S2 RESOURCES LTD — Regulatory Filings 2016

Jul 20, 2016

ASX Announcement

Thursday 21st July 2016

HIGH GRADE GOLD ZONE AT MONSOON

Highlights

• Significant zone of high grade gold mineralization in first RC drilling following up previous high grade aircore hits at Monsoon
• Results include 66 metres @ 11.4g/t gold (uncut) or 66 metres @ 4.2g/t gold (when high grades are cut to 30g/t), ending in mineralisation (true width unknown but may be approximately half of the downhole width)
• High grade gold now intersected in 4 drillholesthat define a steeply dipping, north plunging zone, open along strike and down plunge to the north
• Additional high grade intercept of 2 metres @ 24.7g/t gold (uncut) approximately 800 metres along strike to northwest of main zone
• Drilling to resume in late August

S2 Resources Ltd ("S2" or the "Company") advises that first RC (reverse circulation) drilling at the Monsoon prospect hasintersected significant high grade gold mineralization to the north of and below high grade gold intercepts in previously reported aircore drilling. Ten RC holes were drilled and those that intersected significant gold mineralization together with the previous aircore drill intersections collectively define a zone of gold mineralization which is interpreted to be steeply dipping and north plunging. The Monsoon prospect is located within the Company's 100% owned Polar Bear project in Western Australia and remains open along strike and down plunge to the north.

All RC drill intercepts are listed in Annexure 1. Some of the individual constituent samples within selected intersections are very high grade and indicate the presence of coarse ("nuggety") gold, which is consistent with that seen in the previous aircore drilling at Monsoon and Nanook, and in recent gravity recovery metallurgical testwork at Baloo (see ASX announcement of 20th July 2016).

Therefore, where applicable, the gold intersections summarized below are quoted both as "uncut" (using the actual assayed grades for each sample within the selected interval) and "cut" (where

samples grading greater than 30g/t gold within the selected interval are arbitrarily capped at 30g/t gold) to demonstrate the potential impact of the presence of coarse gold. Note that the widths quoted are downhole widths because true widths cannot be reliably estimated at this time. However, on the basis of the current interpretation of the geometry of the mineralization and the angle of drilling it appears that the true width of the mineralization may be approximately half that of the downhole widths quoted, but this may be subject to change once further drilling provides more information.

Key intercepts comprise:

• Composite zone of 66 metres @ 11.4g/t gold from 74 metres to end of hole in SPBC0313 (uncut) or @ 4.2g/t gold (cut), drilled 20 metres north of the original high grade aircore intersections, including the following sub-zones:
  • o 8 metres @ 70.5g/t gold from 77 metres (uncut) or 11.0g/t gold (cut), including 4 metres @ 139.0g/t gold from 77 metres (uncut) or 20.0g/t gold (cut)
  • o 13 metres @ 8.0g/t gold from 90 metres, including 4 metres @ 14.4g/t gold from 95 metres
  • o 13 metres @ 3.6g/t gold from 110 metres, including 2 metres @ 13.5g/t gold from 117 metres
  • o 8 metres @ 3.3g/t gold from 130 metres
• Composite zone of 38 metres @ 6.41g/t gold from 75 metres in SPBC0320 (uncut) or 1.78g/t gold (cut), drilled 40 metres north of RC hole SPBC0313, including the following sub-zones:
  • o 8 metres @ 26.7g/t gold from 75 metres (uncut) or 4.7g/t gold (cut)
  • o 9 metres @ 2.1g/t gold from 90 metres
  • o 3 metres @ 1.11g/t gold from 103 metres
  • o 1 metre @ 4.93g/t gold from 112 metres

RC hole SPBC0313 terminated at a depth of 140 metres in mineralization due to the rig reaching its limit of effective penetration. The broad composite mineralized zone intersected in this hole is 20 metres to the north of and deeper than the mineralized zone defined by two previous aircore holes, which intersected 32 metres @ 2.47g/t gold in SPBA2833 (see previous ASX announcement made by Sirius Resources on 3rd August 2015) and 12 metres @ 26.5g/t gold in SPBA3740 (see previous ASX announcement of 14th April 2016), which ended in mineralization grading 12.8g/t gold. The intercept in RC hole SPBC0320 is a further 40 metres north of SPBC0313 and at approximately the same depth.

