ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2022

Oct 18, 2022

ASX Announcement 19 October 2022

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Strong Lithium Potential Highlighted at Sandover - NT

• Encounter controls a significant part of the North Arunta Pegmatite Province identified by the Northern Territory Geological Survey (“NTGS”)

• NTGS interpret that the pegmatites in the region are Lithium-Caesium-Tantalum (“LCT”) pegmatites similar to the host pegmatites of the lithium deposits at Greenbushes in WA and at the Finnis deposit in the Pine Creek Pegmatite Province in the NT

• Technical review completed by Dr. Jon Hronsky has highlighted new lithium targets at the Junction lithium project (“Junction”) and Sitch lithium project (“Sitch”). The first target to be investigated is the Crawford target (“Crawford”) at Junction:

• located at the intersection of two important, LCT-controlling structures

• a series of the most lithium rich occurrences in the Northern Arunta Pegmatite Province (controlled by Core Lithium Ltd (ASX:CXO)) are trending along the major Barrow Creek fault towards Crawford

• minimal outcrop mapped in the target area but what is mapped is indicated to be a mixture of fractionated granite and pegmatite

• majority of the target zone is beneath shallow interpreted residual cover which could be amenable to surface sampling

• Field assessment to commence in October/November 2022

The directors of Encounter Resources Ltd (“Encounter” / “the Company”) are pleased to advise of lithium exploration targets identified at Sandover in the Northern Territory.

Commenting on the lithium opportunities, Managing Director Will Robinson said:

“A technical review of Sandover has highlighted several areas with strong lithium potential in the north and in the south, now known as the Junction and Sitch projects. Prior outcrop sampling completed by the NTGS identified some of the

most lithium rich occurrences in the North Arunta Pegmatite Province are located adjacent to an interpreted structure that extends into the Crawford target.

Promisingly, the most Li-rich occurrence identified by the NTGS in the province, Tabby Cat, is located 5km south of the Crawford target.

Initial on ground assessment will commence shortly and will include sampling of outcrops and a trial of surface geochemistry at Crawford.”

Figure 1 – Northern Arunta Pegmatite Province – Junction Lithium Project Location with LCT pegmatite occurrences sourced from NTGS Report 16 Tintantalum pegmatite mineralisation of the Northern Territory (Frater 2005).

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

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

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Background

Sandover sits within the Northern Arunta Pegmatite Province which was first identified in a report by the NTGS in 2005. The NTGS interpret that the pegmatites in the region are LCT pegmatites similar to the host pegmatites of the lithium deposits at Greenbushes in WA and the Finnis deposit in the Pine Creek pegmatite province in the NT*.

The region’s lithium potential was also highlighted by rock chip sampling of the Anningie Tin Field (located 30km west of Sandover) completed in 2017 which returned 15 rock chip samples above 1% Li2O including a maximum lithium grade of 4.63% Li2O (see ASX:TRT release 17 December 2017). The presence of LCT pegmatites is further supported at Sandover by two tin-tantalum occurrences in the south-east of the project area.

The region’s lithium prospectivity has been recognised by a number of companies including Core Lithium Ltd (ASX:CXO) which holds the Anningie and Barrow Creek Lithium Projects in the North Arunta district (Figures 1 & 3).

• NTGS Report 16: Tin-tantalum pegmatite mineralisation of the Northern Territory (Frater, 2005)

Lithium Targets

Encounter Non-Executive Director, Dr. Jon Hronsky, has completed a technical assessment of the lithium potential at Sandover. Integrating available data for the region has resulted in the definition of two large projects, Junction and Sitch, that contain three priority targets for follow up:

1. Crawford

• This target, located in the north of Junction, is defined by the intersection of two important, LCT-controlling structures, the Barrow Creek and Neutral Junction Fault Zones. There is very little outcrop mapped in the target area but what is mapped is indicated to be a mixture of granite and pegmatite. It appears to be a residual area, amenable to surface sampling. The most Li-rich occurrence sampled by NTGS in the Northern Arunta Pegmatite Province (Tabby Cat) is located 5km south of the target area (Figures 1 & 2).

2. Nelson

This target lies within the southern area of Junction and is defined by the intersection of the major west-north-west structure, which bounds the northern side of the large Neoproterozoic Sandover basin depocentre, with two north-east trending structures that control the Western and Eastern Groups of pegmatites within the Barrow Creek District (Figure 2). The area predominantly covered by Quaternary soil, however radiometric signatures indicate the presence of fractionated granite and the target is likely to be amenable to surface geochemical exploration to identify LCT-pegmatites.

3. Utopia

• This target, located in the northern part of Sitch, is defined by the intersection of the major west-north-west structure, which bounds the northern side of the large Neoproterozoic Sandover Basin depocentre, with the northwest trending Neutral Junction Fault. The area hosts the Utopia cluster of pegmatites which are known to be low in Li, although it is interpreted that may be due to their close proximity to source granites. The primary target area at Utopia is located north-west of the outcropping pegmatites under cover (Figures 2 & 3) . The area is also predominantly covered by Quaternary soil and is likely to be amenable to surface geochemical exploration.

All three targets are considered to represent residual terranes that are potentially amenable to surface geochemical sampling. Crawford has been selected as the first target for follow up exploration.

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Figure 2 – Sandover Copper-Lithium Project – NTGS surface pegmatite sampling (Frater, 2005) with initial lithium targets

Next Steps

1. An NTGS co-funded 1km spaced gravity survey is in progress which will refine the structural architecture at Sandover including the location of LCT prospective structures.

2. Initial on ground assessment of the Crawford target will commence in October/November 2022 and will include sampling of mapped outcrops and a trial of surface geochemical methods.

3. Systematic 200m x 50m soil geochemical sampling of prospective corridors; analysis for Li, Cs, Ta, Sn, Be, W, Rb.

4. High-resolution aerial photography of prospective corridors looking for evidence of subcropping pegmatites in areas mapped as generally non-outcropping; follow up rock-chip sampling of identified occurrences.

5. RC drill testing of defined anomalous areas.

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Figure 3 – Northern Arunta Pegmatite Province – Junction and Sitch Lithium Project Location Plan LCT pegmatite occurrences sourced from NTGS Report 16 Tin-tantalum pegmatite mineralisation of the Northern Territory (Frater 2005).

The information in this report that relates to Exploration Results is based on information compiled by Mrs Sarah James who is a Member of the Australasian Institute of Mining and Metallurgy. Mrs James 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'. Mrs James consents to the inclusion in the report of the matters based on the information compiled by them, 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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About Encounter

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Encounter is one of Australia’s leading mineral exploration companies listed on the ASX. Encounter’s primary focus is on discovering major copper dominant deposits in Australia.

Encounter partners with leading mid-tier and major producers to advance its extensive project pipeline with more than $25m of project funding contributed by partners over the past decade. Currently, Encounter has farm-in agreements in place with world leading resources companies to provide up to $65m in initial exploration funding. Encounter’s assets include:

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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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