S2 RESOURCES LTD — Interim / Quarterly Report 2019

Apr 29, 2019

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Name of entity

S2 Resources Ltd

18 606 128 090 31 March 2019

ABN Quarter ended ("current quarter")

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*	(1,010)	(4,225)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs**	(164)	(541)
	(e)administration and corporate costs	(211)	(928)
1.3	Dividends received (see note3)	-	-
1.4	Interest received	25	116
1.5	Interest and other costs of finance paid	(2)	(6)
1.6	Income taxes paid	-	(2)
1.7	Research and development refunds	-	-
1.8	Other	-	-
1.9	Net cash from / (used in) operatingactivities	(1,362)	(5,586)

*Exploration & evaluation comprise exploration physical costs of $820k and pre-resource exploration staff costs of $190k.

**Total staff costs for the quarter ended was $354k comprising pre-resource exploration $190k, corporate $86k, non-executive directors $34k and business development $44k. Staff costs of presource exploration $190k has been transferred to the above category 'exploration & evaluation'.

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	(8)	(12)
	(b)tenements(see item10)	-	-
(c)investments–19.99% stake in ToddRiver ResourcesLtdas perannouncement 20 November 2018		-	(2,743)
	(d)other non-current assets	-	-
2.2	Proceeds from the disposalof:
	(a)property, plant and equipment	-	-
	(b)tenements(see item10)	-	-
	(c)investments–net proceedsfrom saleof GT Gold shares	-	1,814
	(d)investments–net proceeds from saleof Westgold shares	2,236	2,236
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note3)	-	-
2.5	Other	-	-
2.6Net cash from / (used in) investingactivities		2,228	1,295

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related toissues ofshares, convertible notes or options	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
3.9	Other–net payments for cash backedguarantees	-	(16)
3.10	Net cash from / (used in) financingactivities	-	(16)

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	10,047	15,026
4.2	Net cash from / (used in) operatingactivities(item1.9 above)	(1,362)	(5,586)
4.3	Net cash from / (used in) investingactivities(item2.6 above)	2,228	1,295
4.4	Net cash from / (used in)financingactivities(item3.10 above)	-	(16)
4.5	Effect of movement in exchange rates oncash held	(65)	129
4.6	Cash and cash equivalents at end ofperiod	10,848*	10,848

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	6,437	8,047
5.2	Call deposits	4,411	2,000
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	10,848*	10,047

*S2 Resources also has an investment in Westgold Resources Ltd valued at A$2.5 million for the quarter ended 31 March 2019. Total cash and investments as at 31 March 2019 was $13.4 million.

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 140
• 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.

7. Payments to related entities of the entity and their associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2 -
• 7.2 Aggregate amount of cash flow from loans to these parties included 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. Financing facilities available Add notes as necessary for an understanding of the position

8.	FinancingfacilitiesavailableAdd 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

$A'000

Current quarter $A'000

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation	700
9.2	Development	-
9.3	Production	-
9.4	Staff costs	250
9.5	Administrationand corporate costs	250
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	1,200

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenement reference andlocation	Nature ofinterest	Interest atbeginning ofquarter	Interest atend ofquarter
10.1	Interests in	Sweden Tenements
	mining	Hästskomyran nr 401	Relinquished	100%	0%
	tenements and	Rengård nr 403	Relinquished	100%	0%
	petroleumtenements	Käringträsk nr 401	Relinquished	100%	0%
	lapsed,	Holmtjärn nr 401	Relinquished	100%	0%
	relinquishedor	Svansele nr 403	Relinquished	100%	0%
	reduced	Svansele nr 401	Relinquished	100%	0%
		Brännäs nr 401	Relinquished	100%	0%
		Laxselmyran nr 406	Relinquished	100%	0%
		Laxselmyrannr 401	Relinquished	100%	0%
		Svansele nr 402	Relinquished	100%	0%
		Laxselmyran nr 402	Relinquished	100%	0%
		Gallejaur nr 401	Relinquished	100%	0%
		Båtfors nr 401	Relinquished	100%	0%
		Rengård nr 401	Relinquished	100%	0%
		Petikträsk nr 401	Relinquished	100%	0%
		Näsvattnet nr 401	Relinquished	100%	0%
		Petikträsk nr 402	Relinquished	100%	0%
		Vargfors nr 401	Relinquished	100%	0%
		Laxselmyran nr 404	Relinquished	100%	0%
		Laxselmyran nr 405	Relinquished	100%	0%
		Malånäset nr 405	Relinquished	100%	0%
		Svansele nr 404	Relinquished	100%	0%
		Malånäset nr 401	Relinquished	100%	0%
		Malånäset nr 404	Relinquished	100%	0%
		Malånäset nr 402	Relinquished	100%	0%
		Malånäset nr 403	Relinquished	100%	0%
10.2	Interests inminingtenements andpetroleumtenementsacquired orincreased	N/A

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.

Sign here: ............................................................ Date: ...30 April 2019....... (Director)

Print name: Anna Neuling

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 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.