ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2021

Nov 15, 2021

ASX Announcement

16 November 2021

Telfer Style Cu-Au System Established at Lamil

• Diamond drilling has established two, depth extensive mineralised reef horizons at the Dune prospect at Lamil, Paterson Province, with over 200m of strike and open in all directions:

• Upper Reef Horizon in interbedded siltstones - analogous to Telfer’s Upper Malu/Telfer formation which hosts the M Reefs; and

• Lower Reef Horizon within a quartzite package - analogous to Telfer’s middle-lower Malu formation which hosts the A Reefs and vertical stockwork corridor.

• Upper Reef Horizon

• ETG0227 intersected:

  • 132m @ 0.31g/t Au and 0.11% Cu from 87m to end of hole of RC pre-collar including 22m @ 0.51g/t Au and 0.24% Cu from 181m

• ETG0243 was drilled 200m north-west of ETG0227 and also intersected this horizon which contains a thick package of stacked, narrow copper-gold reefs from 134m to 347m including:

  • 0.10m @ 1.04g/t Au and 0.84% Cu from 134.2m

  • 0.35m @ 0.35g/t Au and 1.27% Cu from 137.6m

  • 1.28m @ 1.94g/t Au and 1.83% Cu from 150.7m

  • 0.65m @ 1.81g/t Au and 1.91% Cu from 167.0m

  • 0.10m @ 1.06g/t Au and 1.97% Cu from 171.2m

  • 0.25m @ 1.60g/t Au and 0.34% Cu from 269.3m

  • 0.26m @ 1.20g/t Au and 0.91% Cu from 271.6m

  • 0.30m @ 2.50g/t Au and 2.35% Cu from 272.4m

  • 0.23m @ 4.70g/t Au and 1.54% Cu from 280.5m

  • 0.50m @ 0.50g/t Au and 2.70% Cu from 346.8m

• Lower Reef Horizon

• Intersected in the diamond tail of ETG0226 (located on the same section 80m southwest of ETG0227):

  • 1.5m @ 19.1% Cu from 409.1m sitting directly above 3.9m @ 1.6g/t Au from 410.6m

• Intersected also towards the bottom of ETG0243:

  • 0.25m @ 5.08g/t Au and 0.03% Cu from 556.05m; and

  • 0.50m @ 0.29g/t Au and 2.62% Cu from 557.3m

• The diamond drill program at Dune has clarified the two Telfer analogous stratigraphic horizons that contain copper-gold mineralisation

• These horizons remain open in all directions with only three diamond drill holes (ETG0226, ETG0227 and ETG0243) piercing these horizons to date

• A detailed gravity survey will commence in the coming weeks to assist with the design of the next phase of drilling

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

Encounter Resources Limited Suite 2, 1 Alvan Street Subiaco WA 6008

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

“Previous RC drilling at Dune defined an expansive copper-gold system over 1km of strike. The seven hole diamond drill program completed in September 2021 has clarified the stratigraphic context for the copper-gold mineralisation at Dune. Two mineralised stratigraphic horizons have been identified analogous to the Telfer deposit located 25km to the east. These horizons have been intersected over 200m of strike and remain open in all directions. The horizons contain:

• multiple, stacked, narrow copper-gold reefs in a mineralised prospective host package that is over 200m thick; and

• high grade, chalcocite dominant copper mineralisation.

The increased frequency of mineralised ‘reef style’ intervals within ETG0243 infers a strengthening of the mineralised system to the north-west. The system remains open on section and down plunge and a detailed gravity survey will be completed in the coming weeks to inform the design of the follow up drill program”.

The directors of Encounter Resources Ltd (“Encounter”) are pleased to provide further assay results from the September 2021 diamond drill program at Lamil in the Paterson Province of WA.

Background

Lamil covers an area of ~61km[2] and is located 25km northwest of the major gold-copper mine at Telfer, owned by Newcrest Mining Ltd (ASX:NCM). Lamil is adjacent to a major regional gravity lineament which marks the location of a significant structure and deformation zone that would have acted as a pathway for ore forming fluids during the formation of the Proterozoic aged deposits.

