ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2019

Jul 29, 2019

Level 7, 600 Murray Street West Perth WA 6005

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PO Box 273 West Perth WA 6872

P 08 9486 9455 F 08 9486 8366

www.enrl.com.au

30 July 2019

ASX: ENR

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

Newcrest Joint Venture Exploration Update

• Heritage surveys completed at the Selby, Watts, Lewis and Aileron joint ventures

• Newcrest-funded exploration activity, including RC and diamond drilling, will be completed during the period from August to November 2019

• Encounter completing initial validation activities at Phillipson Range and reclaiming 100% ownership

• Encounter’s two year Project Generation Alliance with Newcrest successfully concludes with multiple large joint ventures established and the focus now on progressing exploration programs targeting Tier 1 gold and copper-gold deposits

The directors of Encounter Resources Ltd (“Encounter” or “the Company”) are pleased to provide an update on the joint venture exploration activities with Newcrest Mining Ltd (ASX:NCM) (“Newcrest”).

Newcrest is sole funding exploration activities across a series of joint ventures in the Tanami and West Arunta Provinces. Three of these Encounter-Newcrest 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). In addition, the Aileron joint venture in the West Arunta district of WA contains a number of structural targets identified through aerial magnetic surveying, including a discrete magnetic anomaly consistent with the scale of an Ernest Henry or Carrapateena style system.

Heritage surveys were successfully completed in June 2019 at the Watts, Selby and Lewis joint ventures and heritage clearance reports have been received. On ground exploration activities are scheduled to commence in August 2019. A heritage survey was also completed at the Aileron joint venture in July 2019. Following the receipt of the heritage clearance report for Aileron, planned on ground exploration activities are expected to commence in September 2019.

Newcrest-funded exploration activity, including the first phase of RC and diamond drilling, will be completed during the period from August to November 2019. These exploration programs are targeting Tier 1 scale gold and copper-gold mineral deposits.

Commenting on the upcoming exploration campaigns, Encounter Managing Director Will Robinson said: “We are thrilled to be underway in the Tanami and the West Arunta to test a number of well-defined, advanced targets in 2019. A lot of work has gone into generating, securing and advancing these projects to drill phase. In the coming months, we will drill test a number of large scale, high quality prospects in this highly fertile region. Working with Newcrest lets us raise our eyes and go after giant scale deposits fully funded by a major gold producer.”

1. Watts Joint Venture (Tanami)

The Watts joint venture covers the central corridor of targets where a regional scale north-north-east structure gravity survey intersects the Trans-Tanami Structure including the Hutch’s Find and Sunset Ridge prospects. A sizeable program of RC/diamond drilling is planned for the Hutch’s Find and Sunset Ridge prospects in 2019.

2. Selby Joint Venture (Tanami)

The Selby joint venture includes a number of regional scale geochemical anomalies defined in shallow drilling, discrete geophysical targets and historical high grade gold intersections in limited deeper drilling. Current high priority prospects at Selby that are scheduled for RC drilling include the Mohave, Afghan and Camel prospects.

3. Lewis Joint Venture (Tanami)

The Lewis joint venture covers over 20km of strike of untested Trans-Tanami Structure. Vast areas along this highly prospective structure have never seen a soil sample or a drill hole. This is a first mover opportunity into a newly defined area on a major regional structure. Initial reconnaissance and geochemistry are planned for 2019.

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Figure 1 – Watts, Selby and Lewis Joint Ventures with gold occurrences over regional gravity data

4. Aileron Joint Venture (West Arunta)

The Aileron joint venture is located in the West Arunta district of WA, ~600km west of Alice Springs. There has been no previous drilling within this undercover project, although gold/copper anomalism has been identified within the region. The project contains a number of structural targets identified through aerial magnetic surveying, including a discrete magnetic anomaly in the west of the project that is consistent with the scale of an Ernest Henry or Carrapateena style system (Figure 2).

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Figure 2 – Aileron Joint Venture interpreted structures and targets on TMI background

Phillipson Range (Southern Tanami)

The Phillipson Range project consists of three tenements in the Southern Tanami. The western end of this area was the subject of a regional scale pre-competitive geochemical soil survey completed by the GSWA that outlined a peak gold soil anomaly up to 63ppb Au in a 5km x 5km helicopter-supported auger sampling survey (refer ASX announcement 21 March 2018).

On ground assessment and additional regional geochemical sampling were recently completed by Encounter at Phillipson in July 2019 to validate this gold anomaly. This validation program will be funded by Encounter and Newcrest will withdraw from the Phillipson Range Joint Venture. As such, Encounter will reclaim 100% ownership of the Phillipson Range project. Results from this recent validation work will determine the forward work program at Phillipson Range.

Project Generation Alliance Completed

The initial 12 month period of the project generation alliance with Newcrest commenced in July 2017 covering the Tanami and West Arunta regions in WA. The alliance resulted in Newcrest and Encounter entering joint ventures covering 4,400km[2] in the first year. In July 2018, the alliance was extended for an additional 12 months to complete the project generation exercise within the targeted area and this resulted in an additional 1,500km[2] being added to the joint ventures in March 2019. With project generation activities complete and multiple large joint ventures established, Newcrest and Encounter are focusing on progressing the planned exploration programs targeting Tier 1 gold and copper-gold mineral deposits.

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 multiple 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 coppergold deposits at its 100% owned Lamil Project.

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Figure 3 – Project Location Plan

For further information, please contact: Will Robinson Michael Vaughan Managing Director Fivemark Partners +61 8 9486 9455 +61 422 602 720 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.