The directors of Encounter Resources Ltd. announced that the magnetic- radiometric survey recently completed at the Aileron Cu-REE project in the West Arunta region of WA has identified new high-quality targets as well as upgrading existing targets. Aileron is located in the West Arunta region of WA 600km west of Alice Springs. Prior to the recent magnetic-radiometric survey, several structural and geophysical targets had been identified through aerial magnetic and gravity surveys.

To date, only one diamond hole, EAL001, has been drilled within the project which targeted a discrete magnetic anomaly at the Worsley target. EAL001 was partially completed to a depth of 158m in October 2020 and drilled through 5m of shallow cover followed by a brecciated hydrothermal hematite-chlorite-altered granite with a narrow mafic intrusion. Assays from EAL001 include zones of anomalism in copper gold, molybdenum, niobium and highly elevated rare earth elements consistent with the IOCG deposit model.

The presence of highly anomalous REE at Aileron and the recent mineralised carbonatite discoveries by WA1 Resources Ltd. indicate that an alkaline magmatic hydrothermal system has been active in the region. Such systems are known to play an important role in the formation of both IOCG and carbonatite-hosted REE deposits. Magnetic-Radiometric Survey In November 2022, an 8,000 line km airborne magnetic-radiometric survey was completed at Aileron.

The 100m spaced survey covered ~50 strike km of the western part of the project. The survey was designed to provide detailed structural and geological information and to identify new carbonatite and IOCG targets. An initial assessment has identified new targets including: Hurley - a discrete magnetic target highlighted east of the Worley and Crean targets on the major Elephant Island fault, Macklin - an interpreted intrusion located on the key Endurance fault that hosts the Caird gravity target and WA1's recent mineralised carbonatite discovery at Luni In addition, the structural context of the existing targets has been upgraded, Caird - `bullseye' coincident magnetic and density anomaly on the Endurance fault, 5km north- west of WA1's recent mineralised carbonatite discovery at Luni, Crean - regional scale magnetic anomaly at a key structural location on the major Elephant Island fault, Shackelton - gravity anomaly where reconnaissance rock chip sampling returned 0.5% REE Worsley - the region's standout magnetic feature with a coincident gravity anomaly.

Single, drill hole was terminated without testing the magnetic-gravity anomalies but intersected highly, anomalous Cu, Au, Mo, Nb and REE n the top of the hole. The interpretation and integration of the new data is ongoing with expanded gravity coverage planned for early in the 2023 field season. In addition to diamond drilling at Caird and Worsley, drilling plans for the Crean target are also well advanced.

Diamond drilling is scheduled to commence in April-June 2023, co-funded by the WA Government Exploration Incentive Scheme. Encounter is one of Australia's leading mineral exploration companies listed on the ASX. Encounter's primary focus is on discovering major copper dominant deposits in Australia.