ENCOUNTER RESOURCES LIMITED — Investor Presentation 2016

Jun 8, 2016

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AMEC Convention Perth - June 2016

ASX : ENR

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Company Snapshot

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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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Investments
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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.

155.6m Ordinary Shares (Top 40 shareholders hold 68%) 12m Options

A$21.8m @ A$0.14/share (7 June 2016)

~A$4.0m (31 Mar 2016)

~A$0.6m (31 Mar 2016)

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Main Project – Yeneena (Cu, Zn)
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Port Hedland
Marble Bar
Nifty (Cu)
Telfer (Au)
Woodie Woodie (Mn)
Kintyre (U)
Yeneena Project
Newman
100km
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Farm-in Funding
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Up to US$6m Antofagasta - Lookout Rocks Prospect Up to A$2m Hampton Hill – Millennium Prospect

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Creating Value Through 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

• Telfer region gold prospects advancing

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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 a Region that Produces Big Deposits…

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Majors Exploring in Region
• Newcrest
•
Rio Tinto
•
Antofagasta plc
Lookout Rocks
Copper
Millennium Zinc
• Farm-in Antofagasta plc
• HHM earning up to 25%
BM7 Copper
• 100% ENR
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BM7 Project – 14km long Copper System
Next Slide
BM1-BM7
(refer ASX announcements 15 July 2014 & 30 January 2015)
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(*Reported pursuant to the 2004 Edition of the JORC Code )

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Gravity interpretation highlights three high priority targets

BM1

 Additional gravity survey completed in Oct 2015

Coherent zone of near surface Cu oxide mineralisation

10m @ 6.8% Cu from 32m 20m @ 2.0% Cu from 22m 8m @ 3.6% Cu from 18m* 16m @ 3.2% Cu from 26m 50m @ 1.1% Cu from 12m

 Innovative technique developed to generate cover & oxidation corrected gravity model

+0.1% Cu Regolith Anomaly

• Three new untested gravity targets adjacent to high grade copper mineralisation

BM7

Large mineral system containing high grade Cu sulphide

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Diamond Drill Hole
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• 5m @ 2.5% Cu from 388m 52m @ 0.6% Cu from 42m 9m @ 1.5% Cu from 42m 74m @ 0.4% Cu from 74m 140m @ 0.2% Cu from 144m

 EIS co funded drill testing in May-June 2016

Cover corrected Gravity Image (residual filter applied)

(refer ASX announcements 15 July 2014 & 30 January 2015) (*Reported pursuant to the 2004 Edition of the JORC Code )

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Nifty Cu Telfer Au/Cu
(1981) (1972)
Lookout Rocks
Millennium Zn
(2014)
Fishhook
Fishhook
BM1-BM7 Cu
(2010)
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Lookout Rocks – New copper prospect south of Nifty

 VTEM surveys completed 2013 & 2014  Over 30 strike kms of interpreted Broadhurst Formation sediments (Nifty host) in highly prospective structural setting

• Shallow sand cover with minimal previous exploration activity

• Lookout Rocks – US$6 million farm in with Antofagasta plc commenced in July 2015

• First Aircore/RC program Oct 2015

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Nifty Cu Telfer Au/Cu
(1981) (1972)
Lookout Rocks
Millennium Zn
(2014)
Fishhook
Fishhook
Area of gossan
sampling
BM1-BM7 Cu
(2010)
(refer ASX announcement 17 December 2015)
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Lookout Rocks – New copper prospect south of Nifty

 7 shallow AC/RC holes over a structural target

• Drilling confirmed Broadhurst Formation (Nifty host) stratigraphy

• Broad intervals of copper and lead anomalism strengthening to the east and towards the bottom of hole

• Surface gossan discovered with exsulphide boxwork textures - up to 0.2% Cu

• Diamond drilling commenced June 2016

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Greenfield Zinc Discovery at Millennium…

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• Large +3km long zinc system

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Millennium Zinc
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• First order structural address at intersection of major NE and basin forming NW structures

• HHM earning up to 25%

• 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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Large zinc system with high grade Zn sulphide…

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Massive zinc sulphide 0.7m @ 36.5%
Zn
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Thick gossan intersections - 70m @ 2.3%

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Zn
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(refer ASX announcements 14 December 2013, 12 January 2015, 17 June 2015, 29 October 2015)

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	ne North - West (0.7m @ 36.7% Zn) open downdip and ke to the north and	T i c E Z s i Target Zone Centralsouth-east of the strongly mineralised gossan intersection EPT2260 (70m @ 2.3% Zn)	T i c E Z s i Target Zone Centralsouth-east of the strongly mineralised gossan intersection EPT2260 (70m @ 2.3% Zn)
			T i c E Z s i	arget Zone South-East nterpreted zone of oherent zinc sulphide mineralisation including PT2198 (7m @ 4.8% n) open and trengthening south-e Target Zone South - East nterpreted zone of coherent zinc sulphide mineralisation including EPT2198 (7m @ 4.8% Zn) open and strengthening SE
Target Zo EPT1854 remains along stri west.	ne North - West (0.7m @ 36.7% Zn) open downdip and ke to the north and

(refer ASX announcement 28 January 2016)

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Upcoming Field Activities

May Jun

Jul Aug Sep

BM1 / BM7 Copper drill test new gravity targets (EIS co funded) Millennium diamond/RC program (HHM co funded) Lookout Rocks Copper first diamond drilling (Antofagasta funded) Telfer region gold detailed airborne magnetic survey & initial field recon.

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The Investment Case

• Under-cover frontier exploration to create enduring value

• Exposure to large scale copper and zinc exploration upside

• Large land position in district with proven fertility and active majors (>1850km[2] )

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

• Leading global resources funds on register (Sprott, RCF, Thorney, Eye Investment Fund)

• Sound cash position supplemented by Antofagasta & Hampton Hill farm-ins

• Drilling in progress testing advanced exploration targets

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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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