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ENCOUNTER RESOURCES LIMITED Capital/Financing Update 2017

May 16, 2017

64856_rns_2017-05-16_684293fe-cb7f-4d20-8f68-af6b71957dbe.pdf

Capital/Financing Update

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MARKET RELEASE

17 May 2017

Encounter Resources Limited

TRADING HALT

The securities of Encounter Resources Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Monday, 22 May 2017, or when the announcement is released to the market.

Security Code: ENR

Ben Secrett Senior Adviser, Listings Compliance (Perth)

Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000

ASX Compliance Pty Limited ABN 26 087 780 489

www.asx.com.au Customer service 13 12 79

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

ASX : ENR

17 May 2017

ASX Limited Central Park 152-158 St Georges Terrace PERTH WA 6000

Attention: Ben Secrett

[email protected]

Dear Ben

Encounter Resources Limited (‘Encounter) – Request for Trading Halt

In accordance with Listing Rule 17.1, Encounter requests that an immediate trading halt be placed on its securities pending an announcement to the market regarding a proposed capital raising transaction that is material to the company.

The Company anticipates that the trading halt will be lifted on or before market open on Monday 22 May 2017 by provision of an announcement to ASX regarding the proposed capital raising.

Encounter is not aware of any reason why the trading halt should not be granted, nor of any other information relevant to this request.

Yours sincerely

Kevin Hart Company Secretary