S2 RESOURCES LTD — Capital/Financing Update 2024

Dec 3, 2024

ASX Announcement

S2 ACQUIRES THREE NEW GOLD PROJECTS IN VICTORIA FROM VALKEA RESOURCES AS PART OF THE RECENTLY COMPLETED SALE OF ITS FINNISH ASSETS

Key Points

• S2 finalises earn-in termsfor three Victorian gold projects from Valkea Resources (formerly Outback Goldfields)
• These projects were offered to S2 by Valkea as part of the sale of S2's Finnish assets to Valkea
• This spreads S2's gold exploration footprint in Victoria, supplementing its ground holdings around the prolific Fosterville gold mine owned by Agnico Eagle
• These projects have defined soil and aircore drilling anomalies requiring follow up

S2 Resources Ltd ("S2" or the "Company") advises that it has signed an earn-in agreement with Valkea Resources ("Valkea", formerly Outback Goldfields Corp, TSXV:OZ) as per the terms agreed as part of the recently completed sale of S2's Finnish assets to Valkea1 .

Under the terms of this agreement, S2 has the right to earn an 80% interest in three projects by sole funding a total expenditure of $1.2 million within 4 years. The agreement issubject to Valkea obtaining the approval of the TSX Venture exchange and also receiving Ministerial approval and registration under section 71 of the Mineral Resources (Sustainable Development) Act 1990 in Victoria, Australia.

The four year earnin period is deemed to start once the above conditions have been met. S2 can withdraw from any or all of the projects at any time providing the tenements are in good standing on a pro-rata expenditure commitment basis for a minimum of three months from the date of its withdrawal notice. In the event of S2 being unable to undertake exploration as a consequence of land access or permitting delays or restrictions outside of its reasonable control, then S2 will be entitled to a fair and reasonable extension to the earn-in term.

Should S2 complete its earnin, Valkea can elect to contribute its share of expenditure or dilute. In the latter circumstance, should Valkea's participating interest decrease to less than 10% it will revert to a 2% Net Smelter Return (NSR) royalty, which S2 can buy back for C$1.5 million at any time.

Note 1: S2 currently has a ~45% shareholding in Valkea as part consideration for the sale of its Finnish assets

The three projects comprise the Silverspoon, Yeungroon and Ballarat West exploration projects, which are all located in the central Victorian Goldfields (see Figure 1) and which provide the Company with a variety of gold exploration options, as summarised below.

Figure 1: Location map showing existing S2 tenure (the Greater Fosterville project) and the three Valkea projects in relation to historic goldfields and current mines/prospects.

Yeungroon

The Yeungroon project covers an area of 728 square kilometres near Charlton and Wedderburn in north central Victoria, and comprises three granted exploration licences (EL6897, EL7280 and EL7701). The project area straddles the Avoca Fault, which is the major crustal boundary between the Bendigo Zone (to the east) and the Stawell Zone (to the west). Previous soil sampling and reconnaissance aircore drilling undertaken by Valkea has defined several district-scale gold-arsenic anomalies that require follow up (see Figure 2).

Figure 2: Overview map of the Yeungroon project showing location of gold-arsenic anomalies in soil sampling and aircore drilling undertaken by Valkea.

The O'Connors anomaly, located within the Stawell Zone, is a 3 kilometre long zone of northnorthwest striking strong arsenic-gold anomalism that is open along strike in both directions and is coincident with the O'Connors fault zone. The anomalism intersected in the shallow aircore drilling is comparable with alteration haloes observed at other central Victorian gold systems and the drilling to date may have intersected the low-grade haloes proximal to the high-grade bearing quartz reef lodes.

In addition to the O'Connors trend, the aircore drilling is has intersected a number of other zones, which may represent sub-parallel mineralised structures.

Follow-up bedrock drilling is required to test for the presence of high grade lodes within the mineralised system.

