ENCOUNTER RESOURCES LIMITED — Interim / Quarterly Report 2014

Apr 23, 2014

QUARTERLY REPORT MARCH 2014

Page #

A highly active, well funded exploration company advancing a suite of greenfield discoveries in the Paterson Province of Western Australia

ASX Code

ENR

Market Cap (23/04/14)

A$25m ($0.19/share)

Issued Capital (31/03/14)

132.5 million ordinary shares 9.7 million employee options

Cash (31/03/14)

A$3.1M

Board of Directors & Management

Mr. Paul Chapman Non-Executive Chairman

Mr. Will Robinson Managing Director

Mr. Peter Bewick Exploration Director

Dr. Jon Hronsky Non-Executive Director

Mr. Kevin Hart / Mr. Dan Travers Joint Company Secretary

www.enrl.com.au

Level 7, 600 Murray Street West Perth WA 6005

P: 08 9486 9455 F: 08 6210 1578

contact@enrl.com.au

HIGHLIGHTS

YENEENA PROJECT - Paterson Province, WA

The Yeneena Project (“Yeneena”) consists of a major ground position between the Nifty copper mine, the Telfer goldcopper mine and the Kintyre uranium deposit where Encounter has made a series of greenfield base metal discoveries that demonstrate the potential of the area for large tonnage, high quality deposits.

BM7 Copper/ Cobalt Discovery (Antofagasta earning in)

• Exploration in 2013 outlined a 6km x 3km copper system at BM7 that remains open to the south. The final diamond hole in 2013, EPT1719, intersected a 5.3 metre zone, with locally massive copper sulphides forming as breccia cement near the upper boundary of a narrow carbonate unit. This zone returned an assay of 5.3m @ 2.5% Cu from 387.6m including 0.7m @ 10.7% Cu from 388.6m.

• The initial three diamond holes at BM7 are planned to test the area down dip and to the east of high grade copper sulphide mineralisation in EPT1719.

• This initial drilling will also provide the first diamond drilling at the BM7 East regolith anomaly. This is a laterally extensive +0.5% copper anomaly that extends over 2km in strike.

• The planned exploration under the Antofagasta earn-in agreement during the June 2014 quarter includes 4,000m of diamond drilling and 5,500m of aircore/RC drilling.

BM2 Copper / Zinc (Encounter 100%)

• The 2014 diamond drill program commenced at the BM2 zinc prospect at Yeneena. The initial hole in the program tested the up dip position of high grade zinc sulphide mineralisation intersected in EPT1854 (0.7m @ 36.5% Zn from 430.05m) drilled at the end of the 2013 drill campaign.

• The initial hole intersected a similar alteration zone and anomalous zinc levels (confirmed by handheld Niton XRF) were noted at the carbonate/shale contact but no massive zinc sulphide mineralisation was observed. Assay results for this hole will be reported in the June 2014 quarter. The next drilling will focus along strike at the interpreted intersection of the key mineralising structure and the margin of a sub basin within the Broadhurst sediments.

Cash / Funding

• Sound cash position - The Company is well funded with a cash balance of $3.1M at 31 March 2014 and received a further $1.9M contribution in April 2014 under the Antofagasta earn-in to cover the June 2014 quarter exploration expenditure.

1 1

QUARTERLY REPORT MARCH 2014

EXPLORATION

PATERSON PROVINCE

YENEENA COPPER - COBALT PROJECT

• 100% Encounter - E45/2500, E45/2501, E45/2502, E45/2503, E45/2561, E45/2657, E45/2806

• Antofagasta earning into E45/2658 and E45/2805

• Encounter 100%, Independence Group NL (IGO) Option ELA45/4316

• Encounter earning into E45/3232 and E45/3308 from St Barbara Ltd (SBM)

• Encounter earning into E45/3768 and E45/4091 from Hammer Metals Ltd (HMX) formerly Midas Resources Ltd

Yeneena covers a 1,800km[2] tenement package in the Paterson Province of WA located between the Nifty copper mine, the Woodie Woodie manganese mine, the Telfer gold-copper mine and the Kintyre uranium deposit (Figure 1).

==> picture [479 x 330] intentionally omitted <==

Figure 1: Yeneena project leasing and target areas with major regional faults

Field operations re-commenced in the quarter with Encounter mobilising to site in late March 2014. An initial diamond drilling campaign commenced in early April 2014 which will test for zinc sulphides at the BM2 prospect, where previous drilling has intersected narrow, high-grade zinc (ASX announcement on 13 December 2013). The diamond drill rig has now mobilised and commenced drilling at BM7 as part of the Antofagasta Earn-in.

Exploration activities conducted in the March 2014 quarter included:

• Re-commencement of field activities at Yeneena

• Planning for heritage survey at the BM7, BM7 East and BM8 prospects

• Planning for VTEM survey over prospective Broadhurst Formation as part of the Hammer Metals Ltd earn-in (Encounter Earning in).

