ENCOUNTER RESOURCES LIMITED — AGM Information 2015

Nov 26, 2015

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Annual General Meeting 27 November 2015

ASX : ENR

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Company Snapshot

Paul Chapman - Chairman Board Will Robinson - Managing Director Peter Bewick - Exploration Director Jon Hronsky - Non-Executive Director Kevin Hart / Dan Travers - Company Sec.

155.6m Ordinary Shares (Top 40 shareholders hold 68%) 12.4m Options

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Issued Capital
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A$20m @ A$0.13/share Market Cap.

Cash ~$4.2m

Investments ~$0.6m

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Yeneena Project – Copper, Zinc
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Yeneena Project
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Up to US$6m Antofagasta - Lookout Rocks Prospect Farm-in Funding Up to A$2m Hampton Hill – Millennium Prospect

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2015 Milestones

• Substantially extended mineralised zinc gossan at Millennium

• Discovered new copper prospect at Lookout Rocks South (Nifty Analogue)

• Identified a new IOCG target at the Aria Prospect

• Regained 100% interest in the 14km long BM1-BM7 copper system

• Completed new farm-in agreements - Antofagasta (US$6m) and Hampton Hill (A$2m)

• Welcomed new investment from leading global resources funds (Sprott, RCF)

• Invested $5m in Exploration in 2014/15 while maintaining sound financial position

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This time is different….probably not

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Creating Value Through Greenfield Exploration…

• Leading edge, under cover greenfield exploration

• Major land holding in proven Proterozoic Paterson Province

• Sharing risk at appropriate points to maximise exploration upside

 New copper and zinc discoveries made by ENR

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…in a New Search Space…

• Sand covered mineral belt with proven fertility

• Outcropping discoveries made in 1970-80s (Nifty, Telfer, Kintyre)

• Minimal subsurface exploration activity up to 2005

• Encounter has discovered two new mineral systems so far:

• BM1-BM7 Copper

• Millennium Zinc

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…in a Region that Produces Big Deposits…

Northern Cu Corridor Opens

• Farm-in with Antofagasta plc

• Aria IOCG Prospect

• Lookout Rocks South - Nifty Analogue

Zinc Discovery at Millennium

• High grade mineralisation in early drilling

• Zinc system +3km long and open

• HHM earning up to 25%

BM1-BM7 Cu Prospect

• Large scale Cu system >14km long

• Multiple drill ready prospects

• 100% ENR

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BM1 / BM7 – Copper Project

BM1 Coherent zone of near surface Cu oxide mineralisation 10m @ 6.8% Cu from 32m* 16m @ 3.2% Cu from 26m 50m @ 1.1% Cu from 12m

BM7

6 x 3km Cu mineral system BM1-BM7 containing high grade Cu sulphide 5m @ 2.5% Cu from 388m* 140m @ 0.2% Cu from 144m

(refer ASX announcements 15 July 2014 & 30 January 2015) (*Reported pursuant to the 2004 Edition of the JORC Code )

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BM7 – Extensive Zones of Copper Sulphide Mineralisation

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• The alteration and mineralisation vectors are strongest in the central section of BM7 down dip to the east of EPT2158 & EPT1717

• Diamond drill hole EPT2271 completed in Nov 2015 200m down dip of EPT2158

• EIS co-funded drilling application submitted for 2016

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A A’
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BM7 East Copper Prospect

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 Alteration and mineralisation intersected in the shallow drilling is similar to what is seen in the immediate hangingwall of the Nifty copper deposit

• No drilling has effectively tested this target at depth

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Untested Northern Copper Corridor Opens Up

• Fishhook and Lookout Rocks

• Shallow sand cover with minimal previous exploration

• VTEM surveys completed 2013 & 2014

• First diamond drill program at Fishhook - copper sulphides in a traditional Central-African copper belt setting

