Encounter Resources : Expanding Footprint at the East Thomson’s Gold System

30 November 2017

Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000

Level 7, 600 Murray Street West Perth WA 6005

PO Box 273

West Perth WA 6872

P 08 9486 9455

F 08 6210 1578

www.enrl.com.au

ASX : ENR Expanding Footprint at the East Thomson's Gold System

• Widespread coarse gold identified across the East Thomson's Dome associated with multiple known gold bearing reefs
• Four reefs identified to date with high potential for new reef discoveries in 2018:
  • Fold Closure Reef - first assay results received from October 2017 drilling return several reef-style intersections including:
    • 4m @ 4.3g/t Au from surface in ETG109
    • 4m @ 3.5g/t Au from 17m in ETG110
    • 2m @ 5.4g/t Au from 46m in ETG106
  • 46 Reef - new gold bearing reef discovered in an area of no previous exploration and ~2km from previous drilling
  • N31 Reef - surface sampling returned assays of 8g/t and 27g/t Au
  • 45 Reef - 6m @ 9g/t Au from 178m (previously reported)
• Ultra-detailed surface mapping utilising drone technology to target extensions to known reefs and new reef positions commencing current quarter
• Further assays from East Thomson's Dome and Telfer West in December 2017

  The directors of Encounter Resources Ltd ("Encounter / Company") are pleased to announce high grade assay results from the recent drill program and widespread surface coarse gold recovered from new reefs at East Thomson's Dome ("ETD").

  Commenting on the results, Encounter Managing Director Will Robinson said:

  "The early results from the recent aircore/RC drill drilling has expanded the footprint of the gold system at East Thomson's Dome. The widespread coarse gold recovered is indicative of multiple gold reefs with some impressive nuggets discovered. The discovery of the new 46 Reef in a new area with no previous exploration demonstrates the high potential to identify more gold-bearing reefs from the upcoming ultra-detailed surface mapping program utilising drone technology."

  Photo 1 - 3oz nugget recovered from the new 46 Reef in November 2017 (refer ASX announcement 21/11/17) Figure 1 - East Thomson's Dome Coarse Gold locations on airphoto background. Fold Closure Reef

  A 15 hole program of RC drilling was completed at the Fold Closure reef in early November 2017. Assay results from two important drill holes remain pending however the assays received to date contain a number of additional reef-style, close to surface intersections including:

  • 4m @ 4.3g/t Au from surface in ETG109

  • 4m @ 3.5g/t Au from 17m in ETG110

  • 2m @ 5.4g/t Au from 46m in ETG106

The Fold Closure reef remains open with the most south-western hole in the program (ETG103) including 1m @ 4.3g/t Au as part of 5m @ 1.4gt Au from 189m towards to bottom of the hole.

The interpretation of the results from the Fold Closure is ongoing. Once assay results from all holes are available, a more comprehensive update will be provided.

In addition to the RC program, a three hole aircore program was completed in an area ~250m north- east of the Fold Closure reef to provide an initial drill test of an area of gold soil geochemical anomalism. Aircore hole ETG114 contained a 38m intersection grading 0.3g/t from 44m. The thick and shallow intersection in this drill hole opens up the north-western area and a systematic drill test of this area will be completed in early 2018.

46 Reef

Encounter identified a small outcrop that contained an iron rich quartz reef located in the west of the project during field reconnaissance. The area has had no prior exploration and is approximately 2km west of the Fold Closure Prospect. This iron rich quartz reef (46 Reef) is interpreted to extend

under shallow cover to the north-west and south-east concordant with stratigraphy wrapping around the dome. A single aircore hole, ETG118, was completed under this reef position to ascertain subsurface geology. Assay results from this drill hole remain pending.

A small prospecting exercise recently completed along the interpreted 46 Reef trend recovered a

~3oz nugget in an area with no previous exploration (see Photo 1). Identification of coarse gold associated with this newly identified reef position has important implications for the prospectivity of the project. Prior exploration at ETD has focused mostly on the outcropping axis of the dome with little or no exploration completed to the NE and SW in areas of widespread shallow cover.

