S2 RESOURCES LTD — Capital/Financing Update 2017

Feb 12, 2017

ASX Announcement

Monday 13th February 2017

RESOURCE AND EXPLORATION UPDATE

Highlights

• New Mineral Resource estimate for the Baloo gold deposit (Polar Bear project, Australia) of 4.22Mt @ 2.0g/t for 264,000oz gold at a lower cutoff grade of 0.8 g/t gold
• This is a 115% increase in contained gold from the previous resource estimate at the same lower cutoff grade
• Baloo mineralization remains open down dip and down plunge
• Drilling at Svan Vit prospect (Sweden) intersects several narrow zones of sphalerite (zinc sulphide) mineralization
• Drilling started at the Bjurtraskgruvan VMS prospect where additional EM has increased plunge extent of conductor

S2 Resources Ltd ("S2" or the "Company") provides an update regarding recent drilling and reestimation of the Mineral Resource at Baloo, at its Polar Bear project in Western Australia, and also recent drilling at various targets at its Skellefte project in Sweden.

Baloo gold deposit, Polar Bear project

Recent drilling down dip and down plunge of the previous limits of mineralization have enabled a reestimation of the Baloo Mineral Resource. The revised Indicated + Inferred Mineral Resource estimate for the Baloo gold deposit comprises 4.22 million tonnes grading 2.0 g/t gold for a contained 264,000 ounces of gold at a lower cutoff grade of 0.8 g/t gold.

Table 1 and Figure 1 show the variation in tonnage, grade and contained gold for the Indicated + Inferred Mineral Resource estimate at a variety of lower cutoff thresholds. At a reduced lower cutoff of 0.5 g/t gold, tonnage increases by 30% to 5.48 million tonnes, grade decreases by 15% to 1.7 g/t gold, and contained gold increases by 10% to 291,000 ounces of gold. At an increased lower cutoff of 1.0g/t gold, tonnage decreases by 17% to 3.5 million tonnes, grade increases by 10% to 2.2 g/t gold, and contained gold decreases by 8% to 244,000 ounces of gold.

	Indicated				Inferred		Total
LCOG	Tonnes(000's)	g/t Au	Oz Au	Tonnes(000's)	g/t Au	Oz Au	Tonnes,(000's)	g/t Au	Oz Au
0.5	1,490	1.6	78,000	3,990	1.7	213,000	5,480	1.7	291,000
0.8	1,160	1.9	71,000	3,060	2.0	193,000	4,220	2.0	264,000
1.0	940	2.1	65,000	2,560	2.2	178,000	3,500	2.2	244,000

Table 1. Baloo Gold Deposit - Statement of Resources 9 th February 2017. All Mineral Resources are reported to JORC 2012 standards. Baloo Mineral Resource reported at 0.8 g/t Au LCOG (lower cut‐off grade). All figures are rounded to reflect appropriate levels of confidence. Apparent differences in totals may occur due to rounding.

Figure 1. Baloo Gold Deposit – grade-tonnage curve for total Mineral Resources. All Mineral Resources are reported to JORC 2012. LCOG is lower cut-off grade.

A top cut of 15g/t gold and 20g/t gold was applied to different domains within the expanded resource based on standard resource estimation practice (see Table 1 Section 3).

Nearly all of the increase in the Baloo Mineral Resource estimate comprisesInferred category material. This is because it is based on recent broad-spaced deeper drilling undertaken down dip from the previous resource limit (see Figure 2 and Annexure 1).

This drilling has identified a consistent zone of mineralization which dips steeply to the east and plunges moderately to the south, and isrelatively thick (up to 14 metrestrue thickness). Mineralization remains open both down dip and down plunge beneath the limits of this drilling, and on the basis of the deepest drilling to date, appears to be thicker at depth (see Figure 2).

Figure 2. Long projection of the Baloo deposit, looking west, showing resource outlines, recent drilling and areas of potential.

Skelleftea Project, Sweden

Drilling of two regional VTEM targets (Udden 401, conductors 10 and 18) intersected barren pyrrhotite (iron sulphide) and shale.

Drilling at the Svan Vit prospect has intersected several narrow (10-30cm) zones of sphalerite (zinc sulphide) mineralization where predicted by a down hole electromagnetic (DHEM)survey in a previous drill hole (see Figure 3). Assays for holes SSVT170005 and SSVT170006, drilled into the upper part of a downhole EM (DHEM) conductor and located approximately 25 metres west along strike from previous drilling, will not be available until March 2017, but visual inspection of these indicatesthatzinc, copper and lead grades are likely, at best, to be similar to those reported in the original Svan Vit drill hole SSVA160002 (see previous ASX report of 9 th May 2016) – namely narrow, and when averaged over a composited interval, low grade.

The drill rig has now moved to the Bjurtraskgruvan prospect, where a second phase of ground-based moving loop electromagnetic (MLEM) surveying has extended the previously identified conductor some 200 metres along strike and 200 metres down plunge to the southwest beyond existing drilling (see Figure 4).

Assay results from base of till (BOT) sampling located 150m to the west of the Bjurtraskgruvan gossan have identified a strong geochemical anomaly beneath cover along strike from the known outcropping volcanogenic massive sulphide (VMS) mineralization. The peak of the BOT anomaly comprises strongly anomalous silver (15.4 g/t) together with elevated lead (0.14%) and zinc (413ppm) concentrations.

An initial three holes have been planned to test the extended EM anomaly down plunge from known mineralization and beneath the BOT anomaly.

Figure 3. Isometric view of Svan Vit prospect, showing new visual intercepts in upper part of DHEM plate model.

Figure 4. Isometric view of Bjurtraskgruvan prospect, showing outcrop, old holes, MLEM conductors and planned holes.

For further information, please contact:

Mark Bennett Tony Walsh Managing Director Company Secretary +61 8 6166 0240 +61 8 6166 0240

Competent Persons statement

The information in this report that relates to Exploration Results in Australia is based on information compiled by John Bartlett who is an employee of the company. Mr Bartlett is a member of the Australasian Institute of Mining and Metallurgy. Mr Bartlett has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartlett consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this report that relates to Mineral Resource estimation is based on information compiled by Mr Brian Wolfe, Principal Consultant Geologist – IRS Pty Ltd and Mr Andrew Thompson, an employee and shareholder of the Company. Mr Wolfe and Mr Thompson are members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Wolfe and Mr Thompson consent to the inclusion in this report of the matters based on their information in the form and context in which they appear.

