The compensation is tied to the size of the the contract Hawthorn has offered the 26-year-old as well as his age.
It is the best possible result for the Demons, who have long expected Frawley to leave as a free agent after he refused to accept a contract offer from the club this year.
Now armed with picks No.2 and No.3, the Demons could look to offload one, or even both, of those prized selections.
There has speculation the Demons would make a play for Adelaide star Patrick Dangerfield, who is due to become a free agent at the end of next season.
"We'd be really well placed to do a deal for a big name like Dangerfield if he wanted to leave the Crows," Melbourne football manager Josh Mahoney said last week.
However on Monday, Adelaide head of football David Nobe was emphatic that Dangerfield would not be traded.
"There’s no interest in Patrick Dangerfield; he’s not on the table, he’s not going to be," Noble said during the first day of the NAB AFL Trade Period.
The Demons' compensation far exceeds that handed to the Western Bulldogs, who received a second round pick (now No.27) for losing Shaun Higgins to the Kangaroos.
Carlton was left empty handed after 31-year-old free agent Jarrad Waite crossed to North Melbourne.
All compensation picks are subject to change should clubs pick up another player during the NAB AFL Free Agency Period.
In a change for the 2014 NAB AFL Trade Period, clubs receive their compensation picks immediately after losing a free agent to allow for greater flexibility in the exchange period.