Collectively, these intercepts appear to define a steeply dipping and north plunging mineralized zone that remains open along strike and down plunge to the north (see Figures 1 to 3).

The gold mineralization occurs on a sheared basalt-shale contact, similar to Baloo, and is associated with a large altered shear zone that contains sericite-carbonate alteration and quartz-carbonatesulphide veining, primarily developed within the basalt.

A further two RC holes were drilled to follow up a previous aircore intersection comprising 12 metres @ 16.9g/t gold (see previous ASX announcement made by Sirius Resources on 30th March 2015) located approximately 800 metres to the northwest along strike of the drilling described above. The deeper of these two holes (SPBC0323) intersected:

2 metres @ 24.7g/t gold from 105 metres (uncut) or 15.5g/t gold (cut)

The Monsoon prospect is situated midway between the Baloo oxide gold deposit (4 kilometres to the north) and the Nanook palaeochannel gold deposit (6 kilometres to the south). The Baloo-Monsoon-Nanook trend is shaping up as a prospective gold corridor.

Follow-up RC drilling will resume at Monsoon as soon as the RC rig can be remobilised to site, most likely in late August.

For further information, please contact:

Mark Bennett Anna Neuling +61 8 6166 0240 +61 8 6166 0240

Managing Director Executive Director

Competent Persons statement

The information in this report that relates to Exploration Results is based on information compiled by John Bartlett who is an employee of the company. Mr Bartlett is a member of the Australasian Institute of Mining and Metallurgy. Mr Bartlett has sufficient experience of relevance to the style 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 consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Figure 1. Cross section showing prior aircore holes (projected onto section) and new RC holes.

Figure 2. Cross section 40 metres north of Figure 1, showing apparent plunge to north of mineralised zone.

Figure 3. Plan projection showing new RC drilling relative to previous aircore intercepts, with main Monsoon zone in the southeast and additional zone 800 metres to the northwest of this.

Annexure 1

The following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.

		Total						From,	To,	Width,	Au,
Hole No.	Zone	Depth	North	East	RL	Dip	Azim	m	m	m	ppm	Comment
SPBC0312	Monsoon	120	6476800	394390	262	-60	90	75	78	3	1.18
			AND					85	86	1	5.22
			AND					96	102	6	0.54
SPBC0313	Monsoon	140	6476800	394360	262	-60	90	74	140	66	11.4	EOH (4.2 g/t cut)
			INCLUDING					77	85	8	70.5	(11.0 g/t cut)
			INCLUDING					77	81	4	139	(20.0 g/t cut)
			AND, INCLUDING					90	103	13	8
			INCLUDING					95	99	4	14.4
			AND, INCLUDING					110	123	13	3.6
			INCLUDING					117	119	2	13.5
			AND, INCLUDING					130	138	8	3.3
SPBC0314	Monsoon	120	6476800	394330	262	-60	90			NSI
SPBC0315	Monsoon	95	6476800	394420	262	-60	90			NSI
SPBC0316	Monsoon	115	6476760	394390	262	-60	90	59	60	1	1.10
			AND					82	83	1	0.59
			AND					95	98	1	1.09
SPBC0317	Monsoon	110	6476760	394360	262	-60	90	38	39	1	2.22
AND							75	76	1	0.53
SPBC0318	Monsoon	130	6476760	394330	262	-60	90			NSI
SPBC0319	Monsoon	70	6476840	394410	262	-60	90			NSI
SPBC0320	Monsoon	140	6476840	394380	262	-60	90	75	113	38	6.41	(1.78 g/t cut)
INCLUDING							75	83	8	26.7	(4.70 g/t cut)
AND, INCLUDING							90	99	9	2.10
AND, INCLUDING							103	106	3	1.11
AND, INCLUDING							112	113	1	4.93
SPBC0321	Monsoon	120	6476840	394350	262	-60	90	64	65	1	0.82
SPBC0322	Monsoon	120	6477430	393810	262	-60	90			NSI
SPBC0323	Monsoon	140	6477430	393770	262	-60	90	105	107	2	24.7	(15.5 g/t cut)
AND							110	111	1	2.16

