S2 RESOURCES LTD — Interim / Quarterly Report 2023

Jul 26, 2023

ASX Announcement 27th July 2023

JUNE 2023 QUARTERLY ACTIVITIES REPORT

Key points

• Fosterville: all agreements necessary for Exploration Licence Application to be considered for granting now completed, awaiting approval by Victorian Government
• Koonenberry: Exploration Licences granted by NSW Government and initial meetings held with landowners
• Finland: two Exploration Licence Applications sold to Kinross
• Corporate: well funded with A$5.77 million cash plus A$0.84 million investments

CORPORATE

Finance

A total of A$0.89 million was spent during the quarter on operating activities, comprising A$0.72 million exploration and evaluation costs, A$0.06 million corporate costs, business development costs, overheads and payments for fixed assets, A$0.15 million staff costs, offset by A$0.036 million net interest earned and A$0.34 million proceeds from sale of tenements and investments.

At the end of the June quarter cash totaled A$5.77 million. S2 also owns 75.2 million shares in Todd River Resources (ASX.TRT) equating to 11.55% of TRT shares on issue and valued at A$0.84 million based on a closing price of A$0.011 per share on 19 July.

Planned expenditure for the next quarter, subject to the Greater Fosterville Exploration Licence being granted and land access being obtained, is anticipated to be approximately A$2.58 million.

Capital structure

The total issued capital as at 30 June 2023 comprises 410,091,522 ordinary shares and 46.65 million unlisted options, which if exercised, would represent a capital injection of A$13.82 million to the Company.

Related Parties

In accordance with ASX Listing Rule 5.3.5, $126,439 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 June 2023. The payments include Non-executive Director payments of $38,675.

EXPLORATION

Greater Fosterville Project, Victoria (100% S2 application)

S2's 100% owned subsidiary, Southern Star Resources, has, as the winner of the Victorian Government tender process for Block 4 of the North Central Gold Fields ground release, applied for Exploration Licence EL7795, covering an area of 394 square kilometres, extending 55 kilometers north to south, and abutting and surrounding Agnico Eagle's world class Fosterville Gold Mine.

Agreements with Traditional Owners

During the Quarter the Company advised that its wholly owned subsidiary, Southern Star Exploration Pty Ltd ("Southern Star"), signed an agreement with the Taungurung Land and Waters Council (TLaWC), the representative body for the Taungurung traditional owners, defining the terms and conditions of Southern Star exploring on that part of EL7795 which falls within their native title claim area. This agreementis a Deed of Exploration ("Deed") pursuant to the Traditional Owner Settlement Act 2010 (TOSA) and Taungurung Land Use Activity Agreement (LUAA) and is the first of its kind between TLaWC and a mineral exploration company.

This agreement, together with the exploration agreement recently signed with the Dja Dja Wurrung Aboriginal Corporation (DJAARA) traditional owners, is the final agreement required by the Victorian Government as a prerequisite for processing the Company's application for EL7795. The Government is now in receipt of all requested agreements.

In addition to the exploration agreements with TLaWLC and DJAARA that are a necessary prerequisite for the granting of the Exploration Licence, the Company signed a special conditions agreement with DJAARA on 12th April 2023 which sets out the process for exploration activities on the 93% of the Licence area that falls within the DJAARA claim area, so that once granted, the Company can immediately start working with DJAARA to clear specific areas for exploration to commence.

The Company looks forward to working with both DJAARA and TLaWC once the licence is granted.

Next steps

The Victorian Government now has all necessary documentation that it has requested in order to consider granting the tenement.

As a result of having already agreed with DJAARA to the special conditions that were imposed on the licence by the Victorian Government as part of the tender process, once the tenement is granted the Company will be able to immediately start working with DJAARA to clear specific areas for exploration to commence on that part of the licence (93%) which falls within the DJAARA traditional owner group claim area.

The Company has already held meetings with the Bendigo City Council regarding obtaining permits for drilling from roadside reserves, and has also begun the process of holding public meetings and meeting individual landownersto ascertain which areas of freehold land may or may not be available for exploration.

Freehold land access agreements cannot be formalised until the licence is granted, so at this early stage it is not possible to foreshadow which areas will be accessible, nor the extent to which accessible areas

coincide with high priority targets. The Company is assessing a range of options and drilling scenarios to provide operational flexibility whilst it is in the early stages of this process.

