Page 1

Quarterly Activities Report FOR THE PERIOD ENDED 31 DECEMBER 2020 encounter RESOURCES LIMITED • High quality partners and funding to accelerate exploration Highlights : • • • • Drilling has resumed at the 100 % owned Lamil Copper - Gold Project located 25km northwest of the Telfer copper - gold mine , in the Paterson Province of Western Australia . 3,000m RC drill program to test high priority targets at the Dune Prospect : о + 800m long copper - gold mineral system that remains open , with strengthening copper о Following up multiple stacked copper - gold lodes intersected in November 2020 Newcrest Mining ( ASX : NCM ) funded diamond drilling at Aileron located in the West Arunta region of WA contains hydrothermal hematite - altered mafic intrusions and granite with a distinctive IOCG geochemical signature under shallow cover ( 10m ) . Assays include zones of anomalism in copper ( up to 0.1 % Cu ) , gold ( up to 48ppb Au ) and molybdenum ( up to 155ppm Mo ) . Furthermore , highly elevated rare earth elements consistent with the targeted IOCG deposit model were identified including lanthanum ( La ) up to 0.2 % and cerium ( Ce ) up to 0.3 % . Encounter regained 100 % control of the 3,400km² West Tanami Gold Project ( " West Tanami ” ) . A rare , belt - scale , under explored gold project that covers over 100km of strike of the major structural corridor that hosts Newmont Corporation's giant Callie gold deposit in the Northern Territory . Discussion underway with potential partners to accelerate activity on priority prospects in 2021 including : ○ Mojave Prospect : + 7km long gold - arsenic anomaly that includes thick mineralised drill intersections strengthening at bottom of hole о о Afghan Prospect : RC drill program in 2019 confirmed gold mineralisation over a 2km zone including AFG002 - 10m @ 1.6g / t Au from 4m incl . 6m @ 2.5g / t Au from 6m 6 Hutch's Find Prospect : Limited drilling has returned 19m @ 2.3g / t Au from 98m and 10m @ 5.4g / t Au from 123m 7 IGO Limited ( ASX : IGO ) funded diamond drilling at Yeneena located in the Paterson Province of WA . Two diamond drill holes ( 610m ) were completed at the Tarcunyah prospect . The Windsor EM target drill hole , EPT2310 , was paused above the target , at a depth of 493m , as a result of challenging operational and ground conditions . The completion of drill hole EPT2310 is scheduled to commence in March 2021 . In September 2020 , BHP ( ASX : BHP ) and Encounter entered into an Option Agreement that provides BHP with the right to enter an earn - in and joint venture agreement to earn up to 75 % interest in the Elliott Copper Project by spending up to $ 22 million over 10 years . A program of compilation , interpretation and modelling of the data packages at Elliott was completed during the quarter . In October 2020 , a strongly supported share placement raised a total of - $ 6.3 million ( before costs ) . Funds will be used to fast - track 100 % owned gold and copper projects and to accelerate project generation activities . Encounter Resources Limited Level 7 , 600 Murray Street West Perth WA 600 P +61 8 9486 9455 F +61 8 9486 8366 E contact@enrl.com.au www.enrl.com.au