ENCOUNTER RESOURCES LIMITED — AGM Information 2018

Nov 29, 2018

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Level 7, 600 Murray Street West Perth WA 6005 PO Box 273 West Perth WA 6872 P 08 9486 9455 F 08 9486 8366 www.enrl.com.au

30 November 2018

Company Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

AGM Chair Address and Presentation

It has been a highly active and expansionary year for Encounter.

Firstly, we have completed five new joint ventures with Newcrest Mining Ltd, in the Tanami-West Arunta region of WA. Newcrest is Australia’s largest gold producer and brings with it significant financial, technical and operating capability.

As a consequence, we have significant leverage to multiple, well-funded, exploration programs in one of Australia’s most highly sought-after gold districts. Furthermore, in the event of a decision to mine, we can elect to participate with an experienced developer and operator in Newcrest.

We were also delighted to extend our project generation alliance with Newcrest for a further 12 months to July 2019. We hope to build on the five joint ventures already established. This provides a pipeline of projects with the potential to host major gold deposits.

Secondly, we continue to build our portfolio in regions that have demonstrated potential for large scale, high quality gold deposits. The Laverton Tectonic Zone is one of Australia’s most productive and prospective gold regions. Extensions of this Zone, where it extends under shallow cover, have been a focus of Encounter’s ongoing targeting activities. Innovative new targeting and exploration approaches are being applied to our 100% owned ground in the southern extension of the Laverton Tectonic Zone.

Thirdly, Independence Group NL recently became a new major shareholder and partner in advancing the Yeneena Copper-Cobalt Project in the Paterson Province of WA. Like Newcrest, Independence brings with it significant financial, technical and operating capability. The Paterson Province is a prime location for copper-cobalt discoveries in Australia. Recent success by a number of parties in the region highlights and validates the potential of the region. We are delighted to be working alongside the highly respected Independence team, to advance large scale copper-cobalt opportunities along a 70km long corridor in one of the world’s most exciting regions.

With the strengthening and expansion of our portfolio, we look forward to 2019 with optimism. Our portfolio includes high quality opportunities in three of Australia’s most prospective regions: the TanamiWest Arunta, Laverton Tectonic Zone, and the Paterson Province.

Encounter remains one of the most dedicated and active project generators in Australia. We are focused on adding value for our shareholders through leading edge exploration for new Tier 1 mineral assets in favourable mining jurisdictions like Australia.

We are disciplined in our approach to capital management and we are steadfast in our commitment to systematic exploration that can create value for our shareholders. Our exploration plans remain well funded and, importantly, we have an extremely capable and experienced team to realise the potential of our portfolio.

In closing, we would like to thank our local communities, employees, joint venture and alliance partners, suppliers and other business partners. We also would take this opportunity to thank our fellow shareholders for your ongoing support.

Paul Chapman Chairman

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ASX: ENR
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Leading Project Generators in WA Annual General Meeting 30 November 2018

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Disclaimer and compliance statement

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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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Industry snapshot

Few companies undertaking greenfields exploration for Tier 1 deposits in Australia

Majors and mid-tier companies pursuing growth and restocking project pipelines

Innovative ideas and exploration tools can generate a genuine competitive advantage

Investor sentiment towards junior explorers has created real value opportunities

“

Major, mid-tier, and intermediate mining companies, are now crowding back into the exploration space…all of a sudden, the prospect generators, which are unknown and unloved, have customers flocking to them. ” Rick Rule, President & CEO of Sprott – Global Resource Insights 9 October 2018

The Encounter business model

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Project generation and exploration in worldclass mineral belts

High quality projects and management supported by mid-tiers and major producers

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Targeting Tier 1 multi-million ounce gold and major base metal discoveries in WA

Progress project pipeline with a mix of alliances, joint ventures and sole funding

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Encounter at a glance

Creating value through project generation and discovery

• Targeting gold deposits with scale potential in Western Australia: Tanami, Paterson Province, Laverton Tectonic Zone

• Multiple, well funded, exploration programs via five 50:50 joint ventures with Australia’s largest gold miner Newcrest Mining Ltd (ASX:NCM) in the Tanami and West Arunta province

• Shallow gold opportunities surrounding the 30Moz Telfer gold mine (100% ENR)

