S2 RESOURCES LTD — Regulatory Filings 2016

Apr 13, 2016

ASX Announcement

Thursday 14[th] April 2016

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HIGH GRADE GOLD HIT AT MONSOON

Highlights

• Follow up drillhole at Monsoon hits 12 metres @ 26.2 g/t gold from 40m to end of hole

• Located 4 kilometres south along trend from Baloo

S2 Resources Ltd (“S2” or the “Company”) advises that it has intersected high grade gold in a hole drilled to follow up a previous intersection at the Monsoon prospect on its 100% owned Polar Bear project. Monsoon is located 4 kilometres to the south and along the same trend as the Baloo gold deposit, where S2 recently announced an initial mineral resource estimate of 123,000 ounces of gold (see ASX announcement of 4 March 2015).

A 50 hole reconnaissance aircore program, drilled in the vicinity of the Monsoon prospect, has defined anomalous (>100ppb, or 0.1g/t, gold) gold along a sheared contact between shale and basalt to the northeast of the original mineralized intersection of 32 metres @ 2.47 g/t gold (see Table 1 for full results). Hole SPBA3740, drilled 20 metres west of the original hole, intersected:

• 12m @ 26.2 g/t Au from 40m to EOH in SPB3740

The drill hole ended in mineralisation with the last metre grading 12.8 g/t gold.

These intersections define an apparent steeply west dipping high grade quartz lode at the contact between basalt and shale (see Figure 1), which is the same sheared contact as seen at Baloo (see Figure 2). The quartz lode forms a topographic high beneath the salt lake sediments and appears to represent an ancient ridge line. The strike direction and strike length of this lode is not yet known, but reconnaissance holes drilled to the northeast of this intersection have defined a similar palaeo-ridge and contain anomalous gold. The nearest drilling along strike from this intersection is located 80 metres north, and these holes failed to penetrate far into the bedrock beneath the lake due to hitting quartz veins.

North Wing, Level 2, 1 Manning Street, Scarborough WA 6019, Australia PO Box 1059 Scarborough WA 6922, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6241 4299 E admin@s2resources.com.au W www.s2resources.com.au

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Figure 1. Cross section of high grade lode at Monsoon.

Follow-up RC drilling at Monsoon to establish the extent of mineralisation here as well as to follow-up earlier high grade intersections elsewhere at Monsoon (including 12m @ 16.9 g/t Au in SPBA2769) will commence once Department of Mines and Petroleum (DMP) approvals have been obtained.

For further information, please contact:

Mark Bennett Anna Neuling Managing Director Executive Director +61 8 6166 0240 +61 8 6166 0240

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.

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Figure 2. Location of Monsoon with respect to Baloo gold resource and Nanook gold prospect.