• Compilation of drilling and geophysical data collected in the 2013 field season and generation of 2014 drill targets

2

QUARTERLY REPORT MARCH 2014

BM1-BM6-BM7-BM8-BM9-BM10 (Antofagasta Earning In)

The two earn-in tenements, E45/2658 and E45/2805, host the BM1, BM6, BM7, BM8, BM9 and BM10 prospects.

The BM7 tenement, E45/2805, was granted in August 2012. Since then, Encounter has outlined a large copper system that is still growing. The Company has attracted a quality partner in Antofagasta plc and subsequent joint drill programs have produced high grade copper sulphide mineralisation and tripled the size of the copper mineralised footprint in 2013.

A significant diamond and RC drilling program is planned for the 2014 field season. Drilling will target eastward extensions of high-grade copper mineralisation intersected in EPT1719 (ASX announcement 22 October 2013). In addition, a regional RC/aircore campaign over new targets (BM9 and BM10) and the extensions of existing prospects will be completed within the Antofagasta earn-in tenements.

==> picture [320 x 464] intentionally omitted <==

Figure 2: Yeneena project leasing and target areas with major regional faults

3

QUARTERLY REPORT MARCH 2014

BM7 Prospect

(Refer ASX announcement 27 November 2013 for BM7 JORC 2012 disclosures, unless otherwise referenced). The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and the form and context of the announcement have not been materially modified.

The BM7 prospect is situated at the intersection of the north-east trending Queen fault and the regionally-extensive McKay fault (Figure 2).

Exploration in 2013 outlined a 6km x 3km copper system at BM7 that remains open to the south. The final diamond hole in 2013, EPT1719, intersected a 5.3 metre zone, with locally massive copper sulphides forming as breccia cement near the upper boundary of a narrow carbonate unit. This zone returned an assay of 5.3m @ 2.5% Cu from 387.6m including 0.7m @ 10.7% Cu from 388.6m (ASX announcement 22 October 2013, and Photo 1).

[The above information was prepared and first disclosed under the JORC Code 2004.]

==> picture [527 x 239] intentionally omitted <==

Photo 1. EPT1719 ~387.6m to 392.9m. Veined and brecciated carbonate with local massive copper sulphide breccia cement

BM7 Diamond Drilling

(Reported pursuant to the 2004 Edition of the JORC Code – refer ASX announcement 22 October 2013)

This high grade primary mineralization drilled in EPT 1719 is a validation of our model that the target mineralisation style is similar to the Nifty copper deposit located 65 km north of BM7. The Nifty copper sulphide mineralisation is a shallow plunging body with the strongest mineralisation located at the keel of a synform (Figure 5). It is interpreted that the BM7 mineralisation is stratabound within a package of shallow easterly dipping carbonate units separated by calcareous shales. The mineralisation appears to become stronger as drilling progresses down dip to the east with the sulphide assemblage becoming more chalcopyrite dominant. It is interpreted that EPT1719 is vectoring towards the centre of the mineral system at BM7. This observation, together with the copper oxides intersected 1-2km to the east of BM7, support an interpretation of a potential synformal structure.

During the quarter, a drilling campaign of three 800m spaced drillholes was planned in conjunction with Antofagasta plc. These initial diamond holes are planned to test the area down dip and to the east of high grade copper sulphide mineralisation in EPT1719 (Figures 3 & 4) and have been designed to confirm the broad scale geological model and provide lithogeochemical and structural vectors to high grade copper sulphide mineralisation. These initial holes will be completed during April-May 2014 with assay results expected in June-July 2014.

4

QUARTERLY REPORT MARCH 2014

This initial drilling will also provide the first diamond drilling at the BM7 East regolith anomaly. This is a laterally extensive +0.5% copper anomaly that extends over 2km in strike.

A further two diamond drillholes are planned for June 2014 on section 7540100mN (800m north of EPT1719), and drill sites will be finalised pending the results from the first three drillholes.

A heritage survey was completed in April 2014 to facilitate the drilling for the first half of the 2014 field season.

==> picture [382 x 550] intentionally omitted <==

Figure 3 – BM7/BM7 East Prospect – Diamond Drill Plan (Background image - VTEM CH40)

5

QUARTERLY REPORT MARCH 2014

==> picture [499 x 270] intentionally omitted <==

Figure 4 – BM7/BM7 East Cross Section 7539400mN with planned diamond hole traces (dotted lines)

BM7 East

Shallow RC drilling to the east of the previous known mineralisation at BM7 resulted in the discovery of the BM7 East regolith anomaly (Figure 3 & 4) in the second half of 2013. The copper oxide blanket discovered contains zones of high grade copper oxide mineralisation and the laterally extensive 0.5% copper regolith anomaly extends over 2km in strike. Intersections from the BM7 East area include:

• EPT1820 - 34m @ 0.4% Cu from 52m incl. 8m @ 0.9% Cu from 54m

• EPT1844 - 18m @ 0.4% Cu from 46m incl. 6m @ 0.7% Cu from 54m

• EPT1726 - 18m @ 0.4% Cu from 38m incl. 2m @ 1.2% Cu from 46m

• EPT1734 - 22m @ 0.2% Cu from 42m incl. 2m @ 1.2% Cu from 58m

The BM7 East copper anomalism sits at the base of the weathered zone and is potentially more significant than the initial copper oxide discovery to the west along the McKay Fault (see Figure 3). The tenor and scale of the metal anomalism at BM7 East is significant and it is interpreted to have resulted from the direct weathering of a body, or bodies of copper sulphide mineralisation.