• Innovative new CSIRO developed geochemical sampling technique generating new targets in southern extension of the +40Moz Laverton Tectonic Zone (100% ENR)

• Advancing large scale copper-cobalt discoveries in the Paterson Province with new partner Independence Group NL (ASX:IGO)

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	Capital Structure
	ASX ticker	ENR
	Share price (29/11/2018)	$0.059
	Shares on issue	262M
	Options	6M
	Market capitalisation	~$15.5M
	Cash	~$3.5M
	Listed investments	~$0.8M
	Enterprise value (net of cash and listed investments)	~$11M
	Major shareholders ▪Board and Management ▪Independence Group	~15% ~9%

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Scale opportunities in a first world jurisdiction

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Tanami and West Arunta
Fast-tracking exploration via five joint ventures with Newcrest
Tanami District
+20moz Au
Paterson Province – Copper-Cobalt
New approach in a known Cu-Co district with Independence Group
Paterson Province
Paterson Province – Gold +30moz Au, +2mt Cu
New discoveries being made near the 30Moz giant at Telfer
Laverton Tectonic Zone
Laverton Tectonic Zone +40moz Au
Innovative new generative program in a world class gold province
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Board and Management

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Highly Experienced Board and Management

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Mr Paul Chapman Non Executive Chairman B.Comm, ACA, Grad. Dip. Tax, MAICD, MAusIMM

Mr Paul Chapman is a chartered accountant with over 30 years experience in the resources sector gained in Australia and the United States. He has experience across a range of commodity businesses including gold, nickel, uranium, manganese, bauxite/alumina and oil/gas.

Mr Will Robinson Managing Director B.Comm

Mr Robinson has worked in the resources industry in Australia and Canada for over 20 years. He has held senior management roles at a large international resources company and executive roles in the junior mining and exploration sector. Mr Robinson is also president of the resources industry advocacy body, the Association of Mining and Exploration Companies (AMEC) and was on the Australian Government’s Resources 2030 Taskforce.

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Dr Jon Hronsky Non Executive Director BAppSci, PhD, MAusIMM, FSEG

Dr. Hronsky has more than 30 years of experience in the mineral exploration industry, primarily focused on project generation, technical innovation and exploration strategy development. He has particular expertise in targeting for nickel sulphide deposits, but has worked across a diverse range of commodities. His work led to the discovery of the West Musgrave nickel sulphide province in Western Australia. Dr. Hronsky was Manager-Strategy & Generative Services for BHP Billiton Mineral Exploration. Dr. Hronsky is an Adjunct Professor at the University of Western Australia in the School of Earth Sciences.

Mr Peter Bewick Exploration Director B.Eng (Hons), MAusIMM

Mr Peter Bewick is a 25 year experienced geologist and has held a number of senior mine and exploration geological roles during a 14 year career with Western Mining Corporation. These roles include Exploration Manager and Geology Manager of the Kambalda Nickel Operations, Exploration Manager for St Ives Gold Operation and Exploration Manager for WMC’s Nickel Business Unit and Exploration Manager for North America based in Denver, Colorado.

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Tanami and West Arunta

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Major exploration portfolio in one of the world’s most prospective gold regions

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Tanami and West Arunta – a major new exploration portfolio

• Five separate joint ventures with Newcrest Mining Limited (ASX:NCM) covering 4,400km[2] of the Tanami Gold Province and West Arunta in WA

• Initially, each joint venture will be on a 50:50 basis

• 100km of strike of the major structural corridor that extends through the Tanami

Tanami District +20moz Au

• New regional gravity data outlined a fundamental controlling structure for gold mineralisation

• Material new near mine gold discoveries at Newmont Mining’s +14Moz Callie gold mine

• Shallow historical exploration has defined multiple Tier 1 deposit footprints

Location Map – Tanami / West Arunta joint venture areas

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Selby, Watts, Lewis JVs with Newcrest

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100km of strike along the Trans-Tanami structure

Selby Joint Venture (1,534km[2] ) including:

• Bandicoot – discrete 2km long magnetic anomaly with coincident gold/arsenic geochemical anomaly

• Camel – 7.2m @ 3.1g/t Au from 95m in last drilling[1]