The information in this report that relates to Exploration Results in Sweden is based on information compiled by Andy Thompson who is an employee of the company. Mr Thompson is a member of the Australasian Institute of Mining and Metallurgy. Mr Thompson has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Thompson consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Annexure 1

The following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.

Hole No.	Zone	TotalDepth	North	East	RL	Dip	Azim	From,m	To,m	Width,m	Aug/t	Comment
SPBD0090	Baloo	174.1	6480920	392710	262	-60	90	4.5	34	29.5	1.61
			and					48.15	60.8	12.6	1.53
SPBD0091	Baloo	310	6480920	392815	262	-60	270	52	53.3	1.3	0.89
SPBD0092	Baloo	146.9	6480920	392870	262	-60	270	63.4	66.6	3.2	2
			and					113.9	118.2	4.3	1.64
SPBD0093	Baloo	143.8	6480880	392820	262	-60	270	15.5	28.8	13.3	1.75
			including					20.8	23.8	3	4.51
			and					65.2	82.4	17.2	1.2
			including					72.7	78	5.3	2.65
SPBD0094	Baloo	122.7	6480920	392770	262	-60	270	20.6	21.7	1.1	9.74
			and					27.7	30.3	2.6	2.3
and									63.5	29.8	2.17
			including					38	42.4	4.4	5.16
SPBD0095	Baloo	144.7	6480880	392860	262	-60	270	5.4	14.1	8.7	1.19

Baloo

Hole No.	Zone	TotalDepth	North	East	RL	Dip	Azim	From,m	To,m	Width,m	Aug/t	Comment
			and					75.9	81.3	5.4	0.88
								110.5	112.5	2	2.52
SPBD0096	Baloo	140.8	6480880	392860	262	-60	270	100.6	108.5	7.9	1.42
SPBD0097	Baloo	175.3	6480720	392920	262	-60	270	113.8	158.8	45	0.6
			including					133.3	134.4	1.1	5.93
SPBD0098	Baloo	164.8	6480960	392900	262	-60	270				NSI
SPBD0099	Baloo	150.7	6480840	392870	262	-60	270	95.8	108.6	12.8	3.1
			including					103.4	104.7	1.3	15.8
			and					117.4	124.3	6.9	0.9
SPBD0100	Baloo	175.6	6480840	392910	262	-60	270	125.2	132.8	7.6	8.35
			including					131.5	132.6	1.1	32.2
SPBD0101	Baloo	173.9	6480800	392890	262	-60	270	111.5	121.3	9.8	4.97
SPBD0102	Baloo	183.7	6480840	392950	262	-60	270				NSI
SPBD0103	Baloo	137.9	6480960	392860	262	-60	270	48.4	52.5	4.1	0.68
			and					74.2	77.5	3.3	1.08
SPBD0104	Baloo	170.5	6480800	392930	262	-60	270	50	54.5	4.5	1.05
			and					68.1	91.8	23.7	0.74
SPBD0105	Baloo	150.9	6480840	392990	262	-60	270				NSI
SPBD0106	Baloo	199.3	6480760	392900	262	-60	270	116	128.4	12.4	1.51
SPBD0107	Baloo	129	6480960	392700	262	-60	270	7.5	46.7	36.5	4.36
			including					14.1	29.4	15.3	8.48
			and					56.5	59	2.5	10.54
SPBD0108	Baloo	218.5	6480760	392940	262	-60	270	146.8	148.5	1.7	1.91
			and					153.4	157.4	5.6	1.1
SPBD0109	Baloo	82.4	6480960	392660	262	-60	90				NSI
SPBD0111	Baloo	233.6	6480760	392980	262.75	-60	270	182.1	187.5	5.4	0.83
SPBD0112	Baloo	113.4	6481000	392820	262	-60	270				NSI
SPBD0113	Baloo	182.9	6480800	392930	262	-60	270	134	135.7	1.7	0.84
			and					141	154.8	13.8	0.71
			and					159.5	163.3	3.8	0.85
SPBD0114	Baloo	261.2	6480720	392960	262	-60	270	167	183.7	16.7	0.79
			and					206.8	217	10.2	0.77
SPBD0116	Baloo	197.7	6480800	392970	262	-60	270	163.2	166.2	3	1.97
SPBD0117	Baloo	287.2	6480720	393000	262	-60	270	182.9	188.8	5.9	0.92
			and					214.1	242.4	28.3	0.86
			including					216.6	217.85	1.25	9.52
SPBD0120	Baloo	265.2	6480680	392960	262	-60	270	188.6	189.2	0.6	13.95
			and					252.6	252.95	0.35	62.5
SPBD0122	Baloo	260.2	6480680	392920	262	-60	270	157.4	159.9	2.5	10.85
SPBD0280M	Baloo	81.6	6480903	392745	262	-90	0				-	Met Hole -notsampled
SPBD0281M	Baloo	83.1	6480937	392735	262	-90	0				-	Met Hole -notsampled

Hole No.	Zone	TotalDepth	North	East	RL	Dip	Azim	From,m	To,m	Width,m	Aug/t	Comment
SPBD0282	Baloo	198.9	6480857	392684	262	-60	45	75.6	77.9	2.3	1.64
			and					84.7	87.5	2.8	2.38
SPBD0283G	Baloo	131.3	6480800	392701	262	-55	45	102	103	1	1.76
SPBD0284G	Baloo	50.3	6480751	392740	262	-60	90				NSI
SPBD0346	Baloo	423.8	6480543	393024	262	-60	270	276.18	277.54	1.36	5.97
			and					287.7	288.5	0.8	2.03
SPBD0347	Baloo	414.6	6480542	393109	262	-60	270	361.6	363.1	1.5	3.32
SPBD0348	Baloo	304.5	6480541	392951	262	-60	270				NSI
SPBD0349	Baloo	444.9	6480616	393098	262	-70	270	302.8	305.3	2.5	1.04
			and					346.1	346.4	0.3	4.77
			and					374.6	375.1	0.5	3.64
			and					380.3	381.2	0.9	1.06
			and					399	410.9	11.9	1.3
			and					413.75	414.65	0.9	44.1
			and					416	416.75	0.75	2.21
SPBD0350	Baloo	306.7	6480878	393003	262	-70	270				NSI
SPBD0351	Baloo	327.8	6480800	393039	262	-70	270	263	269	6	2.23
			and					282	290.4	8.4	1.63
SPBD0352	Baloo	411.8	6480660	393081	262	-70	270	369	376	7	2.36
			and					378.75	384.2	5.45	3.3
SPBD0353	Baloo	357.9	6480740	393042	262	-70	270	303.15	306.3	3.15	3.45
SPBD0354	Baloo	183.4	6481100	392910	262	-60	270				NSI
SPBD0355	Baloo	469.1	6480740	392739	262	-80	90				NSI
SPBD0356	Baloo	285.7	6480735	393001	262	-70	270				NSI
SPBD0357	Baloo	348.8	6480685	393021	262	-70	270	283.15	285.4	2.25	2.99
			and					295.7	296.05	0.35	14.3
SPBD0358	Baloo	393.8	6480620	393028	262	-70	270	295.2	297.1	1.9	0.98
			and					303.9	315.8	11.9	1.32
			and					330	331	1	2.36
			and					349	354.7	5.3	1.12
			and					356.7	357.7	1	1.16
			and					359.4	360.4	1	1.35
SPBD0359	Baloo	333.5	6480640	392970	262	-70	270	118.5	119.6	1.1	2.4
			And					160.15	160.5	0.35	3.85
And								231.75	232.75	1	1.53
And								237.6	239.6	2	5.13
And								247.5	249.05	1.55	1.97
			And					279.8	280.8	1	2.01

Svan Vit Prospect

Hole No.	TotalDepth	North	East	RL	Dip	Azim	From,m	To, m	Width,m	Zn%	Cu%	Agg/t	Aug/t
SSVA16001	127.05	7215642	724691	225	-60	35	25.30	25.85	0.55	<0.1	<0.1	45.0	1.49
		and					88.70	89.75	1.05	2.87	<0.1	5.0	0.03
SSVA16002	258.7	7215560	724634	225	-60	35	164.40	164.95	0.55	2.23	<0.1	<1.0	0.02
	and							173.90	3.70	1.75	<0.1	5.3	0.01
		and					184.60	189.65	5.05	3.15	0.2	6.0	0.04
SSVA16003	298	7215519	724604	228	-65	35				NSI
SSVT170004	262.8	7215533	724675	223	-60	35	218.55	220.20	1.65	2.18	<0.1	21.0	0.6
SSVT170005	203	7215574	724614	223	-60	35				Assays awaited
SSVT170006	173.2	7215594	724628	223	-60	35				Assays awaited

Udden 401, Targets 10, 13 and 18

Hole No.	TotalDepth	North	East	RL	Dip	Azim	From,m	To, m	Width,m	Zn%	Cu%	Agg/t	Aug/t
SUDD170002	122.1	7211570	727470	238	-60	35				Target 13 NSI
SUDD170003	200	7210950	726985	226	-60	35	Target 10 NSI
SUDD170004	169.4	7209655	730300	211	-60	35				Target 18 NSI
SUDD170005	158.1	7209740	730240	217	-60	35				Target 18 NSI

Table 1 Baloo

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling.	In zones of weakly weathered or fresh rock the HQ or NQ2 coreis cut using a diamond core saw with half core sampled for assay.The ore is cut along the orientation line, with the same sidesampled to ensure sample is representative.In zones of highly weathered core where the sample is eitherhighly broken or highly friable and a representative split cannotbe achieved then whole core sample of either the PQ3 or HQ3core is taken.For RC sampling, a 1 metre split is taken directly from a conesplitter mounted beneath the rigs cyclone. The cyclone andsplitter are cleaned regularly to minimise any contamination. Asecond reference split is also taken from each metre and storedon site.Aircore holes are sampled using an aluminium scoop toproduce a four metre composite sample similar to the RCsampling methodology.
	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsused	Sampling and QAQC procedures is carried out using S2protocols as per industry best practice.

Criteria	JORC Code explanation	Commentary
		Reconnaissance aircore samples are composited at 4 m toproduce a bulk 3 kg sample. Samples were dried, pulverised(total prep), and split to produce a 25 g sub sample which isanalysed using aqua-regia digestion with ICP-MS finish with a 1ppb detection limit.
	Aspects of the determination of mineralisationthat are Material to the Public Report. In caseswhere 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples from	A 1m end of hole sample was collected for all aircore holes.Sample preparation was the same as above and were analysedusing a four acid digest with an ICP/OES and fire assay. Thefollowing elements are included in the assay suite: Ag, Al, As,Au, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na,Ni, P, Pb, Sb, Sc, Sr, Te, Ti, Tl, V, W, Zn.
	which 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where thereis coarse gold that has inherent samplingproblems. Unusual commodities or mineralisationtypes (e.g. submarine nodules) may warrant	RC drilling is sampled a 1m "cone" split sample, to produce abulk 3 kg sample. Sample preparation was the same as for theaircore drilling. A nominal 50gram sub-sample was collectedand analysed by Samples were to produce a sub sample foranalysed by fire assay with an AA finish.
	disclosure of detailed information	Diamond core (HQ and NQ2) is half core sampled to geologicalboundaries of no more than 1m and no less than 30cm.Samples were crushed, dried and pulverised (total prep).Analysis is same as for RC.
		Oxide PQ3 core is whole core sampled and then dried, crushedto -2mm and then rotary split to a 3kg sample for pulverisationand 50g fire assay.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic,	Diamond drilling is completed using either NQ2, HQ, or PQ3(through the oxide zone) sized coring equipment. All core isorientated (where possible) using a Reflex ACT II RD orientationtool.
	etc) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, whether core is	RC drilling is carried out using a face sampling hammer with anominal diameter of 140mm.
	oriented and if so, by what method, etc).	Aircore drilling is carried out using a 3 ½ inch blade bit. Wherenecessary a 3 ½ inch face sampling hammer is employed topenetrate through hard zones.
Drill samplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed	Diamond core recoveries is logged and captured in the database.The core length recovered is measured for each run andrecorded which is used to calculate the core recovery as apercentage core recovered.
		RC and aircore sample recoveries are visually estimatedqualitatively on a metre basis and are recorded in the database.
		Measures taken to maximise the core recoveries includes usingappropriate core diameter and, where necessary, restricting drillpenetration and/or reducing core runs.
	Measures taken to maximise sample recovery andensure representative nature of the samples	Triple tube diamond core through the weathered zone is toobroken to allow core cutting and therefore the core is sampledwhole to ensure no bias is introduced.
		Various drilling additives (including muds and foams) have beenused to condition RC and aircore drill holes to maximiserecoveries and sample quality. Drill cyclone and sample bucketsare cleaned between rod-changes and after each hole tominimise down hole and/or cross-hole contamination.

Criteria	JORC Code explanation	Commentary
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	Core drilling has resulted in narrow zones of poor to no corerecoveries through the oxide zone in areas of very soft clays andfault gouge within the weathered zones. These are recorded aspoor or zero recovery and not assigned grade.Aircore drilling samples are occasionally wet which may haveresulted in sample bias due to preferential loss/gain offine/coarse material.No sample recovery issues have impacted on potential samplebias within coring of fresh rock or within RC drilling.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	Geological logging is completed for all holes to a level of detailthat would, where sufficient drill density is completed, supportan appropriate Mineral Resource and mining study.Lithology, alteration, veining, structural and geotechnical(diamond core) characteristics is recorded directly to a digitalformat and imported into S2 Resources central database.
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	Logging is both qualitative and quantitative in nature dependingon the field being captured.All core is photographed
	The total length and percentage of the relevantintersections logged	All drillholes were logged in full.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter,half or all core taken.	In zones of highly weathered core where the sample is eitherhighly broken or highly friable the PQ3 or HQ3 core is sampledwhole core. Oxide whole core is submitted to the lab in samplesnot exceeding 6kg and then coarse crushed to <2mm. Samplesare then rotary split to provide a 3kg sub sample forpulverisation.In zones of weakly weathered or fresh rock the HQ or NQ2 coreis cut using a diamond core saw with half core sampled for assay.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	RC and aircore samples consist of a 4 metre composite RC spoilsare sampled by scoop. All RC holes are sampled 1 metre samplesare collected via an on-board cone splitter. Samples werecollected both wet and dry.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	The sample preparation follows industry best practice in samplepreparation All samples are pulverised utilising Essa LM1, LM2or LM5 grinding mills determined by the size of the sample.Samples are dried, crushed as required and pulverized toproduce a homogenous representative sub-sample for analysis.A grind quality target of 85% passing 75μm has been establishedand is relative to sample size, type and hardness.
	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Quality control procedures include submission of CertifiedReference Materials (CRM's), blanks and duplicate samples witheach batch of samples. Selected samples are also re-analysed toconfirm anomalous results.Grind size checks are routinely completed to ensure samplesmeet the industry standard of 85% passing through a 75µmmesh.

Criteria	JORC Code explanation	Commentary
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.	For aircore and RC drilling, field duplicates are taken at regularintervals. Samples are selected to weigh less than 3kg to ensuretotal preparation at the pulverisation stage.For diamond core, the orientation line is used as a reference linewith the half core sample always coming from RHS of theorientation line.
	Whether sample sizes are appropriate to the grainsize of the material being sampled.	Sample sizes are considered appropriate for nickel sulphide andgold mineralisation.
Quality of assay dataand laboratory tests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	RC and diamond core samples are analysed for Au only using a40g or 50g Lead Collection fire Assay with either an ICP/MS orAAS finish at either Minanalytical Laboratories in Perth orBureau Veritas laboratories in Kalgoorlie.4m composite samples from AC drilling are analysed for Au onlyusing a 25g aqua-regia digestion with an ICP/MS finish. Themethod gives a near total digestion of the regolith interceptedin aircore drilling and is suitable for the reconnaissance stylesampling undertaken. Infill 1m samples and samples greaterthan 1 g/t are re-assayed using 50 g fire-assay with AAS finishwhich gives total digestion and is more appropriate for sampleswith high levels of gold.All aircore holes (both gold and nickel exploration) have a 1mend-of-hole sample is collected for all AC holes. An extensivemulti-element suite (including Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce,Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, Sb, Sc, Sr, Te, Ti,Tl, V, W, Zn) is analysed using a four acid digest with an ICP/OESand ICP/MS finish. Au, Pt And Pd is analysed for using 25g or 50gLead Collection fire assay with an ICP/MS finish.
	For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	No geophysical tools were used to determine any elementconcentrations used in this resource estimate.
	Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(i.e. lack of bias) and precision have beenestablished.	Sample preparation checks for fineness were carried out by thelaboratory as part of their internal procedures to ensure thegrind size of 85% passing 75 micron was being attained.Laboratory QAQC involves the use of internal lab standards usingcertified reference material, blanks, splits and replicates as partof the in house procedures.
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	The Exploration Manager of S2 has visually verified significantintersections.
	The use of twinned holes.	No twin holes have been drilled on the project to date.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary data was collected using a set of standard Exceltemplates using lookup codes. The information was sent to anexternal database consultant for validation and compilation intoa Perth based SQL database.
	Discuss any adjustment to assay data.	No adjustments or calibrations were made to any assay datareported.

