Uranium and Base Metals

Encounter Resources Limited is an exploration company focused on unlocking the uranium and base metals potential of its quality portfolio of assets in Western Australia. Encounter moved early (commencing in 2004), establishing an extensive project portfolio targeting calcrete uranium deposits in WA.

The company secured a number of Bangemall Basin base metals/unconformity uranium projects in 2005 to complement its calcrete uranium portfolio. Some of these projects were initially explored for base metals by the majors in the 1990's. With an improved base metals price outlook and a fresh exploration approach the Bangemall Basin projects will see a new generation of exploration activity in 2007/08.

Since listing on the Australian Stock Exchange in March 2006, the Company has begun the aggressive implementation of its exploration strategy.

Exploration to date has uncovered three new areas of uranium mineralization in the Lake Way/Yeelirrie area including the Bellah Bore East discovery south of Wiluna.

Encounter has assembled an experienced board and management team made up of former BHP Billiton and WMC Resources executives. The Board takes a disciplined commercial and technical approach to maximize the value of the current portfolio and to take advantage of future opportunities as they arise.

Encounter, together with joint venture partner Avoca, will now commence a focused exploration campaign to assess these projects. The exploration management fundamentals employed by Encounter will ensure:

(a) projects are ranked and work programs prioritised;

(b) programs are designed to clearly defined decision points;

(c) results are assessed and reviewed against pre-defined goals;

(d) follow-up programs are only approved if the project passes business and technical gating; and

(e) where appropriate, Encounter will share the project risk with other parties.