S2 RESOURCES LTD — Interim / Quarterly Report 2022

Oct 24, 2022

ASX Announcement 25 October 2022

SEPTEMBER 2022 QUARTERLY ACTIVITIES REPORT

Key points

• The Exploration Licence Application (ELA) process continued at S2's Greater Fosterville Project in Victoria, which surrounds and abuts Agnico Eagle's Fosterville Gold Mine
• Relogging of core received from Agnico Eagle confirmed the presence of favourable stratigraphy and structures at key prospects on S2's Fosterville ELA
• Inversion modelling of previously acquired dipole-dipole IP resistivity has confirmed the usefulness of this technique in identifying target zones on S2's Fosterville ELA
• At Polar Bear in Western Australia a low temperature SQUID electromagnetic (EM) survey has identified several compelling conductors beneath the Lake Cowan salt lake
• Preparation is underway for diamond drilling of these EM conductors, with drilling planned as soon as a lake rig is available
• Gold exploration is ongoing in Finland where Canadian-listed Kinross Gold and Rupert Resources are managing exploration on two joint ventures

CORPORATE

Finance

A total of A$1.698 million was spent during the quarter on operating activities, comprising A$0.931 million exploration and evaluation costs, A$0.152 million corporate costs, business development costs, overheads and payments for fixed assets, A$0.525 million staff costs (including a one-off redundancy payment for the CEO), and A$10k net interest earned.

At the end of the September quarter cash totaled A$3.825 million. S2 also owns 75.2 million shares in Todd River Resources (ASX.TRT) equating to 13.2% of shares on issue, valued at A$1.88 million based on a closing price of A$0.025 per share on 24 October 2022 and 200,000 shares in Aurion Resources Ltd (TSX:AU) valued at A$100K based on a closing price of C$0.43 pershare and an AUD/CAD exchange rate of 1.16 on 24 October 2022. The AU shares are being held in escrow pending finalisation of the sale ofthe Keulakkopää exploration permit in Finland (refer to Aurion's Resources TSX announcement dated 19 May 22).

Capital structure

There were no changes to the shares or options on issue during the Quarter. The total issued capital as at 30 September 2022 comprised 356,374,854 ordinary shares and 41 million unlisted options, which if exercised, would represent a capital injection of A$12.52 million to the Company. Subsequent to the end of the quarter on 21 October 2022 the Company issued 3.1m of unlisted options under the Company's Employee Share Option Plan and on 24 October 2022 the Company issued 300,000 fully paid ordinary shares pursuant to a consulting agreement.

Company and Personnel Changes

On 26 July 2022 the Company announced that Anna Neuling would transition from her current Executive Director role to a Non-Executive Director role effective 1 August 2022. At this time Ms Neuling also relinquished her role as the Company Secretary and was replaced by Ms Andrea Betti, an accounting and corporate governance professional with over 20 years experience.

On 12 August 2022, the Company advised it had changed its Registered Address and moved its Principal Place of Business to Melbourne. As a result of these changes, the Perth-based Chief Executive Officer role became redundant and Matthew Keane ceased his role as CEO of the Company.

Related Parties

In accordance with ASX Listing Rule 5.3.5, $130,296 was paid to related parties or their associates during the quarter, as shown in section 6 of the Company's Cashflow Report (Appendix 5B) for the Quarter ended 30 September 2022. The payments include Non-executive Director payments of $32,690.

EXPLORATION

Greater Fosterville Project, Victoria (100% S2 application)

S2's 100% owned subsidiary, Southern Star Resources, has the sole right to apply for an Exploration Licence on EL7795. This application covers an area of394 square kilometres and extends 55 kilometers north to south. EL7795 abuts and surrounds Agnico Eagle's world class Fosterville Gold Mine which produced 509,601 ounces of gold in 2021 and has current Ore Reserves of 1.9 million ounces grading 10.3g/t gold (refer to Agnico Eagle 2021 Annual Report). S2 inherited a substantial amount of data acquired by previous explorers over the area, including the relatively recent exploration work undertaken by Kirkland Lake Gold (recently acquired by Agnico Eagle) on the tenement before it expired. This includes prior drilling, which although widely spaced and/or shallow and/or highly localised, has identified gold mineralisation in several locations. In addition to historic drill data, the Company has inherited a comprehensive set of extensive and high quality geophysical and geochemical surveys including gravity, IP, seismics, magnetics and LIDAR.