Annexure 1

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

Hole No.	Prospect	Total **Depth **	North	East	RL	Dip	Azim	From, m	To, m	Width, m	Au g/t	Comment
SPBA2714	Monsoon	46	6477020	393800	262	-90	360				NSI
SPBA2715	Monsoon	60	6477021	393841	262	-90	360				NSI
SPBA2716	Monsoon	52	6477022	393881	262	-90	360				NSI
SPBA2717	Monsoon	77	6477021	393920	262	-90	360				NSI
SPBA2718	Monsoon	61	6477021	393963	262	-90	360				NSI
SPBA2719	Monsoon	63	6477021	394004	262	-90	360				NSI
SPBA2720	Monsoon	74	6477021	394043	262	-90	360				NSI
SPBA2721	Monsoon	18	6477021	394082	262	-90	360				NSI
SPBA2722	Monsoon	88	6477018	394091	262	-90	360	56	60	4	0.17
			and					87	88	1	0.41	EOH
SPBA2723	Monsoon	88	6477162	394081	262	-90	360				NSI
SPBA2724	Monsoon	73	6477162	394043	262	-90	360				NSI
SPBA2725	Monsoon	66	6477161	394003	262	-90	360				NSI
SPBA2726	Monsoon	63	6477161	393961	262	-90	360				NSI
SPBA2727	Monsoon	64	6477161	393922	262	-90	360				NSI
SPBA2728	Monsoon	68	6477161	393878	262	-90	360				NSI
SPBA2729	Monsoon	51	6477162	393842	262	-90	360				NSI
SPBA2730	Monsoon	52	6477161	393801	262	-90	360				NSI
SPBA2731	Monsoon	16	6477261	394082	262	-90	360				NSI
SPBA2732	Monsoon	76	6477262	394070	262	-90	360				NSI
SPBA2733	Monsoon	75	6477265	394039	262	-90	360				NSI
SPBA2734	Monsoon	75	6477262	394000	262	-90	360				NSI
SPBA2735	Monsoon	72	6477260	393959	262	-90	360				NSI
SPBA2736	Monsoon	67	6477259	393921	262	-90	360				NSI
SPBA2737	Monsoon	62	6477267	393880	262	-90	360				NSI
SPBA2738	Monsoon	74	6477263	393836	262	-90	360				NSI
SPBA2739	Monsoon	68	6477263	393801	262	-90	360	28	32	4	0.7
SPBA2740	Monsoon	60	6477261	393769	262	-90	360	20	32	12	1.34
			including					28	32	4	3.29
SPBA2741	Monsoon	36	6477260	393720	262	-90	360				NSI
SPBA2742	Monsoon	61	6477261	393717	262	-90	360				NSI
SPBA2743	Monsoon	97	6477265	393681	262	-90	360				NSI
SPBA2744	Monsoon	58	6477262	393640	262	-90	360				NSI
SPBA2745	Monsoon	82	6477262	393634	262	-90	360				NSI

Hole No.	Prospect	Total Depth	North	East	RL	Dip	Azim	From, m	To, m	Width, m	Au **g/t **	Comment
SPBA2746	Monsoon	92	6477261	393597	262	-90	360				NSI
SPBA2747	Monsoon	56	6477263	393558	262	-90	360				NSI
SPBA2748	Monsoon	56	6477262	393519	262	-90	360				NSI
SPBA2749	Monsoon	75	6477343	393644	262	-90	360				NSI
SPBA2750	Monsoon	58	6477340	393683	262	-90	360				NSI
SPBA2751	Monsoon	63	6477342	393720	262	-90	360				NSI
SPBA2752	Monsoon	57	6477342	393758	262	-90	360				NSI
SPBA2753	Monsoon	84	6477340	393802	262	-90	360				NSI
SPBA2754	Monsoon	97	6477342	393842	262	-90	360	48	52	4	0.17
SPBA2755	Monsoon	99	6477340	393878	262	-90	360				NSI
SPBA2756	Monsoon	94	6477340	393919	262	-90	360				NSI
SPBA2757	Monsoon	96	6477338	393961	262	-90	360				NSI
SPBA2758	Monsoon	90	6477339	394001	262	-90	360				NSI
SPBA2759	Monsoon	88	6477342	394040	262	-90	360				NSI
SPBA2760	Monsoon	80	6477342	394080	262	-90	360				NSI
SPBA2761	Monsoon	78	6477426	394118	262	-90	360				NSI
SPBA2762	Monsoon	81	6477423	394080	262	-90	360				NSI
SPBA2763	Monsoon	75	6477423	394043	262	-90	360	60	64	4	0.31
SPBA2764	Monsoon	74	6477422	394001	262	-90	360	60	64	4	0.29
SPBA2765	Monsoon	84	6477421	393962	262	-90	360	76	83	7	1.05
SPBA2766	Monsoon	57	6477425	393922	262	-90	360				NSI
SPBA2767	Monsoon	93	6477423	393918	262	-90	360				NSI
SPBA2768	Monsoon	78	6477426	393880	262	-90	360				NSI
SPBA2769*	Monsoon	88	6477424	393840	262	-90	360	68	80	12	16.9
SPBA2770	Monsoon	53	6477424	393801	262	-90	360				NSI
SPBA2771	Monsoon	58	6477424	393761	262	-90	360				NSI
SPBA2772	Monsoon	98	6477426	393722	262	-90	360				NSI
SPBA2773	Monsoon	102	6477426	393681	262	-90	360				NSI
SPBA2774	Monsoon	34	6477423	393642	262	-90	360				NSI
SPBA2775	Monsoon	87	6477424	393637	262	-90	360				NSI
SPBA2776	Monsoon	60	6477422	393600	262	-90	360				NSI
SPBA2777	Monsoon	51	6477424	393562	262	-90	360				NSI
SPBA2778	Monsoon	81	6477422	393550	262	-90	360				NSI
SPBA2779	Monsoon	60	6477423	393524	262	-90	360				NSI
SPBA2780	Monsoon	65	6477421	393483	262	-90	360				NSI
SPBA2781	Monsoon	67	6477424	393400	262	-90	360				NSI
SPBA2782	Monsoon	57	6477423	393361	262	-90	360				NSI