Criteria	JORC Code explanation	Commentary
Location of datapoints		At Baloo, diamond drill holes have been sighted using the tapeand compass method off either the established base line orknown surveyed points (old drill holes).
	Accuracy and quality of surveys used to locatedrillholes (collar and down-hole surveys), trenches,mine workings and other locations used in Mineral	All aircore and diamond drilling are routinely picked up by anexternal surveyor using an RTK GPS system with an expectedaccuracy is +/– 0.05m for easting, northing and elevation.
	Resource estimation.	RC drill sites were laid out by an external surveyor using an RTKGPS system or tape and compass off surveyed collars. All holeswill be picked up by the external surveyor prior to any resourcecalculations.
	Specification of the grid system used.	The grid system used at Polar Bear is GDA94 (MGA), zone 51.
	Quality and adequacy of topographic control.	A topographic surface has been created from aerial geophysicaldata, This has been calibrated with DGPS survey data.Allreconnaissance drill holes have been corrected to this surfacewhere DGPS pickup is not available.
		All resource drilling will be picked up by DGPS to within a +/-50mm accuracy.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Data spacing is currently defined by the geological criteriaregardedappropriatetodeterminetheextentsofmineralisation.Reconnaissance AC drilling is on a nominalspacing of between 240m x 40m and 400m x 40m drill pattern,with infill of resource areas closing down to a nominal 40m x20m drill pattern for AC, RC and diamond.Extensional drilling of Baloo at depth has been on a nominal80m spacing.
	Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.	Drilling within the defined inferred resource boundary is ofsufficient spacing to demonstrate the degree of geological andgrade continuity to support the definition of Mineral Resourceand Reserves, and the classifications applied under the 2012JORC Code. Current extensional drilling is not yet sufficient toextend the inferred resource boundary.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of datain relation togeological structure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.	The drilling is not necessarily drilled perpendicular to theorientation of the intersected mineralisation.All reportedintervals are downhole intervals and not calculated true width.This will be established with further drilling.At Baloo the main mineralised structure appears to be dippingmoderately to the east and hence 270 azimuth diamond drillinggive approximately true width intersections. Supergene
		dispersion appears relatively flat lying and hence the vertical ACholes also approximate to true thickness.
	If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias,this should be assessed and reported if material.	No orientation based sampling bias has been identified in thedata at this point.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 Resources. Samples arestored on site and either delivered by S2 personnel to Perth andthen to the assay laboratory, or collected from site by CenturionTransport and delivered direct to the assay laboratory. Whilst instorage, they are kept on a locked yard. Tracking sheets havebeen set up to track the progress of batches of samples.
Audits or reviews	The results of any audits or reviews of samplingtechniques and data.	No audits or reviews have been conducted at this stage.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Baloo prospect is located within Exploration LicenseE15/1298, which is located within the Polar Bear Project, 100%owned by Polar Metals Pty Ltd, a wholly owned subsidiary of S2Resources Ltd.Polar Metals Pty Ltd has lodged a mining lease application (MLA15/1814) over the Baloo prospect, and is currently in theapproval process.The Baloo prospect is situated within the Ngadju Native TitleClaim (WC99/002).The claim has satisfied the requirements of Section 190A of the
		Native Title Act 1993 and has therefore been entered on theRegister of Native Title Claims.
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The tenement is in good standing and no known impedimentsexist on tenement actively explored.
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	Gold ExplorationPlutonic Operations Limited and Homestake Gold of AustraliaLimited conducted reconnaissance AC drilling (PBAC prefix) overLake Cowan on predominantly 100 m drillhole spacing and 800m line spacing from 1997-1999. Location of these drillholescannot be verified as the collars are now mostly obscured.AC sampling was done by 4 m composites with 1 m re-splits onsamples greater than 0.1 g/t. Samples were assayed by aquaregia digest with AAS finish although this cannot be verified asthe original laboratory.
Geology	Deposit type, geological setting and style of	The Polar Bear project is situated within the ArchaeanNorseman-WilunaBeltwhichlocallyincludesbasalts,komatiites, metasediments, and felsic volcanoclastics.
	mineralisation.	The primary gold mineralisation is related to hydrothermalactivity during multiple deformation events. Indications are thatgold mineralisation is focused on or near to the stratigraphicboundary between the Killaloe and Buldania Formation.
Drill holeInformation	A summary of all information material to theunderstanding of the exploration results includinga tabulation of the following information for allMaterial drill holes:easting and northing of the drill holecollarelevation or RL (Reduced Level –elevation above sea level in metres) ofthe drill hole collardip and azimuth of the holedown hole length and interceptiondepthhole length.	Refer to Annexure1 in body of text.

Criteria	JORC Code explanation	Commentary
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.	All reported assays have been length weighted. A top-cut of 30g/t Au has been applied to individual assays when reportedintervals are greater than one metre.A nominal 0.5 g/t Au lower cut-off is used for RC and diamondintersections (unless otherwise stated). A nominal 0.1 g/t Aulower cut-off is used to report AC intersections.
	Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.	High grade gold intervals internal to broader zones ofmineralisation are reported as included intervals.
	The assumptions used for any reporting of metalequivalent values should be clearly stated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisationwidths and interceptlengths	These relationships are particularly important inthe reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature shouldbe reported.If it is not known and only the down hole lengths	The trend of mineralisation at Baloo appears broadly northsouth and dipping moderately to the east with the intervalsreported near true width.The core of the mineralisationplunges moderately to the south.
	are reported, there should be a clear statement tothis effect (e.g. 'down hole length, true width notknown').	Refer to Annexure 1 and Figures in body of text.
Diagram	Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported Theseshould include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectionalviews.	Refer to Figures in body of text.
Balanced reporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results.	The accompanying document is conserved to represent abalanced report with grades and/or widths reported in aconsistent manner.
Other substantiveexploration data	Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	Two vertical PQ3 holes have been drilled in the core of theweathered mineralization to allow bulk density determinationand provide samples for metallurgical testwork.Three geotechnical holes have been drilled in the westernportion of the deposit to investigate geotechnical groundconditions in the footwall of a potential open pit.Groundwater monitoring has been initiated with insertion ofPVC into selected holes to allow a first pass pump test.
Further work	The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive	At Baloo, further drilling down plunge and along strike within themineralised structural trend will continue.

SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES

Criteria	JORC Code explanation	Commentary
Database integrity	Measures taken to ensure that data has not beencorrupted by, for example, transcription or keyingerrors, between its initial collection and its use forMineral Resource estimation purposes.	Data templates with lookup tables and fixed formatting are usedfor logging, spatial and sampling data. Data transfer is electronicvia e-mail. Sample numbers are unique and pre-numbered bagsare used. These methods all minimise the potential of thesetypes of errors.
	Data validation procedures used.	Data validation checks are run by the database managementconsultant.
Site visits	Comment on any site visits undertaken by theCompetent Person and the outcome of those visits.	Multiple site visits to the Baloo deposit by Andy Thompsonduring diamond and RC drilling to verify sampling integrity andrecovery. Site visit by Andy Thompson and Brian Wolfe actingas Competent Persons, inspected the deposit area, the corelogging and sampling facility. During this time, notes andphotos were taken along with discussions were held with sitepersonnel regarding the available RC samples and diamondcore. No issues were encountered.
	If no site visits have been undertaken indicate whythis is the case.	Site visits have been conducted
Geologicalinterpretation	Confidence in (or conversely, the uncertainty of)the geological interpretation of the mineraldeposit.	The confidence in the geological interpretation is consideredgood. The deposit is a mesothermal lode gold style typical ofthe Kalgoorlie Archaean terrane.
	Nature of the data used and of any assumptionsmade.	Petrography has been used to assist identification of the rocktype subdivisions applied in the interpretation process.
	The effect, if any, of alternative interpretations onMineral Resource estimation.	The deposit is well constrained and predictable with clearboundaries which define the mineralised domains. Infill drillinghas supported and refined the model and the currentinterpretation is thus considered to be robust.
	The use of geology in guiding and controllingMineral Resource estimation.	Geological controls and relationships were used to define subdomains. Key features are quartz veining in a deformedlithological contact zone.
	The factors affecting continuity both of grade andgeology.	Gold grades are strongly related to deformed quartz veiningwithin a shear zone formed on the contact of basalt, blackshale and volcanoclastics
Dimensions	The extent and variability of the Mineral Resourceexpressed as length (along strike or otherwise),plan width, and depth below surface to the upperand lower limits of the Mineral Resource	The Mineral Resource area has dimensions of 700 m (north) by350 m (east) and 450 m (elevation).