Further RC drilling is planned for the BM7 East area to infill the current section spacing (800m) in search of near surface high grade copper oxide mineralisation. This program is scheduled to commence in June 2014.

==> picture [384 x 188] intentionally omitted <==

Figure 5 – Nifty Copper Deposit – Idealised Cross Section

6

QUARTERLY REPORT MARCH 2014

BM8 Prospect

(Reported pursuant to the 2004 Edition of the JORC Code)

Recent RC drilling at BM7 indicates the 14km long copper system that parallels the McKay Fault zone is strengthening to the south and remains open.

During the September 2013 quarter, a total of 18 shallow RC holes were drilled at the BM8 prospect for a total of 1,478m. These holes returned copper anomalism that was strengthening towards the western end of the drill lines. In addition, the drill lines stepping south from BM7 extended its footprint by a further 3km south towards BM8.

A review of the regional gravity data suggests that the McKay Fault may be located further to the west than the interpreted location from the electro magnetic data. This interpretation implies that the BM8 drill lines should be extended to the west. A heritage survey was competed in April 2014 to extend the drill lines at BM8 further to the west to enable RC/aircore drilling to be completed later in 2014.

==> picture [203 x 295] intentionally omitted <==

==> picture [203 x 295] intentionally omitted <==

Figure 6. BM6 to BM8 Electomagnetics (EM) Figure 7. BM6 to BM8 TMI Magnetics

BM2 Prospect (Encounter 100%)

(Refer ASX announcement 13 December 2013 for BM2 JORC 2012 disclosures, unless otherwise referenced).The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and the form and context of the announcement have not been materially modified.

The BM2 prospect is located on the regionally-extensive Tabletop Fault. This structure is known to be metallogenically important and is closely associated with the position of the Nifty copper deposit, 50km along strike to the north-west (Figure 1). Previous aircore drilling defined a broad zone of copper anomalism (+0.25% Cu) over a strike extent of 800m (Figure 8). The identification of this significant base metal anomaly was made in an area of no outcrop, with up to 20m of transported overburden.

7

QUARTERLY REPORT MARCH 2014

==> picture [401 x 275] intentionally omitted <==

Figure 8 – BM2 Prospect – Drill status plan and geochemical summary.

Drill hole EPT1140, collared in the core of the regolith copper anomaly (April 2012), returned the first sulphide copper intersection at BM2 of 26m @ 0.60% Cu from 100m incl. 10m @ 0.92% Cu from 100m

Diamond drill hole EPT1174 (May 2012) was designed to test for copper sulphide mineralisation at depth below EPT1140. EPT1174 intersected a broad zone of carbonate alteration and veining in a shale unit that contained visible zinc and lead sulphides. Assay results include 201m @ 0.6% Zn from 233m to end of hole including 13m @ 1.3% Zn from 295m; 8m @ 1.5% Zn from 349m; and 29m @ 1.0% Zn from 400m.

(The above exploration results from BM2 are reported pursuant to the 2004 Edition of the JORC Code)

Diamond drilling during the September and December 2013 quarters (co-funded under the WA Government Exploration Incentive Scheme) significantly advanced the BM2 prospect with the discovery of high grade zinc and silver at the prospect. During this period three holes were drilled at BM2 for a total of 1,824m. These holes were drilled on the north-south cross section 388,950mE (see Figure 9).

8

QUARTERLY REPORT MARCH 2014

==> picture [498 x 340] intentionally omitted <==

Figure 9– BM2 Prospect – Schematic Section.

Diamond drill hole EPT1831 (October 2013) intersected a number of zones of highly oxidized, iron rich material containing elevated zinc within an overall downhole length of 140m (Photo 2). Assay results of this gossanous zone are listed in Table 2. These zones graded approximately 1.2% zinc and sit at the contact between the brecciated carbonate and a sulphidic black shale. The ironstone, which starts from a depth of 175m, is interpreted to represent the weathered remnants of a significant body of zinc sulphide mineralisation.