Dune sits in the northwest of the Lamil project area and consists of a laterally-extensive gold-copper system, outlined by broad spaced RC drilling over 1km of strike (Figure 1). The mineralisation at Dune is hosted in metasedimentary rocks of the Proterozoic Lamil group which also host the Telfer, Havieron and Winu Au-Cu deposits. Dune is situated close to the interpreted fold axis in the northern part of the Lamil Dome. The RC drill program completed in February 2021 at Dune intersected strong copper-gold intersections including (ETG0227):

• 132m @ 0.31g/t Au and 0.11% Cu from 87m[ 1]

o including 22m @ 0.51g/t Au and 0.24% Cu from 181m

Seven diamond holes were completed in the September 2021 program, including three diamond tails on existing RC holes and four new diamond holes from the surface. Three separate target areas were drilled at Dune as well as a previously untested magnetic anomaly located north of the main Dune corridor.

The diamond tail of ETG0226 (located on the same section 80m south-west of ETG0227) intersected a thick zone of quartzite with minor silts (middle-lower Malu equivalent) containing zones of intense alteration, silica flooding, veining and brecciation. ETG0226 includes a 1.5m intersection of semi-massive pyrite and chalcocite from 409.1m (see photos 1-3) that returned:

• 1.5m @ 19.1% Cu from 409.1m sitting directly above;

o 3.9m @ 1.6g/t Au from 410.6m[5] .

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Figure 1 – Dune prospect plan showing only holes that have tested the Telfer analogous stratigraphic package and the outline of the stacked reef mineralisation intersected in drilling to date.

ETG0243 – Testing the mineralised corridor 200m along strike of ETG0226 and ETG0227

ETG0243 was targeted to test down plunge of the altered and oxidized siltstone-quartzite units intersected in the RC pre collar of ETG0227, which included 132m @ 0.31g/t Au and 0.11% Cu from 87m[1] .

ETG0243 intersected the intended interbedded altered siltstones and sandstones from 134m. Within this unit multiple, narrow quartz carbonate pyrite-chalcopyrite copper-gold reefs were intersected which are generally bedding concordant (Photo 4). This unit is interpreted as analogous to Telfer’s Upper Malu/Telfer formation which host to the bulk of Telfer’s reef style mineralisation. This unit contained multiple, stacked, narrow copper-gold reefs (Upper Reef Horizon) within Telfer analogous host units from 134m to 347m including:

• 0.10m @ 1.04g/t Au and 0.84% Cu from 134.2m

• 0.35m @ 0.35g/t Au and 1.27% Cu from 137.6m

• 1.28m @ 1.94g/t Au and 1.83% Cu from 150.7m

• 0.65m @ 1.81g/t Au and 1.91% Cu from 167.0m

• 0.10m @ 1.06g/t Au and 1.97% Cu from 171.2m

• 0.25m @ 1.60g/t Au and 0.34% Cu from 269.3m

• 0.26m @ 1.20g/t Au and 0.91% Cu from 271.6m

• 0.30m @ 2.50g/t Au and 2.35% Cu from 272.4m

• 0.23m @ 4.70g/t Au and 1.54% Cu from 280.5m

• 0.50m @ 0.50g/t Au and 2.70% Cu from 346.8m

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Stratigraphically below this unit, ETG0243 entered the quartzite package intersected in the diamond tails of ETG0226 and ETG0227. This unit contains a mixture of narrow, bedding concordant quartz-carbonate veins (associated with interbedded silts) together with minor stockwork-brecciation within quartzites consisting of pyrite with chalcopyrite (Photo 5). This unit is interpreted as analogous to the middle-lower Malu formation which hosts the A reefs and vertical stockwork corridor at Telfer (Figure 2,3 and 4). This unit contained further copper-gold mineralisation (Lower Reef Horizon) within the zone of quartzite including:

• 0.25m @ 5.08g/t Au and 0.03% Cu from 556.05m

• • 0.50m @ 0.29g/t Au and 2.62% Cu from 557.30m

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Figure 2- Schematic Dune Cross Section for ETG0243. The Telfer analogous stratigraphy and Upper and Lower Reef horizons are shown with multiple narrow Cu-Au reefs which are generally sub parallel to stratigraphy.

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Figure 3- Schematic long section of Dune showing the interbedded siltstone unit dipping below previous drilling at Dune. This leaves the prospective unit untested down plunge of the Lamil dome away from ETG0243 where drilling has intersected an increase in frequency of Cu-Au reefs.

