S2 RESOURCES LTD — Interim / Quarterly Report 2015

Jan 27, 2016

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	31 December 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 (6 months) $A’000
	- (1,757) - - (812) - 107 (1) - - (2,463)	- (1,809) - - (919) - 117 (1) - - (2,612)
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)	- (34) (107) - - - - - - - - (141)	- (34) (346) - - - - - - 4,145 2,765 6,530
	(2,604)	3,918

• 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)	(2,604)	3,918
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)
	-	15,650
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	(2,604) 22,172 -	19,568 - -
	19,568	19,568

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
	158
	-

• 1.25 Explanation necessary for an understanding of the transactions Salaries and fees paid to directors in the quarter including superannuation.

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 S2 Resources Ltd issued 8,400,000 shares for the remaining 33.33% ownership of Norse Exploration Pty Ltd which owns 100% of Sakumpu Exploration Oy. Sakumpu Exploration Oy holds the tenure in Sweden and Finland.

• 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 $A’000	Amount used $A’000
		Nil	Nil
		Nil	Nil

Estimated cash outflows for next quarter

$A’000 Exploration and evaluation 2,253 Development - Production - Administration 307 2,560 Total

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

Reconciliation of cash

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

Current quarter Previous quarter $A’000 $A’000 2,568 7,172

5.2 Deposits at call

5.3 Bank overdraft 5.4 Other (provide details)

Total: cash at end of quarter (item 1.22)

17,000 15,000 - - - - 19,568 22,172

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 beginning ofquarter	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) E15/1461 E63/1725 P15/5958 P15/5959 Eundynie JV (80% S2) E15/1464 E15/1738 Finland Reservations (100% S2) Silmä VA 2015:0039 Pahka VA2015:0043 Finland Exploration Licences (100% S2) Mantovaara ML2015:0001 Nuokkio Kerjonen Sweden Reservations (100% S2) Vallen nr 401 2015:102 Lindbacka nr 401 2015:104 Brännäs nr 402 2015:117 Laxselmyran nr 404 Näsvattnet nr 401 Petikträsk nr 401 Svansele nr 404 Malånäset nr 401 Malånäset nr 402 Malånäset nr 403	Granted Granted Granted Granted Granted Granted Granted Granted Granted Application Application Granted Granted Granted Application Application Application Application Application Application Application	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 80% 80% 100% 100% 100% 0% 0% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	215,801,278	215,801,278	N/A	Fully Paid
	8,400,000	8,400,000	N/A	Fully Paid
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)	23,750,000 1,900,000 3,600,000 50,000 400,000 400,000	- - - - - -	Exercise Price $0.31 $0.31 $0.31 $0.31 $0.31 $0.31	Expiry date 14/09/2019 14/09/2019 14/09/2019 9/10/2019 23/10/2019 28/11/2019

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired (or lapsed) during quarter	50,000 400,000 400,000	- - -	$0.31 $0.31 $0.31	9/10/2019 23/10/2019 28/11/2019
	-	-	-	-
	-	-	-
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: 28 January 2016 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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