==> picture [464 x 222] intentionally omitted <==

Photo 2– EPT1831 ~205.7 to 211.8m – Highly oxidized, iron rich material containing elevated zinc (~1% Zn)

EPT1854 tested the down-dip extent of the ironstone in EPT1831, and intersected two narrow zones of brecciated and laminated massive Zn-sulphide mineralisation (Photo 3). This zinc sulphide

9

QUARTERLY REPORT MARCH 2014

mineralisation (sphalerite) is located 200m down-dip from the top of the iron rich gossanous material in EPT1831. The zinc sulphide mineralisation sits within a wide shear zone at the contact between carbonaceous shale and a brecciated dolomite adjacent and parallel to the Tabletop Fault (Figure 8). Drillhole EPT1854 is the first hole to test the shale/dolomite mineralised contact below the base of oxidation. Previous shallow aircore and RC drilling along the mineralised contact has intersected Znanomalism over a strike length of 2km which remains open to the south-east (Figure 8).

Chemical assays from these zones combined have returned 0.7m @ 36.5% Zn and 37g/t Ag and have confirmed the high grade zinc/silver potential of the mineral system at BM2. The massive zinc/silver sulphide mineralisation discovered at BM2 remains open in all directions providing obvious follow up drill targets.

==> picture [464 x 166] intentionally omitted <==

Photo 3 - EPT1854 – ~428.3 to 431.6m – 0.3m and 0.1m wide zones of brecciated and laminated massive zinc sulphide mineralisation.

The Company believes there is a strong genetic link between the broad zones of shale hosted, low grade zinc / lead mineralisation drilled in EPT 1174 to the south of the shale/carbonate contact and the high grade zinc sulphide mineralisation drilled in EPT1854. During the March 2014 quarter results from sulphur isotope analysis of the two styles of sulphide mineralisation were received and confirmed the two were the product of the same mineralising fluid / event.

Hole ID	Prospect	Northing (m)	Easting (m)	RL (m)	EOH (m)	Dip	Azi
EPT1702*	BM2	7570625	388946	315	772.7	vert	000
EPT1831	BM2	7571100	389950	315	572.4	-80	180
EPT1853**	BM2	7571342	389947	315	105.1	-60	180
EPT1854	BM2	7571345	389948	315	549.5	-60	180

Table 1: BM2 Diamond Drill hole information

Planned hole locations. Drill hole coordinates GDA94 zone 51 datum to be finalised via handheld GPS (+/-5m), EOH = End of hole depth; m=metre; azi=azimuth. EPT1853 failed at 105.1m following a break in the rod string. EPT1702 commenced diamond drilling at 176m after successful re-entering an existing RC drill hole *EPT1854 was a re-drilled of EPT1853

Hole ID	From(m)	To(m)	Interval(m)	Zinc(%)	Lead(ppm)	Copper(ppm)
EPT1831	205.2	205.3	0.1	0.52	-	-
	205.3	205.7	0.4
and	205.7	206.3	0.6	1.07	-	-
	206.3	206.6	0.3
and	206.6	207.9	1.3	1.12	-	-
	207.9	208.4	0.5
and	208.4	210.6	2.2	1.10	-	-
	210.6	210.9	0.3
and	210.9	215.8	4.9	1.78	-	-
	215.8	218	2.2

10

QUARTERLY REPORT MARCH 2014

Hole ID	From(m)	To(m)	Interval(m)	Zinc(%)	Lead(ppm)	Copper(ppm)
and	218	218.5	0.5	0.96	-	-
	218.5	218.8	0.3
and	218.8	224.1	5.3	1.37	-	-
	224.1	227.4	3.3
and	227.4	229.6	2.2	0.26	114	222
	229.6	231.7	2.1
and	231.7	232.7	1	0.42	132	346
	232.7	237.7	5
and	237.7	238.5	0.8	0.31	110	294
and	259.6	259.7	0.1	0.28	146	178
	259.7	259.9	0.2
and	259.9	260.9	1	0.25	258	113
and	261.5	261.7	0.2	0.43	392	206
and	273.7	274.6	0.9	0.65	220	-
	274.6	275.9	1.3
and	275.9	276	0.1	0.42	191	-
	276	277	1
and	277	280.1	3.1	0.92	-	-
	280.1	280.8	0.7
and	280.8	281.7	0.9	1.05	-	-
	281.7	282.2	0.5
and	282.2	283.4	1.2	1.40	-	-
	283.4	288.7	5.3
and	288.7	290.4	1.7	1.00	-	-
	290.4	290.9	0.5
and	290.9	291.5	0.6	0.56	-	-
	291.5	292	0.5
and	292	292.6	0.6	0.87	-	-
	292.6	294.7	2.1
and	294.7	294.9	0.2	0.35	-	-
	294.9	295.6	0.7
and	295.6	295.8	0.2	1.45	-	-
	295.8	297.2	1.4
and	297.2	298	0.8	1.74	-	-
	298	298.6	0.6
and	298.6	299.6	1	1.29	-	-
	299.6	300.7	1.1
and	300.7	300.8	0.1	1.77	-	-
	300.8	304.2	3.4
and	304.2	304.6	0.4	2.15	-	-
	304.6	306.7	2.1
and	306.7	307.5	0.8	1.03	-	-
	307.5	309.7	2.2
and	309.7	310.4	0.7	1.02	-	-
	310.4	312.6	2.2
and	312.6	313.1	0.5	1.70	-	-
	313.1	315.7	2.6
and	315.7	316.7	1	0.35	-	-
	316.7	318.7	2
and	318.7	319.8	1.1	0.97	-	-
	319.8	320	0.2
and	320	321.1	1.1	0.75	-	-
and	330.7	330.9	0.2	0.18	-	-
and	456.3	458.6	2.3	0.15	620	-

