ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2023

Jun 27, 2023

ASX Announcement 28 June 2023

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Mineralised carbonatites intersected over 3.5km - West Arunta

• Three diamond drill holes (EAL001, EAL007 & EAL008) that intersected the Elephant Island Fault at the Crean and Hoschke (formerly Worsley) targets have all intersected niobium-REE mineralised carbonatites

• The three holes cover a strike extent of 3.5km. The mineralised carbonatite remains open to the east and west and is increasing in width to the east

• The first diamond hole (EAL001) was completed at Hoschke and intersected a niobium-REE mineralised carbonatite which returned an assay result from a 24.8m interval of:

• 16m at 0.6% N2O5 & 0.2% TREO (including 402ppm Nd+Pr) from 350m (EAL001)

• Two further RC pre-collars and diamond holes (EAL007 & EAL008) were completed at Crean, stepping out a further 2.0km and 3.5km to the east of EAL001

• Both holes contained zones of near surface oxidised and fresh carbonatite that is variably anomalous in niobium and REE via handheld pXRF field analysis[1 ]

• Samples from the pre-collars EAL007 (to 67m depth) and EAL008 (to 89m depth) have been prioritised for analysis with assay results expected in July-August 2023

• Activity is set to escalate in the West Arunta with targets prioritised along the Elephant Island Fault and an expanded RC drilling program to commence in August 2023

Encounter Resources Ltd (“Encounter”) is pleased to report the identification of carbonatites over 3.5km of strike at the Aileron critical minerals project (100% ENR) in the West Arunta region of WA.

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

“The West Arunta continues to emerge as a critical minerals province with the intersection of mineralised carbonatites in three drillholes over a strike length of 3.5km at Aileron.

The first hole at Aileron, EAL001, was targeting a high amplitude magnetic anomaly, which it successfully intersected, before also intersecting a niobium-REE bearing primary carbonatite dyke.

We were able to get structural measurements from the dyke to confirm it was striking east-west so two additional holes were drilled along the Elephant Island Fault to the east at Crean.

Both holes contain zones of shallow oxidised and fresh carbonatite that returned anomalous niobium-REE on a handheld pXRF and the carbonatite units appear to be increasing in width to the east.[1]

Systematically testing the Elephant Island Fault for further zones of near surface, enriched mineralisation is a priority objective for the upcoming RC program.”

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Photo 1: Encounter Exploration Manager Sarah James with RC pre-collar spoils from drillhole EAL008

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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1 Cautionary Statement - The references to the presence of anomalism recorded in pXRF are not considered to be a proxy or substitute for laboratory analyses. Determination of mineralisation has been based on geological logging, visual observation and confirmation using a pXRF machine. No pXRF results are reported however the tool was used to verify the mineralisation. pXRF readings may not be representative of the average concentrations of the elements of interest in a certain volume of core. As such, pXRF results are used as a logging/sampling verification tool only. Laboratory analysis will be required to determine the level of mineralisation contained in the carbonatite zones noted in EAL007 and EAL008.

Visual estimates of mineral abundance or anomalism recorded on pXRF should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Background

Aileron is located in the West Arunta region of WA ~600km west of Alice Springs. Encounter completed large gravity, magnetic and radiometric surveys at Aileron during 2021 and 2022. These surveys defined three priority targets for diamond drilling at Caird, Crean and Hoschke (recently renamed after geophysicist Terry Hoschke who identified and championed the magnetic anomaly that EAL001 was designed to test).

In May 2023, a diamond drilling program at Caird, Crean and Hoschke commenced. In parallel, a large Falcon airborne gravity survey refined and enhanced a suite of additional large scale targets at Aileron.

Diamond Drilling

The originally planned 4 diamond hole program was completed in June 2023, comprising 2 holes at Crean (EAL005 & EAL006) and 1 hole at each of Hoschke (EAL001) and Caird (EAL002).

Two additional diamond holes at Crean (EAL007 & EAL008) were added to the program following observations of core from EAL0001 (Figure 1).

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Figure 1 – Aileron diamond drill locations (black dots) over residual gravity showing the three holes (EAL001, EAL008 and EAL007) that intersected carbonatites over 3.5km of strike along the Elephant Island Fault

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The first diamond hole (EAL001) at Hoschke intersected a broad zone of hydrothermal magnetite from 150.3m to 329.8m (assays pending) coincident with the modelled magnetic anomaly. The hole was then extended to test the Elephant Island Fault. Within the fault corridor EAL001 intersected a niobium-REE mineralised carbonatite dyke over a downhole length of 16m.