Criteria	JORC Code explanation	Commentary
Estimation andmodellingtechniques	The nature and appropriateness of the estimationtechnique(s) applied and key assumptions,including treatment of extreme grade values,domaining, interpolation parameters andmaximum distance of extrapolation from datapoints. If a computer assisted estimation methodwas chosen include a description of computersoftware and parameters used.	The Mineral Resource estimate above 80mRL was generated viaMIK (Multiple Indicator Kriging) and indirect lognormal changeof support to emulate mining selectivity. Additionally, areas ofmineralization of less certain grade continuity unsuited to gradeestimation via MIK have been estimated by Ordinary Kriging aswell as mineralisation below 80mRL. Mineralised domaininterpretation was completed as described above andapproximates a 0.3g/t Au lower cutoff. The interpretation wascoded to the drill hole database and 3m length composites weregenerated within the mineralisation boundary. A series ofindicator transforms were applied to the composites asdeterminedbystatisticalevaluationandindicatorsemivariograms were modelled for each cut-off.Thesemivariograms were input in preparation for kriging of theindicator transformed data. Hard boundaries were applied tothe kriging. A search neighbourhood was applied parallel to thestrike and dip with radii of 50m, 50m and 15m in the strike, downdip and across strike directions respectively. Sample counts forthe estimates were set at a minimum of 24 and a maximum of36. In the case of the domains estimated by OK, an expandedsearch ellipsoid of 100m x 100m x 30m and a sample count of 6were applied. Any blocks not estimated in the first estimationpass were estimated in a second pass with expanded searchneighbourhoods and relaxed sample limits to allow the domainsto be fully estimated. Extrapolation of the drillhole compositedata is generally limited to approximately 50m down dip. No topcut has been applied to the data for the purposes of the MIKestimates, in the case of the OK estimated grades have been topcut to 15g/t Au or 20g/t Au. Change of support via the indirectlognormal method has been applied to the indicator krigingresults to emulate selectivity at the mining stage. No change ofsupport technique has been applied to the Ordinary Krigedestimates
	The availability of check estimates, previousestimates and/or mine production records andwhether the Mineral Resource estimate takesappropriate account of such data.	This is a modified and extended Mineral Resource for the Baloodeposit and supercedes the resource published on 4th March2016.
	The assumptions made regarding recovery of byproducts.	No by-products are assumed.
	Estimation of deleterious elements or other nongrade variables of economic significance (e.g.sulphur for acid mine drainage characterisation).	No other elements have been assayed.
	In the case of block model interpolation, the blocksize in relation to the average sample spacing andthe search employed.	The parent block size is 20mN x20mE x 10mRL, with sub-cellingto 5mE x 5mN x 2.5mRL for domain volume resolution. Theparent block size was chosen based on estimation methodologyand relates to a drill section spacing of 40m to 20m and an onsection drill spacing of approximately 20m. The search ellipsewas oriented with axes rotated parallel to the mineralisedbodies as previously described.Search ellipse dimensions were chosen to encompass severaldrillholes up and down dip and several lines of drilling alongstrike
	Any assumptions behind modelling of selectivemining units.	Selective mining unit assumptions were based on dimensionand spacing of drill sampling, geometry of the mineralisation,likely method of mining (open pit) and equipment used, likelygrade control and drill and blast dimensions. In considerationof the parent cell dimension described above, an SMU of5mE x 5mN x 2.5mRL has therefore been applied.
	Any assumptions about correlation betweenvariables.	No assumptions about correlations have been made.

Criteria	JORC Code explanation	Commentary
	Description of how the geological interpretationwas used to control the resource estimates.	The geological model domained the oxide, transitional andprimary mineralisation to geological and structural zones.These domains were used as hard boundaries to select samplepopulations for variography and estimation.
	Discussion of basis for using or not using gradecutting or capping.	Top cutting of grades is not relevant in the context of MIKmethodology and has only been considered in the case of thegrade variogram used to calculate the change of supportvariance reduction coefficient. In the case of the OK estimates,grade has been capped to either 15g/t Au or 20g/t Audepending on the domain.
	The process of validation, the checking processused, the comparison of model data to drillholedata, and use of reconciliation data if available.	No mining has taken place; therefore no reconciliation data isavailable.
Moisture	Whether the tonnages are estimated on a drybasis or with natural moisture, and the method ofdetermination of the moisture content.	The tonnages are estimated on a dry basis.
Cut-off parameters	The basis of the adopted cut-off grade(s) or qualityparameters applied	A 0.8g/t Au cut-off grade was used to report the MineralResources. This cut-off grade is estimated to be the minimumgrade required for economic extraction.A range of additional cut-off grades have been reported up to1.5g/t Au
Mining factors orassumptions	Assumptions made regarding possible miningmethods, minimum mining dimensions andinternal (or, if applicable, external) mining dilution.It is always necessary as part of the process ofdetermining reasonable prospects for eventualeconomic extraction to consider potential miningmethods, but the assumptions made regardingmining methods and parameters when estimatingMineral Resources may not always be rigorous.Where this is the case, this should be reported withan explanation of the basis of the miningassumptions made.	Mining of the Baloo deposit is primarily assumed to be by opencut mining methods. The geometry of the deposit will make itamenable to mining methods currently employed in many goldopen pits in the Kalgoorlie district. It is assumed that any pitwill be mined on 2.5m benches with grade control drillingdensity sufficient to allow selectivity assumed in theestimation.
Metallurgical factorsor assumptions	The basis for assumptions or predictions regardingmetallurgical amenability. It is always necessary aspart of the process of determining reasonableprospects for eventual economic extraction toconsider potential metallurgical methods, but theassumptions regarding metallurgical treatmentprocesses and parameters made when reportingMineral Resources may not always be rigorous.Where this is the case, this should be reported withan explanation of the basis of the metallurgicalassumptions made.	Preliminary metallurgical testwork in the primarymineralisation indicates that the mineralisation is amenable tostandard cyanide leach extraction.
Environmentalfactors orassumptions	Assumptions made regarding possible waste andprocess residue disposal options. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economicextraction to consider the potential environmentalimpacts of the mining and processing operation.While at this stage the determination of potentialenvironmental impacts, particularly for agreenfields project, may not always be welladvanced, the status of early consideration ofthese potential environmental impacts should bereported. Where these aspects have not beenconsidered this should be reported with anexplanation of the environmental assumptionsmade	No assumptions have been made.