S2 is progressing the application process for the grant of an Exploration Licence at Greater Fosterville, an area surrounding Agnico Eagle's Fosterville gold mine with numerous gold targets and very high gold prospectivity (see Figure 1). The current stage in this process is establishing agreements with the appropriate traditional owner groups. The Company is following prescribed procedures controlled by state and federal legislation to attain the requisite agreements with traditional owners. During the quarter the Government of Victoria's Earth Resources Regulator (ERR) advised that the process now includes an advertising period of three months under the Native Title Act. This advertising period recently concluded with the ERR now processing responses and any additional requirements.

The final stage before granting the Exploration Licence is an assessment of the Company and its planned activities by the ERR. Note that in this case much of this assessment was completed as part of the ground release tender process which afforded S2 the sole right to apply for an Exploration Licence. Given the

necessary notice periods and potential processing time by the Victorian Government, S2 anticipates that the earliest the Exploration Licence will be granted is late in the fourth quarter of calendar year 2022 or early in 2023.

Figure 1. Map of the Greater Fosterville Project showing gold deposits/occurrences/prospects, key structures and the favourable corridor for gold mineralisation running 1.5 to 5 kilometres west of the Redesdale Fault.

During the quarter, S2 progressed interpretation of the diamond core drilled by Kirkland Lake that was relogged during the June quarter. The interpretation has validated the presence of important structures and stratigraphy in key prospect areas, with a number of specific structural targets with proximal mineralisation vectors identified for future drill testing. S2 aims to drill these targets upon the grant of the licence, subject to obtaining land access agreements with landowners and/or farmers. Early engagement with the local community has been very positive, but until agreements are formalized there is no guarantee of unrestricted access. As such, the Company aims to establish its reputation as a responsible and value adding member of the community by applying the highest level of social and environmental standards and operating procedures.

Relogging of core has been able to identify a pattern of fold hinges with symmetrical east- and west-dipping limb thrust faults with large displacements. Reconstructions of the geology from the detailed relogging has provided precise interpretations of fault locations, and their offset and kinematics. This precise interpretation of the geological architecture in turn enables the identification of favourable sites with the potential for significant mineralisation based on the predictive interaction of structural pathways with complex fold hinge geometries, and the juxtaposition of lithological sequences created. Potentially mineralised structural trap sites include those with analogs to a range of Victorian high-grade gold deposits including "Swan-style", "Phoenix-style" and "Ballarat-style". An important aspect of selecting targets for drill testing is recognising those with the potential to yield the size and grade of a significant deposit. The detailed relogging of past explorers' core will allow the Company to prioritise drill testing to focus on those such targets within the favourable corridor for mineralisation.

In addition to immediate follow-up drilling of mineralised structural corridors, the large dataset acquired by previous explorers is being used to identify and prioritise additional prospects within the favourable corridor for gold mineralisation west of the Redesdale Fault (Figure 1). Initial assessment work indicates that a combination of electrical geophysics and systematic geochemistry could be undertaken to deliver focused drill targeting of selected prospects along the structural corridors, anyone of which could potentially yield zones of mineralization similar to that being mined at Fosterville.

During the quarter S2 completed preliminary inversion modelling of historic dipole-dipole IP-resistivity data across a number of prospects, with a total of 13 lines located on ELA7795. The historic IP-resistivity includes traverses across a number of mineralised trends. Preliminary models show increased chargeability coincident with a number of known mineralised structures. Most anomalous chargeability responses are broad and extend close to surface. Possible sources for the chargeability response include alteration associated with hinge structures and limb thrusts or a stratigraphic response localised around hinge zones. Next steps will include assessing the chargeability response against the geological architecture interpreted from detailed relogging of previous explorers' historic core drilling to determine the context of the chargeability anomalies. This in turn will build confidence that the application of IP-resistivity surveys along the favourable corridor for mineralisation could rapidly highlight high priority target areas for detailed geochemical sampling and drill testing.

