ENCOUNTER RESOURCES LIMITED — Investor Presentation 2017

Feb 21, 2017

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RIU Explorers Conference February 2017

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.

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

A$14.8m @ A$0.095/share (21 Feb 2017)

~A$2.1m (31 Dec 2016)

~A$0.9m (21 Feb 2017)

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Main Projects - Gold-Copper-Zinc
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Share Register
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Leading Global Resource Funds (Sprott, RCF, Thorney, Eye Management)

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Creating Value Through Greenfield Exploration…

• Major land holding in proven Proterozoic Paterson Province

• Sand covered mineral belt with proven fertility

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

• Minimal subsurface exploration activity

• Leading edge undercover exploration techniques - IP, CSIRO Ultrafine Soils Fractions, VTEM[TM]

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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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Telfer Member
Siltstones
Sandstones
Malu
Quartzite
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Mineralised domes north-west Telfer

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Mineralised domes north-west Telfer
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High grade gold intersected in first Telfer West drilling

 Dome of prospective stratigraphy similar to the host units at Telfer

 Limited prior exploration completed by Newmont in 1980s

 Gold mineralisation is coincident with the fold axis of a interpreted major 8km by 5km dome

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Egg Prospect – Thick Gold Stockwork Zone

 Broad, depth extensive, zone of stockwork style gold mineralisation at the Egg Prospect 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.

(refer ASX announcement 17 January 2017)

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Northern Magnetic Anomaly – High Grade Supergene Gold

 Located 4km north-west of the Egg Prospect

• Intersected strong supergene gold mineralisation including:

• 24.9m @ 0.7g/t Au from 127.1m and

• 4.0m @ 7.1g/t Au from 216m

• Follow drill 2017 co- up program commencing Apr (WA Govt

• funded up to $150,000)

(refer ASX announcement 17 January 2017)

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Mineralised domes north-west Telfer – East Thomson’s Dome

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See plan next slide
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Reef Style Gold at East Thomson’s Dome

• Located 5km north of Telfer and hosts prospective stratigraphy similar to the host units at Telfer

• Historical shallow in the 1990s discovered an exploration

• area of near surface high grade gold prospect incl:  4m @ 29 g/t Au from 31m

• 2m @ 33 g/t Au from 22m

• 10m @ 9.8 g/t from 16m

• 2m @ 76.2 g/t Au from 35m

• 7m @ 17.1 g/t Au from 16m

• Area of high grade reef style gold remains open down dip and along strike

• Most recent exploration conducted by Barrick in 2005 intersected 3m @ 8.3g/t Au from 243m and remains open in all directions

• RC drill program to commence in April-May 2017

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Large scale gold opportunities near Telfer – Dora

• A series of discrete magnetic anomalies along a structural corridor and long strike from historical gold occurrences

• 35km south-east of Telfer covering 192km[2]

• Minimal historic exploration with only 5 RC holes drilled

• Last on-ground exploration completed in the 1980s

• WA Govt EIS co-funding (up to A$150,000)

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Kirili Hill (Au+BM)
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Regional Gravity -
Paterson BG267 NW Sun
Dora Gold-Copper Project
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Regional Magnetics - South Paterson RTPTMI rainbow NE Sun

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70km Long Copper Corridor South of Nifty

Multiple mineralisation styles:

 14km mineral long copper system at BM1-BM7 with high grade oxide and depth extensive copper sulphide

• IOCG style intrusion containing copper sulphides at Aria

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

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Nifty lookalike copper 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 0.2% Cu) located 800m SW of first diamond hole

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

• In-situ copper gossan identified

• Drill testing in April-June 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

• Under-cover frontier exploration to create enduring value

• Exposure to large scale gold, copper and zinc exploration upside

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

• 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 April 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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