ENCOUNTER RESOURCES LIMITED — Capital/Financing Update 2024

Nov 28, 2024

ASX Announcement 29 November 2024

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Institutional placement to advance West Arunta niobium discoveries

• Firm commitments received for a Placement to raise A$15 million at A$0.35 per share

• Share purchase plan to raise up to A$3 million on the same terms as the Placement

• New funding to accelerate and expand resource drilling, exploration and metallurgical testwork at the Aileron Project in the West Arunta region of Western Australia

• Encounter is well-funded with ~A$22 million cash on completion of the Placement

Encounter Resources Limited (“ Encounter ” or the “Company ”) is pleased to announce the Company has received firm commitments from new and existing institutional, sophisticated and professional investors for a placement to raise A$15.0 million (before costs), priced at A$0.35 per share (the “ Placement ”). The issue price represents a 10.9% discount to the 10-day VWAP of A$0.393.

Commenting on the Placement, Encounter’s Executive Chairman Will Robinson said:

“We are delighted with the strong Placement demand seen from existing shareholders, as well as a number of new large domestic and offshore investors. This provides a strong endorsement of the recent exploration success and future upside at Aileron where Encounter has discovered multiple mineralised carbonatites in the West Arunta. We are now well-funded to deliver a maiden niobium resource, accelerate exploration activities and progress development study workstreams.

In 2024, highly enriched, near surface niobium-REE mineralisation was intersected at the Crean, Emily and Green prospects. We are now moving into resource definition of these high-grade, nearsurface niobium discoveries which will be the focus of 2025.

In parallel, Encounter controls a commanding land position in this globally important, new carbonatitehosted niobium-REE mineral province, and we will continue to deploy low-cost aircore drilling to rapidly test new regional targets across our ~110km wide tenement package.”

Placement

The Company has received firm commitments from new and existing institutional, sophisticated and professional investors to raise A$15.0 million (before costs) via the issue of ~42.9 million shares at A$0.35 per share. Proceeds will be used to fund the following:

• Further targeted drilling to determine the scale of the Crean, Emily and Green niobium-REE mineralised carbonatites in the West Arunta;

• Reconnaissance drill programs to test additional targets in the West Arunta;

• Metallurgical assessment of mineralised carbonatites;

• Copper exploration in the NT and WA; and

• General working capital and costs of the offer.

The Placement to unrelated parties will be completed pursuant to the Company’s 15% placement capacity under ASX Listing Rule 7.1 (42,427,141 ordinary fully paid shares) and additional 10% placement capacity under ASX Listing Rule 7.1A (430,000 ordinary fully paid shares). Issue of the Placement shares is expected to occur on Friday, 6 December 2024.

Canaccord Genuity (Australia) Limited, Euroz Hartleys Limited and Chieftain Securities (WA) Pty Ltd acted as Joint Lead Managers to the Placement.

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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Share Purchase Plan (SPP)

Existing Encounter shareholders will also be provided the opportunity to subscribe for additional shares in the Company at A$0.35 per share, being the same price as the Placement. Eligible shareholders will be entitled to subscribe for up to A$30,000 worth of new shares. The amount to be raised under the SPP will be capped at A$3 million. The record date for the SPP is 5pm (AWST) on 28 November 2024.

Further details of the SPP will be provided in a subsequent announcement.

An Appendix 3B reflecting the new shares to be issued follows this announcement.

Pro-forma Capital Structure

	Shares	Options
Securities currently on issue	454,278,054	14,720,000
Shares to be issued pursuant to the Placement*	42,857,141	-
Pro forma securities on issue following Placement	497,135,195	14,720,000

*** Issue of Placement shares is expected to occur on Friday, 6 December 2024.**

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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 copper and niobium/REE 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 including the Aileron project in the West Arunta region of WA. Complementing this, Encounter has numerous large scale copper projects being advanced in partnership and funded through farm-in agreements.

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For further information, please contact:

Will Robinson Michael Vaughan Executive Chairman Fivemark Partners +61 8 9486 9455 +61 422 602 720 contact@enrl.com.au michael.vaughan@fivemark.com.au

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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