The Golden Jacket anomaly, defined in top of bedrock RAB/aircore drilling, is a strong, broad arsenic anomaly that extends at least 600 metres southwest of the historic Golden Jacket Mine. Drilling to date has intersected low-level gold associated with the arsenic anomaly. Anomalous gold values intersected extend approximately 800 metres south of the mine, indicating the potential for a system with significant strike potential.

In addition, drilling has defined several parallel northwest striking trends of strong arsenic (with anomalous gold) to the north of the of the Golden Jacket mine. Deeper drilling is warranted to test for high-grade, structurally controlled quartz reefs associated with the anomalous top-of bedrock sampling.

Figure 3: O'Connors aircore anomaly showing several trends with extensive arsenic-gold anomalism.

Figure 4: Golden Jacket aircore anomaly showing several trends anomalous in arsenic and gold.

Level 14, 333 Collins Street, Melbourne, VIC 3000, Australia. PO Box 143 Kingsway, WA 6065, 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

At the Wedderburn anomaly, located within the Bendigo Zone immediately to the east of the Avoca Fault, portable XRF soil sampling has defined multiple north-south trending arsenic anomalies; extending at least two kilometres in strike on the eastern trend and at least one kilometre on the western trend. These trends have not been drilled and represent a priority target for follow-up exploration, subject to obtaining surface access.

Figure 5: The Wedderburn soil anomaly showing several parallel arsenic anomalies.

Ballarat West

The Ballarat West project covers an area of 788 square kilometres located to the northwest of the Ballarat goldfield and comprises one granted exploration licence (EL7276) and one exploration licence application (ELA8052).

The project area covers several known historically productive "deep lead" gold mines beneath the widespread post-mineralisation basalt cover within the project area. The presence of alluvial gold in widespread deep leads suggests the project area has potential to host significant bedrock gold mineralisation (as the source of the gold in the deep leads), with local reef-hosted gold occurrences present in a number of areas where the prospective bedrock is exposed at surface. The project has not seen any modern-day exploration targeting the bedrock potential.

Silverspoon

The Silverspoon project comprises one granted exploration licence (EL6951) located approximately 15 kilometres southeast of the Fosterville gold mine, and one exploration licence application (ELA8311), which directly abuts the western boundary of the Fosterville Mining Lease. This block is a lapsed Retention Licence formerly held by Agnico Eagle and now under competitive application, having also been applied for by S2 and Agnico Eagle2 .

Note 2: As this is a competitive application between 3 applicants there is no certainty that either S2 or Valkea will be awarded the tenement

This announcement has been provided to the ASX under the authorisation of the S2 Board.

For further information, please contact: Mark Bennett Executive Chairman +61 8 6166 0240

Past Exploration results reported in this announcement have been previously prepared and disclosed by Outback Goldfields in accordance with Canadian National Instrument 43/101. The Company is not aware of any other or new information or data that materially affects the information included in this market announcement. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcements. Refer to Outback Goldfields' previous news release filings on SEDAR for details on past exploration results.

