Encounter Resources

Up to 4.9% Copper Intersected at BM7

The directors of Encounter Resources Ltd (“Encounter”) are pleased to provide an update on progress at the BM7 prospect within the Yeneena project in the Paterson Province of Western Australia.

· Additional thick zones of copper sulphide mineralisation including the highest grade interval to date from BM7 drilling

· Drilling has outlined copper mineralisation at BM7 over an area 800m x 1km at the northern end of a large geophysical anomaly (conductivity low)

· Heritage survey completed to facilitate the drilling of the southern 2.5km extension of the geophysical anomaly

· Aircore drilling at BM7 scheduled to re-commence in early October 2012