ENCOUNTER RESOURCES LIMITED — Investor Presentation 2014

Aug 3, 2014

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Investor Update Diggers and Dealers Mining Forum August 2014

ASX : ENR

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INVESTMENT SUMMARY
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Greenfields Cu Discovery – BM1-BM7

• Large scale Cu system >14km long and growing

• $20m farm-in with Antofagasta plc (2 tenements)

Yeneena Project

• Key ground position secured (>1850km[2] )

High Grade Zinc Sulphides - BM2

• Zinc/silver in first diamond hole into key geological contact – Nov 2013

• 0.7m @ 36.5% zinc and 37g/t silver (see ASX announcement 13 Dec 2013)

• 2km long zinc oxide anomaly

Well Funded and Active

• Antofagasta earn-in –US$4m in year 2 to maintain earn-in

• ~$3.8m cash – 30/06/14

• EIS 2014 co-funding grants $425,000

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CORPORATE INFORMATION
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Board
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Experienced team - former WMC

Paul Chapman - Chairman Will Robinson - Managing Director Peter Bewick - Exploration Director Jon Hronsky - Non-Executive Director Kevin Hart / Dan Travers - Company Sec.

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Issued Capital
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132.5m Ordinary Shares 10.2m Employee Options

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Market Cap.
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A$34m @ A$0.26/share

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Cash
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$3.8M at 30 June 14 and a further $1.5M earn-in contribution received in July 2014

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YENEENA PROJECT
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Major land position amongst giant mineral deposits

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HISTORICAL DISCOVERIES
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Nifty - 1980
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Telfer – 1972
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Kintyre - 1985

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YENEENA PROJECT
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– Under cover exploration a new search space

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WHY THE PATERSON?
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Sediment Hosted Copper Giant Orebodies
Central Africa Copper Deposits Paterson Mt Isa
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Province
Endowment Endowment
170MT Copper 2.3MT Copper
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Is Nifty the giant of the Paterson?
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5 includes basement hosted deposits
0
MT Cu (pre mined resources)
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BM1 - BM7 PROSPECTS
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Copper mineral system 14km long and growing

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5km
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BM1

Coherent zone of near surface Cu oxide mineralisation 10m @ 6.8% Cu from 32m 16m @ 3.2% Cu from 26m

50m @ 1.1% Cu from 12m

BM7

6 x 3km copper system First joint diamond drill program intersected high grade Cu sulphide

5m @ 2.5% Cu incl. 0.7m @ 11% Cu

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

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14KM LONG SECTION BM1-BM7
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Shallow drilling defines major new Copper Cobalt mineral system

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(refer ASX announcement 27 Nov 2013)

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BM1 COPPER DISCOVERY
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• Significant copper intersected from recent in-fill and extensional drilling at the BM1 Prospect. Latest assay results include:

• 45m @ 1.4% Cu from 12m incl. 16m @ 3.2% Cu from 26m

• 18m @ 3.2% Cu from 32m incl. 9m @ 6.0% Cu from 37m

• 50m @ 1.1% Cu from 12m incl. 19m @ 2.3% Cu from 31m

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• Supergene Cu provides potential southeast vector towards primary Cu

• Diamond drilling at BM1 to commence August 2014

• Initial oxide leach testing to be completed on in September 2014 qtr

(refer ASX announcement 15 July 2014)

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• Tenement granted in August 2012

• Attracted quality partner - copper major Antofagasta plc

• Shallow drilling outlined 6km x 3km copper system

• First joint diamond drilling intersected high grade copper sulphides

• 7,500m diamond drilling program in progress

(refer ASX announcement 27 Nov 2013)

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600m Nifty Sulphide
Deposit
(~1MT Cu Metal)
350m at same scale
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REGIONAL TARGETS – ANTO. JV
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• Antofagasta earn-in regional targets adjacent to BM1-BM7 copper system

• Untested parallel target 1.5km west of BM1-BM7 copper trend

• Structural targets identified west and north west at BM9 & BM10

• First aircore drill testing July 2014

• Infill RC drilling at BM7 East - August 2014

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FISHHOOK PROSPECT
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14km
2m @ 0.3% Cu
from 72m
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Untested targets north of BM1 BM7

• VTEM survey completed June 2013

• Significant north-east trending structure that mirrors the BM1-BM7 copper system

• Shallow sand cover with minimal previous exploration

• 10 hole (1026m) RC drill program confirmed copper mineralising fluids along Fishhook structure

• EIS co-funded drilling grant ($150,000)

• 100% Encounter held ground

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BM2/MILLENNIUM ZINC PROSPECT
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Large Scale Zinc Mineral System

• High grade zinc/silver intersected in the first diamond hole into key geological contact

• 0.7m @ 36.5% zinc and 37g/t silver

• Zinc regolith anomalism along this target contact extends over 2km

• Upcoming drilling at the interpreted intersection of the key mineralising structure (Tabletop Fault) and the margin of a sub basin within the Broadhurst sediments

• 100% Encounter held ground

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BM2 – ZINC PROSPECT
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EIS drilling intersects massive zinc sulphide mineralisation

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(refer ASX announcements 19 Nov 2013 and 13 Dec 2013)

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STIRLING COPPER/GOLD PROSPECT
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Magnetic target prospective for Telfer style Cu Au mineralisation - EIS co funded drilling to commence Sept 2014

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LOOKOUT ROCKS CU PROSPECT
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560 line km airborne VTEM survey completed in April 2014 1980s RAB drilling intersected anomalous Cu oxide mineralisation

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ENR earning in from Hammer Metals Ltd

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ACTIVE PROGRAM AHEAD
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2014	Jul	Aug	Sep	Oct	Nov
Antofagasta earn-in
Diamond drilling
Aircore/RC
Fishhook(100% ENR)
Aircore
RC/Diamond(EIS $150k)
Stirling (ENR earn-in)
Aircore
RC/Diamond(EIS $125k)
Millennium Zn(100% ENR)
RC/Diamond (EIS $150k)

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SUMMARY
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– Yeneena Australia’s Next Great Mineral District?

• Large scale Cu system over 14km long and growing

• 2 Key ground position secured (>1850km )

• Major mining company funding through - Antofagasta farm in

• Massive zinc sulphides at 100% owned BM2

• Well funded & highly active greenfields explorer

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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 forward-looking 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.

Certain exploration drilling results for BM1, BM2 and BM7 are first disclosed under JORC code 2004. It has not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed.

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 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.

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