core sector communique

Yeneena Copper Exploration Update

The directors of Encounter Resources Ltd (“Encounter”) are pleased provide an update on copper exploration activities at the Yeneena project in the Paterson Province of Western Australia.

BM7 Prospect

· RC Additional RC pre-collar assays results returned including:

• 18m @ 0.4% copper and 298ppm cobalt incl. 2m @ 2.2% copper

• 40m @ 0.2% copper and 143ppm cobalt incl. 12m @ 0.4% copper

· Assay results from the first three diamond holes have been received confirming copper-cobalt sulphide mineralisation at depth:

• 19m @ 0.5% copper and 220ppm cobalt

• 7m @ 0.7% copper and 320ppm cobalt

• 59m @ 0.2% copper and 95ppm cobalt

· VTEM survey indicates BM7 target extends a further 2.5km south

· Ninth diamond drill hole in progress

T4 Prospect

· 10,000m aircore drilling program has commenced