ENCOUNTER RESOURCES LIMITED — Investor Presentation 2015

Feb 24, 2015

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RIU Explorers Conference Fremantle - February 2015

ASX : ENR

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INVESTMENT SUMMARY
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Greenfields Cu Discovery – BM1-BM7

• Large scale Cu system >14km long

• Farm-in with Antofagasta plc

Yeneena Project

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

Fishhook Opens Northern Cu Corridor

• Visible blebs of Cu sulphide in first ever drill holes

• Traditional Central-African copper belt setting

• Key ground position secured (100% ENR)

New Zinc Discovery - Millennium

• High grade mineralisation in early drilling

• Zinc system +3km long and open

• Near surface with large tonnage potential

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CORPORATE INFORMATION
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Board
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Issued Capital
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Market Cap.
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Cash
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Paul Chapman - Chairman Will Robinson - Managing Director Peter Bewick - Exploration Director Jon Hronsky - Non-Executive Director Kevin Hart / Dan Travers - Company Sec. 134.5m Ordinary Shares 7.4m Employee Options A$15m @ A$0.11/share $2.1M at 31 Dec 2014

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COPPER & ZINC OUTLOOK STRONG
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“The outlook for copper demand remains compelling as emerging economies transition to consumption-led growth. Beyond 2018, a significant deficit is expected to emerge’’ - Mike Henry, President, HSE, Marketing & Technology – Nov 2014

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

Forecasting ~45% increase in Cu demand by 2030

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

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

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“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

• Forecasting ~30% increase in Zn demand by 2019

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NEW EXPLORATION FRONTIER
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Nifty Cu Telfer Au/Cu
(1981) (1972)
Millennium Zn
(2014)
BM1-BM7 Cu
(2010)
Kintyre U
(1985)
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• 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

• Sand covered mineral belt with proven fertility

• Demonstrated frontier exploration opportunity

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NIFTY CROSS SECTION
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TND8 THRD781 THRD753 THRD647 THRD752 TND5 TND1
300
200
100
0
-100
100 m
50,000 50,200 50,400 50,600
Northing
Hanging wall Pyrite marker bed Nifty member Footwall beds
After Anderson
Fault Diamond drill core trace
Reduced Level (m)
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NIFTY CROSS SECTION
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S TND8 THRD781 THRD753 THRD647 THRD752 TND5 TND1 N
300
200
100
Cu
0
-100
100 m
50,000 50,100 50,200 50,300 50,400 50,500 50,600
Northing
+0.1% P contour
E1-Fe-Mg carbonate S3-Hydrothermal Quartz-Dolomite
Primary Cu +0.1% Cu
alteration (qtz-dol-cpy-py-apa)
After Anderson
Fault Diamond drill core trace Primary Cu ore body at +1.5% Cu
Reduced Level (m)
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BM1 - BM7 Cu PROSPECTS
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Copper mineral system 14km long

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 containing high grade Cu sulphide

• 5m @ 2.5% Cu from 388m*

140m @ 0.2% Cu from 144m

(refer ASX announcements 15 July 2014 & 30 January 2015)

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

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BM7 Cu PROSPECT
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1km BM7 Diamond drilling status plan over magnetics

(refer ASX announcement 30 January 2015)

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Cu sulphide mineralisation and phosphorous anomalism
(proxy for apatite alteration) within the host carbonate
stratigraphy strengthening east towards an interpreted
steep NW trending structure.
EPT 2158 - 250.4m to 250.7m assays 8.9% copper
(refer ASX announcement 30 January 2015)
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Cu sulphide mineralisation and phosphorous anomalism (proxy for apatite alteration) within the host carbonate stratigraphy strengthening east towards an interpreted steep NW trending structure.

Interpreted cross section 7539700mN through BM7

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BM7 EAST
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The alteration and mineralisation at BM7 East similar to immediate hangingwall of the Nifty copper deposit. Large geochemical footprint, untested at depth.

