ENCOUNTER RESOURCES LIMITED — Investor Presentation 2009

May 21, 2009

ASX : ENR

AMEC Congress Perth WA 21-22 February 2009

1

Summary

• Uranium, Base Metals and Gold

 10 million lbs U3O8 Inferred Resource discovered at Hillview

• Change of WA policy for uranium mining – a big step forward

 Major land holder in the Yeelirrie and Kintyre districts

• Extensive base metals project portfolio in the Bangemall Basin

• Main focus in 2009 is the Paterson Province (Copper & Uranium)

2

People

Paul Chapman - Chairman Will Robinson - Managing Director Peter Bewick - Exploration Director Jon Hronsky - Non-Executive Director Kevin Hart - Company Secretary

Experienced team of former WMC / BHP Billiton executives

3

Project Portfolio

1. PATERSON PROVINCE

High quality uranium and copper targets close to Kintyre and Nifty

2. YILGARN URANIUM

Inferred resource of 10.6 million lbs U3O8 at Hillview plus Yeelirrie/Lake Way satellites

3. BANGEMALL BASIN SEDEX ‘Century style’ base metals targets in under-explored Proterozoic basin

4

Yilgarn Uranium

A future production centre for uranium – ENR well positioned

5

Hillview Project

Large scale calcrete hosted uranium deposit

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•
JORC Inferred Resource of 27.6 million
tonnes, averaging 174ppm U3O8
(100ppm cut off) for a contained content
of 10.6 million lbs U3O8
•
Entire resource within 15 metres of
surface
•
Consistent body of mineralisation with
minimal internal dilution
(see ASX release dated 10 July 2008)
Encounter 80% / Avoca 20%
6
7km
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Project Portfolio

1. PATERSON PROVINCE High quality uranium and copper targets close to Kintyre and Nifty

2. YILGARN URANIUM

Inferred resource of 10.6 million lbs U3O8 at Hillview plus Yeelirrie/Lake Way satellites

3. BANGEMALL BASIN

SEDEX ‘Century style’ base metals targets in under-explored Proterozoic basin

7

Unconformity Uranium Districts

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300,000
Athabasca Basin Alligator River Region Paterson Province
(Canada) (NT) (WA)
Discovery 1947 Discovery 1949 Discovery 1985
200,000
100,000
?
-
Source: World Nuclear Association website, Australian Uranium Association website, ERA Resource Statement 30 Jan 09.
Athasasca Basin excludes production prior to 1995.
The Paterson Province is the most underexplored
unconformity uranium region in the world
8
McArthur RiverCigar LakeRabbit LakeMcClean LakeKey LakeMidwestCluff Lake RangerJabilukaKoongarraNabarlekRum Jungle KintyreMt Cotton
tonnes Pre Mined Reserves & Resources
8
O
3
U
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Paterson Province

• Immature exploration field

• Extensive sand cover

• No systematic uranium exploration

• Underexplored copper potential

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95%
5%
9
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Paterson Province

• 1500 km[2] in under-explored, highly endowed mineral belt

• Key structural position

• New datasets:

• Airborne EM survey (2008)

• Multi-element re-analysis from 18,000m of historical drilling (2008)

• High quality uranium and copper targets identified

JV with Barrick Gold ENR earning 75% interest

10

Paterson Province

The BM1 Target :

• Located on a NNE trending splay structure to the McKay Fault

• Coincident magnetic and AEM anomaly

• Copper regolith anomaly over 1.2km long (grades up to 0.35% Cu)

• Scale and nature of the anomalism indicates the potential for a major copper deposit

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BM1
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11

Paterson Province – BM1

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12
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Paterson Province – BM1

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A A’
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Paterson Province

The BM5 Target :

• Potentially significant base metals gossan identified

• Fe-Mn enriched body over 1km long

• Associated with highly elevated CuZn-Pb-Ag anomalism

• Located adjacent to a major regional fault

• Sand covered

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BM5
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14

Paterson Province – BM5

15

Paterson Province – BM5

16

Corporate Information

Issued Capital: 69m Ordinary Shares 3m Employee Options Market Cap: $11.6m @ $0.17/share Cash (31/3/09): $2.7m

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17
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The Drivers for Investment…

• Largest exploration landholder in the region that hosts Kintyre uranium deposit & Nifty copper mine.

• 10 million pound, near surface U3O8 Inferred Resource at Hillview

• Experienced and dedicated team - demonstrated rapid project progression

• Active explorer with an exciting program at the Paterson Project in 2009

 Drilling at the Paterson Project has commenced

18

Disclaimer & Compliance Statement

This presentation has been prepared by Encounter Resources Limited (“Encounter”). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Encounter has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Encounter.

Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to Encounter. In particular, they speak only as of the date of this document, they assume the success of Encounter’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned to not place undue reliance on such forwardlooking statements.

Encounter makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, Encounter and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Encounter and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

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 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 presentation of the matters based on his information in the form and context in which it appears.

The information in this presentation that relates to Mineral Resources for the Hillview Uranium Project, is based on information compiled by Mr Neil Inwood who is employed by Coffey Mining Ltd. Mr Peter Bewick from Encounter has consented to a joint sign off for the Resource, Mr Bewick taking responsibility for the quality and reliability of the drillhole database and Mr Inwood is responsible for the grade estimate and classification of the resource. Messrs Inwood and Bewick have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Bewick has reviewed the form and context in which the resource information appears and consents to the inclusion in this presentation.