A 24.8m interval from EAL001, that contained the carbonatite dyke, was sampled and flown to Perth for expedited analysis. Assays over the remaining 552.5m will be available in the September 2023 quarter. Results confirmed that the carbonatite hosts several critical minerals including:

• 16m at 0.6% N2O5 & 0.2% TREO (including 402ppm Nd+Pr) from 350m

In world-class carbonatite hosted mineral systems – such as Araxá in Brazil, Bayan Obo in China and Mt Weld in Western Australia – it is the near surface oxidation and enrichment of the primary material that produces minable grade and size deposits rather than the primary carbonatite itself (Figure 6).

Structural measurements indicated that the carbonatite dyke in EAL001 is steeply dipping and strikes parallel to the interpreted major east-west Elephant Island Fault. This provided an important vector to drill the mineralised carbonatite closer to surface and along the fault. Holes EAL007 and EAL008 were drilled ~2.0km and ~3.5km east of EAL001 at Crean to test for additional carbonatite hosted mineralisation within the Elephant Island Fault corridor.

Both EAL007 and EAL008 intersected zones of near surface oxidised and fresh carbonatite that recorded anomalous niobium and REEs via hand held pXRF field analysis and the carbonatite is thickening to the east.[1]

pXRF results are not reported as they may not be representative of the average concentrations of the elements of interest in a certain volume of core. As such, pXRF results are used as a logging/sampling verification tool only.

The importance of these results is that all three diamond drill holes that have intersected the Elephant Island Fault (EAL001, EAL007 & EAL008) contain niobium-REE mineralised carbonatites over a strike extent of 3.5km that remain open east and west.

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Initial Mineralogical Assessment

A preliminary mineralogical assessment completed on a sample selected in EAL001 by Portable Spectral Services which confirmed that the sample is a carbonatite. The main niobium-bearing mineral identified in the carbonatite is interpreted as coarse grained pyrochlore (see Figure 2b), which is the predominant mineral mined at the world’s three largest niobium mines.

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Figure 2a – EAL001 - Drill core from 355.3 - 355.5m

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Figure 2b – Shows the nature, style and spatial distribution of the niobium mineralisation (pyrochlore) hosted in the carbonatite from a 18cm x 4.6 cm half core sample from 355.3 - 355.5m in EAL001. Data collected using micro XRF - Bruker M4 TORNADO – Portable Spectral Services

Next Steps

• A heritage survey is commencing at Aileron in early July 2023 to support planned RC drilling

• Assays from the EAL007 and EAL008 pre-collars are expected in July-August 2023

• Assays from the remainder of EAL001 and from the Caird and Crean diamond holes are expected to be received in the September 2023 quarter

• An RC drill program is expected to commence in August 2023. This program will:

• complete the first drilling at a suite of targets generated by the Falcon gravity survey (including additional targets east of Crean at Hurley and Wild, Figure 3) ; and

• systematically test the regionally important Elephant Island Fault for zones of near surface mineralisation.

We acknowledge the support of the WA Government’s Exploration Incentive Scheme (“EIS”) which co-funded the first 158m of the EAL001 drillhole, which was terminated in 2021 without testing the targeted anomalies due to a mechanical failure on the drill rig.

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Figure 3 – Aileron diamond drill locations (black dots) over residual gravity with planned RC drill program areas for testing between August and October 2023

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Figure 4 – Aileron diamond drill locations over RTP magnetics with planned RC drill areas for August and October 2023

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Figure 5 – Hoschke schematic cross section highlighting the steeply dipping carbonatite dyke. Target oxide zone is untested.

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Figure 6 – Aileron Falcon gravity survey has highlighted a number of high priority targets

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Photo 2 – EAL001 – Core photos 349-367.1m containing mineralised carbonatite intersection of 16m at 0.6% N2O5 & 0.2% TREO (including 402ppm Nd+Pr) from 350m.