11

QUARTERLY REPORT MARCH 2014

Hole ID	From(m)	To(m)	Interval(m)	Zinc(%)	Lead(ppm)	Copper(ppm)
EPT1854	407.4	408	0.6	0.40	357	-
and	424	434	10	8.19	-	126
incl.	430.05	430.75	0.7	31.92	-	100
and	505.5	506.5	1	0.21	498	-
and	509.6	514.9	5.3	0.16	430	-
and	533.5	537.7	4.2	0.32	988	-

Table 2: EPT 1831 and EPT1854 Assay Summary Intervals listed are composited from individual assays using a nominal cut off of 1% zinc. Zones of core loss denoted as greyed out rows

The 2014 diamond drilling program at BM2 commenced in April. The initial hole in the program was recently completed and was designed to test the up dip position of high grade zinc sulphide mineralisation intersected in EPT1854. The hole intersected a similar alteration zone and anomalous zinc levels (confirmed by handheld Niton XRF) were noted at the carbonate/shale contact but no massive zinc sulphide mineralization was observed. Assay results for this hole will be reported in the June 2014 quarter.

Additional drilling at BM2 is planned for the second half of the year and will test the shale / carbonate contact at the interpreted intersection with an anomalously thick package of shale sediments (the Millenium Target, Figure 10). It is interpreted this position represents the intersection of the key mineralizing structure and margin of a sub basin within the Broadhurst sediments.

==> picture [498 x 341] intentionally omitted <==

Figure 10: VTEM – BM2 / Millenium Prospect

12

QUARTERLY REPORT MARCH 2014

Regional Exploration

(Reported pursuant to the 2004 Edition of the JORC Code)

The success of the copper exploration program at the Yeneena project and the discovery of a large copper-cobalt mineral system at BM1-BM6BM7 has encouraged Encounter to expand the early stage assessment activities over the untested regional copper targets.

A 1,250 line km airborne VTEM survey was completed over the regional targets located in the northwest of the Yeneena project during June 2013. Approximately 500 line km of the survey was completed over the Antofagasta plc earn in tenements and the remaining 750 line km over ground held 100% by Encounter. Final data and images from the VTEM survey were delivered in September 2013 and highlighted a number of targets along the NE structural corridors (Figure 11).

The first reconnaissance drilling along the NE structural corridor was completed during the September 2013 quarter with the objective of identifying evidence of copper mineralising fluids. Eight shallow RC drill holes were competed to provide initial sub-surface geochemical and geological information along this NE structural corridor Chemical analysis of this drilling has confirmed low level but significant copper anomalism is present along this splay structure between the McKay and Vines Faults, which includes the Fishhook target. Encouragingly, initial results indicate that this NE structural corridor may have seen similar copper mineralising fluids to the BM1-BM6-BM7 trend located 20km south.

==> picture [281 x 464] intentionally omitted <==

Figure 11: Preliminary VTEM – NE Structural Corridor

During the December 2013 quarter Encounter was awarded a WA Government Exploration Incentive Scheme (EIS) drilling grant for $150,000 to complete initial deeper drilling of the Fishhook target on the NE structural corridor. The first systematic exploration along the highly prospective NE structural corridor will commence in the September 2014 quarter.

Hammer Earn-in – ENR earning in from Hammer Metals Ltd (formerly Midas Resources Ltd) (E45/3768 and E45/4091)

(Reported pursuant to the 2004 Edition of the JORC Code)

A 560 line km airborne VTEM survey for the area of the Hammer Earn-in tenements will commence in April 2014 with initial results reported in the June 2014 quarter. The survey will provide information about the conductivity and magnetic variability of the basement rocks in this area of extensive sand cover.

An initial interpretation of the available airborne geophysical data indicates the prospective structures and Broadhurst lithologies extend northwest from Fishhook into the Hammer Earn-in tenements. Historical exploration along the prospective trend is limited to a shallow RAB drilling program completed in the 1980s that intersected anomalous copper oxide mineralisation at Lookout Rocks.

13

QUARTERLY REPORT MARCH 2014

CORPORATE

Antofagasta to continuing the earn-in agreement into 2014

In January 2014, Antofagasta advised that it will be continuing the earn-in agreement at the Yeneena project into the second year. Antofagasta is required to spend a minimum of US$4M in the second year to maintain the earn-in. The second year of the earn-in commences in April 2014 and the majority of the year 2 expenditure will be completed in the upcoming field season (April – November 2014).