Criteria	JORC Code explanation	Commentary
Bulk density	Whether assumed or determined. If assumed, thebasis for the assumptions. If determined, themethod used, whether wet or dry, the frequency ofthe measurements, the nature, size andrepresentativeness of the samples.	Dry Bulk Densities were determined by the Archimedesprinciple (immersion) where possible and also by the directmeasurement method (caliper) in the oxide clay. Samples weremeasured directly from the rig (wet bulk density) and then thesamples were dried at Minanalytical to determine moisturecontent so that Dry Bulk Density (DBD) could be calculated.In total 86 oxide samples, 77 transition zone samples and 282primary zone samples were collected from mineralized zones.
	The bulk density for bulk material must have beenmeasured by methods that adequately account forvoid spaces (vugs, porosity, etc), moisture anddifferences between rock and alteration zoneswithin the deposit,	Bulk density has been estimated from density measurementscarried out on PQ3 core samples using the Archimedes method(immersion) of dry weight versus weight in water usingclingwrap to waterproof the core. The caliper method was alsoused in saprolitic oxide clay and showed good correlation withthe immersion method.
	Discuss assumptions for bulk density estimatesused in the evaluation process of the differentmaterials.	The bulk density values were assigned as an average value tothe three weathering domains, oxide, transition and fresh.
Classification	The basis for the classification of the MineralResources into varying confidence categories	The Mineral Resource classification is based on goodconfidence in the geological and grade continuity, along with20 m by 20 m or 20 x 40m spaced drillhole density.
	Whether appropriate account has been taken of allrelevant factors (i.e. relative confidence intonnage/grade estimations, reliability of inputdata, confidence in continuity of geology andmetal values, quality, quantity and distribution ofthe data).	The input data is comprehensive in its coverage of themineralisation and does not favour or misrepresent in-situmineralisation.The validation of the block model shows good correlation ofthe input data to the estimated grades.
	Whether the result appropriately reflects theCompetent Person's view of the deposit.	The Mineral Resource estimate appropriately reflects the viewof the Competent Persons.
Audits or reviews	The results of any audits or reviews of MineralResource estimates.	No audits or reviews have been initiated on the Baloo resourceestimate.
	Where appropriate a statement of the relativeaccuracy and confidence level in the MineralResource estimate using an approach or proceduredeemed appropriate by the Competent Person. Forexample, the application of statistical orgeostatistical procedures to quantify the relativeaccuracy of the resource within stated confidencelimits, or, if such an approach is not deemedappropriate, a qualitative discussion of the factorsthat could affect the relative accuracy andconfidence of the estimate	The relative accuracy of the Mineral Resource estimate isreflected in the reporting of the Mineral Resource as per theguidelines of the 2012 JORC Code.
	The statement should specify whether it relates toglobal or local estimates, and, if local, state therelevant tonnages, which should be relevant totechnical and economic evaluation.Documentation should include assumptions madeand the procedures used	The statement relates to global estimates of tonnes and grade.
	These statements of relative accuracy andconfidence of the estimate should be comparedwith production data, where available	No production data is available.

Table 1 Sweden

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling.	The EM geophysical targets at Svan Vit and Udden 401 weretested by diamond drilling. Drilling is being undertaken by OyKati AB of Kalajoki Finland drilling NQ2 rod size with a DDH sizeof 75.7mm and core size of 50.7mm. NQ2 core samples werelogged, marked by S2 personnel, Unbiased core sampleintervals were cut in half by diamond saw. Half core is sent foranalyses by ALS Laboratories.All rock grab and rock float samples are collected from outcropby S2 personnel and marked into sample books and arepresentative portion of the sample retained. All areforwarded for analyses by ALS Laboratories.
	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsused	Sampling and QAQC procedures are carried out using S2protocols as per industry best practice.
	Aspects of the determination of mineralisationthat are Material to the Public Report. In caseswhere 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples fromwhich 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where thereis coarse gold that has inherent samplingproblems. Unusual commodities or mineralisationtypes (e.g. submarine nodules) may warrantdisclosure of detailed information	Diamond drilling was used to obtain core samples that havebeen cut and sampled on intervals that are determined bylithology and mineralisation.The drill core samples are sent to ALS Laboratories for analysesfor gold and base metals. Drill core is sampled at S2's facilitiesin Mala, Sweden.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic,etc) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, whether core isoriented and if so, by what method, etc).	Diamond drilling with NQ2 wireline bit producing a 50.7mmdiameter core.
Drill samplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed	DiamondDrillcorerecoveriesarevisuallyestimatedqualitatively on a metre basis and are recorded in the database.
	Measures taken to maximise sample recovery andensure representative nature of the samples	Sample quality is qualitatively logged on a metre basis,recording sample condition.
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	No relationship has been seen to exist
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	The logging uses a standard legend developed by S2 which issuitable for wireframing. Exploration holes are notgeotechnically logged but resource holes are.

Criteria	JORC Code explanation	Commentary
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	All core has been photographed both dry and wet. Geologicallogging of the diamond drill holes is onto physical log sheetsfollowed by importing into S2 Resources central database
	The total length and percentage of the relevantintersections logged	All drill holes were logged in full.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter,half or all core taken.	Core sawn in half and half core taken.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	All samples are core.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	Samples were delivered by S2 personnel to ALS MineralsLaboratory in Mala, Sweden. All samples were forwarded to ALSMinerals Ojebyn, Sweden Laboratory where they are to becrushed with >70% <2mm (code CRU-31), split by riffle splitter(code SPL-21), and Pulverised 1000grm to 85% <75 um (codePUL-32). Crushers and Pulverizers will be washed with QC testsundertaken (codes CRU-QC, PUL-QC). The prepared sampleswere forwarded to ALS Minerals Loughrea, Ireland, Laboratoriesfor analyses.
	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Full QA:QC system in place to determine accuracy and precisionof assays
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.	For DDH's non biased core cutting through using an orientationline marked on core and cut to the line
	Whether sample sizes are appropriate to the grainsize of the material being sampled.	Samples of appropriate size
Quality of assay dataand laboratory tests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	All samples were analysed by ALS Minerals Loughrea, IrelandLaboratories. For DDH samples to be analysed for Gold using50grm Fire Assay with AA finish (code Au-AA26) and for Ag, As,Bi, Ca, Cd, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl & Znthrough an Oxidising Digestion with ICP-AES Finish (code MEICPORE).
	For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	No geophysical tools were used to determine any elementconcentrations.
	Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(i.e. lack of bias) and precision have beenestablished.	Full QAQC system in place including Certified Standards andBlanks of appropriate matrix and levels
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	Andy Thompson has personally inspected all drill cores and rocksamples.
	The use of twinned holes.	No twin holes have been drilled on the project to date.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary sampling data was collected in S2 sample books usingproject prefix SSVA and unique numbers. The data is thentransferred to a set of standard Excel templates. The informationis managed by S2's database manager for validation andcompilation into a Perth based SQL database.
	Discuss any adjustment to assay data.	No adjustments made