Polar Bear nickel project, Western Australia (S2 100% nickel rights on Polar Bear, 80% of nickel rights on Eundynie JV))

S2's holds the nickel rights over an area of 435 square kilometres to the southeast of the Widgiemooltha and Kambalda nickel sulphide belts. S2 retained these rights when it sold the Polar Bear project (comprising the Polar Bear and Norcott projects and the Eundynie Joint Venture) to Higginsville Gold Operations (now owned by Karora Resources Inc.). The nickel rights include the Halls Knoll, Taipan and Gwardar nickel prospects.

The Polar Bear project covers the same nickel sulphide prospective ultramafic rocks that host the known nickel deposits along strike to the north at Widgiemooltha and Kambalda (see Figure 2).

To date, S2 and its predecessor Sirius Resources ("Sirius"), have intermittently drilled only 10% of the prospective ultramafic stratigraphy for nickel at Polar Bear, due to most of it being located beneath salt lake sediments, which had previously inhibited the effective use of conventional electromagnetic (EM) geophysics techniques. In addition, much of the historic gold-focused regional aircore drilling, on and off the lake, was only assayed for gold.

During the Quarter, the Company secured access to a low temperature superconducting quantum interference device (SQUID) EM instrument which was previously proprietary technology and has only become available in recent times to the broader exploration industry. An extensive deep penetrating moving loop electromagnetic (MLEM) survey using this SQUID instrument was completed in July (see S2 ASX announcement of 1st August 2022).

Preliminary interpretation of this survey has identified multiple new conductors, several of which are located in zones considered prospective for nickel sulphide mineralisation based on independent evidence such as lithology, geochemistry and stratigraphic position (Figure 3). Detail of these conductors is provided below:

PBC22-1 Conductor

This conductor is located approximately one kilometre east of the Halls Knoll prospect and coincides with a north-south magnetic anomaly that is interpreted as the fault offset, continuation of the ultramafic stratigraphy that hosts the Halls Knoll mineralisation. A single line of shallow aircore holes previously drilled above the conductor were anomalous in nickel and copper (i.e. 8 metres at 0.32% Ni and 0.03% Cu from 4 metres in SPBA3578).

PBC22-2a and PBC22-2b Conductors

These conductors are located on the southerly extension of the ultramafic sequence south of the Halls Knoll mineralisation. The conductors are difficult to model, due to interference with a large early time conductor which is most likely to be a sediment to the west, overprinting the more subtle late time response. Further enhancing the location of the conductors' prospectivity is their proximity to a previous Sirius drillhole that intersected 10.2 metres at 0.44% Ni, 0.1% Cu and 0.35g/t Pd+Pt from 60.8 metres (SPBD0008) in disseminated sulphides within a cumulate ultramafic, located up-dip on the northern edge of conductor PBC22-2a.

Figure 2. Location map of the Polar Bear Project relative to the Kambalda and Widgemooltha nickel fields, showing distribution of prospective ultramafic stratigraphy (in pink) and location of S2's prospects.

PBC22-3 Conductors

EM conductor PBC22-3 is located east of the Taipan prospect and is a discrete late-time anomaly. A single previous diamond hole drilled in 2006 by INCO intersected sediments with minor stringer sulphides, which was believed by INCO at the time to explain the original conductor and not sampled. However, subsequent downhole EM (DHEM) by Sirius demonstrated an off-hole conductor response, indicating the hole missed the uppermost edge of the conductor. The position of this DHEM conductor has been replicated by S2's recent SQUID survey, confirming the presence of an untested conductor immediately down dip of the historical intercept.

