S2 RESOURCES LTD - Investor Presentation 2017

Investor presentation November 2017

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Start of winter drill campaign
Bjurtraskgruvan, Sweden
13 [th] November 2017
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Competent person and forward looking statement

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

Certain statements contained in this presentation, including information as to the future financial or operating performance of S2 Resources Ltd (S2) and its projects, are forward‐looking statements. Such forward‐looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by S2, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. S2 disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward‐looking statements. All forward‐looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐ looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.

The information in this presentation that relates to Exploration Results is based on information compiled by Mr John Bartlett (for Australia and USA), Mr Andy Thompson (for Scandinavia) and Mr Anthony Goddard (for USA) who are employees and shareholders of the Company and which fairly represents this information. Mr Bartlett and Mr Thompson are members of the Australasian Institute of Mining and Metallurgy, and Mr Goddard is a member of the Australian Institute of Geoscientists and a Registered Professional Geoscientist (RPGeo). Mr Bartlett, Mr Thompson and Mr Goddard have sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons 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, Mr Thompson and Mr Goddard consent to the inclusion in this presentation of the matters based on information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures. Reverse circulation (RC), aircore (AC) and rotary air blast (RAB) drilling samples are collected as composite samples of 4 or 2 metres and as 1 metre splits (stated in results). Mineralised intersections derived from composite samples are subsequently re‐split to 1 metre samples to better define grade distribution. Core samples are taken as half NQ core or quarter HQ core and sampled to geological boundaries where appropriate. The quality of RC drilling samples is optimised by the use of riffle and/or cone splitters, dust collectors, logging of various criteria designed to record sample size, recovery and contamination, and use of field duplicates to measure sample representivity. For soil samples, PGM and gold assays are based on an aqua regia digest with Inductively Coupled Plasma (ICP) finish and base metal assays may be based on aqua regia or four acid digest with inductively coupled plasma optical emission spectrometry (ICPOES) or atomic absorption spectrometry (AAS) finish. In the case of reconnaissance RAB, AC, RC or rock chip samples, PGM and gold assays are based on lead or nickel sulphide collection fire assay digests with an ICP finish, base metal assays are based on a four acid digest and inductively coupled plasma optical emission spectrometry (ICPOES) and atomic absorption spectrometry (AAS) finish, and where appropriate, oxide metal elements such as Fe, Ti and Cr are based on a lithium borate fusion digest and X‐ray fluorescence (XRF) finish. In the case of strongly mineralised samples, base metal assays are based on a special high precision four acid digest (a four acid digest using a larger volume of material) and an AAS finish using a dedicated calibration considered more accurate for higher concentrations. Sample preparation and analysis is undertaken at Minanalytical, Genalysis Intertek, and Bureau Veritas’ laboratories in Perth and Kalgoorlie, Western Australia, ALS laboratories in Loughrea, Ireland, and Bureau Veritas’ laboratory in Elko, Nevada. The quality of analytical results is monitored by the use of internal laboratory procedures and standards together with certified standards, duplicates and blanks and statistical analysis where appropriate to ensure that results are representative and within acceptable ranges of accuracy and precision. Where quoted, nickel‐copper intersections are based on a minimum threshold grade of 0.25% Ni and/or Cu, and gold intersections are based on a minimum gold threshold grade of 0.1g/t Au unless otherwise stated. Intersections are length and density weighted where appropriate as per standard industry practice. In Australia, all sample and drill hole co‐ordinates are based on the GDA/MGA grid and datum unless otherwise stated. In Finland, all sample and drill hole co‐ordinates are based on the ETRS‐TM35FIN grid and datum unless otherwise stated. In Sweden, all sample and drill hole co‐ordinates are based on the new SWEREF99TM and older RT‐90 grids and datums unless otherwise stated. Exploration results obtained by other companies and quoted by S2 have not necessarily been obtained using the same methods or subjected to the same QAQC protocols. These results may not have been independently verified because original samples and/or data may no longer be available.