Criteria	JORC Code explanation	Commentary
Location of datapoints	Accuracy and quality of surveys used to locatedrillholes (collar and down-hole surveys), trenches,mine workings and other locations used in MineralResource estimation.	Drill hole collars were located with a differential GPS with anaccuracy of less than 1metre.
	Specification of the grid system used.	The grid system used is the Standard Swedish National Grid –SWEREF 99 TM unless otherwise stated.
	Quality and adequacy of topographic control.	Excellent quality topographic maps produced by the SwedishAuthorities - Landmateriat
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Drill holes are exploratory at this stage and drilled to testgeochemical and geophysical target. No set spacing of drillholesat this stage.
	Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.	Data spacing and distribution is not sufficient at this stage toallow the estimation of mineral resources.
	Whether sample compositing has been applied.	No sample compositing has been applied
Orientation of datain relation togeological structure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.	The diamond drilling orientation was designed to test thegeophysical target and is not necessarily drilled perpendicular tothe orientation of the intersected mineralisation.
	If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias,this should be assessed and reported if material.	The drilling at this stage is preliminary and exploratory. It is notpossible to assess if any sample bias has occurred due to holeorientation at this stage.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 personnel. Drill cores werevisually checked at the drill rig. Cores were then transported toS2's logging and cutting facilities by S2 personnel. Core cuttingon site and samples transferred to ALS Laboratories in Malå,Sweden by S2 personnel.
Audits or reviews	The results of any audits or reviews of samplingtechniques and data.	No audits or reviews have been conducted at this stage.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Svan Vit prospect is located within the Svansele 403Exploration Licence. The Bjurtraskgruvan prospect is locatedwithin the Vargfors 401 Exploration Licence. The Udden 401-10,13 and 18 VTEM targets are located within the Udden 401Exploration Licence. All of the above exploration licences are100% owned by S2 Sverige AB, a Swedish registered 100%owned subsidiary of S2
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	All of the Exploration Licences are in good standing and noknown impediments exist on the tenements being activelyexplored.

Criteria	JORC Code explanation	Commentary
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	North of the VTEM anomaly Svansele 403 C1 there is ahistorical prospect of Snattermyran initially discovered from amineralised boulder in 1902.During 1903-1905 trenching occurred. In 1926 3 DDH's weredrilled for a total of 152.17m with a best result of: BH2 3.46m@ 2.45% Zn, 32g/t Ag. In 1980 the Swedish Geological Survey(SGU) drilled 4 DDH's for a total of 375.00m with a best resultfrom DDH 80004 of 2.50m @1.65% Zn, 20 g/t Ag. All DDH'swere drilled with an approximate azimuth between 345° and030°.The Bjurtraskgruvan prospect was drilled, trenched andmapped 1944 and 1979-80. The drilling was performed by theSwedish Geological Survey (SGU) for a total of 481m in 1944and 1250m in 1979-80. The 1944 drilling was twinned by the1980 drilling and more comprehensively sampled. The 1944drilling has not been included.The historic geological mapping has been geo-referenced inrelation to the drillhole collars and also correlates well with themodelled moving loop ground TEM plate.The drillhole collar pipes have been located and surveyed by S2personnel.All available public domain historic reports and logs at the SGUin Malå have been reviewed and collated.
Geology	Deposit type, geological setting and style ofmineralisation.	The area occupies the central portion of the Skellefte Belt, avolcanogenic massive sulphide camp dominated by bimodalvolcanics, primarily felsic in composition.The mineralisation style appears from the drill holes typicalvolcanogenic massive sulphide style mineralisation withgreenschist grade metamorphism
Drill holeInformation	A summary of all information material to theunderstanding of the exploration results includinga tabulation of the following information for allMaterial drill holes:easting and northing of the drill holecollarelevation or RL (Reduced Level –elevation above sea level in metres) ofthe drill hole collardip and azimuth of the holedown hole length and interceptiondepthhole length.	Refer to Annexure 1 above
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.	Any reported assays have been length weighted.A nominal 1% Zn lower cut-off is used for diamond drillintersections(unlessotherwisestatedinpolymetallicintersections).
	Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.	High grade intervals internal to broader zones of mineralisationare reported as included intervals.
	The assumptions used for any reporting of metalequivalent values should be clearly stated.	None used.

Criteria	JORC Code explanation	Commentary
Relationshipbetweenmineralisationwidths and interceptlengths	These relationships are particularly important inthe reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature shouldbe reported.If it is not known and only the down hole lengthsare reported, there should be a clear statement tothis effect (e.g. 'down hole length, true width notknown').	The trends of mineralisation at the targets/prospects describedare not known at present but core angles indicate thatmineralisation is approximately true width.Refer to Annexure 1 and Figures in body of text.
Diagram	Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported Theseshould include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectionalviews.	Refer to Figures in body of text.
Balanced reporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results.	All holes are reported either visually or with results as they arereceived.
Other substantiveexploration data	Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	The area has several of a number of priority VTEM targetsgenerated from a 2015 VTEM survey. The targets was groundchecked by moving loop ground TEM which confirmedanomalism that when modelled showed two separate plates.Base of Till sampling returned a peak geochemical responseadjacent to the northern of the geophysical anomalies. Accessand snow conditions dictated that this was the first target drilltested in this winters' testing.At the Bjurtraskgruvan prospect rock chips have been taken atsubcropping gossans. Historic data from the SGU has beencompiled and examined in 3D. The prospect has had initialmoving loop ground TEM which gave a significant anomaly asshown in the body of the text.
Further work	The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive	Further ground EM will be conducted at Bjurtraskgruvan todetermine the extent of the conductor down plunge. Diamonddrilling is planned at Bjurtraskgruvan in early 2017 to both verifyhistoric drilling and test down plunge extensions. Borehole EMwill be used as required to further refine plate models.