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Figure 7 – Carbonatite schematic (source: WA1 Investor Presentation - 8 May 2023)

Hole_ID	Hole_Type	MGA_Grid_ID	MGA_East	MGA_North	MGA_RL	Azimuth	Dip	EOH Depth
EAL001	DDH	MGA94_51	424991	7547143	270	0	-60	572.5
EAL002	RCD	MGA94_51	429828	7543078	270	180	-60	463.3
EAL002WB	RC	MGA94_51	429826	7543092	270	0	-90	91
EAL003	RC	MGA94_51	429826	7542579	270	0	-60	121
EAL004	RC	MGA94_51	429814	7542372	270	0	-90	91
EAL005	RCD	MGA94_51	427149	7547479	270	180	-60	473.1
EAL006	RCD	MGA94_51	427143	7547013	270	180	-60	520
EAL007	RCD	MGA94_51	428570	7547446	270	0	-60	346
EAL008	RCD	MGA94_51	427150	7547479	270	0	-60	208.3

Table 1: Collar locations and drill hole information of completed RC/diamond holes at Aileron

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Hole ID	from (m)	to (m)	interval (m)	Nb2O5 %	TREO %	Nd + Pr (ppm)	NdPr:TREO%
EAL001	344.22	346	1.78	0.00	0.02	27	20.0
	346	347	1	0.00	0.02	26	18.9
	347	348	1	0.00	0.03	57	19.5
	348	349	1	0.00	0.03	51	20.5
	349	349.8	0.8	0.00	0.03	44	20.1
	349.8	350	0.2	0.02	0.06	99	20.9
	350	351	1	0.23	0.15	270	21.7
	351	352	1	0.40	0.14	304	25.2
	352	353	1	0.50	0.18	348	22.6
	353	354	1	0.72	0.19	399	24.0
	354	355	1	0.72	0.21	428	23.9
	355	356	1	0.67	0.19	378	23.8
	356	357	1	0.62	0.21	454	24.7
	357	358	1	0.53	0.18	379	24.3
	358	359	1	0.68	0.24	465	22.8
	359	360	1	0.57	0.20	418	24.9
	360	361	1	0.72	0.22	466	25.2
	361	362	1	0.72	0.22	437	23.6
	362	363	1	0.52	0.23	440	22.8
	363	364	1	0.62	0.21	421	23.4
	364	365	1	0.72	0.23	448	23.1
	365	366	1	0.61	0.20	377	22.5
	366	367	1	0.01	0.01	28	22.1
	367	368	1	0.02	0.02	35	22.9
	368	369	1	0.01	0.01	23	20.5

Table 2: Diamond drill hole Nb2O5 and TREO assay results from selected 24.8m interval within EAL001.

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Hole_ID	mFrom	mTo	Interval	Lithology
EAL007	0	12	12	Calcrete
	12	24	12	White clay saprolite
	24	39	15	Quartzite
	39	48	9	White clay saprolite
	48	64	16	Pebbly conglomerate
	64	75.9	11.9	Weathered carbonatite saprock
	75.9	346	270.1	Fresh banded to coarse grained carbonatite with minor mafic/ultramafic dykes
EAL008	0	8	8	Calcrete
	8	16	8	Ferruginous duricrust
	16	22	6	Red white mottled clays
	22	43	21	Ferruginous weathered carbonatite
	43	96.8	53.8	Limonite clay
	96.8	102.8	6	Weathered carbonatite saprock
	102.8	109.6	6.8	Manganese rich sulphidic clay
	109.6	110.5	0.9	Silcrete
	110.5	115.5	5	Ironstone
	115.5	119.6	4.1	Weathered carbonatite
	119.6	123.9	4.3	Banded pink and grey carbonatite
	123.9	149.7	25.8	Banded grey-green and white carbonatite
	149.7	165.9	16.2	Brecciated ultramafic dyke
	165.9	190.1	24.2	Heavily fractured quartz kfeldspar granitoid
	190.1	202.7	12.6	Mixed quartz kfeldspar granitoid with ultramafic dykes
	202.7	208	5.3	Brecciated silica rich rock

Table 3: Geological description summary for EAL007 and EAL008

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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 controls a large portfolio of 100% owned projects in Australia’s most exciting mineral provinces that are prospective for copper and critical minerals. Complementing this, Encounter has numerous large scale copper projects being advanced in partnership and funded through farm-in agreements with leading miners: BHP, South32 and IGO. Encounter’s assets include:

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Will Robinson Managing Director +61 8 9486 9455 contact@enrl.com.au

Michael Vaughan Fivemark Partners +61 422 602 720 michael.vaughan@fivemark.com.au

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The information in this report that relates to Exploration Results and visual observations is based on information compiled by Mr. Mark Brodie who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Brodie 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 Brodie 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. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