Competent Persons statement

Information in this report that relates to Exploration Results from Victoria is based on information compiled by John Bartlett, who is an employee and equity holder of the Company. Mr Bartlett is a member of the Australian Institute of Mining and Metallurgy (MAusIMM) and 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 a Competent Person 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 following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cutchannels,randomchips,orspecificspecialisedindustrystandardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, or handheldXRF instruments, etc). These examplesshould not be taken as limiting the broadmeaning of sampling.	SamplingTechniquescarriedoutbyOutbackGoldfields Australia Pty Ltd ("OGA") are reported asfollows;RAB/Air core samples were collected in 1 metreintervals down hole from surface to end of hole for allholes drilled. A representative sample of each 1 metreinterval was collected in chip trays as drilling wasundertaken, as well as a larger sample (nominally1.5kg) which was retained for additional testing whererequired.Diamond Drill core was cut in half using an Almontecore saw along the vertical axis of the core based onOrientation lines. One half of the sample wassubmitted for laboratory analysis, with half retainedfor future reference.Roadside Soil samples were collected using a handauger. Sampling staff selected approximately 100g ofmaterial from the B-C soil horizon interface. A subsetof this sample was collected in chip trays for XRFanalysis with the remainder stored for futurereference.S2 is currently in the process of validating the results
	Include reference to measures taken toensure sample representivity and theappropriatecalibrationofanymeasurement tools or systems used	of Outback Goldfields previous sampling campaigns.To ensure sample representivity, OGA reports takingthe following steps;RAB/Air Core samples were collected from bucketswhich collected all chips from the sample stream. Grabsamples were collected from the buckets by hand,collecting material from the bottom, middle and top ofthe sample collected.Diamond Drillingsamples were cut along theOrientation line, to ensure un-biased sampling,sampling staff always selected the top half of the corefor submission to the laboratory, with the bottom halfretained for future reference.

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
	Aspectsofthedeterminationofmineralisation that are Material to thePublic Report. In cases where 'industrystandard' work has been done this wouldberelativelysimple(e.g.'reversecirculation drilling was used to obtain 1 msamples from which 3 kg was pulverisedto produce a 30 g charge for fire assay').In other cases more explanation may berequired, such as where there is coarsegoldthathasinherentsamplingproblems.Unusualcommoditiesormineralisationtypes(e.g.submarinenodules) may warrant disclosure ofdetailed information	OGA report the following:RAB/Air core samples were collected in 1 metreintervals down hole from surface to end of hole for allholes drilled. A representative sample of each 1 metreinterval was collected in chip trays as drilling wasundertaken, as well as a larger sample (nominally1.5kg) which was retained for additional testing whererequired.Diamond Drill core was cut in half using an Almontecore saw along the vertical axis of the core based onOrientation lines. One half of the sample wassubmitted for laboratory analysis, with half retainedfor future reference.Roadside Soil samples were collected using a handauger. Sampling staff selected approximately 100g ofmaterial from the B-C soil horizon interface andassayed using a portable XRF device. A subset of thissample was collected in chip trays for XRF analysis withthe remainder stored for future reference.
Drilling techniques	Drill type (e.g. core, reverse circulation,open-hole hammer, rotary air blast,auger, Bangka, sonic, etc) and details(e.g. core diameter, triple or standardtube, depth of diamond tails, facesampling bit or other type, whether coreis oriented and if so, by what method,etc).	OGA has conducted a series of RAB, Aircore andDiamond Drilling campaigns across the tenement. Nodrilling by S2 has been conducted on the tenements.Verification and validation of these data sets by S2 isongoing.
Drill sample recovery	Method of recording and assessing coreand chip sample recoveries and resultsassessed	During Drilling operations OGA did not estimatesample recoveries for RAB or Air-core drill programs.Dor diamond drilling, intervals of "lost core" wererecorded during logging, amounting to approximately3% of the total meters drilled, subsequently diamonddrill core recoveries are estimated to beapproximately 97%.
	Measures taken to maximise samplerecoveryandensurerepresentativenature of the samples	Unknown - no drilling or sampling by S2 has beenconducted on the tenements.All drilling on theproject is historical in nature and verification andvalidation of these data sets are ongoing.
	Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferentialloss/gainoffine/coarsematerial.	OGA reported that no relationship between samplerecovery and grade had been identified. Noting thatwhilst the mineralised quartz zones intercepted, weremore fractured than the surrounding sedimentaryrocks, they were generally quite competent, were notassociated with an increase in "lost" core.