The information in this presentation that relates to Mineral Resource estimation is based on information compiled by Mr Brian Wolfe, Principal Consultant Geologist – IRS Pty Ltd and Mr Andy Thompson, an employee and shareholder of the Company. Mr Wolfe and Mr Thompson are members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Wolfe and Mr Thompson consent to the inclusion in this presentation of the matters based on their information in the form and context in which they appear.

Corporate objectives and credentials

S2 Resources' objective is to provide superior investment returns through the discovery and, if appropriate, the development of high value mineral resources, as a result of:

Exploration, and
Identification of early stage assets with high growth potential

S2 Resources is focused in politically stable jurisdictions such as:

Australia
Europe

• North America

S2 Resources is well funded to pursue its strategy

S2 Resources has the people to execute this strategy

Positioning for success

First drilling at first of three Carlin‐style Nevada gold projects

Initial RC drilling program completed at Pluto, NV ‐ assays expected in December

Winter drilling program underway on VMS and gold targets in Skellefte Belt of Sweden

Started drilling down plunge of mineralization at Bjurtraskgruvan VMS prospect
More targets to be drilled, including Skaggtraskberget, Holmtjarn, Nasvattnet, Onusberget

New anomalies and targets in Central Lapland Greenstone Belt of Finland

Gold anomalies identified over prospective structures (eg, Paana, Home)
Magmatic Cu‐Ni‐PGM targets identified in gravity and till geochemistry (eg, Ruopas)

Drilling to start on two more Carlin‐style gold projects in Nevada after Sweden

Passive source AMT underway as precursor to first ever drilling scheduled at Ecru
Infill enzyme leach geochem and first S2 drilling scheduled at South Roberts in March

Divesting Polar Bear

Evaluating options for monetising Baloo and the Polar Bear project

Strong financial position

Good financial management – strong balance sheet & well funded to explore
A$15.6 million cash at end September 2017, plus investments

Seeking additional growth opportunities

Actively reviewing asset and corporate level opportunities in Europe, North America and Australia

Projects

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Central Lapland
Greenstone Belt (gold)
Ecru (Carlin‐style gold)
Skellefte (polymetallic VMS)
Pluto (Carlin‐
style gold)
South Roberts (Carlin‐style gold)
Polar Bear
(gold & nickel)
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Nevada, USA

Nevada is 4[th] in the Fraser Institute’s 2016 worldwide ranking of mining jurisdictions

Why Nevada?

Nevada is the 5[th] largest gold producer in the world, and hosts “monster” Carlin‐style gold deposits

High grade (suitable for underground mining) and low grade bulk tonnage (suitable for open pit mining and heap leaching):

Deposit	Total Mineral Resources*	Total Ore Reserves*	Total Inventory as of 2017 (excluding prior mining depletion)
Goldstrike1	9.4Mt @ 6.17g/t for 1.81Moz	70.7Mt @ 3.55g/t for 8.1Moz	80.1Mt @ 3.96g/t for 9.91Moz
Cortez1	45.8Mt @ 2.02g/t for 2.91Moz	151Mt @ 2.11g/t for 10.22Moz	196.8Mt @ 2.1g/t for 13.1Moz
Goldrush1	38.3Mt @ 9.61g/t for 11.51Moz	n/a	38.3Mt @ 9.61g/t for 11.51Moz
Turquoise Ridge1	89Mt @ 6.1g/t for 17Moz	11.1Mt @ 15.1g/t for 5.4Moz	100.1Mt @ 7.15g/t for 22.4Moz
Carlin2	109.5Mt @ 1.6g/t for 5.5Moz	267.7Mt @ 1.74g/t for 15Moz	377.2Mt @ 1.7g/t for 20.5Moz
Twin Creeks2	52.9Mt @ 1.97g/t for 3.26Moz	56.1Mt @ 2.1g/t for 3.7Moz	109Mt @ 2.04g/t for 6.96Moz