Project background

S2's 100% owned subsidiary, Southern Star Exploration Pty Ltd, was the winner of the highly competitive tender for the sole right to apply for an Exploration Licence (EL) over the ground surrounding Agnico Eagle's (Agnico) world class Fosterville gold mine. This ground comprises an area of 394 square kilometres, extending 55 kilometres north to south, and abutting and surrounding Agnico's mine lease, and is under application as Exploration Licence 7795 (see Figure 1). Agnico's Fosterville gold mine includesthe Swan Zone that had an initial Mineral Ore Reserve of 2.34Moz of gold at a grade of 49.6g/t (refer to the NI 43-101 Report dated 31 December 2018). By virtue of its position, entirely surrounding Agnico's mine lease, its size, and its inherent prospectivity, ELA7795 is a highly strategic asset.

As winners of the tender, S2 has also inherited a substantial amount of data acquired by previous explorers over the area, including the relatively recent exploration work undertaken by Kirkland Lake Gold (the owner of Fosterville prior to its acquisition by Agnico) on the tenement before it expired.

This data includes extensive and high quality geophysical and geochemical surveys such as gravity, induced polarisation (IP), electromagnetic (EM), seismic, magnetic and LIDAR surveys, which are being used to generate drill targets. The inheritance of such a significant amount of data represents a huge saving for the Company in terms of time and money that would otherwise be required to get it to the point of having drill ready targets for testing.

It also includes drilling data and drill core from holes drilled immediately prior to the expiry of the previous tenement, which although widely spaced and/or shallow and/or highly localised, have identified gold mineralisation in several locations. As a consequence, the Company has a range of targets at various stages of definition up to and including defined prospects simply requiring further drilling to determine the extent and quality of gold mineralisation at those locations.

Figure 1. Map of EL7795 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.

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

S2 has three Exploration Licences covering 2,712 square kilometres in northern New South Wales (NSW) extending for a strike of approximately 140 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 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.

During the quarter, the company received notification from the New South Wales (NSW) Department of Mining, Exploration and Geoscience (DMEG), that three exploration Licences (EL's) have been granted, covering 2,712 square kilometres of ground in northwestern NSW.

The ground covers the most prospective and accessible part of the Koonenberry Belt, where a series of maficultramafic sills intrude the late Proterozoic to Cambrian Mt Arrowsmith volcanics. The project is located 130km northeast of Broken Hill astride the Silver City Highway and covers approximately 140 kilometres of strike of prospective stratigraphy.

Geology and prospectivity

The project area covers a coincident gravity and magnetic ridge, interpreted to represent a slice of crust comprising numerous mafic and ultramafic intrusions, of a similar scale to the Fraser Complex within the Albany-Fraser belt that contains the intrusion hosting Nova (see Figure 2).

Figure 2. Same-scale comparison of the Fraser Zone of the Albany-Fraser Orogen (left) and the Koonenberry Belt (right) showing tenure over a prominent gravity ridge.

Whereasthe Albany-Fraser beltis Proterozoic in age and wraps around the southeastern margin of the Yilgarn Craton, the Koonenberry Belt is late Proterozoic to Cambrian in age and wraps around the northeastern margin of the Curnamona Craton (see Figure 3). Both are accretionary mobile belts containing nickel prospective stratigraphy.

Figure 3. Location map of the Koonenberry Belt showing and a comparison to the Fraser Zone of the Fraser Range which hosts the Nova-Bollinger deposit. The Koonenberry Belt is located on the north-eastern margin of the Curnamona Craton.

The prospective stratigraphy at Koonenberry comprises 140 strike kilometres of the Mt Arrowsmith Volcanics which contain extensive sills and intrusions described as gabbros with comagmatic orthocumulate ultramafic picrites. These rocks are readily identifiable in the regional airborne magnetics (see Figure 4) and are petrographically similar to those that host mineralisation in the Russian Pechenga Ni-Cu-PGE camp, comprising distinctive olivine-rich orthocumulates with abundant intercumulus red hydrous hornblende (Kaersutite). The Pechenga camp contains roughly 25 Ni-Cu-PGE mines containing approximately 4.7 million tonnes of nickel and 2.4 million tonnes of copper, mainly hosted in the basal sections of the thicker ferropicrite sills and intrusions, and is close to the giant Sakatti Ni-Cu-PGE deposit just across the border in northern Finland.

Koonenberry also resembles other magmatic Ni-Cu-PGE sulphide endowed belts such as the Circum-Superior Belt of Canada, (which is also an accretionary mobile zone wrapped around the northern margin of the Superior Craton) which hosts the giant Raglan and Thompson Ni-Cu camps. In fact, this was the model that the S2 team (then as Sirius Resources) used to identify the prospectivity of the Fraser Range, leading to the discovery of Nova.

