Encounter Resources (ENR) Q4 2026 TU earnings summary

Executive summary

• Significant 54% increase in Aileron Project's combined Inferred Mineral Resource Estimate (MRE) to 120Mt @ 0.77% Nb2O5, with 26Mt @ 1.7% Nb2O5 at a higher cut-off, following 2025 drilling results.

• Metallurgical test work at Aileron achieved 51-53% recovery at head grades of 2.2-2.8% Nb2O5, producing concentrate grades up to 57% Nb2O5, comparable to global industry standards.

• Large-scale field programs, including infill, extensional, and aircore drilling, are underway at Green, Emily, and regional targets to support resource growth and development studies.

• MOU signed with battery technology developers to advance a lithium-niobium battery industry in Australia, targeting heavy-duty mobility and energy storage applications.

Financial highlights

• Cash balance at 30 June 2026 was $26.9 million, with a market capitalization of approximately $134 million as of 28 July 2026.

• Exploration expenditure for the quarter was approximately $5.0 million (YTD $15.4 million), primarily focused on Aileron and copper-gold projects.

• No mining development or production activities were conducted during the quarter.

Outlook and guidance

• Upcoming assay results expected from infill and extensional drilling at Green and Emily, as well as regional and copper project drilling.

• Ongoing project development activities, market engagement, and studies to advance Aileron towards future mining.

• South32 to commence drilling at Jessica Copper Project in August 2026.