Lake Way South Project

(E53/1232) Encounter 60% Encounter Uranium rights only, Avoca 40%

The Lake Way South project is located approximately 10kms south of Wiluna, between Toro Energy's Lake Way and Centipede uranium deposits. Toro Energy is well advanced with development of its uranium resources in WA, which gives a strategic value to the Lake Way South project.

A program of lake based aircore drilling (October 2008) was completed by Encounter that confirmed the Centipede resource extended approximately 200m into the Lake Way South tenement, using a cutoff grade above 100ppm U 3O 8. Results obtained from this drilling and compilation of historical information, provided sufficient information to produce an Inferred Resource for the area of the Centipede resource within the JV tenement. This resource contains 220,000t @ 244ppm U 3O 8 for 120,000lbs of U 3O 8. The Inferred Resource is reported in accordance with the JORC code (2004) and guidelines.

Figure 1: Lake Way South project tenement and exploration summary plan

Figure 1: Lake Way South project tenement and exploration summary plan
The information in this report that relates to Exploration Results is based on information compiled by Mr Peter Bewick who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bewick is a full time employee of Encounter Resources Ltd (Encounter) and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The figures are rounded to reflect the accuracy of the estimation process and as a consequence exhibit rounding errors. Both Contained U3O8 tonnes and Contained U3O8 pounds are based on contained metal content and at this stage do not consider any mining, metallurgical or economic parameters. The estimate is based on a cut off of 70ppm U3O8 over a minimum downhole distance of 1m. Shallow aircore drilling has been completed on a nominal 200m by 200m grid. All grade values used in the calculation are based on chemical analysis of representative drill samples. Mr Bewick consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears.