ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2020

Oct 6, 2020

ASX Announcement 7 October 2020

Drilling Commenced at Aileron Gold-Copper JV with Newcrest

• Diamond drilling has commenced at the Aileron joint venture with Newcrest Mining located in the West Arunta region of WA

• Newcrest-funded drill program is targeting a discrete magnetic anomaly consistent with the scale of an Ernest Henry or Carrapateena style IOCG gold-copper system

• First drill hole into an unexplored belt which is prospective for large scale gold-copper deposits

• Joint venture controls a dominant land position covering over 70 strike kilometres of the belt

The directors of Encounter Resources Ltd (“Encounter / the Company”) are pleased to announce the commencement of diamond drilling at the Aileron gold-copper project held in joint venture with Newcrest Mining Limited (“Newcrest”) (ASX:NCM) located in the West Arunta region of Western Australia.

Commenting on the drilling at Aileron, Encounter Managing Director Will Robinson said:

“Aileron is a large scale gold-copper opportunity in a new region. The target is interpreted to be a discrete, pipe-like, magnetic body located on a major regional structure. The magnetic anomaly is modelled to be under shallow cover and in an area of no previous mineral exploration. Success in this initial program would focus attention on the underexplored West Arunta. The joint venture controls a dominant land position in the district with tenure covering over 70 strike kilometres of the belt.”

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Figure 1 – Modelled magnetic feature at Aileron with planned first drill hole EAL_001.

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

The Aileron joint venture is located in the West Arunta region of WA, approximately 600km west of Alice Springs. There has been no previous mineral exploration on the project, although gold/copper anomalism has been identified within the region. The project contains a number of structural targets identified through aerial magnetic surveys, including a discrete magnetic anomaly consistent with the scale of an Ernest Henry or Carrapateena style gold-copper system (Figures 1 and 2).

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Figure 2 – Aileron joint venture tenure, interpreted structures and targets on TMI background

Upcoming Activity

The initial anomaly to be drilled tested has been modelled utilising close spaced aeromagnetic data, as a steeply dipping 500m x 200m magnetic body starting from ~50m below surface. The strongly magnetic body is modelled to a depth of 1km. The first drill hole (EAL_001) has been planned to a depth of 500m with further drilling dependent on observations in the initial drill hole.

The Aileron drilling is co-funded through a WA Government drilling grant of up to $150,000 under the Exploration Incentive Scheme.

Encounter Resources Limited 2

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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 Yilgarn.

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).

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 IGO Limited (ASX:IGO), and intrusive related copper-gold deposits at its 100% owned Lamil Project.

In addition, project generation activities in the Northern Territory utilising new Geoscience Australia datasets has resulted in Encounter securing the first mover Elliott and Jessica copper projects. Elliott is being advanced in partnership with BHP via an option agreement to enter an earn-in and joint venture.

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. This announcement has been authorised for release by the Board of Encounter Resources Limited.

Encounter Resources Limited

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