Brunchilly Project Tenement EL 32478 Annual and Final Surrender Report 8 October 2021 to 7 October 2023

Abstract

The Brunchilly Project is located approximately 600km North of Alice Springs, and approximately 90km North-northeast of Tennant Creek. Exploration tenement EL 32478 was granted to Baudin Resources Pty Ltd (a fully owned subsidiary of Encounter Resources Ltd - 'Encounter') on 8 October 2021 for a period of six years. EL 32478 Brunchilly Project area structurally sits within the Tennant Region. The project covers largely areas of the Tomkinson Province and the Georgina Basin, and possibly the most northern extend of the Warramunga Province interpreted beneath the Georgina Basin sequences. The project is on the Tennant Creek and Helen Springs 1:250,000 scale NTGS geological map sheets. The Brunchilly project tenure is considered prospective for IOCG style mineral systems and sedimentary hosted zinc and copper systems. The following work has been completed within EL 32478 Brunchilly project during the first two exploration years: Data review - data compilation and review of available open file geological and geophysical data; Field Reconnaissance and Surface sampling - a total of 25 rock chip and soil samples were collected in November 2022 Encounter completed first-pass evaluation of the mineral potential of the Brunchilly project area. Results from the surface sampling carried out during the second exploration year did not indicate any notable anomalism, which downgraded the prospectivity of the area. A decision was made to surrender EL 32478 Brunchilly project at the end of Exploration year 2, due to priority targets located elsewhere in the Company's portfolio.