ENCOUNTER RESOURCES LIMITED — Investor Presentation 2017

May 9, 2017

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New Gold Discovery Near Telfer

Investor Update May 2017

ASX : ENR

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Company Snapshot

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Board
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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.

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155.9m Ordinary Shares (Top 40 shareholders hold 68%) Issued Capital 12.9m Options

Market Cap. A$18.7m @ A$0.12/share (9 May 2017)

Cash ~A$1.0m (31 Mar 2017)

~A$0.6m (31 Mar 2017) Investments

Large land position in Proterozoic Paterson Province with proven fertility and active majors

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Share Register Leading Global Resource Funds (Sprott, RCF, Thorney, Eye Management)

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High Grade Gold Near Telfer

 Telfer West - New shallow, high grade gold discovery made in April 2017

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• East Thomson’s Dome - Large Scale Gold Soil Anomaly (+2km) outlined adjacent to high grade outcropping gold reefs

 Known district, near infrastructure and the Telfer Au-Cu mine

• Little or no exploration for 25 years

• Prior drilling was shallow but extremely well mineralised

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Telfer Member
Siltstones
Sandstones
Malu
Quartzite
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Telfer Schematic Section

 Gold-copper mineralisation contained within:

• High grade stratabound reefs

• Spatially associated stockworks

• Deep weathering depleted copper in the upper sections of the orebody

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Mineralised domes north-west Telfer
Mt Crofton Granite
Next Slide
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New Gold Discovery at Telfer West

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

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• Limited prior exploration completed by Newmont in 1980s

• An 11 hole, 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

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

(refer ASX announcement 26 April 2017)

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Thick Gold/Copper Zones Discovered at Telfer West

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 ETG0015 and ETG0016 are drilled on section, 200m apart and are located over 400m south-east of ETG0003 completed in December 2016 that intersected

• 24.9m @ 0.7g/t Au from 127.1m and 4.0m @ 7.1g/t Au from 216m.

• Mineralisation is potentially open in every direction.

• Follow up drill program June 2017 (WA Govt co-funded up to $150,000)

(refer ASX announcement 26 April 2017)

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Egg Prospect – Thick Gold Stockwork Zone

• Located 4km south east of the recent RC drilling

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

 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 at the Egg Prospect may extend to surface and is open along strike and at depth.

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(refer ASX announcement 17 January 2017)

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Mineralised domes north-west Telfer – East Thomson’s

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Dome
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Mt Crofton Granite
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Reef Style Gold at East Thomson’s Dome

• Additional high grade reefs have been identified that remain open down dip and along strike

• Located 5km north-west of Telfer

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

 RC/diamond drill program to commence in June 2017 immediately following the next phase of drilling at Telfer West

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• Surface prospecting has also found gold nuggets interpreted to be shedding from nearby outcropping quartz veins at East Thomson’s

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 Historical shallow exploration in the 1990s on one of the reefs discovered high grade gold including intersections:

• 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

(refer ASX announcements 14 February and 5 May 2017)

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Large Scale Gold Soil Anomaly (+2km) at East Thomson’s

~~Dome~~

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Regional soil Geochemistry the East Thomson’s Dome identifying +2km gold anomaly

(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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70km Long Copper-Cobalt Corridor South of Nifty

 Central African Copperbelt is one of the world’s largest sources of copper and the world’s largest source of cobalt

 Proterozoic aged, sediment hosted deposits similar age and geological setting to the Yeneena basin in WA

• Multiple mineralisation styles:

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

• IOCG style intrusion containing copper sulphides at Aria

• First reductant Zambian copperbelt analogous mineralisation at Lookout Rocks

 Actively seeking major project partner

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Cobalt-Copper Opportunities at Yeneena

 BM7 - A +600 long zone of near surface cobalt mineralisation untested at depth. Includes intersection of 9m @ 1.0% Co and 1.5% Cu from 42m to EOH

• BM1 - The coherent zone of copper oxide mineralisation includes several high grade cobalt intersections including 14m @ 0.45% Co and 0.38% Cu from 14m

 Lookout Rocks - The recently identified gossan at Lookout Rocks where surface rock chip sampling returned cobalt grades up to 0.19% Co and 0.22% Cu

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Copper-Cobalt gossan discovered at Lookout Rocks

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

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

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• Copper hosted by black, reduced carbonaceous sediments, located above oxidised “red bed” stratigraphic unit - Zambian copper-belt analogous

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• In-situ copper gossan identified

• Drill testing in Jun-Jul 2017

(refer ASX announcement 28 July 2016)

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Upcoming Field Activities 2017

Apr May Jun Jul Telfer West – RC/diamond drilling (EIS Co Funded) East Thomson’s Dome RC/diamond drilling BM7 Copper-Cobalt RC drill program Lookout Rocks-Fishhook Copper RC/diamond (EIS Co Funded) Millennium diamond drilling (HHM Co Funded)

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The Investment Case

• Advanced gold projects - high grade, near surface, scale potential, known district, near infrastructure

• New gold discovery at Telfer West made in April 2017

• Exposure to large scale copper-cobalt and zinc exploration upside

• Large land position in district with proven fertility and active majors (~2000km[2]

• Tight capital structure - risk sharing at appropriate points to maximise return for ENR shareholders

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

• Drilling to test advanced targets recommencing May 2017

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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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