Encounter Reports 19.2Mt at 1.74% Nb2O5 at Aileron, $19M Cash on Hand

Aileron Project Breakthrough

Encounter Resources Limited has delivered a landmark milestone with the announcement of its maiden mineral resource estimate at the Aileron Niobium-REE-Copper Project in Western Australia's West Arunta region. The initial JORC-compliant Inferred Resource totals 19.2 million tonnes at 1.74% niobium pentoxide (Nb2O5), highlighting a shallow, high-grade deposit that remains open along strike and at depth. This rapid progress, achieved within six months of drilling following the Crean discovery in mid-2024, underscores the project's potential as a significant source of critical minerals.

The resource estimate, independently prepared by Snowden Optiro, also identifies a broader mineralised envelope of 67.6 million tonnes at 0.88% Nb2O5, indicating substantial upside potential. Encounter is actively advancing the project with a major drilling campaign focused on upgrading the resource through infill reverse circulation drilling and expanding regional exploration via aircore drilling across more than 15 high-priority targets.

Metallurgical Advances and Exploration Incentives

Complementing the resource development, Encounter has completed initial metallurgical test work on samples from the Green deposit. The mineralogical analysis confirmed pyrochlore as the dominant niobium-bearing mineral with excellent liberation characteristics, suggesting that conventional beneficiation techniques could produce a high-grade concentrate. This work, conducted in partnership with SGS Lakefield in Canada, aligns with processing methods used by leading global niobium producers and marks a critical step toward project feasibility.

Further supporting exploration efforts, the company secured a $250,000 grant from the Western Australian Government’s Exploration Incentive Scheme to fund a high-resolution airborne electromagnetic survey. This survey aims to enhance targeting for copper, niobium, and rare earth elements, as well as assist in water resource mapping, vital for future project development.

Yeneena Project Ownership and Copper Focus

In a strategic move, Encounter regained 100% ownership of the Yeneena Copper Project in the Paterson Province after IGO Limited withdrew from their farm-in agreement. This large-scale copper-cobalt project lies in a highly prospective region near established mines such as Telfer and Nifty. Encounter has identified BM5 as a high-priority drill target, with recent sampling revealing impressive silver and copper grades, including 15 meters at 21.8 grams per tonne silver and elevated copper concentrations.

RC drilling is planned for October 2025 to test these targets, while the company is also reviewing the BM1 prospect, known for its high-grade copper oxide mineralisation, to assess potential sulphide extensions at depth. This renewed focus on Yeneena reflects Encounter’s commitment to unlocking copper resources in one of Australia’s most exciting mineral provinces.

Jessica Project and Broader Northern Territory Exploration

Under a $15 million farm-in agreement with South32, Encounter is progressing exploration at the Jessica Copper Project in the Northern Territory. Geophysical surveys, including deep-seeking MIMDAS and a planned 2,640 line-kilometre airborne electromagnetic survey, are underway to refine targets such as the Zeta IOCG anomaly. Follow-up drilling is scheduled to commence in October 2025, aiming to build on encouraging results from previous diamond drilling that intersected copper mineralisation.

Beyond Jessica, Encounter is advancing early-stage copper exploration across several Northern Territory projects, including Maryfield and Sandover, supported by co-funding from the Northern Territory Geological Survey. These programs leverage new geophysical data and structural interpretations to identify concealed sediment-hosted copper systems in underexplored basins.

Financial Position and Strategic Team Expansion

Encounter Resources maintains a robust financial position with approximately $19 million in cash as of June 30, 2025, underpinning its aggressive exploration and development programs. The company invested around $2.2 million in exploration during the quarter, focusing primarily on Aileron and copper targets in Western Australia and the Northern Territory.

To support its growth ambitions, Encounter has bolstered its team with strategic hires in metallurgy, corporate development, and marketing, including industry veterans with experience at leading companies such as Allkem, CBMM, and Lynas. These appointments aim to accelerate the transition of Aileron from discovery to development and enhance market engagement for its critical mineral assets.