PBC22-4 Conductors

These conductors comprise several north-south oriented EM plates trending over 1.7 kilometres along the western margin of the ultramafic sequence along the Halls 5 trend (named after the outcropping nickeliferous Halls 5 gossan). This trend appears to be the same stratigraphic horizon that hosts mineralisation at Halls Knoll to the east. Whilst the conductors may reflect a response from conductive sedimentary rocks to the west of the ultramafic, the association with the Halls 5 gossan, which grades up to 1.0% Ni, 0.2% Cu and 0.12 g/t Pd+Pt immediately adjacent the surface projection of the conductor, enhances the potential for the presence of nickel bearing sulphides along this trend.

PBC22-5 Conductors

This series of conductors is located 600 metres south of the Taipan prospect and consists of several northwest striking conductive plates over a 1.5 kilometre strike length. The conductors align with nickel and copper anomalies in ultramafic rocks identified in previous shallow aircore drilling.

S2 plans to commence drilling these conductors at Polar Bear as soon as a lake-capable diamond drill rig becomes available, hopefully in the December quarter. This drilling will target the new conductors as well as down-dip extensions of known nickel sulphide mineralisation.

Figure 3. Location of electromagnetic conductors identified in a recent SQUID survey at the Polar Bear Project, over regional magnetics and interpreted geology. The location of known nickelsulphide occurrences at the Gwardar, Taipan and Halls Knoll prospects are also shown.

Koonenberry nickel-copper-PGE project, New South Wales (S2 100%)

S2 has three Exploration Licence applications covering 2,712 square kilometres in northern New South Wales (NSW) extending for a strike of 143 kilometres along the Koonenberry Belt. The scale and cratonic margin setting of this belt is analogous to the Fraser Zone of the Albany Fraser Orogen, which hosts the Nova-Bollinger and Silver Knight nickel-copper-cobalt deposits and the Tropicana gold deposit. The belt also contains early breakup gabbros and likely comagmatic orthocumulate ultramafic picrite sills and intrusions, considered petrographically similar to those that host mineralisation in the Russian Pechenga nickel-copper-PGE camp.

Negotiations with the Traditional Owners for a Heritage Protection Agreement over the Kooneneberry project area was ongoing during the September quarter.

Jillewarra gold and base metals project, Western Australia (S2 earning 70%)

S2 is earning a majority interest in the Jillewarra project which covers 793 square kilometres of gold and base metal prospective greenstones situated approximately 50 kilometres west of Meekatharra in the Murchison Goldfields of Western Australia. Jillewarra is an under explored Archaean greenstone belt with very limited drilling below 70 metres. S2 is taking a systematic approach to identify and drill test targets throughout the Jillewarra Belt. To date, over 30 targets have been identified based on structural and geological interpretation, evidence of historical workings and historic exploration data.

No on-ground exploration activities were conducted at the Jillewarra Project during the June Quarter.

West Murchison nickel-copper-PGE project, Western Australia (S2 100%)

S2 has three Exploration Licences covering 693 square kilometres over several targets interpreted to represent mafic-ultramafic intrusions prospective for magmatic nickel-copper and precious metals mineralisation (Figure 4). Five target areas have been identified based upon magnetic anomalies and mafic-ultramafic rock outcrops.

No on-ground exploration activities were conducted at the West Murchison project during the September Quarter.

Three Springs nickel-copper-PGE project, Western Australia (S2 100%)

S2 has two exploration licenses covering approximately 361 square kilometres over several targets interpreted to represent mafic-ultramafic intrusions prospective for magmatic nickel-copper-PGE mineralisation.

No on-ground exploration activities were conducted at the Three Springs Project during the September Quarter.

Fraser Range nickel project, Western Australia (S2 100%)

The Company has three exploration licenses covering 176 square kilometres of the Fraser Range nickel province. The licenses are located 40 to 80 kilometres to the northeast of the Nova-Bollinger nickel-copper mine (discovered by S2's predecessor, Sirius Resources in 2012).

No on-ground exploration activities were conducted in the Fraser Range during the September Quarter.