The Company held cash reserves at $3.1m at 31 March 2014 and received a further $1.9m contribution in April 2014 under the Antofagasta earn-in which will cover the majority of the planned June 2014 quarter exploration expenditure.

NEXT QUARTER HIGHLIGHTS

Activities planned for the June 2014 quarter include:

1. Complete initial diamond drill hole at BM2

2. Commence the planned 7,500m diamond drilling program at BM7 (Antofagasta JV)

3. Initial aircore programs over BM9 and BM10 regional targets (Antofagasta JV) (Figure 2)

4. RC drilling at BM7 East targeting high grade copper oxide mineralisation (Antofagasta JV)

5. Complete VTEM survey within the NW tenements (incl. Hammer Earn-in)

6. Prepare for Fishhook EIS co-funded drilling program

TENEMENT INFORMATION

			Area km2	Interest at start of quarter (31/12/2013)	Interest at end of quarter (31/03/2014)
Lease	**Location **	Project Name
E53/1232	26kmSEof Wiluna	Wiluna South	30.2	60% ofuranium rights	60% ofuranium rights
E36/769	78kmS of Wiluna	Yeelirrie South	48.8	100%	100%
E53/1685	50kmSWof Wiluna	Bellah BoreEast	46.0	100%	100%
E37/1148	77km Eof Leinster	Darlot	212.4	100%	100%
E45/2500	266km NEof Newman	Paterson	163.4	100%	100%
E45/2501	277km NEof Newman	Paterson	41.4	100%	100%
E45/2502	261km NEof Newman	Paterson	216.3	100%	100%
E45/2503	253km NEof Newman	Paterson	76.3	100%	100%
E45/2561	276km NEof Newman	Paterson	86.0	100%	100%
E45/2657	246km NEof Newman	Paterson	222.8	100%	100%
E45/2658	245km NEof Newman	Paterson - AntofagastaEarn-in	222.8	100%	100%
E45/2805	242km NEof Newman	Paterson - AntofagastaEarn-in	209.7	100%	100%
E45/2806	251km NEof Newman	Paterson	63.7	100%	100%
E45/4230	246km NEof Newman	Paterson	92.4	0%	100%
E45/3232	295km NEof Newman	Paterson -StBarbaraEarn-in	22.3	0%,ENRearning70%	0%,ENRearning70%
E45/3308	293km NEof Newman	Paterson -StBarbaraEarn-in	38.3	0%,ENRearning70%	0%,ENRearning70%
E45/3768	241km NEof Newman	Paterson - MidasEarn-in	187.8	0%,ENRearning70%	0%,ENRearning70%
E45/4091	253km NEof Newman	Paterson - MidasEarn-in	257.7	0%,ENRearning70%	0%,ENRearning70%

14

QUARTERLY REPORT MARCH 2014

==> picture [341 x 366] intentionally omitted <==

Figure 12: Yeneena Project Location Plan

==> picture [108 x 32] intentionally omitted <==

________

Will Robinson Managing Director

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.

Competent Person’s Statement for Exploration Results included in this report that were previously reported pursuant to JORC 2004:This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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 2004 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 his information in the form and context in which it appears.

15

QUARTERLY REPORT MARCH 2014

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 sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. The BM2 project was sampled using Diamond Drilling (DD), with a total of three drill holes drilled for 1895m. The diamond drill program was drilled on a north – south section at a spacing of 250 – 500m. Onsite handheld Niton XRF instruments were used to systematically analyse diamond drill core, with a single reading taken at every meter mark, except in the case of core loss. The host lithologies were targeted and veins and obvious signs of mineralisation avoided. These results are only used for onsite interpretation and the analyses are not reported.
	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 Diamond core was drilled with PQ, HQ and NQ2 size and sampled as half core or fillet to produce a bulk sample for analysis. Intervals varied from 0.1 – 4m and were selected on the basis of interpreted geological boundaries, degree of mineralisation during geological logging, core loss and the results of systematic handheld Niton XRF sampling. These samples were sent to Ultratrace Laboratories in Perth, where they were dried, crushed, pulverised and split to produce a sub – sample for ICP – OES and ICP – MS analysis.
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). Diamond drilling accounts for 100% of the program. Drill holes were completed using PQ and HQ triple tube and conventional NQ2 sized core. HQ and NQ core was orientated where possible.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed Diamond core recoveries/core loss was recorded during drilling and noted during geological logging. Significant core loss occurred in EPT1831 whilst no significant sample recovery problems are thought to have occurred in any other holes drilled during the BM2 diamond drilling program.
	Measures taken to maximise sample recovery and ensure representative nature of the samples Driller’s used appropriate measures to maximise diamond sample recovery, including the use of triple tube drilling. Core loss was recorded by ENRL geologists and sampling intervals were not carried through core loss.
	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 diamond drill program.

