ENCOUNTER RESOURCES LIMITED — Investor Presentation 2021

Oct 27, 2021

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Mining the Territory Conference Darwin, NT 27-28 October 2021 Sediment-hosted Copper Exceptional leverage to the premium front end of the copper value chain

ASX: ENR

Disclaimer and compliance statement

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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.

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 holds shares and options in and is a full time employee of Encounter and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Bewick consents to the inclusion in the report of the matters based on the information compiled by him, 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. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Certain exploration drilling results for BM1 were 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 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 report of the matters based on the information compiled by him, in the form and context in which it appears.

This announcement has been approved for release by the Board of Encounter.

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The Encounter business model

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PROJECT GENERATOR

Progress a project pipeline with a mix of alliances, joint ventures and sole funding

TIER 1 TARGETS

Project generation and exploration targeting major gold and base metal discoveries in world-class mineral belts

HIGH QUALITY PARTNERS

Partner with leading mid-tier and major producers which have well supported, talented and highly resourced exploration teams

FAST ADOPTION OF NEW DATA AND TECHNOLOGIES Fast mover, early adopter of new technologies and datasets

DATA DRIVEN INSIGHTS

Reduce exploration risk through cost effective and innovative data-driven techniques to rapidly prioritise and assess targets

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Creating value through project generation and discovery Encounter at a glance

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Capital structure

Share price – 12 months

Capital structure
ASX ticker	ENR
Share price (22/10/2021)	$0.22
Shares on issue	316M
Options	17M
Market capitalisation	~$70M
Cash (30/09/21)	~$4.1M
Listed investments	~$0.6M
Enterprise value (net of cash and listed investments)	~$65M
Major shareholders
Board and Management	~14.2%
IGO	~8.2%
Silver Lake Resources	~5.3%

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$0.35 6,000,000
$0.30
5,000,000
$0.25
4,000,000
$0.20
3,000,000
$0.15
2,000,000
$0.10
$0.05 1,000,000
$0.00 0
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Mr Peter Bewick Mr Philip Crutchfield Exploration Director Non Executive Director B.Eng (Hons), B.Comm., LL.B (Hons), MAusIMM LL.M LSE

Mr Paul Chapman Non Executive Chairman

Dr Jon Hronsky OAM Non Executive Director BAppSci, PhD, MAusIMM, FSEG

Mr Will Robinson Managing Director B.Comm, MAusIMM

B.Comm, ACA, Grad. Dip. Tax, MAICD, MAusIMM

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A premier copper exploration portfolio

Early mover positions in world-class minerals belts attracting tier 1 partners

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Paterson Province
Copper-Gold
Elliott
New Cu-Au System West Arunta
25km NW of Telfer Northern Territory
IOCG targets
copper-gold- Jessica Sediment Hosted copper
rare earths Carrara 100% and IOCG targets in
100% emerging region
100%
Sandover
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Northern Territory Copper

• Elliott Copper (BHP $25m earn in)

• Camp Scale Copper Projects (ENR 100%)

Paterson Province - WA

• Lamil Copper-Gold (ENR 100%)

• Yeneena Copper-Cobalt (IGO $15m earn in)

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Paterson Province
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New approach in a
known Cu-Co district
Copper
Gold
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West Arunta - WA

• Aileron IOCG Copper-Gold (ENR 100%)

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Northern Territory The next hot spot for copper in Australia

Elliott – Standout copper in groundwater anomaly earn in First mover camp scale copper projects ENR 100%

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Major Proterozoic basins of Australia

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Centralian Superbasin
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• Central Australia contains two of the largest Proterozoic sedimentary basins in the world

• Known regions for large scale, sediment hosted base metal mineralisation

• Significant deposits including Mt Isa, Century, McArthur in the McArthur Basin and Nifty in the Centralian

• Vastly underexplored areas remain untested undercover in this highly prospective first world jurisdiction

• A significant opportunity exists to discover the world’s next great copper belt

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Sedimentary deposits are one of the world’s fastest growing sources of high grade copper

Sedimenthosted copper: the mineral system

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(Hitzman et al., 2010)

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Example of sediment-hosted copper deposit – Ivanhoe Mines Kamoa/Kakula[1] Indicated Mineral Resource (at 1% total copper cut-off grade) Tonnes (Millions) Grade % Cu Contained Cu (kt) 1,387 2.74% 38,000

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1 Ivanhoe Mines Kamoa/Kakula 2020 Resource Update – Mar 2020

