ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2015

Apr 22, 2015

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ABN 60 060 628 524

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23 April 2015

Company Announcements Office ASX Limited PO Box H224 Australia Square SYDNEY NSW 2000

HAMPTON SECURES JOINT VENTURE RIGHTS TO ZINC PROJECT

The board of Hampton Hill Mining NL is pleased to announce that the Company has entered into an Earn-in and Joint Venture Agreement with a subsidiary of Encounter Resources Limited (Encounter), whereby it has secured the right to earn up to a 25% interest in the Millennium Zinc Project by leveraged contributions to early exploration expenditures. (Refer Figure1)

The Millennium zinc discovery was first revealed by shallow RC drilling carried out by Encounter during September 2014 and confirmed by diamond drilling during the last quarter of 2014. The drilling demonstrated the ubiquitous presence of the zinc mineral sphalerite within the sulphidic black shales that host the mineralization. The drilling to date has been sparse and limited to three kilometres of strike, but provides confidence that extensive horizons of substantial width of zinc mineralization occur within the project area. The next requirement is further phases of drill testing to better define the target mineralization and to give an initial indication of its economic significance. Hampton is excited to be given the opportunity to join in that endeavour.

Shareholders are referred to Encounter's (ENR) announcement today and their website, where more detailed information of the Millennium discovery can be found. Drilling to date has returned multiple horizons of over 10 metres true width grading in excess of 0.3% zinc, which demonstrates the potential for the target to contain sizable resources. Zinc grades of up to 36% have been recorded and, while over narrow widths, indicate the potential for the large target area to contain high grade resources. Future drilling programs will seek favourable higher grade zones within the target area.

The Agreement gives Hampton the right to earn a 10% interest In the Millennium Tenements by committing to the first $500,000 of expenditure, after which Hampton may either withdraw from the joint venture, or continue as a 10% participant by contributing pro rata to onward expenditure, or maintain the right to earn a total of 25% by committing to contribute the next $500,000. Should Hampton have elected to maintain its right to earn a total of 25% and contributed $1,000,000, it may then elect to earn that further 15% interest by committing to contribute 50% of the next $2,000,000 of expenditure. The Millennium Tenements are defined as Exploration Licences 45/2501 and 2561 and the four most easterly blocks of Exploration Licence 45/2500 (Refer Figure 2)

Additionally, if Hampton wishes to remain in the joint venture upon the completion of the first $500,000 expenditure it will be required to make an issue of shares at no cost to Encounter. The number of shares issued will be dependent upon which election it makes. Hampton will issue 5% of its then issued capital if it elects to continue as a 10% participant. Hampton will issue 15% of its then issued capital should it elect to retain its right to earn a 25% interest and, in this circumstance Encounter will also have a right to appoint a member to the Hampton board.

Inherent in the arrangements is the principal that Hampton will likely remain the junior participant within the joint venture and that it will be obliged to accept pro rata any joint venture entry terms or project interest sales negotiated by Encounter with third parties. The Hampton board has offered this principal because it believes the Millennium target is a prime exploration opportunity and because it has high esteem for the competence and integrity of the Encounter team.

Hampton will fund its initial earn-in expenditure commitment through a $500,000 advance facility from interests associated with the Company’s directors, Joshua Pitt and Neil Tomkinson. The advance, which is unsecured, has a term of six months, bears interest at the rate of 2.75% per annum, payable on maturity, and is on normal commercial terms and conditions. The facility provides Hampton with bridging finance pending the Company putting in place more permanent funding.

Joshua Pitt Chairman

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