Table 1:

The following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling.	The mineralised trend at Monsoon is sampled by aircore andRC drilling with 30 to 40 m hole spacing and on nominal 40 to80 m lines. Aircore holes were drilled to refusal.For RC sampling, a 1 metre split is taken directly from a conesplitter mounted beneath the rigs cyclone. The cyclone andsplitter are cleaned regularly to minimise any contamination. Asecond reference split is also taken from each metre and storedon site.Aircore holes are sampled using an aluminium scoop toproduce a four metre composite sample.
	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsused	Sampling and QAQC procedures is carried out using S2protocols as per industry best practice.
	Aspects of the determination of mineralisationthat are Material to the Public Report. In caseswhere 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples fromwhich 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where thereis coarse gold that has inherent samplingproblems. Unusual commodities or mineralisationtypes (e.g. submarine nodules) may warrantdisclosure of detailed information	Reconnaissance aircore samples are composited at 4 m toproduce a bulk 3 kg sample. Samples were dried, pulverised(total prep), and split to produce a 25 g sub sample which isanalysed using aqua-regia digestion with ICP-MS finish with a 1ppb detection limit.A 1m end of hole sample was collected for all aircore holes.Sample preparation was the same as above and were analysedusing a four acid digest with an ICP/OES and fire assay. Thefollowing elements are included in the assay suite: Ag, Al, As,Au, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na,Ni, P, Pb, Sb, Sc, Sr, Te, Ti, Tl, V, W, Zn.RC drilling is sampled a 1m "cone" split sample, to produce abulk 3 kg sample. Sample preparation was the same as for theaircore drilling. A nominal 50gram sub-sample was collectedand analysed by Samples were to produce a sub sample foranalysed by fire assay with an AA finish.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic,etc) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, whether core isoriented and if so, by what method, etc).	RC drilling is carried out using a face sampling hammer with anominal diameter of 140mm.Aircore drilling is carried out using a 3 ½ inch blade bit. Wherenecessary a 3 ½ inch face sampling hammer is employed topenetrate through hard zones.
Drill samplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed	RC and aircore sample recoveries are visually estimatedqualitatively on a metre basis and are recorded in the database.
	Measures taken to maximise sample recovery andensure representative nature of the samples	Sample quality is qualitatively logged on a metre basis,recording sample condition and contamination.Various drilling additives (including muds and foams) have beenused to condition RC and aircore drill holes to maximiserecoveries and sample quality. Drill cyclone and sample bucketsare cleaned between rod-changes and after each hole tominimise down hole and/or cross-hole contamination.

