ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2021

Apr 28, 2021

ASX Announcement 29 April 2021

EIS Drilling Grants for Aileron and West Tanami

• Encounter awarded two co-funded drilling grants under the WA Government’s Exploration Incentive Scheme (“EIS”) for the Aileron Copper-Gold-Rare Earths and West Tanami Gold Projects

• West Tanami Gold Project: EIS co-funded drilling grant of up to $150,000 to test high quality orogenic gold drill targets

• Mojave: a +7km long gold-arsenic anomaly that includes thick mineralised drill intersections strengthening at bottom of hole

• Bandicoot and Quenda Prospects: two large untested magnetic anomalies coincident with gold-arsenic geochemical anomalism adjacent to an interpreted major structure

• Aileron Copper-Gold-Rare Earths Project: EIS co-funded drilling grant of up to $150,000 to test large IOCG target located in the West Arunta region

• Follow up the first drill hole completed in 2020 that intersected hydrothermal hematite-altered mafic intrusions and granite with a distinctive IOCG geochemical signature under shallow cover

• Gravity survey planned to commence in June 2021 to refine EIS drill targets

The directors of Encounter Resources Ltd (“Encounter”) are pleased to announce that it has been awarded two co-funded EIS drilling grants at the Aileron Copper-Gold-Rare Earths and West Tanami Gold Projects.

Commenting on the EIS co-funding, Encounter Managing Director Will Robinson said:

“The Tanami and West Arunta are two of the most prospective and underexplored regions of WA. We are delighted to be a recipient of co-funded grants to support drilling at these two exciting greenfield projects.”

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Figure 1. West Tanami Gold Project with targets over 1VD magnetic image

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

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

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WEST TANAMI GOLD PROJECT (ENR 100%)

West Tanami is a belt scale gold project that covers over 100km of strike along the major structural corridor (Trans-Tanami Structure) that extends through the Tanami region of WA. Encounter consolidated ground holdings in 2017 by acquiring 3,400km[2] of a well mineralised, emerging gold province that is significantly underexplored.

Mojave Prospect

Supergene and bedrock gold anomalism within a +7km long gold-arsenic anomaly includes broad intervals of gold anomalism intersected within folded dolerite units at Mojave. Mineralised intersections from previous drilling are strengthening towards the bottom of hole and remain open to the southeast (see Figure 2). EIS co-funded diamond drilling is planned to test the hinge zone of a folded dolerite unit to the SE of previous drilling where it is interpreted to intersect a regional scale ENE trending cross cutting structure.

Bandicoot and Quenda Prospects

Planned diamond drill holes at Bandicoot and Quenda are designed to test magnetic anomalies coincident with gold-arsenic geochemical anomalies identified in shallow drilling adjacent to an interpreted major structure. Drilling is planned to test the most intense part of the modelled magnetic anomaly and to test the depth continuity of geochemical anomalism.

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Figure 2. Mojave prospect cross section showing steeply dipping mineralised structures along the limbs of an interpreted antiform (refer ASX release 23 January 2020)

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AILERON COPPER-GOLD-RARE EARTHS PROJECT (ENR 100%)

Aileron is located in the West Arunta region of WA, ~600km west of Alice Springs. The project contains a number of structural targets identified through aerial magnetic surveys and the initial drill hole, EAL001 targeted a discrete magnetic anomaly. EAL001 was completed in October 2020 and intersected hydrothermal hematite-altered mafic intrusions and granite with a distinctive IOCG geochemical signature under shallow cover.

Assays from EAL001 include zones of anomalism in copper (up to 0.1% Cu), gold (up to 48ppb Au), molybdenum (up to 155ppm Mo) and highly elevated rare earth elements (lanthanum up to 0.2%, cerium up to 0.3%) (refer ASX release 28 January 2021), consistent with the targeted IOCG deposit model.

The metal anomalism in the hole is associated with the most intense hematite altered zones (up to 15% Fe). IOCG mineralisation often has a strong density contrast to background and may be identifiable through the application of gravity surveys. Accordingly, a gravity survey is planned to commence in June 2021 to refine the targets prior to EIS co-funded drilling.

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Figure 3. Aileron Copper-Gold Rare Earths Project location plan

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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 and copper deposits in Australia.

Encounter holds a major ground position in the emerging Paterson Province where it is exploring for copper-gold deposits at its 100% owned Lamil Project and for copper-cobalt deposits at the Yeneena project with highly successful mining and exploration company IGO Limited (ASX:IGO).

Encounter controls a major land position the Tanami region covering over 100km of strike along a major structural corridor and the Aileron copper-gold-rare earths IOCG project in the West Arunta in WA.

In addition, Encounter moved early and aggressively to secure a series of camp scale, first mover opportunities in the Northern Territory (“NT”) based on their potential to contain large, sedimentary-hosted and IOCG style copper deposits. This includes the Elliott copper project which is being advanced in partnership with BHP via an option agreement to enter an earn-in and joint venture.

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

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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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