Ann: Inferred Niobium Resource from 2024 Exploration Drilling, page-12

Euroz Hartleys note for ENR 's announcement today:



ENR (Encounter Resources, +10.5% to 21.0cps, m.cap A$95m, Niobium Explorer): Mike Millikan

• ENR has released an initial Niobium Mineral Resource Estimate (MRE) for its 100%-owned Aileron project in the West Arunta.
• The maiden resource is19.2Mt @ 1.74% Nb₂O₅ (using 1.0% Nb₂O₅cut-off)
  • The higher grade subset is contained within a larger resource of67.6Mt @ 0.88% Nb₂O₅ (using 0.25% Nb₂O₅cut-off)
  • All Inferred from the estimation of mineralisation at Green, Emily and Crean deposits
  • Independently estimated by Snowden Optiro
  • Shallow less than 150m depth, with all deposits open and subject to more drilling (extensional and infill) which is underway

• ENR is trading at pre-discovery lows, with the maiden resource estimate seen as a key catalyst along with the start of drilling
• The initial MRE is good base from which to grow and we anticipate both significant grade and tonnes upside
• ENR is now advancing resource infill and extensional RC drilling (Green, Emily and Crean), metallurgical testwork and technical studies
• Regional air-core drilling with also continue to a pipeline of new and existing targets for new discoveries and resource additions (strong exploration upside)
• WA1 Resources (WA1 – A$821m MC) Luni deposit is located in-between (along strike) of ENR’s Green and Emily
• Luni has a current high-grade sub-set of53Mt @ 2.1% Nb₂O₅ (using 1.0% Nb₂O₅cut-off) from a larger 200Mt @ 1.0% Nb₂O₅ (using 0.25% Nb₂O₅cut-off)
• On basic measure WA1 is currently trading at an EV 10x that of ENR (WA1 EV $735m vs ENR EV $74m), or roughly A$14/resource tonne (higher grade subset)
• Even on a discounted per tonne value, ENR should be trading over A$230m (implies over 45cps discounted value vs current <20cps trading).
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