In terms of the above, plus the presence of extensive primitive orthoculmulate ferropicrite sills intruding sulphidic and carbonaceoussedimentary rocks, Koonenberry closely resemblesthe Pechenga Belt, and minor occurrences of magmatic pentlandite and chalcopyrite have been identified in outcrop in some orthocumulate picrites from the Mt Arrowsmith area.

Figure 4. Regional magnetic image showing northwest striking linear grain reflecting abundant sills intruding the belt.

The project area coversthat part of the belt that is deemed amenable to exploration in technical and financial terms by virtue of being either exposed at surface or being only buried by relatively shallow (less than 100 metres) of later (post-Carboniferous) cover, and sits astride a prominent gravity high ridge like that seen in the Fraser Complex, which probably reflects the presence of dense crust containing numerous mafic and ultramafic intrusions (see Figure 5).

Figure 5. Regional gravity image showing areas of deep post-Carboniferous cover, with the project area straddling the key gravity ridge.

Next steps

Subsequent to the end of the quarter, initial meetings were held with owners of various large pastoral leases that cover the project area. The majority of the meetings held to date were positive.

The Company will now progress access arrangements and design a program to start ground-based exploration focused on these areas.

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.

S2 completed a regional soil sampling program over the West Murchison project during the quarter. Assay results for this program had not been received as of the end of the 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 June 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 June Quarter.

Central Lapland Greenstone Belt, Finland (S2 100%), including Kinross Gold farm-in (S2 diluting to 30%) and Rupert Resources farm-in (S2 diluting to 30%)

S2 has mineral rights covering approximately 462 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 (see Figure 6).

S2's Aarnivalkea prospect comprises 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 has active farm-in agreements with north American major gold producer Kinross Gold ("Kinross") (KGC.NYSE, K.TSX) and Canadian explorer Rupert Resources("Rupert") (RUP.TSX). Under the terms the respective agreements, Kinross can earn a 70% interest in the Palvanen-Mesi block (58 square kilometres) by spending US$6.5 million (approximately A$9.3 million) and Rupert can spend up to €3.4 million (approximately A$5.3 million) to earn a 70% interest in the Sikavaara East and Sikavaara West licences (37 square kilometres).

During the Quarter S2's wholly owned subsidiary Sakumpu Exploration Oy sold two Exploration Licence Applications (ELA's) to KG Finland Exploration Oy, a subsidiary of Kinross Gold Corporation (Kinross, see ASX

announcement of 5 th June, 2023). The two ELA's form part of a series of tenements over which Kinross has a Right Of First Refusal (ROFR) under the terms of its farm-in agreement with S2 (see S2 ASX announcement of 3 rd June 2021). Kinross elected to exercise its ROFR following receipt of an offer by a third party. The ELA's being sold to Kinross represent approximately 15% of S2's ground holdings in Finland.

Under the terms of the agreement, S2 received a cash consideration of USD150,000 (which equates to approximately AUD225,000 at an exchange rate of 0.67), with a further USD25,000 payable upon the ELA's being granted by TUKES.

The sale is part of an ongoing broader strategic rationalisation of the Company's Finnish assets aimed at maximising their value via monetisation, maintaining exposure to future success via joint ventures and other corporate transactions, and minimising holding costs.

To this end, the Company is actively assessing various options relating to its remaining 100% owned tenements which cover 301 square kilometres of ground, including the Paana tenements which contain the Aarnivalkea gold prospect.

Figure 6. 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 as well as the Kinross sale area.

ASX additional information

As per ASX Listing Rule 5.3.1: Exploration and Evaluation Expenditure during the Quarter was A$1.2 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

Information in this report that relates to Exploration Results from Western Australia, New South Wales and Finland is based on information compiled by John Bartlett, who is an employee and equity holder 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.

Information in this report that relates to Exploration Results from Victoria is based on information compiled by Rohan Worland, who is an employee and equity holder of the Company. Mr Worland is a member of the Australian Institute of Geoscientists (AIG) 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 Worland 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	P51/2950	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%	Application
				when granted
Jillewarra	E51/1956	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Application
				when grantedearning 51%
Jillewarra	E51/1965	Black Raven Mining Pty Ltd	Jillewarra	when granted	Application
Jillewarra	E51/1966	Black Raven Mining Pty Ltd	Jillewarra	earning 51%	Application
				when granted
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 whenGranted	Application
Eundynie JV	E15/1458	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted

Project	Tenement ID	Registered Holder	Location	Ownership %	Status
Eundynie JV	E15/1459	Polar Metals Pty Ltd /Shumwari Pty Ltd	Lake Cowan	80% nickel	Granted
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	EL9574	Dark Star Exploration Pty Ltd	Koonenberry	100%	Granted
Koonenberry	EL9575	Dark Star Exploration Pty Ltd	Koonenberry	100%	Granted
Koonenberry	EL9576	Dark Star Exploration Pty Ltd	Koonenberry	100%	Granted
Victoria
Greater				100% when
Fosterville	EL7795	Southern Star Exploration Pty Ltd	Greater Bendigo	granted	Application
GreaterFosterville	EL8074	Southern Star Exploration Pty Ltd	Greater Bendigo	100% whengranted	Application
Greater				100% when
Fosterville	EL8166	Southern Star Exploration Pty Ltd	Greater Bendigo	granted	Application
Greater	EL8167	Southern Star Exploration Pty Ltd	Greater Bendigo	100% when	Application
FostervilleGreater				granted100% when
Fosterville	EL8292	Southern Star Exploration Pty Ltd	Greater Bendigo	granted	Application
Finland
Exploration Licenses
	Kerjonen
Central Lapland	ML2015:0061	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Paana CentralML2018:0081	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	AakenusvaaraML2018:0105	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	Paana W2ML2018:0107	Sakumpu Exploration Oy	Central Lapland	100%	Granted
Central Lapland	PutaanperäL2016:0063	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	Paana West	Sakumpu Exploration Oy	Central Lapland	100% when	Application
	ML2017:0028			granted
Central Lapland	Nuttio ML2017:0041	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	HanhijarviML2017:0112	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	PahasvuomaML2019:0085	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	Rova ML2019:0086	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	RuopasML2020:0043	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Central Lapland	PaanapyytöML2021:0058	Sakumpu Exploration Oy	Central Lapland	100% whengranted	Application
Kinross JV	PalvanenML2016:0062	Sakumpu Exploration Oy	Central Lapland	100% (Kinrossearning 70%)	Granted
Kinross JV	Mesi ML2017:0034	Sakumpu Exploration Oy	Central Lapland	100% (Kinrossearning 70%)	Granted
Kinross JV	KehrävarsiML2022:0064	KG Finland Exploration Oy	Central Lapland	100% (Kinrossearning 70%)	Application
Kinross JV	KevuvuomaML2022:0089	KG Finland Exploration Oy	Central Lapland	100% (Kinrossearning 70%)	Application
Rupert JV	Sikavaara EML2016:0056	Sakumpu Exploration Oy	Central Lapland	100% (Rupertearning 70%)	Granted
Rupert JV	Sikavaara WML2019:0107	Sakumpu Exploration Oy	Central Lapland	100% (Rupertearning 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 June 2023

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(12months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation *	(718)	(4,404)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs**	(151)	(968)
	(e)administration and corporate costs	(61)	(635)
1.3	Dividends received (see note 3)
1.4	Interest received	39	81
1.5	Interest and other costs of finance paid	(3)	(10)
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	(894)	(5,936)

*Exploration & evaluation comprise exploration physical costs of $417k and pre-resource exploration staff costs of $301k.

**Total staff costs for the quarter end was $452k comprising pre-resource exploration $301k, corporate 73k non-executive directors $40k, business development $38k. Staff costs of preresource exploration $301k 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	(16)	(74)
	(d)exploration & evaluation	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(12months)$A'000
	(e)investments	-	-
	(f)other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	179	179
	(c)property, plant and equipment	-	52
	(d)investments***	173	173
	(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	336	330

*** Sale of shares issued to company as purchase payment for sale of tenement

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	6,380
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	34
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	(5)	(376)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(29)	(96)
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	(30)	(34)
3.10	Net cash from / (used in) financingactivities	(64)	5,908

4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	6,384	5,412
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(894)	(5,936)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	336	330

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(12months)$A'000
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(64)	5,908
4.5	Effect of movement in exchange rates oncash held	5	53
4.6	Cash and cash equivalents at end ofperiod	5,767	5,767

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	2,767	6,384
5.2	Call deposits	3,000	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	5,767	6,384

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	126
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.

8.	Estimated cash available for future operating activities		$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)		(894)
8.2		(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))
8.3	Total relevant outgoings (item 8.1 + item 8.2)		(894)
8.4		Cash and cash equivalents at quarter end (item 4.6)5,767
8.5		Unused finance facilities available at quarter end (item 7.5)	-
8.6		Total available funding (item 8.4 + item 8.5)	5,767
8.7	Estimated quarters of funding available (item 8.6 divided byitem 8.3)		6.45
	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.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1	Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
	Answer:
	8.8.2	Has 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 itbelieve that they will be successful?
	Answer:

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: 27 July 2023......................................................................

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.