Hole No.	Prospect	Total Depth	North	East	RL	Dip	Azim	From, m	To, m	Width, m	Au **g/t **	Comment
SPBA2783	Monsoon	50	6477423	393320	262	-90	360				NSI
SPBA2784	Monsoon	35	6477582	393122	262	-90	360				NSI
SPBA2785	Monsoon	34	6477580	393162	262	-90	360				NSI
SPBA2786	Monsoon	46	6477583	393202	262	-90	360				NSI
SPBA2787	Monsoon	54	6477580	393241	262	-90	360				NSI
SPBA2788	Monsoon	78	6477581	393283	262	-90	360				NSI
SPBA2789	Monsoon	72	6477580	393323	262	-90	360				NSI
SPBA2790	Monsoon	86	6477579	393361	262	-90	360				NSI
SPBA2791	Monsoon	97	6477579	393401	262	-90	360				NSI
SPBA2792	Monsoon	75	6477580	393482	262	-90	360				NSI
SPBA2793	Monsoon	76	6477580	393520	262	-90	360				NSI
SPBA2794	Monsoon	92	6477580	393532	262	-90	360				NSI
SPBA2795	Monsoon	79	6477579	393560	262	-90	360				NSI
SPBA2796	Monsoon	99	6477581	393600	262	-90	360				NSI
SPBA2797	Monsoon	96	6477582	393799	262	-90	360				NSI
SPBA2798	Monsoon	82	6477582	393841	262	-90	360	60	64	4	1.17
SPBA2799	Monsoon	85	6477582	393882	262	-90	360				NSI
SPBA2800	Monsoon	86	6477582	393922	262	-90	360	56	64	8	0.37
SPBA2801	Monsoon	75	6477581	393962	262	-90	360				NSI
SPBA2802	Monsoon	90	6477581	394003	262	-90	360	60	64	4	0.22
SPBA2803	Monsoon	29	6477579	394044	262	-90	360				NSI
SPBA2804	Monsoon	93	6477583	394046	262	-90	360				NSI
SPBA2805	Monsoon	80	6477579	394082	262	-90	360				NSI
SPBA2806	Monsoon	90	6477741	394078	262	-90	360				NSI
SPBA2807	Monsoon	90	6477742	394042	262	-90	360				NSI
SPBA2808	Monsoon	81	6477743	394000	262	-90	360				NSI
SPBA2809	Monsoon	90	6477743	393960	262	-90	360				NSI
SPBA2810	Monsoon	90	6477742	393919	262	-90	360	56	60	4	0.6
SPBA2811	Monsoon	61	6477741	393880	262	-90	360	56	61	5	1.14	EOH
SPBA2812	Monsoon	87	6477744	393875	262	-90	360	52	60	8	0.72
SPBA2813	Monsoon	93	6477743	393840	262	-90	360	84	93	9	0.35	EOH
SPBA2814	Monsoon	108	6477740	393799	262	-90	360	107	108	1	0.27	EOH
SPBA2815	Monsoon	103	6477741	393761	262	-90	360				NSI
SPBA2816	Monsoon	108	6477741	393723	262	-90	360				NSI
SPBA2817	Monsoon	73	6477584	393446	262	-90	360				NSI
SPBA2818	Monsoon	108	6477422	393449	262	-90	360				NSI
SPBA2819	Monsoon	66	6476938	393842	262	-90	360				NSI

