26 Nov

Annual General Meeting Presentation

ASX: ENR Copper exploration critical to meeting market demands Annual General Meeting Perth, WA 26 November 2021 2 This presentation has been prepared by Encounter Resources Limited (“Encounter”). The information contained in this presentat ion 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 re aso n 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 uncertaint ies, 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 docum ent , they assume the success of Encounter’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actua l f uture 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 an d 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”) disclai m a ll 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 los s o r 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 i s 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 exp eri ence 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 fo r R eporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Bewick consents to the inclusion in the report of the matters based on the information compil ed 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 relev ant 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 fin dings 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 comp ly 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 i s 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 st yle 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, Mi ner al 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 w hic h it appears. This announcement has been approved for release by the Board of Encounter. Disclaimer and compliance statement 3 The Encounter business model TIER 1 TARGETS Project generation and exploration targeting copper dominant 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 PROJECT GENERATOR MODEL Progress project pipeline with a mix of alliances, joint ventures and sole funding DATA DRIVEN INSIGHTS Reduce exploration risk through cost effective and innovative data - driven techniques to rapidly prioritise and assess targets FAST ADOPTION OF NEW DATA AND TECHNOLOGIES Fast mover, early adopter of new technologies and datasets 4 Transformational year for Encounter – Copper Focus May 2021 Earn - in agreement and JV at Elliott Copper – Northern Territory September 2021 High grade copper intersected at Lamil – Paterson Province, WA January 2021 IOCG style copper - gold - REE in drilling at Aileron – West Arunta, WA October 2021 Extensive outcropping copper at Sandover – Northern Territory October 2021 Demerger and $10m IPO of belt scale gold project - West Tanami, WA 2019 - 2020 First mover camp - scale copper position secured across multiple projects – Northern Territory 5 A premier copper exploration portfolio Early mover positions in world - class minerals belts attracting Tier 1 partners Paterson Province – WA Cu - Au System 25km NW of Telfer and new approach in a known Cu - Co district ? Lamil Copper - Gold (ENR 100%) ? Yeneena Copper - Cobalt (IGO $15m earn in) West Arunta – WA IOCG targets copper - gold - rare earths ? Aileron IOCG Copper - Gold (ENR 100%) Northern Territory Copper Sediment - hosted copper and IOCG targets in emerging region ? Elliott Copper (BHP $25m earn in) ? Jessica Copper (ENR 100%) ? Carrara Copper - Zinc (ENR 100%) ? Sandover Copper (ENR 100%) ? Camp Scale Copper projects (ENR 100%) Elliott Carrara Sandover Jessica West Arunta Paterson Province Copper - Gold Paterson Province 6 Positions in three emerging regions in Australia with potential to host large scale copper discoveries ? Validated through joint venture partners and third party interest in 100% owned assets ? Demerger and IPO of West Tanami gold assets through Hamelin Gold facilitates a greater focus on the copper exploration portfolio Attractive demand side dynamics for copper: ? Significant increase in production required to support the global megatrends of vehicle electrification and decarbonisation ? Greater focus on sustainability supports the development of new, modern mining operations in high quality jurisdictions like Australia Attractive supply side dynamics for copper : ? Current discovery and development pipeline will not satisfy the forecast demand increase ? Average global mined copper grades remain in decline ? Increasing portion of global supply coming from higher risk jurisdictions Copper dominant exploration 7 Encounter at a glance Creating value through project generation and discovery Capital structure ASX ticker ENR Share price (24/11/2021 ) $0.15 Shares on issue 316M Options 14M Market capitalisation ~$50M Cash (30/09/21) ~$4.1M Listed investments ~$0.6M Enterprise value (net of cash and listed investments) ~$45M Mr Paul Chapman Non Executive Chairman B.Comm , ACA, Grad. Dip. Tax, MAICD, MAusIMM Dr Jon Hronsky OAM Non Executive Director BAppSci , PhD, MAusIMM , FSEG Mr Philip Crutchfield Non Executive Director B.Comm ., LL.B (Hons), LL.M LSE Mr Will Robinson Managing Director B.Comm , MAusIMM Mr Peter Bewick Non Executive Director B.Eng (Hons), MAusIMM Major shareholders Board and Management ~14.2% IGO ~8.2% Silver Lake Resources ~5.3% Share price – 12 months Board of Directors 0 1000000 2000000 3000000 4000000 5000000 6000000 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 8 Paterson Province, Western Australia: Australia’s hottest copper address 9 ? 