Central Lapland Greenstone Belt, Finland (S2 100%)

S2 has mineral rights covering approximately 494 square kilometres in the Central Lapland Greenstone Belt (CLGB) of Finland, a region that contains significant shear zone hosted gold deposits, such as Agnico Eagle's ~7.4Moz Kittilä gold mine and Rupert Resources recent 3.95Moz Ikkari discovery, and magmatic coppernickel-PGE-gold deposits which include Boliden's 298Mt Kevitsa mine and Anglo American's world class 44Mt Sakatti deposit. S2's Aarnivalkea prospect has the potential to be another significant discovery in the region with approximately 1.3 kilometres of gold anomalism and high grade diamond drill intercepts such as 6.8m at 11.8g/t gold from 223m (hole FAVD0062) and 20.4m at 4.0g/t gold from 193m (hold FAVD0064).

S2 did not conduct any further work in the CLGB during the June quarter, however work was undertaken on both the Kinross Gold and Rupert Resources earn-in licences (see Figure 4). These farmouts are summarized below.

Kinross Gold farm-in (S2 diluting to 30%)

In June 2021, S2, through its wholly owned Finnish subsidiary Sakumpu Exploration Oy, entered into a binding farm-in option agreement with north American major gold producer Kinross Gold ("Kinross") (KGC.NYSE, K.TSX) on four Exploration Licence and licence applications covering an area of 83 square kilometres in the Central Lapland Greenstone Belt. Under this agreement, Kinross can spend up to US$9.5 million (approximately A$15.1 million) to earn a 70% interest in the licences, with a minimum expenditure requirement of US$3.5 million over the first three years. The farm-in incorporates two distinct blocks known as Palvanen/Mesi and Home. The Palvanen/Mesi block is located immediately south of Agnico Eagle's 7.4Moz Kittila gold mine and incorporates the southern extensions of the Kiistala Shear Zone, a key structural control of mineralisation at the mine. The Home block is located along the east-west trending Sirkka Thrust Zone which hosts multiple gold occurrences including Rupert Resources' ("Rupert") (RUP.V) recently discovered 3.95Moz Ikkari gold deposit.

Rupert Resources farm-in (S2 diluting to 30%)

In August 2021, S2, through its wholly owned Finnish subsidiary Sakumpu Exploration Oy, entered into a binding farm-in option agreement with Canadian explorer Rupert Resources on two exploration licence applications covering an area of 37 square kilometres in the Central Lapland Greenstone Belt (Figure 3). Under this agreement, Rupert can spend up to €3.4 million (approximately A$5.32 million) to earn a 70% interest in the Sikavaara East and Sikavaara West licences, with an initial expenditure requirement of €1.2 million over the first three years. Sikavaara East is just 16 kilometres west of Rupert's Area 1, host to six discoveries including the standout Ikkari discovery. Sikavaara West is located 6 kilometres west of Sikavaara East, and its boundary is 400 metres east of Rupert's Hirvi project, where 2019 RC drilling included intercepts of 38 metres at 1.4g/t gold from 52 metres in hole 119202 and 53 metres at 1.3g/t gold from 72 metres in hole 119209 (see link to Rupert Resources announcement).

Figure 4*. Location map showing S2's landholding in the Central Lapland Greenstone Belt, Finland. The map shows the areas related to the Rupert and Kinross earn-in agreements. The map also shows neighbouring companies, mines and defined resources. Resources and are sourced from public company statements.*

ASX additional information

As per ASX Listing Rule 5.3.1: Exploration and Evaluation Expenditure during the Quarter was $0.931 million. Full details of exploration activity during the Quarter are set out in this report.

As per ASX Listing Rule 5.3.2: There were no substantive mining production and development activities during the Quarter.

This announcement has been provided to the ASX under the authorisation of the S2 Board.

For further information, please contact:

Mark Bennett Executive Chairman +61 8 6166 0240

Past Exploration results reported in this announcement have been previously prepared and disclosed by S2 Resources Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement. Refer to www.s2resources.com.au for details on past exploration results.