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Figure 4 – Schematic oblique section through the Telfer deposit with analogous stratigraphy including upper M Reefs and lower A Reefs (source SEG Special Publication no 23, chapter 11, The Telfer Copper Gold Deposit, Paterson Province, WA (Wilson et al. 2020))

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High grade copper-gold mineralisation has now been intersected in two diamond drill sections spaced 200m apart at Dune. The increased frequency of mineralised ‘reef style’ intervals within ETG0243 infers a strengthening of the mineralised system to the north-west where the system remains open on section and down plunge.

ETG0241 - Testing a large magnetic anomaly north of Dune

ETG0241 was the first hole drilled into a new target located to the north of the Dune corridor. The hole was designed to test a +1km long, east-west trending magnetic anomaly. ETG0241 tested the modelled anomaly and intersected a ~25m wide zone of pyrrhotite-dominant quartz-sulphide breccia that contains disseminations and blebs of chalcopyrite from 310m.

Assay results from ETG0241 contained only moderate copper-gold anomalism and this magnetic target has been downgraded.

Summary and Next Steps

The seven hole diamond drill program has provided significantly increased understanding of the prospective geological units at Lamil. The program has clarified the Telfer analogous stratigraphic horizons that contain copper-gold mineralisation. These horizons remain open with only three diamond drill holes (ETG0226, ETG0227 and ETG0243) piercing these horizons to date.

The intersection of multiple, stacked, narrow copper-gold reefs in ETG0243 within a thick prospective package analogous to the Telfer’s Upper Malu formation is an important step forward for the project.

The intersection of high-grade copper contained in chalcocite and additional copper-gold reefs in the quartzite package analogous to the middle-lower Malu formation provides further evidence of a depth extensive mineral system at Dune.

Encounter plans to complete a gravity survey over Dune to identify structures and map changes in stratigraphy where the prospective horizons plunge beneath Encounter’s current drilling. The results of this survey along with further interpretation of lithogeochemistry results will guide plans for a detailed drilling campaign at Dune during the 2022 field season.

1 refer ASX release 21 April 2021

2 refer ASX release 19 January 2017

3 refer ASX release 18 December 2020

4 refer ASX release 26 April 2017

5 refer ASX release 6 September 2021

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Photos 1 to 3

Examples of semi-massive pyrite – chalcocite mineralisation drilled from 409.1 to 410.6m in ETG0226

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Photo 4 - Example of altered and veined siltstone Photo 5 - Example of semi-massive pyrite/chalcopyrite in containing quartz carbonate-pyrite with quartzite unit ~ 347m in ETG0243 chalcopyrite veining ~280.5m in ETG0243

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	Hole_ID			Hole_Type	MGA_Grid_ID	MGA_East	MGA_North	MGA_RL	Azimuth	Dip	EOH Depth
	ETG0205			RC / Diamond	MGA94_51	387604	7613663	265	40	-75	439.1
	ETG0226			RC / Diamond	MGA94_51	388411	7613032	270	40	-75	710.8
	ETG0227			RC / Diamond	MGA94_51	388461	7613090	270	40	-75	457
	ETG0239			RC / Diamond	MGA94_51	387764	7613506	265	220	-75	448.6
	ETG0241			Diamond	MGA94_51	387193	7614048	265	40	-60	437.7
	ETG0242			Diamond	MGA94_51	387760	7614074	265	40	-60	405.7
	ETG0243			Diamond	MGA94_51	388264	7613201	265	40	-75	646.2

Table 1: Collar locations and drill hole information of completed RC diamond tails and new diamond holes in current program.

HoleID	from (m)	to (m)	interval (m)	Au g/t	Cu %
ETG0243	75	76	1	0.17	0.03
and	79.9	80.8	0.9	0.13	0.002
and	127.4	128.4	1	0.14	0.07
and	134.24	134.34	0.1	1.04	0.84
and	137.6	137.95	0.35	0.85	1.27
and	147.96	152	4.04	0.67	0.61
inc	150.72	152	1.28	1.94	1.83
and	153	153.7	0.7	0.15	0.27
and	158.25	158.5	0.25	0.9	0.08
and	166	171.87	5.87	0.24	0.16
inc	167	167.65	0.65	1.81	0.91
inc	171.2	171.3	0.1	1.06	1.97
and	208	209	1	0.16	0.04
and	219	219.7	0.7	0.48	0.44
and	222.04	222.87	0.83	0.2	0.09
and	224.84	226.62	1.78	0.17	0.09
and	259	259.6	0.6	0.18	0.06
and	265	273.53	8.53	0.27	0.17
inc	269.05	269.3	0.25	1.6	0.34
inc	271.6	272.7	1.1	1.4	1.05
and	280.5	282.5	2	0.94	0.24
inc	280.5	280.73	0.23	4.7	1.54
and	292.1	292.42	0.32	0.69	0.07
and	298.24	298.55	0.31	0.16	0.14
and	306.95	308	1.05	0.33	0.02
and	312	312.58	0.58	0.1	0.01
and	325.72	326.02	0.3	0.15	0.06