16

QUARTERLY REPORT MARCH 2014

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. Geological logging was carried out on all diamond drillholes, with lithology, alteration, mineralisation, structure and veining recorded. Where core was orientated, structural measurements were taken.
	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.
	The total length and percentage of the relevant intersections logged All drillholes were logged in full with the exception of a single diamond drill hole pre-collar (EPT1854), which was rock rolled from surface to a depth of 105.1m.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. Diamond core was cut on site and in Perth by Encounter Resources Ltd using automatic core saws. Diamond core will be either half-cored or filleted depending on the degree of mineralisation identified during geological logging and systematic handheld Niton XRF sampling. Samples are collected from the same side of the core.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Not applicable.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Sample preparation will be completed at Ultratrace 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 a 4 acid digest with an ICP – OES and ICP – MS finish.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Field QC procedures involve the use of commercial certified reference material (CRMs) for assay standards and in house blanks. The insertion rate of these averaged 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 duplicates/second half sampling were utilised during this diamond drilling program.
	Whether sample sizes are appropriate to the grain size of the material being sampled. The sample sizes were considered appropriate to give an accurate indication of base metal anomalism and mineralisation at BM2.
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 will be digested and refluxed with hydrofluoric, nitric, hydrochloric and perchloric acids (four acid digest). This digest is considered to approach a total digest for many elements, although some refractory minerals are not completely digested. Analytical methods used were ICP – OES (Al, Ca, Cu, Fe, Mg, Mn, Ni, P, S, Zn, Tl and Ti) and ICP – MS (Ag, As, Bi, Mo, Pb, U and Co). Internal laboratory QC procedures highlighted original analysis of samples EX189702 and EX189704 as potentially underestimating zinc grade due to partial digest of the sample. As a result these two samples were re-analysed using a sodium peroxide fusion digest to ensure complete digestion of the sample material. The results for the fusion digest are contained within this report. 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. Two handheld XRF instruments were used to systematically analyse onsite. The principal instrument used was a Thermo Scientific XL3t 950 GOLDD+. A Thermo Scientific XL3t 500 GOLDD+ was also used infrequently. Reading times ranged from 20 – 25 seconds. The instruments are serviced and calibrated at least once a year.

17

QUARTERLY REPORT MARCH 2014

Criteria	JORC Code explanation Commentary
Quality of assay data and laboratory tests continued	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 involved the use of internal lab standards using certified reference material, blanks, splits and replicates as part of in house procedures. The Company also submitted an independent suite of CRMs, blanks and field duplicates (see above).
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. Results contained within this announcement have been verified by James Purchase – Senior Exploration Geologist.
	The use of twinned holes. No twinned holes were drilled at BM2 during this drill program.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Primary data was collected for the BM2 project by hand on printed forms and on toughbook computers using Excel templates and Maxwell Geoservice’s LogChief software. Data collected was sent offsite to the Company’s Database (Datashed software), which is backed up daily.
	Discuss any adjustment to assay data. No adjustments or calibrations will be made to any assay data collected at BM2.
Location of data points	Accuracy and quality of surveys used to locate drillholes (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 used single shot readings during drilling. These were taken at approximately every 30m 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 using VTEM data at a later stage.
Data spacing and distribution	Data spacing for reporting of Exploration Results. The diamond drill program was drilled on a north – south section at a spacing of 250 – 500m.
	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 at BM2 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. Compositing of intervals of up to 4m was applied to the BM2 diamond core samples.
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. The orientation of key structures and any relationship to mineralisation at BM2 has yet to be identified.
	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. No sampling bias resulting from a structural orientation is known to occur at BM2 at this stage.
Sample security	The measures taken to ensure sample security. The chain of custody is managed by the Company. Samples are delivered by Encounter personnel to the Ultratrace assay laboratory in Perth.
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 BM2.

18

QUARTERLY REPORT MARCH 2014

SECTION 2 REPORTING OF EXPLORATION RESULTS

	SECTION 2 REPORTING OF EXPLORATION RESULTS
Criteria	JORC Code explanation Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The BM2 prospect is located within Exploration Licenses E45/2500 and E45/2501. Encounter has a 100% interest in the tenements. These two tenements are subject to 1.5% Net Smelter Royalty to Barrick Gold of Australia. E45/2500 and E45/2501 are contained completely within land where the Martu People have been determined to hold native title rights. No historical or environmentally sensitive sites have been identified in the area of work.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties. Exploration prior to Encounter in the region was minimal and limited to shallow RAB and some percussion drilling completed in the mid – 2000s, much of which had been incompletely sampled, assayed, and logged. Historically samples were mostly composited into large intervals. This early work was focused on gold rather than base metal exploration.
Geology	Deposit type, geological setting and style of mineralisation BM2 is situated in the Proterozoic Paterson Province of Western Australia. A simplified regional stratigraphy of the area comprises the Palaeo- Proterozoic Rudall Complex, unconformably overlain by the Neo-Proterozoic Coolbro Sandstone. On top of this is the Broadhurst Formation, which hosts the BM2 prospect. The BM2 project is considered prospective for SEDEX – style Zn, Pb and Cu mineralisation. Anomalism and mineralisation observed to date at BM2 includes a large base metal (Zn, Pb and Cu) regolith anomaly as well as primary sulphide mineralisation at depth. Significantly, an apparent association between Zn – Pb mineralisation and a shallowly NNW dipping siderite alteration envelope adjacent to the regionally extensive Tabletop has been identified to occur in the area.
Drill hole information	A summary of all information material to the 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 tabulations in the body of this announcement.
Data aggregation methods	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. Zinc assays reported within this announcement have a lower cut-off of 1% zinc.
	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. The aggregated interval reported from EPT1854 was calculated using a length weighting method.

