ounces at Long Canyon, Northumberland and Sandman.

Per today’s announced agreement, Pilot Gold will own Fronteer Gold’s exploration properties in Nevada, Turkey and Peru, and will be capitalized at closing with Cdn$10 million of cash, at which time Fronteer Gold shareholders will hold an aggregate 80.1 percent interest in Pilot Gold; Newmont will hold the remaining 19.9 percent interest.

“The acquisition of Fronteer Gold will contribute significantly to our anticipated growth profile in North America,” Richard O’Brien, Newmont’s president and CEO stated in the press release.

O’Brien said the Long Canyon project complements Newmont’s existing project pipeline in Nevada, which will allow Newmont to leverage its expertise and infrastructure in the region. He said the company estimates Long Canyon to have the potential to grow more than 3 to 4 times Fronteer Gold’s current resource estimates.

Fronteer Gold president and CEO Mark O’Dea noted benefits the agreement provides to the company’s shareholders and expressed his position on Pilot Gold’s future.

“This transaction delivers an immediate and attractive premium to our shareholders. It not only recognizes the current value of our key Nevada gold projects, but rewards shareholders for their future growth. The team at Fronteer Gold has done an exceptional job of creating value and we are proud of the high quality project pipeline that we have built in Nevada. Newmont shares our view that Long Canyon, our flagship project, is a ‘best-in-class’ asset with excellent production attributes and significant growth potential,” O’Dea stated. “Importantly, this transaction continues to expose Fronteer Gold shareholders to our ongoing exploration and development success through Pilot Gold. Pilot Gold will have an ideal new company structure, an experienced board of directors and management team, and sufficient financial resources to immediately undertake active exploration programs in both Turkey and Nevada. We welcome Newmont as our largest shareholder in Pilot Gold and we look forward to creating ongoing value for shareholders in the near-term.”

For more information visit www.newmont.com