ENCOUNTER RESOURCES LIMITED — Investor Presentation 2017

Aug 28, 2017

New Gold Discoveries in a Prolific District

Brisbane Mining 2017 August 2017

ASX : ENR

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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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Positioned in a Leading Minerals Address

• ❖ Active explorer in one of the world’s most prospective basins

• ❖ Targeting shallow gold opportunities with scale potential

• ❖ Large prospective landholding over 70km of strike providing leverage in a proven copper-cobalt district

• ❖ Project generation alliance with Australia’s largest Newcrest Limited

• gold mining company, Mining (ASX:NCM)

• ❖ Backed by leading global resources funds

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Company Snapshot

	Encounter Resources	ASX: ENR
	Share price	A$0.10ps
	12 month share price range	A$0.06 – A$0.15ps
	Shares on issue	192m		Insert photo of drill rig
	Options and performance rights	12.4m
	Cash (30 June 2017)	A$3.6m
	Investments (30 June 2017)	A$0.4m
	Debt (30 June 2017)	Nil
	Enterprise Value	A$15.6m
	Supportive institutional shareholder	Sprott, Resource Capital Funds
	base	Acorn, Thorney, Eye Investment Management
		Board of Directors
	Paul Chapman – Non Executive Chairman	Mr Chapman is a chartered accountant with over twenty five years experience in the resources sector gained in Australia and the United States. Mr Chapman
		has experience across a range of commodity businesses including gold, nickel, uranium, manganese, bauxite/alumina and oil/gas.
	Will Robinson – Managing Director	Mr Robinson founded Encounter Resources Ltd and has overseen the development of the company as its Managing Director. Mr Robinson is a resources
		industry commercial and finance specialist with over twenty years experience with companies involved in nickel, gold & copper production and exploration.
	Peter Bewick – Exploration Director	Mr Bewick is a geologist and held senior mine and exploration geological roles during a 14 year career with WMC. In his time at WMC, Mr Bewick gained
		extensive experience in project generation for a range of commodities including nickel, gold and bauxite.
	Jon Hronsky- Non Executive Director	Dr Jon Hronsky has over 30 years experience in the mineral exploration industry, primarily focused on project generation, technical innovation and
		exploration strategy development. For the last 10 years he has		been Principal of Western Mining Services, a globally-regarded consulting group. Previous
		senior industry roles include Manager – Strategy & Generative		Services for BHP Billiton Mineral Exploration & Global Geoscience Leader for WMC Resources

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Encounter Exploration Strategy

• ❖ New discoveries in known mineral provinces to generate superior shareholder returns

• ❖ Why we have focused on the Paterson Province:

• ❖ Proven fertility to produce major deposits

• ❖ Large outcropping discoveries made in 1970-80s (Nifty, Telfer, Kintyre)

• ❖ Shallow sand cover inhibited previous explorers

• ❖ Little or no exploration activity for last 25 years

• ❖ Applying modern undercover exploration techniques - IP, CSIRO Ultrafine Soils Fractions, VTEM[TM]

• ❖ Gold near term focus while maintaining leverage to district scale targets (copper-cobalt, zinc-lead)

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Overview of Encounter Projects

❖ GOLD - Targeting Proterozoic sediment hosted gold proximal to the Telfer gold mine

• ❖ COPPER-COBALT - Multiple mineralisation styles discovered:

• ❖ 14km mineral long copper Nifty style system

• at BM1-BM7

• ❖ IOCG style intrusion containing copper sulphides at Aria

• ❖ First reductant Zambian copper-belt analogous mineralisation at Lookout Rocks

• ❖ ZINC - SEDEX Zinc at Millennium ❖ Big scale opportunities in a secure/stable jurisdiction driving increased regional activity

• ❖ Well funded majors & explorers aggressively exploring the Paterson Province

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GOLD

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Targeting Mineralised Domes north-west of Telfer

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Telfer Schematic
Telfer Member
Siltstones
Sandstones
Mt Crofton Granite
Malu
Quartzite
Prospective for Telfer style gold-copper
mineralisation contained within:
❖ High grade stratabound reefs
❖ Spatially associated sub-vertical
stockwork systems
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• ❖ Prospective for Telfer style gold-copper mineralisation contained within:

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Next Slide
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New Gold Discovery at Telfer West

