S2 RESOURCES LTD — Interim / Quarterly Report 2016

Apr 25, 2016

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	Quarter ended ("current quarter")
18 606 128 090	31 March 2016

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	$A'000	(9 months)
			$A'000
1.1	Receipts from product sales and related
	debtors	-	-
1.2	Payments for(a) exploration & evaluation	(1,410)	(3,220)
	(b) development	-	-
	(c) production	-	-
	(d) administration	(494)	(1,413)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar naturereceived	136	255
1.5	Interest and other costs of finance paid	(2)	(4)
1.6	Income taxes paid	-	-
1.7	Other	-	-
	Net Operating Cash Flows	(1,770)	(4,382)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a) prospects	(31)	(31)
	(b) equity investments	-	(34)
	(c) other fixed assets	-	(346)
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	-	4,145
	Assets in relation to the Demerger
	transaction on 21 September 2015.
	Other - Cash acquired upon acquisition of	-	2,765
	subsidiaries on 21 September 2015.
	Net investing cash flows	(31)	6,499
1.13	Total operating and investing cash flows
	(carried forward)	(1,801)	2,117

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(1,801)	2,117
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	15,855
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	-	(205)
	guarantees
	Net financing cash flows	-	15,650
	Net increase (decrease) in cash held	(1,801)	17,767
1.20	Cash at beginning of quarter/year to date	19,568	-
1.21	Exchange rate adjustments to item 1.20	-	-
1.22	Cash at end of quarter	17,767	17,767

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

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	116
1.24	Aggregate amount of loans to the parties included in item 1.10	-
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 None

Salaries and fees paid to directors in the quarter including superannuation.

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.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

	Total	2,583
4.4	Administration	400
4.3	Production	-
4.2	Development	-
4.1	Exploration and evaluation	2,183
		$A'000

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows.	Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	3,767	2,568
5.2	Deposits at call	14,000	17,000
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	17,767	19,568

Changes in interests in mining tenements

		Tenement reference	Nature ofinterest(note (2))	Interest atbeginningof quarter	Interestat end ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed

+ See chapter 19 for defined terms.

6.2	Interests in mining	Australian Tenements
	tenements acquired or	Polar Bear (100% S2)
	increased	E63/1756	Granted	0%	100%
		E63/1757	Granted	0%	100%
		Eundynie JV (80% S2)N/A
		Norcott (100% S2)
		E63/1728	Granted	0%	100%
		Finland Reservations
		(100% S2)
		Siila	Granted	0%	100%
		Sisnakka	Granted	0%	100%
		Majava	Application	0%	0%
		Finland Exploration
		Licences (100% S2)
		Kerjonen	Granted	0%	100%
		Sweden Reservations(100% S2)
		Petiktrask nr 401	Granted	0%	100%
		Nasvattnet nr 401	Granted	0%	100%
		Laxselmyran nr 404	Granted	0%	100%
		Svansele nr 404	Granted	0%	100%
		Malanset nr 401	Granted	0%	100%
		Malanset nr 402Malanset nr 403	GrantedGranted	0%0%	100%100%
		Malanset nr 404	Granted	0%	100%
		Laxselmyran nr 405	Application	0%	0%
		Malånäset nr 405	Application	0%	0%

+ See chapter 19 for defined terms.

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	Amount paid up
				security (see	per security (see
				note 3) (cents)	note 3) (cents)
7.1	Preference	N/A	N/A	N/A	N/A
	+securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy
	backs,
	redemptions
7.3	+Ordinary	215,801,278	215,801,278	N/A	Fully Paid
	securities
7.4	Changes duringquarter
	(a) Increases	-	-	-	-
	through issues
	(b) Decreases
	through returns
	of capital, buy
	backs
7.5	+Convertible	N/A	N/A	N/A	N/A
	debt
	securities
	(description)
7.6	Changes during	-	-	-	-
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through
	securitiesmatured,
	converted
7.7	Options			Exercise Price	Expiry date
	(description and
	conversion	23,750,000	-	$0.31	14/09/2019
	factor)	1,900,000	-	$0.31	14/09/2019
		3,600,000	-	$0.31	14/09/2019
		50,000	-	$0.31	9/10/2019
		400,000	-	$0.31	23/10/2019
		400,000	-	$0.31	28/11/2019
7.8	Issued during
	quarter	-	-	-	-

+ See chapter 19 for defined terms.

7.9	Exercisedduring quarter	-	-	-	-
7.10	Expired (orlapsed) duringquarter	-	-	-
7.11	Debentures(totals only)	-	-
7.12	Unsecurednotes (totalsonly)	-	-
7.13	Other	-	-

+ See chapter 19 for defined terms.

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: Tuesday 26th April

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.