BRR - Straight from the source

PRESENTATION BY WILL ROBINSON, MANAGING DIRECTOR OF ENCOUNTER RESOURCES LIMITED (ENR)

“Encounter on the Future of Uranium in Australia”

http://www.brr.com.au/event/52295

WEDNESDAY, OCTOBER 15, 2008, 9:00 AM.

            BRR    Good morning and welcome to Boardroom Radio’s Uranium eConference. Joining us today is Will Robinson, Managing Director at Encounter

10                    Resources. Good morning, Will. Thanks for your time.

            ENR    Good morning, Tom, and thanks for having me along.

                        Encounter Resources is a very active mineral exploration company both here

15                    and in Perth, and our main focus is on uranium and base metals in Western Australia. The company began in its uranium targeting program back in 2004 and the company believes very strongly in the future of uranium in Western Australia and the enormous geological prospectivity here in Western Australia. The company has assembled a highly respected, dedicated

20                    exploration team with decades of experience exploring for world-class deposits.

                        Western Australia was essentially off limits to many major uranium companies through the previous government stands on uranium. Encounter,

25                    against this backdrop, has been working hard on its uranium exploration since 2004 here in Western Australia and we’re one of the biggest landholders for uranium in Western Australia. We think we’ve got a (inaudible) (0:01:00) position because of our aggressive position that we’ve taken over recent years. Now the change in the Western Australian

30                    government in September means that those impediments to uranium development in Western Australia have been removed and those companies have got in earlier and secured the best exploration ground up. We think we’ve got the best chance of success.

35                    The company has been working the way it has. We’ve had some exploration success and we’re accumulating a sizeable calcrete uranium resource base in Western Australia. The company also holds a very large position in the Paterson region that host the Kintyre deposit. This is one of the most exciting unconformity districts in the world and Encounter is a major regional player in

40                    that area.

                        Moving on, the people that are behind Encounter and driving their exploration, Mr. Paul Chapman is the Chairman. He’s an accountant with over 20 years of experience at companies such as Alcoa, Western Mining,

45                    Minara, and Reliance Mining. Peter Bewick drives our exploration. He’s a former head of a nickel exploration of Western Australia for WMC and he’s got a team of six geoscientists who work for him focusing on -- with experience -- in uranium, base metals, and gold. Last year, we brought Jon Hronsky on Board. He was the former head of global project generation for BHP Billiton and has had over 20 years of experience in senior exploration roles with WMC and BHP, and he’s been a terrific addition to our team.

                        So moving onto the projects themselves, and this presentation will focus

5                      mainly on three areas. Firstly, Encounter’s Calcrete uranium strategy in the Northern Yilgarn which includes the company’s Hillview discovery. Secondly, the Paterson mineral field up in northern Western Australia where Encounter is in joint venture with Barrick over a large parcel of land that we call the Yeneena project, and I’ll touch very briefly on our base metals work which

10                    we’re doing in parallel with our uranium work at the end.

                        So much of our early exploration work is focused on calcrete uranium in the Northern Yilgarn region of Western Australia. We focused on calcrete uranium because these projects have a short lead time, easy-to-develop

15                    projects, and the near-surface resources in that area in the Northern Yilgarn has excellent access to infrastructure. We believe that the Northern Yilgarn will be a future production centre for uranium in Western Australia. This area that I’ll just zoom into around Wiluna-Meekatharra which I guess we refer to as the Northern Yilgarn, is a highly endowed area with existing resources

20                    held by BHP Billiton at Yeelirrie and Toro Energies Resources at Lake Way and Centipede and CITIC and Impact Minerals hold the Nowthanna resource in this area. There are a lot of resources. The Yeelirrie and Lake Way projects are very advanced, even if a lot of the work that we’ve done on them is 20 years old, and we believe this is an area most likely to host one or several

25                    processing plants in the not too distant future. When I say not too distant future, I’m looking at a, I guess, a 3- to 5-year timeframe.

                        Our exploration to date uncovered satellite resources around the Yeelirrie and Lake Way. The Encounter Resources is shown there on the slide in green.

30                    Then 130 km to the west of Yeelirrie deposit, Encounter discovered the large scale Hillview deposit.

                        The Hillview project is located about 50 km to the southeast of Meekatharra, and the diagram I’m showing there shows the resource outline of the Hillview

35                    project of the resource defined to date. It’s a flat-lying body that averages about 3 m thick, it’s about 7 km long, up to 1.4 km wide, and importantly, the entire deposit is within 15 m of surface. We put out a resource estimate for the Hillview project in July of over 10 million pounds. There is a high-grade zone at the bend of the drainage and the centre of the orebody, but as a

40                    general comment, the mineralisation is remarkably consistent.

