Encounter Resources (ENR) Investor Presentation summary

Strategy and corporate overview

• Focused on discovering and developing niobium and copper resources in Australia, with a strong project generation pipeline and early mover advantage in new regions.

• Holds a significant land position in the West Arunta region, targeting world-class mineral deposits through advanced exploration and collaborations.

• Maintains a robust financial position with ~$23M cash (Dec 2024), market cap of ~$125M, and enterprise value of ~$102M.

• Major shareholders include IGO, Chalice Mining, and Paradice Investment Management, with board and management holding ~10.2%.

Aileron Project – West Arunta highlights

• Aircore drilling in 2024 intersected shallow, high-grade niobium-REE mineralisation across multiple targets, including Green, Crean, and Emily.

• Green prospect revealed a large carbonatite complex with drill results up to 3.3% Nb2O5 over significant widths.

• Crean and Emily prospects also returned thick, high-grade niobium intercepts, with Crean showing coherent mineralisation over 1.2km strike.

• Structural corridors defined by geophysics guide exploration, with numerous holes ending in mineralisation and prospects remaining open.

• 2025 exploration will focus on resource definition and testing new copper-gold and niobium-REE targets using rapid, low-cost drilling.

Niobium market and demand drivers

• Niobium is a critical metal with stable pricing, dominated by a single producer (CBMM) supplying over 80% of global needs.

• Demand is underpinned by high-strength, low-alloy steel, with growing applications in batteries, defense, nuclear, and advanced technologies.

• Niobium enhances steel efficiency, reduces CO2 emissions, and supports dematerialisation in energy, construction, and automotive sectors.

• Global niobium demand has a 5.5% CAGR, driven by quality controls and decarbonisation in steel markets, with significant growth potential in China and India.

• Niobium oxide is priced at US$40k–50k/t, with producers enjoying high margins and stable valuations.