The directors of Encounter Resources Ltd. reported that the recent two hole diamond drilling program at the Telfer West project has successfully intersected gold mineralization in both holes. The first two holes drilled by Encounter 4km apart at Telfer West have both confirmed the presence of high grade gold mineralization. At the Egg Prospect (ETG0002) a broad, steep dipping zone of stockwork style gold mineralization was intersected within a strongly silicified massive quartzite unit. The stockwork zone contains multiple quartz veins containing pyrite and sporadic arsenopyrite over a downhole length of 100m. Assay results from the broad zone of stockwork style gold mineralization, included 38.6m at 1.0g/t Au from 333m (including 4.2m at 3.2g/t Au from 333.5m) and 36m at 0.6g/t Au from 396m (including 3.2m at 3.3g/t Au from 415.2m). ETG0002 is the first hole to be drilled through the entire stockwork corridor from the hangingwall through to the interpreted footwall and has confirmed a significant, depth extensive stockwork system that is highly anomalous in gold. The hole has also provided a structural and geological framework that indicates the system may extend to surface and has the potential to contain zones of higher grade gold within the primary sulphide zone. The next phase of exploration at the Egg Prospect is to drill test the near surface position of the stockwork corridor on the existing drill section and to test along the corridor to the northwest and southeast. The stockwork corridor is interpreted to follow the trend of subtle magnetic anomalism which lies sub-parallel to a silicified quartzite ridge. This quartzite hosted stockwork corridor is essentially untested outside of the Egg Prospect with only one shallow diamond hole drilled along the interpreted 5kms of strike. Northern Magnetic Anomaly: The interpreted fold axis at Telfer West continues northwest from the quartzite hosted stockwork system at the Egg Prospect for a further 3kms into the Telfer Formation sediments where the magnetic anomalism strengthens. This section of the fold axis has been tested with only one previous shallow diamond drill hole, LHS89-06 that was drilled in 1989. ETG0003, located 4km north-west of ETG0002, was drilled to test this magnetic corridor adjacent to LHS89-06. ETG0003 intersected strong supergene gold mineralization and has established the extensive scale of the gold opportunity at Telfer West. ETG0003 returned 24.9m at 0.7 g/t Au from 127.1m and 4.0m at 7.1g/t Au from 216m within a broad gold-copper anomalous interval. The strong supergene gold mineralization in the north of the project is interpreted to be formed through the weathering of nearby, primary gold mineralization. The objective of the first drilling at Telfer West was to identify styles of mineralization similar to Newcrest's Telfer Gold-Copper Mine. The first program successfully intersected both broad zones of stockwork style mineralization and narrow high grade intersections that are similar to styles of mineralization at Telfer. Based on these highly encouraging results drilling will recommence at Telfer West in March-April 2017 at the conclusion of the summer cyclone period. The next phase of drilling at Telfer West will focus on the near surface position of the stockwork mineralization at the Egg Prospect, on both the existing section and to the northwest and southeast. Drilling along the northern section of the fold axis will aim to identify the extent of the supergene gold mineralization drilled in ETG0003 and to define vectors to the primary mineralization. This next phase of drilling at Telfer West will be partially funded by a WA Government EIS grant ($150,000).