                        So, the second focus for uranium for Encounter is unconformity style uranium in a Yeneena joint venture with Barrick in the Paterson Province in northern Western Australia. This is where most of our exploration focus for uranium

45                    will be made over the next 12 months. Encounter controls a major position within this highly endowed world class mineral province that hosts the Kintyre uranium deposits and the Nifty copper mine. Kintyre is Australia’s most recent unconformity uranium discovery discovered in 1985 by CRA Exploration. We see this as an area that has huge upside and we’ve taken a very aggressive position and we believe that this is an area that is going to see a hell lot of focus for uranium exploration over the next few years. We also believe that the project is going to have a considerable base metals potential being in the same geology that hosts the Nifty copper mine to the north of our project.

5

                        So, zooming into the project area, I’m showing there a magnetic image. Encounter controls over 1500 sq. km. and the largest landholders in this area and we’ve got a major project position that we’re going to aggressive explore. We believe that the margin of that Yeneena sub-basin is a primary control

10                    and a key target horizon for unconformity related uranium mineralisation, shown on the slide there in red. Cameco and Mitsubishi consortium now control the seven margins along with the state government in the Rudall River National Park and Cameco holds an exploration license over the eastern margin. Encounter is exploring the western and northern margins in joint

15                    venture with Barrick. We believe that Yeneena project represents the mirror geological position to that position that hosts the Kintyre uranium deposit in the south. This area was also targeted by Geoscience Australia as part of the federal government’s onshore energy initiative and there has been a very large EM Survey that’s just been flying over this project and Encounter has

20                    contributed to that and flying some infield flow lines which we expect to receive in the next month or so.

                        I guess importantly in this area, while it’s very much a Greenfields exploration play for uranium and I guess a key conceptual target, there’s over 18,000 m

25                    of drilling that were completed by Barrick and none of these holes were assayed for uranium or base metals previously, and we’ve recently received the results back from that and the team here has been going through the previous drilling and I guess that compilation and interpretation will be completed about the same time as the EM Survey that we’ve flown over that

30                    area is complete. So, this is a great place for an aggressive explorer to be working. We’ve got a major structural position in this world class mineral belt. Obviously, the politics of Western Australia for uranium has changed and this is an area that has been very underexplored for uranium in the past and we see this as an area that’s going to see a hell of a lot of exploration going

35                    forward.

                        So just to touch on at the end while I finish, we’ve got the Bangemall Basin base metals project -- both projects up in central Western Australia to the south of Newman and Encounter has established a significant landholding in

40                    this Proterozoic basin. Proterozoic age rocks host some of the world’s largest uranium deposits, Ranger and Jabiluka to name a couple. These same age rocks host some of the world’s largest base metals mines, Broken Hill and (inaudible) (0:08:15) to name a couple. Base metals and uranium deposits in the Proterozoic are considered by many to have a similar genesis, and

45                    because of this, it makes good sense to explore for both uranium and base metals together in this Proterozoic environment.

                        So, Encounter has just recently completed its first drill program up there and we’re awaiting results from that. It was predominantly a SEDEX target that we had on the northern margin of that Bangemall Basin and we’ll be eagerly awaiting those results in the next month or so.

                        So, just to sum up, we commenced our first drill program at Hillview back in

5                      July 2007. Within 12 months of that, first drill hole had been released. We’ve released our maiden resource at the Hillview project at over 10 million pounds of uranium. This rapid project advancement is a credit to the project team and consistent with the company’s aggressive approach to advancing its uranium and base metals interest in Western Australia. The Yeneena project in the

10                    Paterson region in Western Australia represents 1500 sq. km. of ground and key structural location in the Kintyre region which we believe is a simply outstanding unconformity uranium exploration opportunity. WA has only now just awaken from a 25-year slumber with regard to uranium and we believe this is a once in a lifetime opportunity to make new discoveries in Western

15                    Australia, and we believe that Encounter is in the (inaudible) (0:09:33) in that regard. While at this time there’s a tendency to focus on the negative out there, it’s important not to lose sight of the many positive developments and the encouraging medium-term outlook. There’s a huge investment going on in nuclear power throughout the world driven by factors of energy, security, and

20                    reducing carbon emissions, and the demand and age for commodities and energy, I guess in China in particular, continues to grow at good levels. While there’ll be hiccups along the way, we remain very optimistic about the outlook for the development of resources and energy projects in Australia to meet this demand. Encounter is well positioned with a large portfolio of highly

25                    prospective projects in Western Australia to take advantage of this growth.

                        Thank you very much.

            BRR    Will, thanks for your presentation and thanks for participating in this

30                    conference. Listeners, that was Will Robinson, Managing Director at Encounter Resources presenting as part of the Boardroom Radio eConference on Uranium.

                        If you have any questions for Will or you’d like more information about this

35                    eConference, please email at brr@brr.com.au.

                        Thank you for listening to Boardroom Radio.

PRESENTATION CONCLUDED

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