S2 RESOURCES LTD — Interim / Quarterly Report 2016

Oct 18, 2015

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity
S2 Resources Ltd
ABN 18 606 128 090	Quarter ended (“current quarter”)
18 606 128 090	30 September 2015

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	(53) - - (107) - 10 - - - (150)	(53) - - (107) - 10 - - - (150)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Other - Reimbursement for Deferred Tax Assets in relation to the Demerger transaction on 21 September 2015. Other - Cash acquired upon acquisition of subsidiaries on 21 September 2015. Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (239) - - - - - 4,145 2,766 6,672	- - (239) - - - - - 4,145 2,766 6,672
	6,522	6,522

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	6,522	6,522
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Capital raising costs Other – Payments for cash backed guarantees Net financing cash flows	15,855 - - - - - (205)	15,855 - - - - - (205)
	15,650	15,650
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	22,172 - -	22,172 - -
	22,172	22,172

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	Nil
	Nil

• 1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

As per the Demerger Scheme of Arrangement completed on 21 September 2015, S2 Resources Ltd acquired Polar Metals Pty Ltd and Sirius Europa Pty Ltd from SIR (Sirius Resources NL) where shares were issued in exchange of intercompany loans outstanding with SIR. The value of this exchange was $23.6M.

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements

	Amount available	Amount used
	$A’000	$A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

$A’000 Exploration and evaluation 2,400 Development - Production - Administration 600 3,000 Total

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

Reconciliation of cash

Reco show to th	nciliation of cash at the end of the quarter (as n in the consolidated statement of cash flows) e related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 5.2 5.3 5.4	Cash on hand and at bank Deposits at call Bank overdraft Other (provide details)	7,172	-
		15,000	-
		-	-
		-	-
	Total: cash at end of quarter(item 1.22)	22,172	-

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call

• 5.3 Bank overdraft 5.4 Other (provide details)

Changes in interests in mining tenements

• 6.1 Interests in mining tenements relinquished, reduced or lapsed

Tenement reference	Nature of interest (note (2))	Interest at beginnin g of quarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	Australian Tenements Polar Bear (100% S2) E15/1298 E63/1142 E63/1712 M15/651 M15/710 M63/230 M63/255 M63/269 M63/279 P15/5167 P15/5168 P15/5171 P15/5638 P15/5639 P15/5640 P63/1584 P63/1585 P63/1587 P63/1588 P63/1589 P63/1590 P63/1591 P63/1592 P63/1593 P63/1594 E15/1461 E63/1725 E63/1756 E63/1757 M15/1814 P15/5958 P15/5959 Eundynie JV (80% S2) E15/1458 E15/1459 E63/1726 E63/1727 E15/1464 E15/1738 Norcott Project (100% S2) E15/1487 E63/1728 Finland Reservations (67% S2) Kuivasalmi VA 2014:0061 Kaarestunturi VA 2015:0002 Paana VA 2015:0011	Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Application Application Application Application Application Application Application Granted Granted Granted Granted Application Application Application Application Granted Granted Granted	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 0% 0% 0% 0% 0% 100% 100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Torvinen VA 2015:0025 Selkä VA 2015:0027 Mantovaara Lammasvuoma Utsamo Sweden Reservations (67% S2) Gallejaur nr 401 Rengård nr 401 Svansele nr 401 Svansele nr 402 Brännäs nr 401 Båtfors nr 401 Holmtjärn nr 401 Hästskomyran nr 401 Laxselmyran nr 401 Rengård nr 402 Svansele nr 403 Tjålmträsk nr 401 Laxselmyran nr 402 Laxselmyran nr 403 Udden nr 401 Udden nr 402	Granted Granted Application Application Application Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	N/A	N/A	N/A	N/A
7.3 +Ordinary securities	207,401,278	207,401,278	N/A	Fully Paid

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	207,401,277	207,401,277	0.19	0.19
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A	N/A	N/A	N/A
	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired (or lapsed) during quarter	23,750,000 1,900,000 3,000,000	- - -	Exercise Price $0.31 $0.31 $0.31	Expiry date 14/09/2019 14/09/2019 14/09/2019
	23,750,000 1,900,000 3,000,000	- - -	$0.31 $0.31 $0.31	14/09/2019 14/09/2019 14/09/2019
	-	-	-	-
	-	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-
7.13 Other	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 19 October 2015 Print name: Anna Neuling – Director

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

Rule 5.3

• See chapter 19 for defined terms.

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