Criteria	JORC Code explanation	Commentary
Logging	Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriateMineralResourceestimation,miningstudiesandmetallurgical studies.	Logging by OGA during its previous explorationcampaigns, described as follows;RAB/Air core samples were logged to sampleintervals recording lithology, colour, Quartzpercentage, and minerals observed.Diamond Drilling was logged in detail recordingdetailed lithology information to a minimum intervalof 10cm, recoding lithologies, colour and anyobserved minerals of interest.All logging completed by OGA Personnel wassupervised by experienced Senior Geologists withexpansive prior experience in the Victorian GoldfieldsS2 is currently in the process of validating the resultsof OGA previous drilling campaigns.
	Whetherloggingisqualitativeorquantitative in nature. Core (or costean,channel, etc) photography.The total length and percentage of the	OGA carried out qualitative logging of lithology andcolour as well as quantitative estimates of quartzpercentages for all RAB, Air core and Diamond drillholes. All Diamond Drill core was photographed priorto sampling.S2 is currently in the process of validating the resultsof Outback Goldfields previous drilling campaigns.A summary of the Drilling completed by OGA on the
	relevant intersections logged	Yeungroon tenement is given below;No. ofTotal
		Drill MethodHolesMetres
		RAB2543208
		Air Core74812,240
		Diamond Drilling91024.4Logging of Lithology, colour, quartz percentage andmineralisation was completed for all drillholes byOGA personnel.
Sub-samplingtechniquesandsample preparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	Sub-sampling techniques used by OGA are describedas follows;Diamond Drill core was cut in half using an Almontecore saw along the vertical axis of the core based onOrientation lines. One half of the sample wassubmitted for laboratory analysis, with half retainedfor future reference.

Criteria	JORC Code explanation	Commentary
	Ifnon-core,whetherriffled,tubesampled, rotary split, etc and whethersampled wet or dry.	Sub-sampling techniques used by OGA are describedas follows;RAB/Air core samples were collected in 1 metreintervals down hole from surface to end of hole for allholes drilled. Samples were collected from bucketswhich collected all chips from the sample stream.Grab samples were collected from the buckets byhand, collecting material from the bottom, middleand top of the sample collected (for a total samplemass of approximately 1.5kg). A representativesample of each 1 metre interval was also collected inchip trays as drilling was undertaken, for preliminaryXRF analysis.
	For all sample types, the nature, qualityandappropriatenessofthesamplepreparation technique.	OGA sample preparation methods are consideredappropriate in the context in which they are used.RAB/Air Core drilling was undertaken to drill holesthrough shallow transported cover sequences to testthe top of the basement rocks for Geochemicalanomalies. Grab sampling by hand was consideredsufficient to provide a representative sample for thispurpose.Diamond drilling was carried out to identify anddefine potential gold mineralisation. Drill Coresampling using an automated Almonte Diamond Drillsaw, with intervals adjusted to ensure samplesrepresented geology (i.e. not sampling across majorlithological/mineralisation boundaries) wasconsidered representative and appropriate for thispurpose.S2 is currently in the process of validating the resultsof OGA's previous drilling campaigns.
	Quality control procedures adopted for allsub-samplingstagestomaximiserepresentivity of samples.	No drilling or sampling by S2 has been conducted onthe tenements.All sampling of OGA drill holes was supervised byexperienced Senior geologists with extensiveexperience in the Victorian Goldfields.