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Plan view of alteration and mineralisation through BM7 East – background image Ch40 VTEM

(refer ASX announcement 30 January 2015)

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NORTHERN CORRIDER OPENS UP
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Nifty Cu Telfer Au/Cu
(1981) (1972)
Millennium Zn
(2014)
BM1-BM7 Cu
(2010)
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• Fishhook and Lookout Rocks

• Shallow sand cover with minimal previous exploration

• VTEM surveys completed 2013 & 2014

• First drilling completed at Fishhook in 2014

• Held 100% ENR

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

• First diamond drill program - copper sulphides within highly oxidised ‘red-rock altered’ sediments

• Key elements of the sediment hosted copper model in a traditional CentralAfrican copper belt setting

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‘Red-rock’ altered sediments from the Moby Dick Prospect ~242-248m
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(refer ASX announcement 30 September 2014)

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LOOKOUT ROCKS
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Geology

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Magnetics

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Lookout Rocks
See Next Slide
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LOOKOUT ROCKS
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• VTEM survey completed in 2014

• Historical exploration at the project is limited to a shallow RAB drilling program completed in the 1980s that intersected anomalous copper oxide mineralisation

• Structures that extend SW from the Nifty copper deposit cross-cut the major basinforming faults at Lookout Rocks

• EIS co-funded drilling grant for 2015 includes aircore, RC and diamond drilling (up to $150,000)

(refer ASX announcement 30 January 2015)

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MILLENNIUM ZINC DISCOVERY
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Nifty Cu Telfer Au/Cu
(1981) (1972)
Millennium Zn
(2014)
BM1-BM7 Cu
(2010)
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• Greenfield zinc discovery made in 2013/14

• Open +3km long system

• First order structural

• address

• Large tonnage potential at easily explorable depth

• High grade mineralisation intersected in early drilling

• Remains open along strike and at depth

• Large scale untested gravity anomaly adjacent to zinc mineralisation

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MILLENNIUM ZINC DISCOVERY
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Nifty Cu Telfer Au/Cu
(1981) (1972)
Millennium Zn
(2014)
BM1-BM7 Cu
(2010)
First order structural setting at
intersection of major NE and
basin forming NW structure
(refer ASX announcement 12 January 2015)
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MILLENNIUM ZINC DISCOVERY
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Gravity

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(refer ASX announcement 12 January 2015)
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MILLENNIUM ZINC DISCOVERY
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Diamond drilling has identified two distinct styles : Target 1 - Zinc mineralisation adjacent to the carbonate – shale contact Target 2 - Shale hosted Zinc-Lead mineralisation

(refer ASX announcement 12 January 2015)

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MILLENNIUM - TARGET 1
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The mineralisation adjacent to the carbonate – shale contact is strengthening with depth and remains open at depth and along strike

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Photo 1: Millennium prospect – EPT2198 (~235.6m) Sphalerite (brown) and pyrite in brecciated carbonate core sample width approx. 50mm

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Photo 2: Millennium prospect – EPT2198 (~295m) Sphalerite (light brown) and minor pyrite in brecciated shale - 6.6% Zn core sample width approx. 50mm

(refer ASX announcement 12 January 2015)

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MILLENNIUM – TARGET 2
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Shale hosted Zinc-Lead Mineralisation - Significant 0.5mgal density anomaly to the south of the mineralised halo intersected in the Nov14 diamond drilling - ‘Model Body 1’

(refer ASX announcement 12 January 2015)

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MILLENNIUM – TARGET 2
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Untested gravity anomaly ‘Model Body 1’ could be responding to a potential accumulation of more intense sulphide mineralisation

(refer ASX announcement 12 January 2015)

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2014 MILESTONES
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• 22,000m aircore/RC drilling, 9,500m diamond drilling completed

 Significant advancement in the understanding of vectors to high grade Cu mineralisation that has defined multiple drill targets  Thick zone of copper sulphide at BM7 140m @ 0.2% Cu in final 2014 drill hole

• Copper sulphides intersected in first diamond drill program at Fishhook – Opening up northern corridor

• Major new zinc mineral system discovered at Millennium that remains open in all directions and at depth

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2015 OBJECTIVES
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Copper

Drill test compelling Nifty analogue down dip of 140m @ 0.2% Cu at BM7

Complete first deep drilling at BM7 East target

Initial drill test of Lookout Rocks prospects (EIS co funded)

Zinc

Drill test large scale gravity target at Millennium

Drill test down dip and along strike of last hole drilled in 2014 7m @ 5% Zn

Consider funding alternatives to advance this rare, large scale, greenfield zinc opportunity

Drilling scheduled to re-commence in April 2015

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SUMMARY
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– Yeneena Australia’s Next Great Mineral District?

• Highly active explorer

• Large scale, greenfield copper and zinc discoveries made by Encounter

• Funding of copper exploration through Antofagasta farm-in

• Major land position secured (>1850km[2] )

• The right commodities - strong fundamentals for copper and zinc

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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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