S2 RESOURCES LTD — Interim / Quarterly Report 2017

Apr 27, 2017

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Name of entity

S2 Resources Ltd
ABN	Quarter ended ("current quarter")

18 606 128 090 31 March 2017

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	(1,418)	(4,949)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs*	(426)	(1,376)
	(e)administration and corporate costs	(318)	(1,024)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	102	312
1.5	Interest and other costs of finance paid	(2)	(6)
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other – payroll tax refund during quarterended 31 March 2017 for an auditperformed by the Office of State Revenuein December 2016. YTD is a net number.	399	14
1.9	Net cash from / (used in) operatingactivities	(1,663)	(7,029)

* includes pre-resource exploration expenditure of $205k for the quarter ending 31 March 2017 and $743k year to date.

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(18)	(125)
	(b)tenements (see item 10)	-	-
	(c)investments	-	-
	(d)other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a)property, plant and equipment	-	-
	(b)tenements (see item 10)	-	-
	(c)investments	-	-
	(d)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6Net cash from / (used in) investingactivities		(18)	(125)

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	12,096
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues ofshares, convertible notes or options	-	(587)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other – net payments for cash backedguarantees	-	(61)
3.10	Net cash from / (used in) financingactivities	-	11,448

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	21,765	15,891
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(1,663)	(7,029)
4.3	Net cash from / (used in) investingactivities (item 2.6 above)	(18)	(125)
4.4	Net cash from / (used in) financingactivities (item 3.10 above)	-	11,448
4.5	Effect of movement in exchange rates oncash held	(151)	(252)
4.6	Cash and cash equivalents at end ofperiod	19,933	19,933

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) tothe related items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	4,933	5,265
5.2	Call deposits	15,000	16,500
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	19,933	21,765

6. Payments to directors of the entity and their associates Current quarter 6.1 Aggregate amount of payments to these parties included in item 1.2 128

• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -
• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

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

$A'000

7.	Payments to related entities of the entity and theirassociates	Current quarter$A'000
7.1	Aggregate amount of payments to these parties included initem 1.2	-
7.2	Aggregate amount of cash flow from loans to these partiesincluded in item 2.3	-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

8.	Financingfacilities availableAdd notes as necessary for an understanding of theposition	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-
8.3	Other (please specify)	-	-

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

N/A

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation	(1,554)
9.2	Development	-
9.3	Production	-
9.4	Staff costs	(478)
9.5	Administration and corporate costs	(372)
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	(2,404)

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenement reference andlocation	Nature ofinterest	Interest atbeginningof quarter	Interestat end ofquarter
10.1	Interests in miningtenements andpetroleumtenements lapsed,relinquished orreduced	Australian TenementsPolar Bear (100% S2)N/AFinland Reservations(100% S2)SisnakkaKaarestunturiPaana	LapsedLapsedLapsed	100%100%100%	0%0%0%
10.2	Interests in miningtenements andpetroleumtenementsacquired orincreased	Australian TenementsPolar Bear (100% S2)N/ANorcott (100% S2)N/AFinland Reservations(100% S2)JänesFinland Exploration Licences(100% S2)	Granted	0%	100%
		Paana EastPaana WestSweden Exploration Licences(100% S2)Näsvattnet nr 402Rengård nr 403Tjålmträsk nr 402Tjålmträsk nr 403	ApplicationApplicationApplicationApplicationApplicationApplication	0%0%0%0%0%0%	0%0%0%0%0%0%

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

(Company secretary)

Sign here: ............................................................ Date: ..28 April 2017.................

Notes

Print name: Tony Walsh

• 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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.