Sediment-hosted copper: key ingredients

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				EXPLORING
		DISCOVERY ELEMENTS	NT SCORECARD	FOR THE
				FUTURE DATA
	Source rocks Brines Seals Inversion Fluid pathways Traps	Size of sedimentary basin and sub-basin Bitten brines vs evaporites or both? Grabens form a natural containment for dense fluids Basin inversion / orogenic event to provide the energy to bring reservoir fluid towards surface Basin margin faults and major faults Reductants or failed hydrocarbon traps provide physical and chemical trap sites	✓ ✓ ✓ ✓ ✓ ✓	Gravity, magnetics Seismic, MT, AEM Magnetics, Hydro-geochem

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Northern Territory: the next hot spot for copper in Australia

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• Highly prospective, vastly underexplored region under shallow cover

• Located between the major copper-gold producing districts of Mt Isa and Tennant Creek

• Transformational investment in pre-competitive data by Geoscience Australia (GA) and the Northern Territory Geological Survey (NTGS)

• These new datasets are providing crucial early insights into areas prospective for sedimentary hosted deposits

• Encounter has used these datasets as a first mover to build a commanding position in this exciting new province

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Elliott Copper Project

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• BHP (ASX:BHP) earn-in and joint venture agreement covering the 7,200km[2] Elliott Copper Project

• BHP may earn up to a 75% interest in Elliott by spending up to $25 million over 10 years

• Compelling exploration opportunity in the vastly underexplored Greater McArthur Superbasin

• Key ingredients for the formation of large sedimentary copper deposits

• An extensive exploration program, including seismic surveys and drilling, to define prospective deposition sites for sedimentary copper mineralisation

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Refer to ENR ASX release 21 May 2021

NTGS core library – Darwin

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Jessica and Carrara: copper near surface and at depth
Copper Carbonate (Malachite)
0-3m from RN28419 – chemical assay
1.5% Cu [1]
Chalcopyrite contained in a
calcareous shale unit within NDI
Carrara1 ~1,617m [4]
Crosswinds Copper Prospect - Malachite (copper Drill hole NDIBK04 pyrite-
carbonate) mineralisation exposed in table drain [2] chalcopyrite vein [3]
1 Refer ENR ASX release 19 Aug 2020
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Jessica and Carrara: copper near surface and at depth

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1 Refer ENR ASX release 19 Aug 2020
2 Refer to ASX:MDI release 23 Dec 2020 13
3 Refer to ASX:ICG release 28 Mar 2021
4 Refer to ENR ASX release 28 Apr 2021
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DRILLCORE IS FROM THE NATIONAL DRILLING INITIATIVE. IT IS NOT THE PROPERTY OF THE COMPANY.

Carrara: prospective basin architecture

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Correlation of prospective stratigraphic units from the Isa Super Basin into the Carrara Sub-basin indicates the Mount Isa Province extends to the west

Carrara

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Chalcopyrite (Cu sulphide) contained in a calcareous shale unit

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Carrara
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Sphalerite (Zn sulphide) contained in a calcareous shale unit

South Nicholson Seismic Survey, a foundational dataset acquired as part of the GA Exploring for the Future Program (AGES 2019)

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Refer to ENR ASX release 28 Apr 2021

Sandover Copper Project

• 170km north-east of Alice Springs

• Zambian copper belt analogous

• Targeting the Neoproterozoic basal Georgina Basin sediments

• +20km of outcropping Malachite in the

• Neoproterozoic Central Mt Stuart Formation

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Sandover: outcropping malachite shows system is active

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• Key elements of a sediment-hosted copper system present

• Juxtaposition with crystalline basement

• Evaporites

• Reduced stratigraphic units to trap copper brines

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NTGS Kruse et al, 2013

Upcoming copper exploration activity in the NT

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Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022
Seismic Aircore Diamond
Jessica Gravity survey
reprocessing drilling Drilling
Seismic Infill Gravity Diamond
Carrara Gravity survey
reprocessing as required Drilling
Mapping
Sandover Geophysics – EM, Magnetics, Gravity
Sampling
Elliott BHP run exploration activities including diamond drilling
Project Generation and
Applying the expertise and knowledge developed during oil and gas exploration
Validation
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NT Sediment-hosted copper summary

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• ✓ The Proterozoic sedimentary basins of the NT exhibit all the key ingredients required for the formation of giant sediment-hosted copper deposits

• ✓ A transformational investment through Geoscience Australia and the NTGS has provided a thorough and extensive array of pre-competitive data to the exploration industry

• ✓ Global demand for copper and a growing supply deficit highlights the need for investment in copper exploration

• ✓ Australia is a secure, first world jurisdiction with a modern and highly efficient mining industry

• ✓ Now is the time to be exploring for Copper in the NT

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