ENCOUNTER RESOURCES LIMITED — Investor Presentation 2021

May 23, 2021

ASX Announcement

24 May 2021

Investor Presentation

The directors of Encounter Resources Ltd (“Encounter” / “the Company”) are pleased to advise that the Company has today released an updated Investor Presentation.

A copy of the presentation is appended to this announcement and a version which includes commentary from Encounter Managing Director Will Robinson is available on the Company’s YouTube page at the following link: https://youtu.be/Z4rP_dflYT0

This announcement has been authorised for release by the Board of Encounter Resources Limited.

Will Robinson	Michael Vaughan
Managing Director	Fivemark Partners
+61 8 9486 9455	+61 422 602 720
contact@enrl.com.au	michael.vaughan@fivemark.com.au

About Encounter

Encounter Resources Limited is one of the most productive project generation and active mineral exploration companies listed on the Australian Securities Exchange. Encounter’s primary focus is on discovering major gold and copper deposits in Australia.

Encounter holds a major ground position in the emerging Paterson Province where it is exploring for copper-gold deposits at its 100% owned Lamil Project and for copper-cobalt deposits at the Yeneena project with highly successful mining and exploration company IGO Limited (ASX:IGO).

Encounter controls a major land position the Tanami region covering over 100km of strike along a major structural corridor and the Aileron copper-gold-rare earths IOCG project in the West Arunta in WA.

In addition, Encounter moved early and aggressively to secure a series of camp scale, first mover opportunities in the Northern Territory (“NT”) based on their potential to contain large, sedimentary-hosted and IOCG style copper deposits. This includes the Elliott copper project which is being advanced in partnership with BHP via an earn-in and joint venture agreement.

Encounter Resources Limited Suite 2, 1 Alvan Street Subiaco WA 6008

P +61 8 9486 9455 E contact@enrl.com.au www.enrl.com.au

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Investor Update May 2021

Copper and gold in Australia Collaborating with high quality partners to make new discoveries

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 MODEL

Progress 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 (21/05/2021)	$0.18
Shares on issue	314M
Options	18M
Market capitalisation	~$56.5M
Cash (31/03/21)	~$6.5M
Listed investments	~$1M
Enterprise value (net of cash and listed investments)	~$49M
Major shareholders
Board and Management	~14.2%
IGO	~8.2%
Silver Lake Resources	~5.3%

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$0.35 4,000,000
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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 and gold exploration portfolio

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

Paterson Province - WA

• Lamil Copper-Gold (ENR 100%)

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

Northern Territory Copper

• Elliott Copper (BHP $22m earn in)

• Seven camp scale projects (ENR 100%)

Tanami / West Arunta - WA

• Aileron IOCG Copper-Gold (ENR 100%)

• Tanami Gold (ENR 100%)

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Paterson Province
Gold-Copper
Tanami
Drill ready gold targets
25km NW of Telfer Belt scale gold Northern Territory
project
Sediment Hosted copper
100% and IOCG targets in
100% 100% emerging region
100%
West
Arunta
IOCG target
copper-gold-rare earths
Paterson Province
New approach in a
known Cu-Co district
100%
Yilgarn Gold
New techniques in a
world-class gold
Copper province
Gold
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Global Copper Demand

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(Copper Development Assoc. Inc. 2019)

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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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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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Sediment-hosted copper: the mineral system

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

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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

• BHP (ASX:BHP) has exercised an option to enter into an earn-in and joint venture agreement covering the 4,500km[2] Elliott Copper Project

• BHP may earn up to a 75% interest in Elliott by spending up to $22 million over 10 years

• Validates Encounter’s NT copper exploration strategy

• 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

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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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Copper Carbonate (Malachite)
0-3m from RN28419 – chemical assay
1.5% Cu [[1]]
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1 Refer ENR ASX release 19 Aug 2020
2 Refer to ASX:MDI release 23 Dec 2020
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

Paterson Province – WA Australia’s hottest copper address

Lamil – 5km long Cu-Au system

Yeneena – Copper/cobalt targets

ENR 100% Earn-in

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Lamil: copper-gold over 1km long

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• 100% ENR – located 25km NW of Telfer

• Ten hole RC drill program (2,077m) completed at the Dune Prospect in February 2021

• Assay results from three of the ten broadspaced drill holes received and include:

• 132m @ 0.31g/t Au and 0.11% Cu from 87m to end of hole in ETG227 including:

  • → 22m @ 0.51g/t Au and 0.24% Cu from 181m

• EIS co-funded diamond drilling – June 2021

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Supergene copper mineralisation noted in EPT228 (104-107m)

Dune Prospect (Max in hole Au) and recently completed RC holes

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Refer to ASX releases 26 April 2017, 11 June 2020 and, 4 September 2020, 18 December 2020, 15 February 2021, 21 April 2021

