ENCOUNTER RESOURCES LIMITED — Investor Presentation 2015

Aug 2, 2015

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Diggers and Dealers Kalgoorlie - 4[th] August 2015

ASX : ENR

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Company Snapshot

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

134.5m Ordinary Shares (Top 40 shareholders hold 66%) 7.4m Employee Options

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Issued Capital
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A$23m @ A$0.17/share Market Cap. Cash $1.4m at 30 June 2015 Investments $1.6m at 30 June 2015

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Yeneena Project – Copper, Zinc
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Yeneena Project
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Up to US$6m Antofagasta - Lookout Rocks Prospect Farm-in Funding Up to A$2m Hampton Hill – Millennium Prospect

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Creating Value Through Greenfield Exploration…

• Leading edge, under cover greenfield exploration

• Major land holding in proven Proterozoic Paterson Province

• Sharing risk at appropriate points to maximise exploration upside

 New copper and zinc discoveries made by ENR

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…in a New Search Space…

• Sand covered mineral belt with proven fertility

• Outcropping discoveries made in 1970-80s (Nifty, Telfer, Kintyre)

• Minimal subsurface exploration activity up to 2005

• Encounter has discovered two new mineral systems so far:

• BM1-BM7 Copper

• Millennium Zinc

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…in the Right Commodities – Copper and Zinc…

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Forecasting ~45% increase in Cu demand by 2030

“As copper porphyries mature, a significant deficit is expected to emerge beyond 2018 – grade decline, higher strip ratios and longer cycle times underpin an attractive industry structure’’ - Mike Henry, President, HSE, Marketing & Technology – Nov 2014

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Need for an additional +10 million tonnes of copper by 2030, which is the equivalent of 50 mines the size of Olympic Dam

Source: BHP Billiton, Wood Mackenzie Note: Production from current operating mines and committed new projects

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Forecasting ~25% increase in Zn demand by 2019

“Market expectations of zinc demand growth are in excess of 5% per annum for the next five years”

“what we are seeing now is a recognition that not only Century but a number of other mines are coming to an end," Andrew Michelmore, CEO MMG – Feb 2014

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…in a Region that Produces Big Deposits…

Northern Cu Corridor Opens

• Visible blebs Cu sulphide - first ever drilling

• Central-African copper belt setting

• Farm-in with Antofagasta plc

New Zinc Discovery

• High grade mineralisation in early drilling

• Zinc system +3km long and open

• HMM earning up to 25%

Greenfields Cu Discovery

• Large scale Cu system >14km long

• 140m @ 0.2% Cu in final 2014 drill hole

• 100% ENR

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BM1 / BM7 – Copper Project

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 Cu mineral system BM1-BM7 containing high grade Cu sulphide 5m @ 2.5% Cu from 388m* 140m @ 0.2% Cu from 144m

(refer ASX announcements 15 July 2014 & 31 October 2014) (*Reported pursuant to the 2004 Edition of the JORC Code )

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Untested Northern Copper Corridor Opens Up

• Fishhook and Lookout Rocks

• Shallow sand cover with minimal previous exploration

• VTEM surveys completed 2013 & 2014

• First diamond drill program at Fishhook - copper sulphides in a traditional Central-African copper belt setting

• Lookout Rocks – US$6 million farm in with Antofagasta plc

• 5000m Aircore/RC program Aug 15

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Nifty Cu Telfer Au/Cu
(1981) (1972)
Lookout Rocks
Lookout Rocks
Millennium Zn
(2014)
Fishhook
Fishhook
BM1-BM7 Cu
(2010)
20km
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New Greenfield Zinc Discovery at Millennium…

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25km
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• Large +3km long zinc system

• First order structural address at intersection of major NE and basin forming NW structure

• High grade mineralisation in early drilling

• Hampton Hill Mining (HHM) earning up to 25% by providing up to A$2 million

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Massive zinc sulphides intersected in early drilling...

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Brecciated and laminated massive zinc sulphide 0.7m @ 36.5% Zn
Gossan zone from 408.9m to 419.2m in EPT2203 Gravity Image
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(refer ASX announcements 12 January 2015 & 13 December 2013)

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Thick, Depth Extensive Zinc Gossan identified…

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(refer ASX announcement 17 June 2015)

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Zinc sulphides intersected along 3km trend...

EPT 1854 (~430m) Brecciated and laminated massive zinc sulphide 0.7m @ 36.5% Zn (HQ drill core)

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EPT2198 (~235.6m) Sphalerite (brown) and pyrite in brecciated carbonate 1.4m @ 10% Zn (core sample width approx. 50mm )

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Gravity Image

(refer ASX announcements 12 January 2015 & 13 December 2013)

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RC and Diamond Drill Program to Commence Sept 2015

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(refer ASX announcement 9 July 2015)

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Yeneena - Australia’s Next Great Mineral District?

• Systematic frontier exploration to create enduring value

• Exposure to large scale copper and zinc exploration upside

• Risk sharing at appropriate points to maximise return for ENR shareholders

• Funding supplemented through Antofagasta and Hampton Hill farm-ins

• Major land position with proven fertility (1800km[2] )

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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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