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and	327.54	328.1	0.56	0.54	0.43
and	329.4	329.65	0.25	0.11	0.05
and	335.76	336.08	0.32	0.19	0.007
and	340	340.3	0.3	0.16	0.003
and	346.8	347.3	0.5	2.7	2.33
and	467.6	468.1	0.5	0.22	0.3
and	480.4	480.8	0.4	0.26	0.007
and	486.35	487.05	0.7	0.39	0.12
and	492.45	493.05	0.6	0.14	0.03
and	521.65	523	1.35	0.25	0.04
and	527.3	529.7	2.4	0.25	0.15
and	540	544	4	0.23	0.08
and	552.5	552.8	0.3	0.27	0.04
and	554.5	555.2	0.7	0.37	0.01
and	556.05	557.8	1.75	0.82	0.76
inc	556.05	556.3	0.25	5.08	0.03
inc	557.3	557.8	0.5	0.29	2.62
and	562.1	562.2	0.1	0.26	0.48
and	565	565.85	0.85	0.28	0.01
and	577.5	577.65	0.15	0.17	0.02
and	592.1	592.5	0.4	0.52	0.67
and	615.2	615.4	0.2	0.16	0.06
ETG0239	159	161.1	2.1	3.27	0.07
ETG0227	222.48	222.6	0.12	0.28	0.11
and	227.87	228.06	0.19	2.17	1.56
and	231.36	231.67	0.31	0.21	0.02
and	233.17	234	0.83	0.16	0.03
and	286.09	287.09	1	0.13	0.0006
and	299.89	300.13	0.24	0.17	0.005
and	303.03	303.17	0.14	0.87	0.04
and	309.64	309.88	0.24	0.15	0.01
ETG0226	284.8	285.7	0.9	0.43	0.1
and	304	305.7	1.7	0.63	0.003
and	319.9	320.35	0.45	0.18	0.01
and	425.05		0.45	0.25	0.04

Table 2: RC drill hole gold and copper assay results from holes ETG0226, ETG0227 and ETG0228 (+0.1g/t Au cutoff). Intervals above 1 g/t Au and/or 1% Cu reported separately. *end of priority assay interval – remaining results pending

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About Encounter

Encounter is one of Australia’s leading mineral exploration companies listed on the ASX. Encounter’s primary focus is on discovering major gold and copper deposits in Australia. Encounter’s assets include:

• A large project portfolio in the Paterson Province of WA where it is exploring for copper-gold deposits at its 100% owned Lamil Project and for copper-cobalt deposits at the Yeneena project with IGO Limited (ASX:IGO);

• A series of camp scale, first mover copper opportunities in the Northern Territory. This includes the Elliott copper project which is being advanced in partnership with BHP via a $25m earn-in and joint venture; and

• The Aileron IOCG project in the West Arunta region of WA.

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

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SECTION 1 SAMPLING TECHNIQUES AND DATA

