S2 RESOURCES LTD — Capital/Financing Update 2016

Aug 2, 2016

3 August 2016

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The Manager Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

S2 Resources Limited (ASX Code: S2R) Notification under section 708A(5)(e) of the Corporations Act 2001 (Cth)

S2 Resources Limited ( Company ) gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Corporations Act ) that:

1. the Company has today issued 22,700,000 fully paid ordinary shares under a placement (the results of which were announced on 26 July 2016) without disclosure to investors under Part 6D.2 of the Corporations Act; and

2. as at the date of this notice:

   • (a) the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company;

   • (b) the Company has complied with section 674 of the Corporations Act; and

   • (c) there is no "excluded information" within the meaning of sections 708A(7) and 708A(8) of the Corporations Act which is required to be disclosed under section 708A(6)(e) of the Corporations Act.

Yours sincerely

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Anna Neuling Company Secretary and Executive Director

North Wing, Level 2, 1 Manning Street, Scarborough WA 6019, Australia PO Box 1059 Scarborough WA 6922, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E admin@s2resources.com.au W www.s2resources.com.au