* All statistics in the above table are based on information reported by Barrick[1] and

Newmont[2] using Canadian reporting standards in their respective 2017 Annual Reports

16 deposits/districts between 3.2Moz and 32Moz gold**

Many more deposits <3.2Moz gold**

Nevada has well developed exploration & mining services, infrastructure, workforce and skills

The Nevada drilling season is counter‐cyclic to the Scandinavian drilling season

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Grade, tonnage, and contained ounces in Carlin‐style deposits, Nevada
Log 000’s tonnes
Log g/t Au
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** based on grade‐tonnage diagram of Carlin‐style deposits after Cline et al, Economic Geology 100[th] Anniversary Edition, 2005

Nevada: three earn‐ins, one partner

A single deal with TSXV listed Renaissance Gold to earn in to 3 separate properties on identical terms

Renaissance Gold is a “prospect generator” company managed by the personnel behind the discovery of the Long Canyon deposit, ultimately bought by Newmont for US$2.3 billion

Properties are located on major mineralized trends that host multiple world class gold mines

Each property has drill‐ready Carlin‐style targets based on geology, geochemistry and geophysics

Exclusive rights to earn 70% for a spend of US$3 million within 5 years per property

Minimum spend of US$200k within 2 years per property

Importantly, this gives S2 entry into three drill‐ready targets, to ability to undertake three definitive tests, and the flexibility/optionality to spend and earn‐in if favourable, or move on if not

These are high risk–high reward opportunities

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Pluto, Nevada: concept

NPLC0001 drill pad

Area of exposed Havallah Formation

The conceptual target zone is a limestone sequence that is a favourable host for Carlin‐style gold mineralization (Antler sequence), which may (or may not) occur at depth beneath the outcropping Havallah Formation

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Gravity anomaly: buried dense Antler rocks?

Multielement geochem: leakage from below?

Pluto, Nevada: process

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Mapping completed, four holes drilled,
New jasperoids identified
assays expected by mid‐December
Outcropping Au‐Ag mineralization
Cross section (next slide)
Limestones identified
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Pluto, Nevada: outcomes so far

Four holes were drilled with the aim of determining if prospective Antler sequence limestones are present at depth beneath the Havallah Formation and/or identifying mineralization in Havallah Formation itself

Drilling has defined:

a thick sequence of Havallah Formation mudstones

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A deeper zone of hydrothermal silicification and/or sedimentary cherts corresponding with the position of the gravity anomaly (modelled in 3D as a denser body, or isoshell) – maybe the top of an uplifted horst
But, no evidence for the presence of Antler sequence limestones in the depth range of this drilling (~400m vertical)

Assays due in mid‐December

Silicified and quartz veined mudstone

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Skellefte district, Sweden

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Sweden is 8 [th] in the Fraser
Institute’s 2016 worldwide
ranking of mining jurisdictions
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Skellefte district: endowment and opportunity

The Skellefte belt has proven endowment of large polymetallic VMS deposits, plus high prospectivity for gold, plus existing (and hungry) processing infrastructure/capacity

80 out of 82 known VMS deposits/mines were outcropping – only 2 were blind ‐ there is significant potential for further discoveries

S2 identified the opportunity and attained 100% ownership of a private company, Sakumpu Exploration Oy in late 2015

S2 has assembled a large strategic ground position and relocated 3 of its Australian geologists to northern Sweden in June 2017, now supplemented with two EU‐based geologists

Numerous EM anomalies identified in the first ever VTEM survey

Last winter the first drill program tested several targets with mixed success

This summer spent mapping, sampling, trialling and implementing ionic leach geochemical sampling, geophysics (IP) – to validate and prioritise targets for this winter’s drill program

Several targets are now drill‐ready for testing this winter (Bjurtraskgruvan, Holmtjarn, Skaggtraskberget, Nasvattnet)

