Encounter Resources: Assays confirm high grade copper intersection at BM1

The directors of Encounter Resources Ltd (“Encounter”) are pleased to provide assay results from the mineralised intersection from diamond drill hole EPT751 at the BM1 prospect at the Yeneena project.

In an ASX announcement on 8 June 2011 the company reported that drillhole EPT751 had intersected strong copper mineralisation over a 10 metre interval commencing from 32 metres downhole. The assay results from this intersection have returned 10.1m @ 6.8% copper from 31.9m, including an interval of 2.8m @ 12.3% copper and 156 g/t silver.

The mineralised system at BM1 has demonstrated the capacity to generate high grade, near surface copper mineralisation. The intersection in EPT751 represents the highest grade copper assay achieved to date at BM1. A 70cm zone of black shale from 34m returned an assay result of 28.8% copper and 178 g/t silver (see Photo 1). Based on grades and visual identification it is interpreted that the dominant copper mineral in this zone is chalcocite. Chalcocite is a supergene copper sulphide mineral which may represent the direct weathering of primary copper sulphide mineralisation.

A systematic program of north-south RC drill traverses to a depth of 120m is currently in progress to determine the orientation and extent of the mineralised horizon intersected in EPT751. Initial holes from this program indicate a north-west orientation to the copper mineralisation which is similar to the orientation of the steep structural fabric noted within the diamond drill core. The RC program is expected to take approximately 3-4 weeks to complete and the first assay results from this program are expected to be received in July 2011. This program of RC drilling will be followed by further diamond drilling to test the prospective horizon and key structures below the depth of the RC drilling.