Criteria	JORC Code explanation	Commentary
	Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling.	No drilling or sampling by S2 has been conducted onthe tenements.OGA have tested sample representativity within theirdrilling campaigns as outlined below;RAB/Aircore samples were tested via XRF directlyonto samples collected in Chip trays. Zones ofanomalous geochemical results had theircorresponding 1.5kg samples analysed in a laboratoryusing low detection gold and multi-element analysis.Comparison of XRF analysis against laboratorygeochemical analysis indicated sufficient correlationto satisfy the company that it's sampling techniqueswere sufficiently representative to identifygeochemical anomalies.Diamond Drill core samples have not had any fieldduplicate or second half analysis to date, howeverhalf core from all diamond drill holes has beenretained and is available for second half samplingshould this be deemed necessary in the future.Verification by S2 of these results is currentlyongoing.
	Whether sample sizes are appropriate tothe grain size of the material beingsampled.	OGA regularly reviewed the results of it's samplingprograms. The company formed the view that XRFanalysis of RAB and Air Core chip tray samples gavesufficiently repeatable results to confidently identifygeochemical anomalies.The submission of larger (nominally 1.5kg) samplesfor any samples selected for analysis for gold isconsidered sufficiently representative of the materialsampled.Verification by S2 of these results is currentlyongoing.
Qualityofassaydata and laboratorytests	Thenature,qualityandappropriateness of the assaying andlaboratoryproceduresusedandwhether the technique is consideredpartial or total.	All OGA samples that were analysed for Goldmineralisation were submitted to the Gekko AssayLaboratory, prepared using standard preparationprocedures (dry, crush and pulverise at 75 micronmesh). Gold was analysed by fire assay on a 30 gramsample with an AAS finish (atomic absorptionspectroscopy). Gekko Assay Laboratory is accreditedfor compliance with ISO/IEC 17025 Testing byNational Association of Testing Authorities, Australia(NATA).Verification and validation of these data sets by S2are ongoing.

Criteria	JORC Code explanation	Commentary
	For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument makeandmodel,readingtimes,calibrations factors applied and theirderivation, etc.	OGA conducted preliminary analysis on all samplescollected in chip trays using an Olympus Vantaportable XRF. Analysis was carried out in "Geochemmode" running three beams for a total of 30 secondseach.Verification by S2 of these results is currentlyongoing.
	Nature of quality control proceduresadopted(e.g.standards,blanks,duplicates,externallaboratorychecks)andwhetheracceptablelevels of accuracy (i.e. lack of bias)and precision have been established.	No assaying of samples has been conducted by S2 onthe tenements. All sampling on the project ishistorical in nature and verification and validation ofthese data sets are ongoing.
Verificationofsamplingandassaying	Theverificationofsignificantintersections by either independentor alternative company personnel.	OGA maintained carried out exploration programs inaccordance with company procedures, supervised bysenior geologists. A database of all drilling andsampling conducted by Outback Goldfields wasmaintained by a suitably qualified database geologist.Verification and validation of these data sets by S2are ongoing.
	The use of twinned holes.	No twin holes are reported.
	Documentation of primary data, dataentry procedures, data verification,data storage (physical and electronic)protocols.	All drilling and sampling conducted on the tenementsis historical in nature and verification and validationof these data sets are ongoing.
	Discuss any adjustment to assaydata.	No adjustments to the assay data have beencarried out by OGA or S2.
Locationofdatapoints	Accuracy and quality of surveys used tolocate drillholes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.	All drilling conducted by OGA had collar surveyscarried out using a Garmin GPSMAP 64sx, the accuracyof collars is reported at +/- 3m.OGA soil sampling data points were surveyed usingeither Apple Iphone or GPSMAP 64sx. Locationaccuracy on soil sampling is reported at +/- 3m.Verification and validation of these data sets by S2 are
	Specification of the grid system used.	ongoing.The grid system is MGA GDA94 (Zone 54).