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Yeneena Copper-Cobalt

• Paterson Province is a proven mineral region with a consistent history of discoveries

• ~1,600km² of the Paterson Province

• IGO can sole fund $15 million in exploration expenditure over a maximum seven years to earn a 70% interest

• Up to 1,900m of diamond drilling in progress:

• Windsor EM target: located west of the BM1 Cu oxide zone. Best intersections include:

  • → 10m @ 6.8% Cu from 32m*

  • → 20m @ 2.0% Cu from 22m*

  • → 16m @ 3.2% Cu from 26m[1]

• Aria IOCG target: a conductive feature identified on the margin of the Aria breccia pipe where localised copper mineralisation has been intersected

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1Refer ASX announcements 15 July 2014, 30 January 2015, 2 March 2017. *Reported pursuant to the 2004 Edition of the JORC Code.

Tanami/West Arunta – WA Belt Scale Opportunities

Tanami – Major gold portfolio

Aileron – IOCG-style Cu-Au-REE project

ENR 100%

ENR 100%

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Tanami: a major, drill ready gold exploration portfolio

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• Belt scale gold project in WA

• 100km of strike along the major structural corridor interpreted to be the key controlling structure for gold mineralisation in the Tanami

• Material new near mine gold discoveries at Newmont +14Moz Callie mine¹

• Shallow historical exploration has defined multiple Tier 1 deposit footprints

• Foundations for a major exploration drive completed in 2018-2020:

• 18,400km line airborne magnetic survey

• Extensive heritage clearances

• One program (28 holes) of broad spaced RC drilling

Tanami regional leasing summary (Encounter = black, Northern Star = yellow, Newmont = red, Prodigy = blue) with gold occurrences over regional gravity data

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1 Refer to Newmont Tanami Operations AGES Paper 20 March 2018

Tanami: priority prospects for follow up in 2021

▪ Mojave Prospect (EIS Co Funding)

• +7km long gold-arsenic anomaly that includes thick mineralised drill intersections strengthening at bottom of hole

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Mojave
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• EIS co-funded drilling ($150,000)

• Bandicoot and Quenda Prospects

• Large, untested magnetic anomaly coincident with gold-arsenic geochemical anomaly

• EIS co-funded drilling

▪ Camel Prospect

• 7.2m @ 3.1g/t Au from 95m in last drilling completed in 2010[2]

▪ Afghan Prospect

• +7.5km long gold anomaly in shallow RAB drilling - 10m @ 1.6g/t Au from 4m[1]

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Quenda
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▪ Hutch’s Find Prospect

• Limited drilling – 19m @ 2.3g/t Au from 98m and 10m @ 5.4g/t Au from 123m[2]

18,400 line km airborne magnetic survey completed

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1 Refer to ASX Release 23 January 2020

2 Refer to ASX Release 3 May 2018

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West Arunta: IOCG targets in a new region

• 1,300km² West Arunta province of WA

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• First diamond drill hole to a depth of 158m (EAL001) intersected

hydrothermal hematite-altered mafic intrusions and granite with a distinctive IOCG geochemical signature

• Metal anomalism is associated with hematite-alteration

• IOCG mineralisation often has a

strong density contrast (Olympic Dam, Prominent Hill) meaning gravity surveys could provide drill targets and a clear pathway to discovery

• Gravity survey June 2021

• EIS co-funded drilling to follow ($150,000)

Aileron Project - Tenement location plan on TMI background

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1Refer to ASX announcement 21 March 2018

Upcoming exploration activity

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MAY JUN JUL AUG SEP OCT NOV
Paterson Copper-Gold
EIS diamond drilling
(100% ENR)
Copper Projects NT Gravity survey Aircore drilling
(100% ENR) (Jessica / Carrara) (Jessica)
Paterson Province
Diamond drilling Aircore drilling
Copper-Cobalt
Elliott Copper BHP run 2021 exploration activities
Tanami Gold
Gravity Survey EIS diamond drilling
West Arunta IOCG
(Aileron) (Tanami / Aileron)
(100% ENR)
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Foundations established for major exploration drive

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EXPLORATION EXPENDITURE

NEXT MILESTONE

Total spend on Encounter projects

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Shareholders Elliott Cu gain leverage to significant discovery opportunities Yeneena Cu-Co JV with minimal dilution Lamil Copper-Gold NT Copper Projects 100% ENR Encounter Tanami Gold spend West Arunta IOCG Cu-Au-REE

Formal farm-in agreement then commence exploration

Diamond drilling in progress

Lamil EIS drilling – June 2021 NT & Aileron Gravity– June 2021 Tanami EIS drilling – H2 2021

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