Watts Joint Venture (552km[2] ) including:

• Hutch’s Find – significant zone of gold/arsenic anomalism in colluvium over 6km of strike

• Limited drilling has returned 19m @ 2.3g/t Au from 98m and 10m @ 5.4g/t Au from 123m[1]

• Sunset Ridge – 8km long arsenic anomaly defined in shallow drilling

Lewis Joint Venture (619km[2] ) including:

• 20 strike km of untested Trans-Tanami Structure

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Watts JV
Selby JV
Hutch’s Find
Lewis JV
Phillipson JV
Newmont Mining’s
Dead Bullock Soak Deposits
(incl. Callie +14Moz Au)
WA NT
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Tanami Joint Venture areas with gold occurrences (yellow) over regional gravity data

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1Tanami Gold NL Quarterly Report September 2010

Phillipson JV with Newcrest

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• Genuine frontier first mover opportunity with significant scale

• Highly anomalous 63ppb Au anomaly

• Supporting multi-element anomalism – arsenic up to 90ppm, bismuth up to 2.9ppm and cobalt up to 13ppm

• No previous exploration

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5km
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GSWA geology and regional 5km by 5km soil sampling program (Au ppb)

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(refer ASX announcement 21 March 2018)

Aileron JV with Newcrest

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• Large iron-oxide copper-gold (IOCG) target located in the West Arunta

• Discrete magnetic anomaly consistent with the scale of an Ernest Henry (Glencore) or Carrapateena (Oz Minerals) style system

• High amplitude, 400m diameter sub vertical modelled pipe-like body on a major structural lineament

• No previous exploration

Location Plan (tenement shown in magenta outline) on TMI background

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(refer ASX announcement 21 March 2018)

Newcrest Project Generation Alliance

• Project generation alliance with Australia’s largest gold mining company since July 2017

• Newcrest will fund Encounter to generate new ‘camp scale’ gold exploration opportunities in Tanami and West Arunta of WA

• Key terms of the alliance include:

• 50:50 joint venture over any approved projects

• Newcrest may increase its interest to 80% by sole funding exploration and delivering a JORC compliant resource >1Moz gold or gold equivalent

• Should the alliance elect not to proceed with a project then it will revert back to Encounter 100%

• The alliance was extended by Newcrest for a further 12 months to July 2019 following its initial success

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Paterson Province

Proterozoic, sediment hosted Copper-Cobalt deposits Shallow Gold with scale potential near Telfer

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A known region generating new discoveries

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▪ Why we have focused on the Paterson Province?

• Proven fertility to produce major deposits

• Large outcropping discoveries made in 1970s and 1980s at Nifty (Cu) and Telfer (Au)

• Shallow sand cover inhibited previous explorers

• Applying cutting edge undercover exploration techniques – biogeochem, New CSIRO Geochem, drone mapping, VTEM, MT

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Paterson Province
+30moz Au, +2mt Cu
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• Well funded majors and junior explorers aggressively exploring and making new discoveries in the region

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A known region generating new discoveries

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• The Paterson Province is a proven mineral region with a consistent history of discoveries and with increasingly active majors

• Encounter holds exploration tenure over 1,400km² of the Paterson Province: — Central African Copperbelt analogue

• In November 2018 Independence Group NL (ASX:IGO) and Encounter joined forces to advance the Yeneena Copper-Cobalt Project

• IGO new major shareholder in Encounter

• IGO has the right to enter into a $15M earnin agreement to secure a 70% interest in Yeneena any time before 1 March 2020

• $1.6M work program planned in 2019

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Paterson Province leasing plan

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Yeneena Copper-Cobalt Project – Paterson Province WA

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14km long copper-cobalt system at BM1-BM7[1]

• BM1: Coherent zone of near surface copper oxide mineralisation. Best intersections include:

• 10m @ 6.8% Cu from 32m*

• 20m @ 2.0% Cu from 22m*

• 8m @ 3.6% Cu from 18m*

• 16m @ 3.2% Cu from 26m

• BM7: Large mineral system containing extensive copper sulphide mineralisation. Best intersections include:

• 5m @ 2.5% Cu from 388m*

• 52m @ 0.6% Cu from 42m*

• 74m @ 0.4% Cu from 74m*

• BM1-BM7 also contains a number of high grade cobalt intersections including:

• 9m @ 1.0% Co and 1.5% Cu from 42m*

• 14m @ 0.45% Co and 0.38% Cu from 14m*

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1Refer ASX announcements 15 July 2014, 30 January 2015, 2 March 2017. *Reported pursuant to the 2004 Edition of the JORC Code.