Competent Persons statements

The information in this report that relates to Exploration Results is based on information compiled by John Bartlett, who is an employee and shareholder of the Company. Mr Bartlett is a member of the Australian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartlett consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

TENEMENT REGISTER

Project	Tenement ID	Registered Holder	Location	Ownership %	Status
Western Australia
Three Springs	E70/5380	Southern Star Exploration Pty Ltd	Three Springs	100%	Granted
Three Springs	E70/5381	Southern Star Exploration Pty Ltd	Three Springs	100%	Granted
West Murchison	E70/5382	Southern Star Exploration Pty Ltd	West Murchison	100%	Granted
West Murchison	E09/2390	Southern Star Exploration Pty Ltd	West Murchison	100%	Granted
West Murchison	E09/2391	Southern Star Exploration Pty Ltd	West Murchison	100%	Granted
Jillewarra	E51/1602	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1603	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1604	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1617	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1906	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1915	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/2050	Third Eye Resources Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/2051	Third Eye Resources Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/2052	Third Eye Resources Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/2053	Third Eye Resources Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/2054	Third Eye Resources Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	M51/270	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	M51/353	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	M51/451	Tanzi Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	P51/2696	Wood, Sandra	Jillewarra	earning 51%	Granted
Jillewarra	P51/2950	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	P51/3082	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Granted
Jillewarra	E51/1955	Black Raven Mining Pty Ltd	Jillewarra	earning 51% when granted	Application
Jillewarra	E51/1956	Black Raven Mining Pty Ltd	Jillewarra	earning 51% when granted	Application
Jillewarra	E51/1965	Black Raven Mining Pty Ltd	Jillewarra	earning 51% when granted	Application
Jillewarra	E51/1966	Black Raven Mining Pty Ltd	Jillewarra	earning 51% when granted	Application
Jillewarra	M51/885	Wood, Sandra	Jillewarra	earning 51% when granted	Application
Polar Bear	E15/1298	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E15/1461	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E15/1541	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E63/1142	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E63/1712	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E63/1725	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	E63/1756	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M15/651	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M15/710	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M15/1814	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M63/230	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M63/255	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M63/269	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M63/279	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P15/5958	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P15/5959	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1587	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1588	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1589	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1590	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1591	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1592	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1593	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	P63/1594	Polar Metals Pty Ltd	Lake Cowan	100% nickel	Granted
Polar Bear	M63/662	Polar Metals Pty Ltd	Lake Cowan	100% nickel when Granted	Application
Eundynie JV	E15/1458	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
Eundynie JV	E15/1459	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted

Project	Tenement ID	Registered Holder	Location	Ownership %	Status
Eundynie JV	E15/1464	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
Eundynie JV	E63/1726	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
Eundynie JV	E63/1727	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
Eundynie JV	E63/1738	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
Norcott	E15/1487	Polar Metals Pty Ltd	Mt Norcott	100% nickel	Granted
Norcott	E63/1728	Polar Metals Pty Ltd	Mt Norcott	100% nickel	Granted
Fraser Range	E28/2791	Southern Star Exploration Pty Ltd	Fraser Range	100%	Granted
Fraser Range	E28/2792	Southern Star Exploration Pty Ltd	Fraser Range	100%	Granted
Fraser Range	E28/2794	Southern Star Exploration Pty Ltd	Fraser Range	100%	Granted
New South Wales
Koonenberry	ELA6198	Third Eye Resources Pty Ltd	Koonenberry	100% when granted	Application
Koonenberry	ELA6199	Third Eye Resources Pty Ltd	Koonenberry	100% when granted	Application
Koonenberry	ELA6200	Third Eye Resources Pty Ltd	Koonenberry	100% when granted	Application
Victoria
Greater Fosterville	EL7795	Southern Star Exploration Pty Ltd	Greater Bendigo	100% when granted	Application
Greater Fosterville	EL8074	Southern Star Exploration Pty Ltd	Greater Bendigo	100% when granted	Application
Finland
Exploration Licenses
Central Lapland	Kerjonen ML2015:0061	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Paana Central ML2018:0081	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Aakenusvaara ML2018:0105	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Paana W2 ML2018:0107	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Selkä ML2017:0037	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Putaanperä L2016:0063	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Paana West ML2017:0028	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Paana East ML2017:0029	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Nuttio ML2017:0041	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Hanhijarvi ML2017:0112	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Pahasvuoma ML2019:0085	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Rova ML2019:0086	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Ruopas ML2020:0043	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Paana Silas ML2021:0057	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Central Lapland	Paanapyytö ML2021:0058	Sakumpu Exploration Oy	Central Lapland	100% when granted	Application
Kinross JV	Palvanen ML2016:0062	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted
Kinross JV	Mesi ML2017:0034	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted
Kinross JV	Home ML2017:0042	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted
Kinross JV	Home 1 ML2018:0109	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted
Central Lapland	Sikavaara E ML2016:0056	Sakumpu Exploration Oy	Central Lapland	100% (Rupert earning 70%)	Granted
Central Lapland	Sikavaara W ML2019:0107	Sakumpu Exploration Oy	Central Lapland	100% (Rupert earning 70%)	Granted
Exploration Reservations
Central Lapland	Kehrävarsi VA2021:0028	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted
Central Lapland	Kevuvuoma VA2021:0029	Sakumpu Exploration Oy	Central Lapland	100% (Kinross earning 70%)	Granted

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity
S2 Resources Ltd
ABN	Quarter ended ("current quarter")
18 606 128 090	30 September 2022

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation *	(931)	(931)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs**	(525)	(525)
	(e)administration and corporate costs	(152)	(152)
1.3	Dividends received (see note 3)
1.4	Interest received	13	13
1.5	Interest and other costs of finance paid	(3)	(3)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(1,598)	(1,598)

*Exploration & evaluation comprise exploration physical costs of $636k and pre-resource exploration staff costs of $295k.

**Total staff costs for the quarter end was $820k comprising pre-resource exploration $295k, corporate 460k (includes CEO redundancy costs), non-executive directors $34k, business development $32k. Staff costs of pre-source exploration $295k has been transferred to the above category 'exploration & evaluation'.

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
	(d)exploration & evaluation	-	-
	(e)investments	-	-
	(f)other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	30	30
	(d)investments	-	-
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other	-	-
2.6	Net cash from / (used in) investingactivities	30	30

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(22)	(22)
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	(22)	(22)

4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	5,412	5,412
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(1,598)	(1,598)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	30	30

ASX Listing Rules Appendix 5B (17/07/20) Page 2

• See chapter 19 of the ASX Listing Rules for defined terms.

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(22)	(22)
4.5	Effect of movement in exchange rates oncash held	3	3
4.6	Cash and cash equivalents at end ofperiod	3,825	3,825

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	3,825	3,825
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	3,825	3,825

6.	Payments to related partiesof the entityand theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	130
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Salaries and fees paid to directors in the quarter including superannuation.
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamountat quarterend$A'000	Amount drawnatquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end-
7.6	Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.

Net cash from / (used in) operating activities (item 1.9)
	(1,598)
(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	-
Total relevant outgoings (item 8.1 + item 8.2)	(1,598)
Cash and cash equivalents at quarter end (item 4.6)	3,825
Unused finance facilities available at quarter end (item 7.5)	-
Total available funding (item 8.4 + item 8.5)	3,825
Estimated quarters of funding available (item 8.6 divided byitem 8.3)	2.39
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1cash flows for the time being and, if not, why not?
Answer:
8.8.2believe that they will be successful?
Answer:
	Does the entity expect that it will continue to have the current level of net operatingHas the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does it

8.8.3	Does the entity expect to be able to continue its operations and to meet its business
	objectives and, if so, on what basis?

Answer:

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

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.

Date: 25 October 2022......................................................................

Authorised by: .The Board............................................................................ (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow 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 cash flow 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.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.