Encounter Resources Ltd.

Encounter Resources Ltd. is a junior copper exploration company headquartered in Subiaco, Australia, operating primarily in Australia. The company's portfolio consists of 3 exploration projects, in addition to several early-stage exploration prospects. Key assets include Aileron. The company's business model centers on a dual-pronged approach to mineral exploration, combining the advancement of a large portfolio of 100%-owned projects with strategic partnerships. The organization leverages farm-in agreements with some of the world's leading mining companies to fund exploration, thereby de-risking its activities and preserving capital while retaining exposure to discovery upside. This collaborative model underpins a sustainable business structure, allowing for large-scale exploration programs operated by accomplished partners. A core operational characteristic is the application of new exploration methods and innovative geological thinking to frontier and underexplored areas. The company utilizes modern geophysical and geochemical techniques, including regional gravity, magnetic, and radiometric surveys, to identify and refine drill targets under shallow cover. This systematic, data-driven approach has resulted in a high discovery rate in early-stage drilling programs. The entity positions itself as one of the most active and dedicated mineral exploration companies, focused on generating significant, long-term shareholder value through leading-edge exploration for major deposits.

Strategic priorities are centered on the discovery of large-scale mineral deposits by applying novel exploration techniques in previously underexplored regions. The company's approach involves generating a portfolio of projects and then advancing them either independently or through farm-in agreements, which provide significant external funding for major exploration initiatives. This allows the organization to maintain a high level of exploration activity across multiple large-scale projects simultaneously. Near-term objectives for 2025 focus on delineating high-grade, near-surface mineralization to establish dimensions suitable for mining, alongside continued aircore drilling to test new targets identified along major regional structures. Follow-up drilling is planned to rapidly delineate the most promising sections of newly identified mineralized complexes. The capital allocation strategy is balanced between funding exploration on its 100%-owned projects and leveraging partner funding to advance other assets, thereby maximizing discovery potential while managing financial risk. The long-term vision is to make major critical mineral discoveries to meet future demand driven by global energy transition trends.

Executive leadership is headed by an Executive Chairman with over 25 years of experience in the resources industry in both Australia and Canada, including senior management roles at a large international resources company and executive positions in the junior exploration sector. His background includes serving as a former president of a key resources industry advocacy body. The board of directors includes individuals with extensive technical and corporate experience, such as a geology graduate with over 30 years in the industry, including senior exploration and geology management roles at major mining companies, and a director with over 35 years of experience in mineral exploration, project generation, and technical innovation, who previously held global geoscience leadership roles. Governance is managed through several board committees, including an Audit and Risk Management Committee and a Remuneration and Nomination Committee, which consists of the non-executive directors. This committee is responsible for setting remuneration packages and implementing employee incentive plans. The board has adopted formal charters for these committees to provide a framework for their respective considerations.

The corporate structure is characterized by strategic farm-in and joint venture agreements with major mining companies to fund exploration. An agreement with IGO Limited allows for up to a 70% interest in a project to be earned by sole funding $15 million in exploration expenditure over 7 years. A separate farm-in agreement with South32 allows for an interest of up to 75% to be earned in a project by sole funding $15 million and completing a scoping study. In September 2024, South32 withdrew from a farm-in agreement concerning a different project, with the company regaining 100% control of that asset. The organization operates through several wholly-owned subsidiaries, including Encounter Aileron Pty Ltd, Baudin Resources Pty Ltd, and Encounter Paterson Pty Ltd, which hold the various tenements. As of October 2024, substantial shareholders with holdings over 5% include IGO Limited with 6.29%, the Executive Chairman William Michael Robinson with 6.19%, Chalice Mining Limited with 6.05%, and Paradice Investment Management Pty Ltd with 5.93%.