Criteria	JORC Code explanation	Commentary
	Quality and adequacy of topographiccontrol.	OGA has utilised 10m Surface modelling acquiredfrom the Data.vic website to estimate the elevationof all drill collars and sample points, this is consideredadequate in the context of exploration programswhich are searching for broad large-scalegeochemical anomalies.Verification and validation of these data sets by S2are ongoing.
Dataspacinganddistribution	Data spacing for reporting of ExplorationResults.	OGA has chosen to use 100m spaced Air-core holes totest the top of basement Geochemistry based onanalysis of soil sampling data collected across knownlines of mineralisation in the Historic goldfields ofBendigo and Ballarat.Geochemical anomalies associated withmineralisation in these goldfields was observed tovary between 400m and 1km in width, a 100mspaced drill pattern should clearly identify anomalousgeochemical zones in typical Victorian Gold systems.
	Whetherthedataspacinganddistribution is sufficient to establish thedegree of geological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.	No Mineral Resource or Ore Reserve estimation isreported.
	Whether sample compositing has beenapplied.	No sample compositing has been applied.
Orientation of data inrelation to geologicalstructure	Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this isknown, considering the deposit type.	OGA's drilling programs utilised various orientationsas follows;RAB/Aircore holes were drilled in a verticalorientation for most holes, the only exception beingat the Golden Jacket prospect, where a small series ofinclined holes dipping at 60o towards the northeastwere completed to test along strike of the GoldenJacket mine which was mapped historically to have asub-vertical mineralised quartz reef.Diamond Drill holes were designed to test alongstrike of the historic Golden Jacket Reef, mapped tobe sub-vertical striking in a north-westerly direction.Holes were designed and drilled from both the westside of the reef with a dip of 55˚ towards east andwest in an effort to drill across the mineralisationrather than along it.

Criteria	JORC Code explanation	Commentary
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.	No sampling bias is believed to have been introducedfrom the orientation of drilling by OGA.
Sample security	The measures taken to ensure samplesecurity.	OGA personnel collected all samples in the field andtransported them to the company's secure core shedfacility in Ballarat for preliminary analysis.Samples selected for follow up laboratory analysiswere dispatched via registered courier with parcelstracked electronically to the SGS laboratory inOrange; or for samples analysed at the Gekko Assaylaboratory in Ballarat delivered by hand by OGApersonnel.
Audits or reviews	The results of any audits or reviews ofsampling techniques and data.	No records of any audits or reviews of historicsampling have been compiled to date.

Criteria	JORC Code explanation	Commentary
Mineraltenementandlandtenurestatus	Type, reference name/number, location	The Yeungroon Project consists of three grantedexploration licences (EL6897, EL7280 & EL7701),located approximately 75 kilometres northwest ofBendigo, Victoria adjacent the township ofWedderburn. The tenements are owned by OutbackGoldfields Australia Pty Ltd ("Outback"), a whollyowned subsidiary of TSX-V listed Valkea ResourcesLtd.The Ballarat West Project consists of one granted
	and ownership including agreements ormaterial issues with third parties such asjoint ventures, partnerships, overridingroyalties, native title interests, historicalsites, wilderness or national park andenvironmental settings.	exploration licence (EL7276) and one explorationlicence application (ELA8052), owned by Outback.The project is located immediately west of thetownships of Ballarat and Creswick, Victoria.The Silverspoon project consists of one explorationlicence (EL6951) and one exploration licenceapplication (ELA8311), located to the east of Bendigo,Victoria. The licences are owned by Outback, withEL6951 held in the name Petratherm Ltd.S2 Resources has entered into a farmin joint ventureagreement for the three projects (listed above) withthe terms of the agreement detailed in the body ofthis announcement.
	The security of the tenure held at thetime of reporting along with any knownimpediments to obtaining a licence tooperate in the area.	All granted exploration licences are current and ingood standing.Exploration licence application ELA8052 (BallaratWest) has been assessed by the Victorian EarhResource Regulator (ERR) and is currently requiring anNative Title Agreement with the WadawurrungTraditional Owners Aboriginal Corporation, prior togrant.Exploration licence application ELA8311 (Silverspoonproject) has competing applications, with two otherparties, and ERR has yet to determine the successfulpriority application.There is no guarantee thatELA8311 will be the successful application for thislicence area.Access and compensation agreements are required toconduct work on freehold land and while it is hopedthat landowners will agree to these there is noguarantee that they will be forthcoming.