Several new prospects have been identified for the next wave of drilling (eg, Onusberget)

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Public domain image of Boliden’s facilities 12

Skellefte, Sweden: a world class VMS camp

A world class gold‐base metal VMS camp with major mines (Boliden, Renstrom, Kristineberg), hungry concentrator, smelter, port, infrastructure S2 is the major land holder alongside Boliden

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Skellefte, Sweden: Bjurtraskgruvan

S2’s winter drill season is underway ‐ the first prospect to be drilled is Bjurtraskgruvan

The target is a large FLEM conductor extending 450m down plunge from S2’s previous deepest (and thickest) drill intercept of 24.4m @ 1.11% Cu

The aim is to determine if the known copper‐zinc VMS lens continues, and if so, if it increases in grade and/or thickness, approximately 200m down plunge from the last drillhole

Drilling will be followed by DHEM to determine whether the drillhole is an optimal test of the conductor

Sphalerite & pyrrhotite in SBJK170003

(14.71m @ 2.2% Zn, 1% Cu)

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Chalcopyrite & sphalerite in SBJK170006 (24.4m @ 1.1% Cu)

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Skellefte, Sweden: Holmtjarn

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IP chargeability domain boundary coincident with
magnetic break and base of till (BoT) geochemical
anomaly. Planned drilling will test the overall
corridor, which is open along strike to the southeast
Rhyolite breccia with hydrothermal sulphides
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Skellefte, Sweden: Nasvattnet

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Two clusters of glacially transported Zn‐Cu‐Pb‐Ag mineralized boulders Extensive glacial cover – no outcrop, and very restricted previous drilling Ice flow direction from NW to SE – source of boulders likely to be to NW of boulders Induced polarisation (IP) geophysics and ionic leach geochem completed “up ice” Five high priority IP and/or geochem anomalies identified

Twelve diamond holes planned to test three of these targets

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Glacially transported base
metal mineralized boulders
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Sphalerite, chalcopyrite and galena in sliced boulder

Skellefte, Sweden: Onusberget

1km long gold anomaly defined in ionic leach geochemical survey and outcropping gold mineralization located a further 1km along strike Associated with significant shear zone which also contains recently announced drill intercepts to the SE at Norrliden Sodra on MRG’s ground

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Outcropping Au‐Ag mineralization
1km NW along strike of soil anomaly
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Central Lapland Greenstone belt, Finland

Finland is 5[th] in the Fraser Institute’s 2016 worldwide ranking of mining jurisdictions

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Central Lapland Greenstone belt: endowment

Gold potential : all well explored (mature) gold belts show a similar number and size distribution of gold deposits

Magmatic copper‐nickel‐PGM potential : Kevitsa mine (Boliden) and now the giant Sakatti discovery (Anglo American):

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Abitibi: 39 deposits, 83.6moz
Norseman‐Wiluna: 44 deposits, 74.7moz
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Central Lapland: 13 deposits,
9.1moz
So where is the missing gold of
the Lapland greenstone belt?
???
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Image and table reproduced from Anglo American’s presentation at the Fennoscandia Exploration and Mining conference, Levi, Finland, November 2017

Central Lapland Greenstone Belt: data

The Finnish Geological Survey (GTK) has compiled excellent datasets for exploration: Regional scale magnetics (left hand side) Regional scale gravity (centre)

Till geochemistry (right hand side) 50 kilometres A good basis for area selection and mapping (bottom right hand corner)

50 kilometres

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50 kilometres
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Intense fuchsite‐carbonate alteration and deformation in the Sirkka shear zone on S2’s Putaanpera ELA

Aeromagnetic, gravity and till geochemistry images based on data purchased from GTK (Geological Survey of Finland) 20