The discovery of this new gold bearing 46 Reef position highlights the potential for surface mapping to identify additional reefs in areas of little or no prior exploration. Accordingly, an ultra-detailed surface mapping exercise utilising drone technology will be completed to map the extensions of the known reefs and to identify additional reef positions at ETD. This low cost program will be completed in the coming months and the results will be followed by field verification, sampling and drilling.

N31 Reef

The N31 reef is located 1.5km north-west of the Fold Closure. Previous explorers drilled nine RC drill holes to an average depth of 61m and one deep stratigraphic hole has been drilled by Barrick Gold to a depth of 1,011m (refer to Tables 3 and 4). Results from these drill holes include:

• 1m @ 10.4g/t Au from 59m in BTDD0004

• 2m @ 6.9g/t Au from 6m in NTR32

• 4m @ 3.5g/t Au from 8m in NTR31

A surface outcrop of rubbly, oxidised ironstone was identified in October 2017 in the N31 reef area (see Photo 2). This outcropping reef position was subsequently sampled in two locations and returned high-grade assays of 8g/t and 27g/t Au.

This subtle outcrop/subcrop position further highlights the potential to identify additional gold reefs across the dome and projecting them under shallow sand cover.

Photo 2 - Surface samples collected on the N31 Reef in October 2017 45 Reef

Broad spaced RC drilling by Encounter in July 2017 intersected 6m @ 9g/t Au from 178m in ETG0045 (refer ASX announcement 16 August 2017). Follow up drilling during the current program was designed to test the possible strike extent of this new reef along existing cleared drill lines. Two aircore holes (ETG0096 and ETG0097) were drilled 200m north of ETG0045 and two RC holes (ETG0100 and ETG0101) were drilled 100m south. RC hole ETG0099 was drilled on section to the east of ETG0045 to test for a possible updip continuation of the reef position.

Assay results for hole ETG0100 remain pending with all other holes now received. All holes recorded intervals of gold anomalism in excess of 0.1g/t Au (see Table 2) including an interval of 2m @ 1.7g/t Au from 84m in ETG0101. The area of gold anomalism along the 45 Reef extends over 700m of strike. Once all assay results are received the priority will be to identify possible high grade corridors within the larger mineralised envelop.

Hole_ID	Hole Type	Northing (m)	Easting (m)	RL (m)	EOH(m)	Dip	Azi
ETG0095	AC	7607542	413403	291	123	-60	40
ETG0096	AC	7607602	413460	291	104	-60	40
ETG0099	RC	7607548	413686	293	207	-60	40
ETG0100	RC	7607499	413765	294	210	-60	40
ETG0101	RC	7607563	413810	294	207	-60	40
ETG0102	RC	7607392	414082	301	201	-60	310
ETG0103	RC	7607365	414118	301	199	-60	310
ETG0104	RC	7607446	414082	301	150	-60	310
ETG0105	RC	7607421	414112	301	150	-60	310
ETG0106	RC	7607390	414144	301	150	-60	310
ETG0107	RC	7607479	414109	301	100	-60	310
ETG0108	RC	7607424	414163	301	100	-60	310
ETG0109	RC	7607520	414117	301	50	-60	310
ETG0110	RC	7607508	414131	301	50	-60	310
ETG0111	RC	7607496	414150	301	50	-60	310
ETG0112	RC	7607457	414189	301	50	-60	310
ETG0114	AC	7607720	414314	300	96	-90	0
ETG0115	AC	7607624	414331	300	84	-90	0
ETG0116	AC	7607656	414358	300	108	-90	0
ETG0118	AC	7607680	412214	282	115	-60	40
ETG0119	AC	7608074	412549	282	139	-60	40
ETG0120	AC	7607797	412574	284	147	-60	40
ETG0121	AC	7607950	412708	286	106	-60	40
ETG0122	RC	7607415	414052	301	200	-60	310
ETG0123	RC	7607444	414024	301	210	-60	310
ETG0124	RC	7607471	414052	301	150	-60	310
ETG0125	RC	7607499	414086	301	100	-60	310

Table 1: Aircore and RC hole collar locations - East Thomson's Dome (October 2017 campaign) Estimated drill hole coordinates GDA94 zone 51 datum. Collars positioned via handheld GPS (+/-5m), EOH = End of hole depth; m=metre; azi=azimuth. Drill Type; AC = Air Core; RC = Reverse Circulation