ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2018

May 20, 2018

Market Announcement

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21 May 2018

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Encounter Resources Limited – Trading Halt

Description

The securities of Encounter Resources Limited (the ‘Company’) will be placed in trading halt 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 until the earlier of the commencement of normal trading on Thursday, 24 May 2018 or when the announcement is released to the market.

Security Code: ENR

Issued by

Ben Secrett

Senior Adviser, Listings Compliance (Perth)

Market Announcement 1/1 ASX Customer Service Centre 131 279 | asx.com.au

21 May 2018 ASX Limited

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

21 May 2018

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

Attention: Ben Secrett

tradinghaltsperth@asx.com.au

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 Thursday 24 May 2018 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

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Kevin Hart Company Secretary