ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2017

Jul 20, 2017

Level 7, 600 Murray Street West Perth WA 6005

PO Box 273 West Perth WA 6872

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P 08 9486 9455 F 08 6210 1578 www.enrl.com.au

21 July 2017

ASX : ENR

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

Newcrest and Encounter enter Project Generation Alliance

The directors of Encounter Resources Ltd (“Encounter” or “the Company”) are pleased to announce that the Company has entered into a project generation alliance with Newcrest Mining Limited (ASX: NCM).

Newcrest will fund Encounter up to A$500,000 over the next 12 months to generate project opportunities within an agreed alliance area in Western Australia (“Alliance Area”). The alliance will utilise Encounter’s highly credentialed project generation team to identify new camp scale exploration and potential future production opportunities in northern Western Australia.

Encounter will be the manager of project generation in the Alliance Area. Projects submitted for potential joint venture will be subject to approval prior to any joint venture formation.

The Alliance Area excludes any ground that Newcrest or Encounter currently have a direct or indirect interest in or is under application by Newcrest or Encounter. The Alliance Area also contains an exclusion zone and specifically excludes projects around the Telfer mine in the Paterson Province of WA.

Key terms of the alliance include:

• The companies will enter into a 50:50 joint venture over any project(s) approved for further exploration by both parties to the alliance.

• Encounter will have the option to maintain its 50% contributing interest in approved projects by co-funding its attributable share of exploration expenditure.

• Should Encounter elect not to contribute on a 50:50 basis, Newcrest may increase its interest to 80% by sole funding further exploration activities and delivering a JORC compliant resource of greater than one million ounces of gold or gold equivalent.

• If Newcrest does not elect to increase and maintain its interest to 80% on the terms outlined above then the joint venture over the identified project will terminate and Newcrest’s interest will revert back to Encounter, such that Encounter will hold a 100% interest in the project.

• Should the alliance elect not to proceed with a proposed project then that project will revert back to Encounter on a 100% basis.

Commenting on the alliance, Encounter Managing Director Will Robinson said; “We are delighted to be working on new project generation with Newcrest which has a unique understanding of the district potential of northern Western Australia. The alliance structure provides Encounter with significant leverage and resources to generate and advance a pipeline of projects with the potential to host plus one million ounce gold deposits in northern Western Australia”.

About Encounter

Encounter holds exploration tenure over 2,000km² of the Paterson Province in Western Australia (WA), that hosts the Telfer gold-copper mine and the Nifty copper mine. Encounter is actively exploring for gold-copper deposits in the Telfer region as well as copper-cobalt and zinc-lead deposits at the Yeneena.

The Company’s gold portfolio includes the Telfer West, a recent shallow, high grade gold discovery and East Thomson’s Dome that includes a large scale gold soil anomaly identified adjacent to high grade outcropping gold reefs.

The copper-cobalt and zinc-lead prospects identified in the Yeneena are located adjacent to major regional faults and have been identified through electromagnetics, geochemistry and structural targeting.

Separate to the projects in the Paterson Province, Encounter has an project generation alliance covering northern WA with Australia’s largest gold mining company, Newcrest Mining Limited (ASX:NCM).

For further information, please contact

Will Robinson Managing Director +61 8 9486 9455 contact@enrl.com.au

Michael Vaughan Fivemark Partners +61 422 602 720 michael.vaughan@fivemark.com.au