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BM1 Diamond core

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Yeneena Copper-Cobalt Project – Paterson Province WA

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Lookout Rocks – Zambian Copperbelt analogue

Aria – IOCG style intrusion containing copper sulphides

• First diamond drill hole intersected zones of disseminated copper mineralisation, up to 1% Cu and up to 0.1% Co

• Mineralisation is hosted by black, reduced carbonaceous sediments, located directly above an oxidised “red bed” stratigraphic unit

• An interpreted 50km of strike of the stratigraphic contact position prospective for “first reductant” copper sulphide mineralisation

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Disseminated chalcopyrite in
carbonaceous shale
EPT 2282 (~259.5m downhole
(1.0%Cu)
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• Significant regional 1.5km long oval shaped magnetic anomaly located on major crustal scale structure

• Copper mineralisation (~1% Cu) intersected in both diamond holes drilled to date but the magnetic and gravity anomalies remain unexplained

• Geology confirmed as hematite-altered, polymictic breccia of probable IOCG style

• Possible setting for large tonnage copper deposit (eg. Carrapateena)

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Aria Prospect Drill Core EPT2276
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Large scale gold system at Telfer West

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• Encounter intersected broad, depth extensive, zone of stockwork style gold mineralisation[1]

• The focus of future exploration will be north-west where this mineralised body remains open and untested

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• 1Refer ASX announcements 19 January 2018, 5 September & 21 December 2017

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Laverton Tectonic Zone

Novel generative targeting in a world class gold district

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Project Generation in Laverton Tectonic Zone

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• Nazare Project is located approximately 150km east-north-east of Kalgoorlie

• Large 900km[2] area captures 40 strike kilometres of the Laverton Tectonic Zone

• Laverton Tectonic Zone is a prolific gold

• district that hosts major gold mines at Laverton (>2Moz), Granny Smith (>2Moz), Wallaby (>8Moz) and Sunrise Dam (>10Moz)

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Exploration commenced at Nazare

• Recent Bombora gold discovery[1] by Apollo Consolidated Limited (ASX:AOP)

• Initial exploration will focus on priority structural intersections identified in the regional magnetic surveys in areas of shallow cover with no prior gold exploration

• Innovative new CSIRO developed geochemical sampling technique has defined gold anomalies with significant contrast to background

• Important regional implications

• Further testing has commenced

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Nazare Gold Project over TMI magnetics

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1Refer Apollo Consolidated Limited ASX announcement dated 12 April 2018

A Leading Project Generator

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New ideas, data and technology

Filtering and progressing targets Aggressive 2019 exploration programs

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Generating and effectively evaluating new projects

• Fast mover, early adopter of new technologies and new datasets

• Reduce exploration risk and uncertainty through data-driven approaches

• Apply cost effective new techniques to rapidly prioritise targets

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Advancing earlier stage targets to
determine scale and potential
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• Nazare

• ▪ Mt Sefton

• ▪ Bunnawarra ▪ Gold projects near Telfer

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Collaborating with high quality
partners to make new discoveries
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• Multi-million ounce Tanami targets

• ▪ Copper-cobalt in the Paterson

Substantial 2019 programs:

• Aggressive exploration programs planned for 2019 across the Tanami and the Paterson

• ▪ Well-defined advanced targets

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Five separate 50:50 JVs with Australia’s largest gold producer

Equity placement and JV option Adopting new targeting model

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Investment proposition

Few companies undertaking greenfields exploration for Tier 1 deposits in Australia

Majors and mid-tier companies pursuing growth and restocking project pipelines

Innovative ideas and exploration tools generating genuine competitive advantage

“

We want Encounter at the forefront of finding the next generation of Tier 1 mineral deposits in Australia. ” Will Robinson Managing Director Encounter Resources

Project Generator model provides leverage to multiple Tier 1 discovery opportunities