❖ Acquired in 2014 based on structural setting

• ❖ Newmont shallow drilling in the 1980s:

• ❖ 17 diamond holes completed between 1986 and 1991 (average depth ~100m)

• ❖ Numerous holes finished in gold – copper anomalism

• ❖ Dome (5km x 8km) of prospective stratigraphy similar to the host units at Telfer

• ❖ No exploration for 25 years

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ETG0002
39m @ 1g/t Au from 333m &
36m @ 0.6g/t Au from 396m
ETG00067
36m @ 0.4g/t Au from 124m to EOH
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Active Exploration Program Generating High Value Targets

❖ Tenement granted in Aug 2016

• ❖ Magnetic survey completed

• ❖ Two diamond holes completed -

• Dec 2016 drilled 4km apart both well mineralised

• ❖ Broad spaced (~400m x 200m) RC program in April 2017 successfully intersected high grade, near surface gold:

• ❖ 20m @ 1.8g/t Au from 94m incl: 10m @ 2.8g/t Au

• ❖ 14m @ 1.2g/t Au from 66m incl: 4m @ 3.3g/t Au

(refer ASX announcement 26 April 2017)

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Egg Prospect at Telfer West – Thick Gold Stockwork Zone

❖ Broad, depth extensive, zone of stockwork style gold mineralisation incl:

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• ❖ 38.6m @ 1.0g/t Au from 333m (incl. 4.2m @ 3.2g/t Au from 333.5m) and

• ❖ 36m @ 0.6g/t Au from 396m (incl. 3.2m @ 3.3g/t Au from 415.2m)

• ❖ Thick mineralised package discovered may extend to surface and is open along

• strike and at depth

❖ 800m SE along strike RC drill hole 36m @ 0.4g/t Au from – 124m to EOH Diamond tail completed - assays pending

(refer ASX announcements 17 January & 31 July 2017)

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Mt Crofton Granite
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Targeting Shallow High Grade Gold Reefs at East Thomson’s Dome

❖ Located 5km north-west of Telfer

• ❖ Historical shallow exploration in the 1980’s and early 90s mainly shallow RAB and RC

• ❖ 438 holes drilled: average hole depth 28m, only 10 holes deeper than 100m

• ❖ Drilling discovered high grade gold reefs including:

• ❖ 4m @ 29 g/t Au from 31m in NTR 5

• ❖ 2m @ 33 g/t Au from 22m in NTR 12

• ❖ 10m @ 9.8 g/t Au from 16m in NTR 17

• ❖ 2m @ 76.2 g/t Au from 35m in NTR 57

• ❖ 7m @ 17.1 g/t Au from 16m in NTR 61

• ❖ Most recent exploration by Barrick in 2003-06 - Two +1000m deep diamond holes completed and intersected gold quartz reef - 3m @ 8.2g/t Au from 243m open in all directions

❖

• Encounter focusing on shallow near surface gold associated with +2km long gold/copper soil anomaly

(refer ASX announcement 14 February 2017)

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Large Scale Gold Soil Anomaly at East Thomson’s Dome

Regional soil geochemistry has identified a large scale (+2km) gold anomaly adjacent to historical gold occurrences adding scale potential to the project.

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(refer ASX announcement 5 May 2017)

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C C’ Multiple high grade reefs remain open down dip and along strike A A’ B B’ (refer ASX announcement 5 May 2017)	C C’ Multiple high grade reefs remain open down dip and along strike A A’ B B’ (refer ASX announcement 5 May 2017)	C C’ Multiple high grade reefs remain open down dip and along strike A A’ B B’ (refer ASX announcement 5 May 2017)	C C’ Multiple high grade reefs remain open down dip and along strike A A’ B B’ (refer ASX announcement 5 May 2017)	C C’ Multiple high grade reefs remain open down dip and along strike A A’ B B’ (refer ASX announcement 5 May 2017)
	C A’	C’ B
A A’	A’
			B

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RC/Diamond Drill Program in Progress
6m @ 9g/t gold
from 178m to EOH
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Current Drill Program at East Thomson’s Dome

❖ Surface prospecting has found gold nuggets interpreted to be shedding from nearby outcropping quartz veins separate from the historical drilling

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• ❖ RC/diamond drill program in progress:

• ❖ 4 diamond holes targeting down dip of high grade reefs at Fold Closure and up dip of Barrick intersection