Criteria	JORC Code explanation	Commentary
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	Insufficient drilling and geochemical data is available at thepresent stage to evaluate potential sample bias.Drill samples are occasionally wet which may have resulted insample bias due to preferential loss/gain of fine/coarse material.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	Lithology, alteration and veining is recorded directly to a digitalformat and imported into S2 Resources central database. Thelogging is considered of sufficient standard to support ageological resource.
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	Logging of aircore and RC records lithology, mineralogy,mineralisation, weathering, colour and other features of thesamples, and is qualitative in nature.
	The total length and percentage of the relevantintersections logged	All drillholes were logged in full.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter,half or all core taken.	No core drilling completed.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	Aircore samples consist of a 4 metre composite samples. RC wassampled by collecting 1 metre samples are collected via an onboard cone splitter. Samples were collected both wet and dry.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	The sample preparation follows industry best practice in samplepreparation All samples are pulverised utilising Essa LM1, LM2or LM5 grinding mills determined by the size of the sample.Samples are dried, crushed as required and pulverized toproduce a homogenous representative sub-sample for analysis.A grind quality target of 85% passing 75μm has been establishedand is relative to sample size, type and hardness.
	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Quality control procedures include submission of CertifiedReference Materials (CRM's), blanks and duplicate samples witheach batch of samples. Selected samples are also re-analysed toconfirm anomalous results.Grind size checks are routinely completed to ensure samplesmeet the industry standard of 85% passing through a 75µmmesh.
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.	Field duplicates are taken at regular intervals. Samples areselected to weigh less than 3kg to ensure total preparation atthe pulverisation stage.
	Whether sample sizes are appropriate to the grainsize of the material being sampled.	Sample sizes are considered appropriate for gold mineralisation.
Quality of assay dataand laboratory tests		RC and diamond core samples are analysed for Au only using a40g or 50g Lead Collection fire Assay with either an ICP/MS orAAS finish.
	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or	4m composite samples from AC drilling are analysed for Au onlyusing a 25g aqua-regia digestion with an ICP/MS finish. Themethod gives a near total digestion of the regolith interceptedin aircore drilling and is suitable for the reconnaissance stylesampling undertaken.
	total.	All aircore holes have a 1m end-of-hole sample is collected forall AC holes. An extensive multi-element suite (including Ag, Al,As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na,Ni, P, Pb, Sb, Sc, Sr, Te, Ti, Tl, V, W, Zn) is analysed using a fouracid digest with an ICP/OES and ICP/MS finish. Au, Pt And Pd isanalysed for using 25g or 50g Lead Collection fire assay with anICP/MS finish.

Criteria	JORC Code explanation	Commentary
	For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	No geophysical tools were used to determine any elementconcentrations used in this resource estimate.
	Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(i.e. lack of bias) and precision have beenestablished.	Sample preparation checks for fineness were carried out by thelaboratory as part of their internal procedures to ensure thegrind size of 85% passing 75 micron was being attained.Laboratory QAQC involves the use of internal lab standards usingcertified reference material, blanks, splits and replicates as partof the in house procedures.
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	The Exploration Manager of S2 has visually verified significantintersections.
	The use of twinned holes.	No twin holes have been drilled on the project to date.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary data was collected using a set of standard Exceltemplates using lookup codes. The information was sent to anexternal database consultant for validation and compilation intoa Perth based SQL database.
	Discuss any adjustment to assay data.	No adjustments or calibrations were made to any assay datareported.
Location of datapoints	Accuracy and quality of surveys used to locatedrillholes (collar and down-hole surveys), trenches,mine workings and other locations used in MineralResource estimation.	Drillhole collars were located GPS with an accuracy is +/- 5m.
	Specification of the grid system used.	The grid system used at Polar Bear is GDA94 (MGA), zone 51.
	Quality and adequacy of topographic control.	A topographic surface has been created from aerial geophysicaldata, This has been calibrated with DGPS survey data.Allreconnaissance drill holes have been corrected to this surfacewhere DGPS pickup is not available.
		All resource drilling will be picked up by DGPS to within a +/-50mm accuracy.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Data spacing is currently defined by the geological criteriaregardedappropriatetodeterminetheextentsofmineralisation.Reconnaissance AC drilling is on a nominalspacing of between 80m x 40m and 160m x 40m drill pattern.
	Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.	Drilling is currently preliminary in nature had the mineraliseddomains have not yet demonstrated sufficient continuity in bothgeological and grade continuity to support the definition ofMineral Resource and Reserves, and the classifications appliedunder the 2012 JORC Code.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of datain relation togeological structure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.	The drilling is not necessarily drilled perpendicular to theorientation of the intersected mineralisation.All reportedintervals are downhole intervals and not calculated true width.This will be established with further drilling.
	If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias,this should be assessed and reported if material.	No orientation biased sampling bias has been identified in thedata at this point.