	SECTION 1 SAMPLING TECHNIQUES AND DATA
Criteria	JORC Code explanation Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sounds, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. The Dune project was sampled by Encounter using diamond drilling. A 7-hole diamond drilling program has been completed at Dune. Drilling includes 3 diamond tails on existing RC holes and four new Diamond holes for a total of 2,866m of diamond drilling. 3 of the diamond holes ETG0205 (diamond tail from existing RC hole), ETG0241 and ETG0242 were drilled to test discrete magnetic anomalies. ETG0239 was drilled to test an EM anomaly. Two diamond tails were drilled from existing RC drillholes, ETG0226 and ETG0227, to test the extents of mineralisation. ETG0243 was drilled 200m to the NW of ETG0226 and ETG0227.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used Drill hole collar locations were recorded by handheld GPS, which has an estimated accuracy of +/- 5m.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information RC sections of holes ETG0226 and ETG0227 were reported in ASX announcement dated 21 April 2021. ETG0205 RC section reported in ASX announcement dated 18thDecember 2020. Diamond drill core samples were half core samples of HQ and NQ sized core. The samples from the drilling were sent to Bureau Veritas Minerals Pty Ltd Laboratories in Perth, where they were dried, crushed, pulverised and split to produce a sub – sample for ICP (OES) (MS) 4 Mixed Acid Digest and Fire Assay.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). ETG0227 was RC drilled to a depth of 219m then diamond tailed to 457m. ETG0226 was RC drilled to 225m and has been diamond drilled to 710.3m. ETG0205 was RC drilled to a depth of 207m and diamond drilled to 439.1m. All other holes were drilled with mud rotary from surface through cover sediments with diamond drilling commencing at the cover-oxidized sediment boundary as HQ3 to reduce core loss before switching to HQ and NQ coring once ground conditions allowed. All core was oriented using Relfex Act III system.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed Sections of lost core where minimal and were noted by the diamond drillers.
	Measures taken to maximise sample recovery and ensure representative nature of the samples New drillholes were drilled with mud rotary through the cover sequence. HQ3 was used in areas of broken or soft ground to reduce the chances of core loss. The remainder of the holes being HQ/NQ diamond drilled with core recovery +95%.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. To date, no detailed analysis to determine the relationship between sample recovery and/or and grade has been undertaken for this drill program.

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Criteria	JORC Code explanation Commentary
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. All drillholes have been fully logged by Encounter Geologists with lithology, alteration, mineralisation, structure and veining recorded.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Geological logging is qualitative in nature and records interpreted lithology, alteration, mineralisation, structure, veining and other features of the samples and core.
	The total length and percentage of the relevant intersections logged All drillholes have been logged in full by Encounter geologists
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. Samples submitted from the diamond drill holes were half core. Minor lithology samples from unmineralized zones have been taken as composite samples with the first 25cm of each meter combined into a 4m composite sample.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Not applicable as all drilling was core drilling
	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Sample preparation was completed at Bureau Veritas Minerals Pty Ltd Laboratories in Perth. Samples were dried, crushed, pulverised (90% passing at a ≤75µM size fraction) and split into a sub – sample that was analysed using fire assay.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. Field QC procedures involve the use of commercial certified reference materials (CRMs) and in house blanks. The insertion rate of these will be at an average of 1:33.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. No sampling of the second half of the drill core has been completed.
	Whether sample sizes are appropriate to the grain size of the material being sampled. The sample sizes are considered appropriate to give an accurate indication of the mineralisation at Dune.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. The samples have been analysed by ICP using a 4 mixed acid digest including Hydrofluoric, Nitric, Hydrochloric and Perchloric Acids. This extended digest approaches a total digest for many elements however some refractory minerals are not completely attacked. Assays have been determined by Inductively Coupled Plasma (ICP) Optical Emission Spectrometry (OES)(Al, Ca, Cr, Cu, Fe, K, Mg, Mn, Na, Ni, P, S, Sc, Ti, V, Zn) and ICP – Mass Spectrometry(MS) (Ag, As, Bi, Cd, Co, Ga, Hf, In, La, Mo, Nb, Pb, Rb, Sb, Sn, Sr, Ta, Te, Th, Tl, U, W, Y, Zr). Au, Pt and Pd were determined via Fire Assay.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Routine pXRF analysis has been completed down hole but this information does not form part of this report.
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Laboratory QAQC involves the use of internal lab standards using certified reference material and blanks as part of in- house procedures. Encounter also submitted an independent suite of CRMs and blanks (see above). A formal review of this data is completed on a periodic basis.