This announcement has been approved 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. 8 RC pre-collars holes have been completed at Aileron. 6 diamond drilled tails have been completed. Assays reported are from half and quarter core samples of NQ sized core from a selected 24.8m interval within EAL001. RC and diamond core underwent routine 1 metre pXRF analysis using a Bruker S1 TITAN to aid in logging and identifying zones of interest.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used Assays reported are from half and quarter core samples of NQ sized core.
	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 drilling was used to obtain riffle split 1m samples each approximately 3kg. Diamond drill core was sampled as half and quarter core samples of NQ sized core. All samples were submitted to ALS Laboratories in Perth for analyses where they were crushed and pulverised. Samples were submitted for multiple laboratory analyses. Assays have been reported from ALS method ME-MS81h (High grade REE elements by lithium meta-borate fusion and ICP-MS. This method produces quantitative results of all elements, including those encapsulated in resistive minerals.) All samples were also analysed using ALS method ME- MS61r (4-Acid digest on 0.25g sample analysed via ICP-MS and ICP-AES) and ALS method PGM-ICP23 (Pt, Pd, Au package using 30 g lead fire assay with ICP-AES finish).
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). EAL001 was drilled PQ to 15m, then HQ to 158m (in 2020). EAL001 was extended with HQ (to 260.7) and then NQ diamond tail to 572.5m. 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 HQ3 was used in areas of broken or soft ground to reduce the chances of core loss. The remainder of the hole being 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. EAL002, EAL005 and the section of EAL001 reported has been logged in detail by Encounter Geologists with lithology, alteration, mineralisation, structure and veining recorded. Detailed logging for all other holes, including EAL007, EAL008 and the remainder of EAL001 is ongoing.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Geological logging is qualitative in nature and will record interpreted lithology, alteration, mineralisation, structure, veining and other features of the samples and core.
	The total length and percentage of the relevant intersections logged EAL002, EAL005 and the section of EAL001 reported has been logged in detail by Encounter Geologists with lithology, alteration, mineralisation, structure and veining recorded. Detailed logging for all other holes, including EAL007, EAL008 and the remainder of EAL001 is ongoing.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. Selected samples submitted from EAL001 were half or quarter core.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Selected samples submitted from EAL001 were half or quarter core.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Sample preparation was completed at ALS Laboratories in Perth for analyses. Samples were crushed and pulverised to enable a subsample for analyses. This is considered appropriate for the analysis undertaken.
	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 is 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 will be 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.
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. All samples were submitted to ALS Laboratories in Perth for analysis. Samples were submitted for multiple laboratory analyses. Assays have been reported from ALS method ME-MS81h (High grade REE elements by lithium meta-borate fusion and ICP-MS. This method is considered a complete digestion allowing resistive mineral phases to be liberated. This method produces quantitative results of all elements, including those encapsulated in resistive minerals.) Samples were analysed for Ce, Dy, Er, Eu, Gd, Hf, Ho, La, Lu, Nb, Nd, Pr, Rb, Sm, Sn, Ta, Tb, Th, Tm, U, W, Y, Yb, Zr) All samples were also analysed using ALS method ME-MS61r (4-Acid digest on 0.25g sample analysed via ICP-MS and ICP-AES, elements Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr, Dy, Er, Eu, Gd, Ho, Lu, Nd,

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	Pr, Sm, Tb, Tm, Yb) and ALS method PGM-ICP23 (Pt, Pd, Au package using 30 g lead fire assay with ICP-AES finish). Standard laboratory QAQC was undertaken and monitored by the laboratory. 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. RC and diamond core underwent routine pXRF analysis at 1 metre intervals using a Bruker S1 TITAN to aid in logging and identifying zones of interest. All pXRF readings were taken in GeoExploration mode with a 60 second 3 beam reading. OREAS supplied standard reference materials were used to calibrate the pXRF instrument. 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 submits an independent suite of CRMs and blanks (see above). A formal review of this data is completed on a periodic basis.	Pr, Sm, Tb, Tm, Yb) and ALS method PGM-ICP23 (Pt, Pd, Au package using 30 g lead fire assay with ICP-AES finish). Standard laboratory QAQC was undertaken and monitored by the laboratory. 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. RC and diamond core underwent routine pXRF analysis at 1 metre intervals using a Bruker S1 TITAN to aid in logging and identifying zones of interest. All pXRF readings were taken in GeoExploration mode with a 60 second 3 beam reading. OREAS supplied standard reference materials were used to calibrate the pXRF instrument. 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 submits an independent suite of CRMs and blanks (see above). A formal review of this data is completed on a periodic basis.
Criteria		JORC Code explanation Commentary
Verification of sampling and assaying		The verification of significant intersections by either independent or alternative company personnel. Geological observations included in this report have been verified by Sarah James (Exploration Manager)
		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 logging and sampling data is being collected for drillholes on toughbook computers using Excel templates and Maxwell Geoservice’s LogChief software. Data collected is sent offsite to Encounter’s Database (Datashed software), which is backed up daily.
		Discuss any adjustment to assay data. Standard stoichiometric calculations have been applied to convert element ppm data to relevant oxides. Industry standard calculation for TREO as follows La2O3 + Ce2O3 + Pr2O3 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3
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 approximately 30m intervals downhole.
		Specification of the grid system used. Horizontal Datum: Geocentric Datum of Australia1994 (GDA94) Map Grid of Australia 1994 (MGA94) Zone 52
		Quality and adequacy of topographic control. Estimated RLs were assigned for drillhole collars 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 drill hole section spacing are between 1.2km and 2.3km. This is early stage exploration with one or two drillholes at Caird, Crean and Hoschke. A single diamond drill hole was drilled at the Worsley Prospect (now named Hoschke) to a downhole depth of 572.5m.