Criteria	JORC Code explanation	Commentary
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 Resources. Samples arestored on site and either delivered by S2 personnel to Perth andthen to the assay laboratory, or collected from site by CenturionTransport and delivered direct to the assay laboratory. Whilst instorage, they are kept on a locked yard. Tracking sheets havebeen set up to track the progress of batches of samples.
Audits or reviews	The results of any audits or reviews of samplingtechniques and data.	No audits or reviews have been conducted at this stage.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Monsoon prospect is located within Exploraiton LicenseE63/1142, which is located within the Polar Bear Project, 100%owned by Polar Metals Pty Ltd, a wholly owned subsidiary of S2Resources Ltd.All projects are situated within the Ngadju Native Title Claim(WC99/002).
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The tenement is in good standing and no known impedimentsexist on tenement actively explored.
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	Gold ExplorationPlutonic Operations Limited and Homestake Gold of AustraliaLimited conducted reconnaissance AC drilling (PBAC prefix) overLake Cowan on predominantly 100 m drillhole spacing and 800m line spacing from 1997-1999. Location of these drillholescannot be verified as the collars are now mostly obscured.AC sampling was done by 4 m composites with 1 m re-splits onsamples greater than 0.1 g/t. Samples were assayed by aquaregia digest with AAS finish although this cannot be verified asthe original laboratory.
Geology	Deposit type, geological setting and style ofmineralisation.	The Polar Bear project is situated within the ArchaeanNorseman-WilunaBeltwhichlocallyincludesbasalts,komatiites, metasediments, and felsic volcanoclastics.The primary gold mineralisation is related to hydrothermalactivity during multiple deformation events. Indications are thatgold mineralisation is focused on or near to the stratigraphicboundary between the Killaloe and Buldania Formation.
Drill holeInformation	A summary of all information material to theunderstanding of the exploration results includinga tabulation of the following information for allMaterial drill holes:easting and northing of the drill holecollarelevation or RL (Reduced Level –elevation above sea level in metres) ofthe drill hole collardip and azimuth of the holedown hole length and interceptiondepthhole length.	Refer to Annexure1 in body of text.

Criteria	JORC Code explanation	Commentary
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.	All reported assays have been length weighted. A nominal 0.2g/t Au lower cut-off is used to report AC intersections. A nominal0.5 g/t Au lower cut-off has been has been used to report RCresults.High grade results have been cut to 30 g/t Au for reporting theboard intercepts, with both the top cut and uncut interceptsreported.
	Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.	High grade gold intervals internal to broader zones ofmineralisation are reported as included intervals.
	The assumptions used for any reporting of metalequivalent values should be clearly stated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisationwidths and interceptlengths	These relationships are particularly important inthe reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature shouldbe reported.If it is not known and only the down hole lengthsare reported, there should be a clear statement tothis effect (e.g. 'down hole length, true width not	The trend of mineralisation at Monsoon is not known at presentdue to the lack of deeper drilling and the early stage ofexploration.Refer to Annexure 1 and Figures in body of text.
Diagram	known').Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported Theseshould include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectionalviews.	Refer to Figures in body of text.
Balanced reporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results.	The accompanying document is conserved to represent abalanced report with grades and/or widths reported in aconsistent manner.
Other substantiveexploration data	Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	No other exploration data collected to date is consideredmaterial or meaningful at this stage.
Further work	The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive	Additional RC follow-up of high grade intercepts to establish thecontrols and geometry of mineralization is proposed. Diamonddrilling to test the down-dip extensions of the mineralisation,beneath the limits of the RC rig