19

QUARTERLY REPORT MARCH 2014

Criteria	JORC Code explanation	Commentary
Data aggregation methods	The assumptions used for any reporting of
continued.	metal equivalent values should be clearly	Not applicable for this announcement.
	stated.
Relationship between	These relationships are particularly important in
mineralisation widths and	the reporting of exploration results.
intercept lengths	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,	The geometry of the mineralisation is not yet known due to insufficient deep drilling in the targeted area.
	there should be a clear statement to this effect
	(e.g. ‘down hole length, true width not known’).
Diagrams	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	Refer to body of this announcement.
	limited to a plane view of drill hole collar
	locations and appropriate sectional views.
Balanced Reporting	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	Zinc, Lead and Copper results for all samples grading above 1% Zn were reported from EPT 1831 and EPT1854.
	Results.
Other substantive	Other exploration data, if meaningful and
exploration data	material, should be reported including (but not
	limited to): geological observation; geophysical
	survey results; geochemical survey results;	All meaningful and material information has been
	bulk samples – size and method of treatment;	included in the body of the text. No metallurgical or
	metallurgical test results; bulk density,	mineralogical assessments have been completed.
	groundwater, geotechnical and rock
	characteristics; potential deleterious or
	contaminating substances.
	The nature and scale of planned further work
	(e.g. tests for lateral extensions or depth	At this stage mineralisation identified during the
	extensions or large – scale step – out drilling).	diamond drill program is indicative and requires
Further Work	Diagrams clearly highlighting the areas of possible extensions, including the main	further work to test for coherency, as well as for lateral and vertical extensions. A work program is
	geological interpretations and future drilling	currently in the planning phase and will be reported
	areas, provided this information is not	when completed.
	commercially sensitive.

20

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10, 17/12/10

Name of entity

	Name of entity
	Encounter Resources Limited
	ABN 47 109 815 796 Consolidated statement of cash flows
			31 March 2014
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 - R&D tax concession refund - Other NetOperating Cash Flows			Current quarter $A’000	Year to date (9 months) $A’000
			- (715) - - (139) - 19 - - - -	- (3,229) - - (633) - 84 - - 237 146
			(835)	(3,395)
Cash flows related to investing activities 1.8 Payment for purchases: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other – Farm-in cash calls received Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			- - (107) - - - - - 147	- - (114) - - - - - 1,798
			40	1,684
			(795)	(1,711)

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(795)	(1,711)
Cash flows related to financing activities 1.14 Proceeds/(refunds) from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – capital raising costs Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(795) 3,891 -	(1,711) 4,807 -
	3,096	3,096

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		176
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.23 - Remuneration of Directors.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Expenditure for the quarter of $234,392 ($1,991,496 year to date) incurred by other entities pursuant to a farm-in agreement on projects held by the Company have been included at 1.2(a).

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	1,700
	-
	-
	200
Total	1,900

Note – On 22 April 2014 the Company received US$1,809,599 from Antofagasta in respect of the proposed work program for the period 1 April 2014 to 30 June 2014, pursuant to the farm-in agreement announced to ASX on 23 April 2013. Estimated exploration costs of the proposed farm-in work program for the June quarter have been included in 4.1.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	1,096	842
5.2 Deposits at call	2,000	3,049
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	3,096	3,891

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	-	-	-	-
	E45/4230	Granted	0%	100%

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-
	- -	- -
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs (c) Released from Escow	132,543,350	132,543,350
	- - -	- - -
7.5 +Convertible debt securities (description)	-	-

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Mining exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	- -	- -
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	5,425,000 550,000 550,000 1,450,000 750,000 750,000 200,000	- - - - - - -		Exercise price $1.35 $0.80 $0.40 $0.30 $0.39 $0.21 $0.31		Expiry date 22/11/2014 30/9/2015 31/5/2016 30/11/2016 30/11/2017 31/5/2017 31/1/2018
	200,000	-		$0.31		31/1/2018
	-	-
	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [118 x 48] intentionally omitted <==

Sign here:

Date: 24 April 2014 (Company secretary)

Print name: Kevin Hart

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Cash Flow Statements apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

17/12/2010