ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2019

Sep 25, 2019

ASX Announcement 26 September 2019

RC Drilling Commenced in the Tanami with Newcrest

• RC drilling underway at Hutch’s Find in the Tanami region of WA, held in joint venture with Newcrest Mining Ltd (“Newcrest”, ASX:NCM)

• Hutch’s Find contains a significant zone of gold/arsenic anomalism in colluvium over 5km of strike

• Limited historical drilling (only two holes drilled deeper than 200m) has returned 19m @ 2.3g/t Au from 98m and 10m @ 5.4g/t Au from 123m

• Assay results from Newcrest-funded drill program at Hutch’s Find are expected in November 2019

The directors of Encounter Resources Ltd (“Encounter / the Company”) are pleased to announce the commencement of the first phase of RC drilling at the Hutch’s Find prospect in the Tanami region of Western Australia (WA), held in joint venture with Newcrest.

Commenting on the first drilling in the Tanami, Encounter Managing Director Will Robinson said:

“Hutch’s Find is large scale gold opportunity located in one of the most sought after gold regions in Australia. Extensive historical shallow geochemical drilling identified the large anomaly but minimal deeper testing has been completed (only two holes deeper than 200m). We are initially targeting the source of this large scale system with traverses of deep RC drilling.”

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Figure 1 – Hutch’s Find including proposed RC drill program

Encounter Resources Limited Level 7, 600 Murray Street West Perth WA 600

P +61 8 9486 9455 F +61 8 9486 8366 E contact@enrl.com.au www.enrl.com.au

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Background

Newcrest is sole funding exploration activities across a series of joint ventures with Encounter in the Tanami and West Arunta regions of WA. Three of these joint ventures (Watts, Selby and Lewis) cover over 100km of strike along the major structural corridor (Trans-Tanami Structure) that extends through the Tanami region in Western Australia (WA).

The Watts joint venture covers the central corridor of targets where a regional scale north-northeast structure intersects the Trans-Tanami Structure including the Hutch’s Find and Sunset Ridge prospects.

Hutch’s Find is a significant zone of gold/arsenic anomalism over 5km of strike. The limited RC and diamond drilling (only two holes deeper than 200m) that has occurred has demonstrated the area is well mineralised and contains multiple high grade gold intersections which remain open down plunge and along strike, including hole HFDD4 (drilled to a depth of 184m):

• 19m @ 2.3g/t Au from 98m;

• o 10m @ 5.4 g/t Au from 123m; and o 0.5m @ 17.2g/t Au from 164.3m. (source Tanami Gold NL Quarterly Report September 2010)

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Figure 2 – Tanami Joint Venture areas with gold occurrences over regional gravity data

Upcoming Activity

Newcrest-funded exploration activity in the Tanami is scheduled to drill test a number of targets at the Watts and Selby joint ventures during the period from September to November 2019. These programs are targeting large scale gold deposits. The program starts at Hutch’s Find with a RC drill program of up to 17 holes, the rig will then move to test prospects at the Selby joint venture. Results from the Hutch’s Find drilling are expected in November 2019.

Encounter Resources Limited

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About Encounter

Encounter Resources Limited is one of the most productive project generation and active mineral exploration companies listed on the Australian Securities Exchange. Encounter’s primary focus is on discovering major gold deposits in Western Australia’s most prospective gold districts: the Tanami, the Paterson Province and the Laverton Tectonic Belt.

The Company is advancing a highly prospective suite of projects in the Tanami and West Arunta regions via joint ventures with Australia’s largest gold miner, Newcrest Mining Limited (ASX:NCM).

Encounter also 100% controls an extensive, underexplored project position covering the southern extension of the +40Moz Laverton Tectonic Zone.

Complementing its expansive gold portfolio, Encounter controls a major ground position in the emerging Proterozoic Paterson Province where it is exploring for copper-cobalt deposits with highly successful mining and exploration company Independence Group NL (ASX:IGO), and intrusive related copper-gold deposits at its 100% owned Lamil Project.

For further information, please contact: Will Robinson Managing Director +61 8 9486 9455 contact@enrl.com.au michael.vaughan@fivemark.com.au

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 holds shares and options in and 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 2012 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.

The Company confirms that it is not aware of any new information or data that materially affects the information in the relevant ASX releases and the form and context of the announcement has not materially changed.

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