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Criteria	JORC Code explanation Commentary
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The intersections included in this report have been verified by Mark Brodie (Senior Exploration Geologist)
	The use of twinned holes. No twinned holes have been drilled.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Primary data is collected for Dune on toughbook computers using Excel templates and Maxwell Geoservice’s LogChief software. Data collected was sent offsite to Encounter’s Database (Datashed software), which is backed up daily.
	Discuss any adjustment to assay data. No adjustments have been made to the assay data.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Drill hole collar locations are determined using a handheld GPS. Down hole surveys were collected during this drilling program at approx. 30m intervals downhole.
	Specification of the grid system used. The grid system used is MGA_GDA94, zone 51.
	Quality and adequacy of topographic control. Estimated RLs were assigned during drilling and are to be corrected at a later stage using a DTM created during the aeromagnetic survey.
Data spacing and distribution	Data spacing for reporting of Exploration Results. The drilling at the Dune prospect has been completed on 200m to 400m spaced sections with holes spacing ranging from 40m to 80m
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Mineralisation has not yet demonstrated to be sufficient in both geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications to be applied.
	Whether sample compositing has been applied. Intervals have been composited using a length weighted methodology
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. N/A – this is early stage drilling and the orientation of the hole with respect to key structures is not is not fully understood however the drilling has intersected the strata at an appropriate angle not to significantly bias samples
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. This is early stage drilling and the orientation of sampling to the mineralisation is not fully understood. Early indications suggest that mineralisation in the Dune area is mostly strata parallel and was intersected by drilling at an appropriately high angle to the core axis and has not introduced a significant sampling bias.
Sample security	The measures taken to ensure sample security. The chain of custody is managed by Encounter. Samples were delivered by Encounter personnel to the Camp Dome laydown and then transported to the assay laboratory via DDH-1 Drilling contractors.
Audits or reviews	The results of any audits or reviews of sampling techniques and data. Sampling techniques and procedures are regularly reviewed internally, as is data. To date, no external audits have been completed on Dune data.

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	SECTION 2 REPORTING OF EXPLORATION RESULTS	SECTION 2 REPORTING OF EXPLORATION RESULTS
Criteria	JORC Code explanation	Commentary
Mineral tenement		The Lamil project is located within the tenement
and land tenure		E45/4613 which is 100% held by Encounter. The
status		prospect area is subject to a production royalty of A$1
	Type, reference name/number, location and	per dry metric tonne of ore mined.
	ownership including agreements or material issues
	with third parties including joint ventures,	This tenement is contained completely within land
	partnerships, overriding royalties, native title	where the Martu People have been determined to hold
	interests, historical sites, wilderness or national park	native title rights.
	and environmental settings.
		No historical or environmentally sensitive sites have
		been identified in the work area.
Exploration done		The majority of historical exploration activity at Lamil
by other parties		was completed during a Newmont / BHP / WMC joint
		venture in the mid-1980s with Newmont as operator.
		In 1989 Newmont completed a six hole diamond
		program at Lamil (LHS 89 1-6) for a total of 563m with
	Acknowledgment and appraisal of exploration by other parties.	one hole targeting the Northern Magnetic anomaly (now called Dune).
		In 1990/91, a program of RAB holes (LHB series) were
		drilled on the Northern Magnetic Anomaly along the
		interpreted fold axis for a total of 1734m. Drilling was
		hampered by ground water resulting in the program
		being largely ineffective.
Geology		The Lamil project is situated in the Proterozoic
		Paterson Province of Western Australia. A simplified
		geological interpretation comprises a domal feature with
	Deposit type, geological setting and style of mineralisation	Isdell Formation in the core overlain by Malu Formation and the Puntapunta Formation forms the uppermost unit. The Dune project is considered prospective for
		sediment – hosted ‘Telfer style’ gold-copper
		mineralisation and skarn style mineralisation.
Drill hole	A summary of all information material to the
information	understanding of the exploration results including
	tabulation of the following information for all Material
	drill holes:
	• Easting and northing of the drill hole collar
	• Elevation or RL (Reduced Level –
	elevation above sea level in meters) of the
	drill hole collar
	• Dip and azimuth of the hole
	• Down hole length and interception depth • Hole length	Refer to tabulation in the body of this announcement.

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Criteria	JORC Code explanation Commentary
Data aggregation methods Relationship between mineralisation widths and intercept lengths Diagrams Balanced Reporting Other substantive exploration data Further Work	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. All reported assays have been length weighted, with a nominal 0.1g/t Au and/or 0.1% Cu lower cut-off. No upper cuts-offs have been applied. Where core loss has been encountered within a mineralized interval the average grade of the samples directly above and below has been applied to the zone of core loss.
	Where aggregated intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. Intervals greater than 1g/t Au and 1% Cu have been reported as separate intervals
	The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents have been reported in this announcement.
	These relationships are particularly important in the reporting of exploration results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). The geometry of the mineralisation is not yet known due to insufficient drilling in the targeted area.
	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views. Refer to body of this announcement
	Where comprehensive reporting of all Exploration Results is not practical, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All significant intervals are reported with a 0.1g/t Au and/or 0.1%Cu lower cut-off
	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observation; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. All meaningful and material information has been included in the body of the text. No metallurgical or mineralogical assessments have been completed.
	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large – scale step – out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. The next phase of work will be designed following interpretation of assays from the current program and results of the ground gravity survey.

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