• ❖ 18 RC drill holes targeting the broader 2km soil geochemical anomaly

(refer ASX announcements 14 February, 5 May and 16 August 2017)

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COPPER - COBALT

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70km Long Copper-Cobalt Corridor South of Nifty

❖ Proterozoic aged, sediment hosted deposits in the Central African Copperbelt are one of the world’s largest sources of copper and the world’s largest source of cobalt

❖ Similar and has age geological setting been defined in the Yeneena Basin in WA ❖ Proof of concept though drilling results

• ❖ Large landholding at key structural location

• ❖ Multiple mineralisation styles discovered highlighting regional potential

❖ High grade copper-cobalt intersections

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70km Long Copper-Cobalt Corridor South of Nifty

❖ Multiple mineralisation styles discovered:

❖ 14km long copper Nifty style mineral system at BM1-BM7

• ❖ IOCG style intrusion containing copper sulphides at Aria

BM1

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

BM7

❖ First reductant Zambian copperbelt analogous mineralisation at Lookout Rocks

Large mineral system containing high grade Cu sulphide

5m @ 2.5% Cu from 388m 52m @ 0.6% Cu from 42m 9m @ 1.5% Cu & 1.0% Co from 42m to EOH 74m @ 0.4% Cu from 74m 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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70km Long Copper-Cobalt Corridor South of Nifty

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EPT2276
EPT2282
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Aria

• ❖ IOCG style intrusion containing copper sulphides

❖ Discrete density anomaly located on the margin of the previously identified magnetic anomaly

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EPT2276 intersected further hematite-altered, polymictic breccia containing blebs of copper sulphide

Lookout Rocks South

• ❖ First diamond drill hole intersected copper mineralisation, up to 1% Cu

• ❖ Copper hosted by black, reduced carbonaceous sediments, located above oxidised “red bed” -

• stratigraphic unit Zambian copperbelt analogous

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Disseminated chalcopyrite in carbonaceous shale EPT 2282 ~259.2m downhole (1.0% Cu)

“Red Bed” oxidized sediments EPT2282 ~320m downhole

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Near term Cobalt-Copper Drilling at Yeneena

• ❖ BM7 - A +600 long zone of near surface copper-cobalt mineralisation untested at depth. Includes intersection of 9m @ 1.0% Co and 1.5% Cu from 42m to EOH. Drilled July 2017. Assays pending

❖ Lookout Rocks - The recently identified gossan at Lookout Rocks where surface rock chip sampling returned grades up to 0.19% Co and 0.22% Cu. Drilling Sep/Oct 2017.

80m long in-situ gossan (grading up to 0.22% Cu & 0.19% Co) located 800m SW of EPT2282

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Newcrest-Encounter Project Generation Alliance

• ❖ Project generation alliance with Australia’s largest gold mining company, Newcrest Mining Limited (ASX:NCM)

• ❖ Newcrest will fund Encounter up to A$500,000 over the next 12 months to generate new ‘camp scale’ exploration opportunities in northern WA

• ❖ Key terms of the alliance include:

• ❖ 50:50 joint venture over any approved projects

• ❖ Encounter option to maintain 50% interest by co-funding exploration or;

• ❖ Newcrest may increase its interest to 80% by sole funding exploration and delivering a JORC compliant resource >1 Million oz gold or gold equivalent.

• ❖ Should the alliance elect not to proceed with a project then it will revert back to Encounter 100%

(refer ASX announcements 21 July 2017)

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Upcoming Field Activities 2017

Jul Aug Sep Oct Telfer West – RC/diamond drilling East Thomson’s Dome RC/diamond drilling BM7 Copper-Cobalt RC drill program Lookout Rocks-Fishhook Copper RC/diamond Millennium diamond drilling

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The Investment Case

• ❖ Active explorer in one of the world’s most prospective basins

• ❖ shallow with scale - known near Targeting gold opportunities potential district, infrastructure

• ❖ over 70km of strike in a Large prospective landholding providing leverage proven minerals district (copper-cobalt, lead-zinc) (~2000km[2] )

• ❖ Strong in house expertise to drive target generation

• ❖ alliance with Australia’s Newcrest Project generation largest gold mining company, Mining Limited (ASX:NCM)

• ❖ Backed by leading global resources funds (Sprott, Resource Capital Funds, Acorn, Thorney, Eye Investment Management)

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