100% ENR – located 25km NW of Telfer ? Seven hole (2,850m) diamond drill program completed September 21 ? Two copper - gold mineralised stratigraphic horizons identified ? Horizons intersected over 200m of strike and remain open in all directions — multiple, stacked, narrow copper - gold reefs in a mineralised prospective host package that is over 200m thick — high grade, chalcocite dominant copper mineralisation Copper - gold system established at Lamil Refer to ASX releases 6 September and 16 November 2021 10 Refer to ASX releases 6 September and 16 November 2021 A ltered & veined siltstone with quartz carbonate - pyrite with chalcopyrite veining ~280.5m in ETG0243 • 0.23m @ 4.70g/t Au & 1.54% Cu S emi - massive pyrite/chalcopyrite in quartzite unit ~ 347m in ETG0243 • 0.50m @ 0.50g/t Au & 2.70% Cu S emi - massive pyrite – chalcocite mineralisation drilled from 409.1 to 410.6m in ETG0226. • 1.5m @ 19.1% Cu from 409.1m Drilling results point to potential large copper - gold system High grade copper intersections rare outside of Winu & Havieron 11 ? 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 ? Data acquisition programs progressed — Three diamond drill holes completed — Ground magneto - telluric (MT) survey — AC drilling ? Interpretation of integrated results will allow for the drill testing of the highest quality targets in 2022 Yeneena Copper - Cobalt 12 Northern Territory: The next hot spot for copper in Australia 13 ? 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 Northern Territory: the next hot spot for copper in Australia 14 DISCOVERY ELEMENTS NT SCORECARD EXPLORING FOR THE FUTURE DATA Source rocks Size of sedimentary basin and sub - basin ? Brines Bitten brines vs evaporites or both? ? Seals Grabens form a natural containment for dense fluids ? Gravity, magnetics Inversion Basin inversion / orogenic event to provide the energy to bring reservoir fluid towards surface ? Fluid pathways Basin margin faults and major faults ? Seismic, MT, AEM Traps Reductants or failed hydrocarbon traps provide physical and chemical trap sites ? Magnetics, Hydro - geochem EXPLORATION FOCUS Sediment - hosted copper: key ingredients 15 ? 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 Elliott Copper Project Refer to ENR ASX release 21 May 2021 16 NTGS Core Library, Darwin 16 17 Copper Carbonate (Malachite) 0 - 3m from RN28419 – chemical assay 1.5% Cu 1 Drill hole NDIBK04 pyrite - chalcopyrite vein 3 Chalcopyrite contained in a calcareous shale unit within NDI Carrara1 ~1,617m 4 Crosswinds Copper Prospect - Malachite (copper carbonate) mineralisation exposed in table drain 2 Jessica and Carrara: Copper near surface and at depth 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 Drillcore is from the national drilling initiative. It is not the property of the company 18 South Nicholson Seismic Survey, a foundational dataset acquired as part of the GA Exploring for the Future Program (AGES 2019) Carrara Carrara Chalcopyrite (Cu sulphide ) contained in a calcareous shale unit Sphalerite (Zn sulphide ) contained in a calcareous shale unit Carrara: prospective basin architecture Correlation of prospective stratigraphic units from the Isa Super Basin into the Carrara Sub - basin indicates the Mount Isa Province extends to the west Refer to ENR ASX release 28 Apr 2021 19 ? 170km north - east of Alice Springs ? Zambian copper belt analogous – very rare to find in an Australian setting ? Targeting the Neoproterozoic basal Georgina basin sediments ? +20km of outcropping malachite in the Neoproterozoic Central Mt Stuart Formation Sandover Copper Project 20 ? Major elements of a sediment - hosted copper system present — Juxtaposition of Neoproterozoic sediments against crystalline basement — Evaporites — Reduced stratigraphic units to trap Cu brines, within a red - bed sequence — Evidence of copper mineralisation event Sandover Copper Project Outcropping malachite outlines potential major mineral system NTGS Kruse et al, 2013 Cu 21 Sandover Copper Project +20km of outcropping copper in Zambian copper belt setting 1 2 4 3 5 22 West Arunta, Western Australia: “The next major copper exploration focus in WA” 23 ? 1,300km² West Arunta province of WA ? 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 August - November 2021 ? EIS co - funded drilling to follow ($150,000) West Arunta: IOCG targets in an unexplored region Refer to ASX announcement 12 July 2021 Aileron Project – Tenement and gravity survey location plan on TMI background 24 ? Discrete, pipe - like density anomaly ~600m by 600m (~2 mgal ) ? Coincident magnetic anomalism ? Next Steps - Heritage survey, surface geochemistry then drilling West Arunta: Initial gravity results Residual Gravity Gravity Inversion DS300 Gravity Inversion DS500 Magnetics RTP Aileron Project – Ground gravity Residual Image South - Eastern Gravity Anomaly South - Eastern Gravity Anomaly Gravity Survey Nov 2021 25 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Paterson Copper - Gold (100% ENR) Copper Projects NT (100% ENR) West Arunta IOCG (100% ENR) Elliott Copper Paterson Province Copper - Cobalt 2022 exploration activity Gravity Survey BHP run 2021 exploration activities including diamond drilling Aircore drilling Gravity survey (Jessica / Carrara) IGO run exploration activities Gravity Survey Diamond Drilling Diamond Drilling Lamil Partnering opportunities? Geochem Diamond Drilling AEM 26 Major new copper discoveries required to meet burgeoning demand Sediment - hosted copper systems are a high grade and large deposit style Central Australia has the right geology for sediment - hosted and IOCG copper deposits….but underexplored Partnering with majors to maximise exploration investment and activity Encounter shareholders have prime exploration leverage to the decarbonisation and electrification megatrends Foundations established for major copper exploration drive
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Encounter Resources Limited (ASX:ENR) when you join Listcorp.