Central Lapland Greenstone Belt: Home

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8 kilometres
S2’s “Home” ELA is located over the western end of
the Sirkka shear zone
Main image shows the 99 [th] percentile of gold
anomalies in the GTK’s (Finnish Geological Survey’s)
national till sampling database
The Home anomaly is one of the strongest gold
anomalies in the Central Lapland Greenstone belt
and in all of Finland
50 kilometres
This is being followed up using ionic leach
geochemical sampling to define anomalous areas
to verify with base of till sampling and, ultimately,
diamond drilling
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Aeromagnetic, gravity and till geochemistry images based on data purchased from GTK (Geological Survey of Finland) 21

Central Lapland Greenstone Belt: Paana

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50 kilometres
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8 kilometres
5 kilometres
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S2’s “Paana” ELA straddles 9km strike length of the north‐south trending Hanhimaa and Muusa shear zones and associated structures, where there is a distinct kink – possibly representing a favourable dilational zone or sedimentary basin

Agnico Eagle is drilling the ground to the south

Trial, and subsequent systematic reconnaissance (800 x 40m) scale ionic leach geochemical sampling covering 5km strike (so far) has defined several anomalous areas worthy of infill sampling to define future areas for base of till sampling and, ultimately, diamond drilling

Aeromagnetic, gravity and till geochemistry images based on data purchased from GTK (Geological Survey of Finland) 22

Central Lapland Greenstone Belt: Cu‐Ni‐PGE potential

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The Central Lapland Greenstone belt is highly prospective
for magmatic copper‐nickel‐PGM mineralization, as
evidenced by Boliden’s Kevitsa mine and Anglo American’s
Sakatti deposit, located further to the east in the same belt
S2’s “Ruopas” ELA covers a 25km long zone containing
coincident copper and palladium anomalism defined in the
GTK’s (Geological Survey of Finland’s) till sampling
database
It also contains a significant large scale gravity anomaly and
smaller scale discrete magnetic anomalies
This is a district scale magmatic sulphide exploration target
Gravity over
magnetics
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Aeromagnetic, gravity and till geochemistry images based on data purchased from GTK (Geological Survey of Finland) 23

The plan

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Oct 2017 June 2018
Cash Estimated A$8M spend in FY1718 Est. cash
A$22.2M A$14M
Audio‐
Geochem,
Drilling : magneto‐ Drilling : South
Nevada CSAMT: South
Pluto tellurics: Roberts, Ecru
Roberts
Ecru
Drilling : Bjurtraskgruvan,
Geochem, IP, Follow up,
Sweden Holmtjarn, Nasvattnet etc,
prioritization geochem etc
BoT drilling
Geochem, BoT
Finland Tenement Drill target
drilling, ground
granting? prioritization
prioritization
Polar Bear Divestment?
New
Ongoing
opportunities
S2’s projects are all in the Fraser Institute’s top 10 worldwide mining jurisdictions, 2016
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* Includes cash at bank of A$15.6 million plus investments valued at A$6.6 million as of end September 2017

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Appendices

Money

Our aim is to ensure we maintain the financial capacity to explore aggressively with minimal need for additional equity funding, to preserve our capital structure for the benefit of our shareholders in the event of success

We are well positioned to achieve this, with a strong balance sheet, comprising cash, investments, and non‐core assets that have the potential to be monetised

Cash: A$15.6 million Other assets: Investments, plus 350,000 oz gold resources at the Polar Bear project Strong register:** Mark Creasy

Directors and employees

Institutional (Australia, Canada, UK, Europe)

High net worth private investors (Australia, USA)

Shareholders

Shares on issue 246m Options on issue (average exercise price 40.6m A$0.39) – excluding those approved at AGM Cash+investments (end September 2017) A$22.2m Debt Nil*

Market capitalisation (at A$0.17 per share) A$41.8m Enterprise value A$19.6m

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Balance 36.9% Creasy 29.7%
Insiders 6.1%
Private high net
worths 14.0% Institutions 13.2%
Creasy Insiders Institutions High Net Worths Balance (other + unanalysed)
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