• Lookout Rocks – US$6 million farmin with Antofagasta plc

• Aircore/RC program Aug-Oct 15

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Nifty Cu Telfer Au/Cu
(1981) (1972)
Lookout Rocks
Lookout Rocks
Next Slide
Millennium Zn
(2014)
Fishhook
Fishhook
BM1-BM7 Cu
(2010)
20km
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Lookout Rocks Farm-in Activity - Jul to Oct 2015

• Heritage Surveys (Aug/Sep)



• Phase 1 and 2 drill lines

• Aria Area Clearance

• Aircore/RC drilling (Sep/Oct)

• 11 RC holes (1,724m)

• 22 AC holes (2,731m)

• Gravity Survey – Aria (Sep)

• Diamond Drilling – Aria (Oct)

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No significant
results
No significant
results
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Lookout Rocks South Prospect

• Seven shallow reconnaissance aircore/RC over a structural target

• Drilling confirmed Broadhurst Formation (Nifty host) stratigraphy

• Broad intervals of moderate copper and lead anomalism strengthening to the east and towards the bottom of hole

• Intense leaching of the regolith material indicates it may have been significantly depleted any primary copper mineralisation

• Surface gossan with ex-sulphide boxwork textures identified to the east of drilling (assays pending)

• Interpretation is that these initial reconnaissance results are significant and further drilling is required to test for the primary mineralised position at depth

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800m
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Aria – IOCG Prospect

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Detailed gravity survey completed Discrete density anomaly located on the margin of the previously identified magnetic anomaly 400m diamond hole completed EPT2276 intersected further hematitealtered, polymictic breccia



  EPT2276  Residual gravity with RTP1VD contours (0.01 nT/m intervals) Photo 1: EPT2276 113.7m to 121.0m – Hematite-altered, polymictic breccia containing clasts of felsic porphyry, gneiss and mafic igneous rocks

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Greenfield Zinc Discovery at Millennium…

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25km
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• Large +3km long zinc system

• First order structural address at intersection of major NE and basin forming NW structure

• High grade mineralisation in early drilling

• Hampton Hill Mining (HHM) earning up to 25% by providing up to A$2 million

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Massive zinc sulphides intersected in early drilling...

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Brecciated and laminated massive zinc sulphide 0.7m @ 36.5% Zn
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Brecciated and laminated massive zinc sulphide 0.7m @ 36.5% Zn
Gossan zone from 408.9m to 419.2m in EPT2203
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Gravity Image

(refer ASX announcements 12 January 2015 & 17 June 2015)

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RC and Diamond Drill Program to Sept-Nov 2015

 6 RC drill holes completed in Sep/Oct 2015

 EPT2260 broad interval of weathered zinc mineralisation that has substantially extended the gossan zone - 70m @ 2.3% Zn from 182m to EOH

• EPT2260 diamond tail and diamond hole EPT2278 completed in Nov 2015.

• EPT2260 gossan extended by ~3m before entering shale

 Sheared and brecciated faulted contact with no obvious zinc mineralisation intersected in EPT2278. Assays pending.

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 Geochemical and structural data to determine 2016 drill programs

(refer ASX announcement 9 July 2015)

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Yeneena - Australia’s Next Great Mineral District?

• Systematic frontier exploration to create enduring value

• Exposure to large scale copper and zinc exploration upside

• Risk sharing at appropriate points to maximise return for ENR shareholders

• Sound cash position with funding supplemented through Antofagasta and Hampton Hill farm-ins

• Major land position with proven fertility (>1850km[2] )

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Disclaimer & Compliance Statement

This presentation has been prepared by Encounter Resources Limited (“Encounter”). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Encounter has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Encounter.

Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to Encounter. In particular, they speak only as of the date of this document, they assume the success of Encounter’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned to not place undue reliance on such forward-looking statements.

Encounter makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, Encounter and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Encounter and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

Certain exploration drilling results for BM1, BM2 and BM7 are first disclosed under JORC code 2004. It has not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed.

The information in this report that relates to Exploration Results is based on information compiled by Mr. Peter Bewick who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Bewick is a full time employee of Encounter Resources Ltd and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Bewick consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in the relevant ASX releases and the form and context of the announcement has not materially changed.

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