SECTION 2: REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Exploration done byother parties		OGA has undertaken a series of Exploration programsacross the Yeungroon exploration Licence. Severalprograms of drilling have been completed assummarised in the table below;
		No. ofTotalDrill MethodHolesMetres
		RAB2543208
		Air Core74812,240
		Diamond Drilling91024.4
	Acknowledgmentandappraisalofexploration by other parties.	In addition to drilling, OGA has also undertaken acampaign of roadside soil sampling, comprising some598 samples with geochemistry analysed using XRF.
		The programs completed to date have focused ontesting previously under-explored ground in theWestern half of the Yeungroon tenement. Modestextensions to mineralisation were discovered alongstrike of the historic Golden Jacket Mine, however theO'Connors Target zone stands out as the tenementshighest potential target zone.O'Connors prospect is a strongly anomalous zone3.5km long and 1.3km wide which is open along strike.It contains elevated Arsenic and Gold grades, andappears to be associated with large scale regionalfaulting.
Geology	Deposit type, geological setting and styleof mineralisation.	The deposit style sought is turbidite hosted orogenicgold mineralisation located in the Bendigo andStawell Zones of the Victorian Gold Province.Examples of this style of mineralisation includeBallarat, Bendigo, Fosterville & Stawell.Gold mineralisation is typically hosted by quartz reefslocated in fold and fault structures related to multiplecompression events that formed upright chevronstyle fold geometry.

Criteria	JORC Code explanation	Commentary
Drill hole Information	A summary of all information material tothe understanding of the explorationresults including a tabulation of thefollowing information for all Materialdrill holes:•easting and northing of thedrill hole collar•elevation or RL (Reduced Level– elevation above sea level inmetres) of the drill hole collar•dip and azimuth of the hole•downholelengthandinterception depth•hole length.	All drilling is historical in nature verification andvalidation of these data sets are ongoing.
Dataaggregationmethods	InreportingExplorationResults,weightingaveragingtechniques,maximumand/orminimumgradetruncations (e.g. cutting of high grades)and cut-off grades are usually Materialand should be stated.	All Exploration Results reported are downholeweighted means.
	Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail.	Where aggregate intercepts include individual zones ofhigher grade these are reported, using the samemethodology as for the larger intervals. The lower cutoff grade for the including intervals is reported in therelevant tables.
	The assumptions used for any reportingof metal equivalent values should beclearly stated.	No metal equivalent values are reported.

Criteria	JORC Code explanation	Commentary
Relationship betweenmineralisation widthsand intercept lengths	Theserelationshipsareparticularlyimportant in the reporting of ExplorationResults.If the geometry of the mineralisationwith respect to the drill hole angle isknown, its nature should be reported.If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (e.g. 'downhole length, true width not known').	OGA has reported drill angles relative to interpretedmineralisation providing commentary on estimates oftrue widths for diamond drilling intervals. As structuralinformation is not able to be determined for RAB/Aircore drilling, true widths of intercepts cannot bedetermined for these holes.S2 is reviewing the results of OGA drill programs, thisprocess is ongoing.
Diagram	Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a plan viewofdrillholecollarlocationsandappropriate sectional views.	Appropriate maps, sections and tables are included inthe body of the report.
Balanced reporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reportingof Exploration Results.	All historical results considered significant arereported.
Othersubstantiveexploration data	Other exploration data, if meaningfulandmaterial,shouldbereportedincluding (but not limited to): geologicalobservations; geophysical survey results;geochemical survey results; bulk samples–sizeandmethodoftreatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	Other historical exploration data has not yet beencompiled to a level where it can be reported. Furthercompilation of such data will be reviewed andreported when considered material.

Criteria	JORC Code explanation	Commentary
Further work	The nature and scale of planned furtherwork (e.g. tests for lateral extensions ordepth extensions or large-scale step-outdrilling).	Detailed review of all historical work will beundertaken, including the creation of database ofhistorical sampling and drilling, prior to prioritisingareas for on ground exploration
	Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and futuredrilling areas, provided this informationis not commercially sensitive