ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2009

Jun 29, 2009

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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 6210 1578 www.enrl.com.au

ASX : ENR

30 June 2009

Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000

WA government co-funding grant for Yeneena Project

The directors of Encounter Resources Ltd are pleased to announce that the company has been successful in its application for co-funded drilling under the Western Australian (WA) Government Exploration Incentive Scheme. The funding from the WA Government will contribute up to $150,000 towards the drilling costs of the planned diamond drill program at the Yeneena Project located in the Paterson Province of WA. The co-funding provides recognition of the quality and the potential of these exciting drill targets defined by Encounter. The 2200 metre diamond drill program is scheduled to commence in September 2009.

The Yeneena project covers 1500km[2] of the Paterson Province in Western Australia and is located 40km south-east of the Nifty copper mine and 30km north-west of the Kintyre uranium deposit. The company has recently completed an aircore drill program at the project. Initial assay results from that program are expected shortly.

For further information please contact: Mr Will Robinson Managing Director Encounter Resources Ltd Tel: 08 9486 9455

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 report of the matters based on the information compiled by him, in the form and context in which it appears.