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	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. This is early-stage exploration drilling and the orientation of the hole with respect to key structures is not fully understood. An orientated structural measurement from the basal contact of the carbonatite dyke in EAL001 indicates the unit is steeply dipping and strikes parallel to the major interpreted east-west Elephant Island Fault.
	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 the hole with respect to key structures is not fully understood. An orientation measurement from the base of the carbonatite dyke in EAL001 indicates the unit is steeply dipping and strikes parallel to the major interpreted east-west Elephant Island Fault.
Sample security	The measures taken to ensure sample security. The chain of custody is managed by Encounter. Samples were transported by Encounter personnel to the assay laboratory.
Audits or reviews	The results of any audits or reviews of sampling techniques and data. Drill core sampling techniques and procedures are regularly reviewed internally, as is data. To date, no external audits have been completed on Aileron data.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenement		The Aileron project is located within the tenements
and land tenure status	Type, reference name/number, location and ownership including agreements or material issues	E80/5169, E80/5469, E80/5470 and E80/5522 which are held 100% by Encounter Resources
	with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park	This tenements are contained within Aboriginal Reserve land where native title rights are held by the Parna Ngururrpa and the Tjamu Tjamu.
	and environmental settings.
		No historical or environmentally sensitive sites have
		been identified in the work area.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Prior to Encounter Resources, no previous on ground exploration has been conducted on the tenement other than government precompetitive data.
Geology
		The Aileron project is situated in the Proterozoic West
	Deposit type, geological setting and style of	Arunta Province of Western Australia. The geology of
	mineralisation	the area is poorly understood due to the lack of outcrop
		and previous exploration. The interpreted geology
		summarises the area to be Paleo – Proterozoic in age

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and it is considered prospective for IOCG style and carbonatite-hosted critical mineral deposits.

Drill hole	A summary of all information material to the	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

Criteria	JORC Code explanation Commentary
Data aggregation methods Relationship between 17ineralization widths and intercept lengths Diagrams	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 0.1% Nb2O5 and 0.1% TREO lower cut-off. No upper cuts-offs have been applied. No core loss was encountered within the reported mineralised interval.
	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. All reported assays have been length weighted, with a nominal 0.1% Nb2O5 and 0.1% TREO lower cut-off. No upper cuts-offs have been applied. No core loss was encountered within the reported mineralised interval.
	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 17ineralization 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 but is interpreted to be steeply dipping in EAL001.
	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

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Balanced Where comprehensive reporting of all Exploration All reported assays have been length weighted, with a Reporting Results is not practical, representative reporting of nominal 0.1% Nb2O5 and 0.1% TREO lower cut-off. No both low and high grades and/or widths should be upper cuts-offs have been applied. No core loss was practiced to avoid misleading reporting of encountered within the reported minerailsed interval. Exploration Results. Other All meaningful and material information has been substantive included in the body of the text. exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): A sample from EAL001 was mapped using the geological observation; geophysical survey results; BRUKER M4PLUS TORNADO, with a 50 µm pixel size, geochemical survey results; bulk samples – size 30 mS dwell time and Rh tube running at 45 kV and and method of treatment; metallurgical test results; 600 µA fitted with duel silicon drift detectors. Advanced bulk density, groundwater, geotechnical and rock Mineral Identification and characterisation software characteristics; potential deleterious or (AMICS) was used to determine the mineralogy. contaminating substances. No metallurgical assessments have been completed. Further Work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or The next phase of work will include systematic RC large – scale step – out drilling). drilling along the Elephant Island Fault as well as RC Diagrams clearly highlighting the areas of possible extensions, including the main geological drilling of other targets identified at Aileron. interpretations and future drilling areas, provided this information is not commercially sensitive.

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