Hole No.	Prospect	Total Depth	North	East	RL	Dip	Azim	From, m	To, m	Width, m	Au **g/t **	Comment
SPBA2820	Monsoon	70	6476938	393881	262	-90	360				NSI
SPBA2821	Monsoon	15	6476936	393918	262	-90	360				NSI
SPBA2822	Monsoon	74	6476943	393929	262	-90	360				NSI
SPBA2823	Monsoon	75	6476937	393961	262	-90	360				NSI
SPBA2824	Monsoon	81	6476936	394000	262	-90	360				NSI
SPBA2825	Monsoon	72	6476935	394040	262	-90	360				NSI
SPBA2826	Monsoon	83	6476935	394081	262	-90	360				NSI
SPBA2827	Monsoon	67	6476936	394123	262	-90	360				NSI
SPBA2828	Monsoon	68	6476934	394160	262	-90	360	48	52	4	0.92
SPBA2829	Monsoon	66	6476935	394198	262	-90	360				NSI
SPBA2830	Monsoon	55	6476934	394240	262	-90	360				NSI
SPBA2831	Monsoon	45	6476934	394282	262	-90	360				NSI
SPBA2832	Monsoon	23	6476783	394400	262	-90	360	22	23	1	0.32
SPBA2833	Monsoon	85	6476782	394397	262	-90	360	16	48	32	2.47
SPBA2834	Monsoon	64	6476785	394365	262	-90	360				NSI
SPBA2835	Monsoon	67	6476784	394321	262	-90	360				NSI
SPBA2836	Monsoon	44	6476786	394282	262	-90	360				NSI
SPBA2837	Monsoon	66	6476784	394279	262	-90	360				NSI
SPBA2838	Monsoon	78	6476786	394243	262	-90	360				NSI
SPBA2839	Monsoon	67	6476786	394200	262	-90	360				NSI
SPBA2840	Monsoon	74	6476786	394162	262	-90	360				NSI
SPBA2841	Monsoon	60	6476785	394122	262	-90	360				NSI
SPBA2842	Monsoon	73	6476787	394083	262	-90	360				NSI
SPBA3740	Monsoon	52	6476781	394380	262	-90	360	40	52	12	26.2	EOH
SPBA3741	Monsoon	25	6476780	394420	262	-90	360				NSI
SPBA3742	Monsoon	28	6476780	394425	262	-90	360	16	28	12	0.24	EOH
SPBA3743	Monsoon	25	6476780	394440	262	-90	360				NSI
SPBA3744	Monsoon	51	6476780	394480	262	-90	360				NSI
SPBA3745	Monsoon	62	6476780	394520	262	-90	360				NSI
SPBA3746	Monsoon	68	6476860	394360	262	-90	360				NSI
SPBA3747	Monsoon	33	6476860	394400	262	-90	360				NSI
SPBA3748	Monsoon	18	6476860	394440	262	-90	360				NSI
SPBA3749	Monsoon	40	6476860	394445	262	-90	360	32	36	4	0.42
SPBA3750	Monsoon	51	6476860	394480	262	-90	360				NSI
SPBA3751	Monsoon	47	6476940	394320	262	-90	360				NSI
SPBA3752	Monsoon	54	6476940	394360	262	-90	360	20	24	4	0.21
SPBA3753	Monsoon	64	6476940	394400	262	-90	360	44	48	4	0.23

Hole No.	Prospect	Total Depth	North	East	RL	Dip	Azim	From, m	To, m	Width, m	Au **g/t **	Comment
SPBA3754	Monsoon	33	6476940	394440	262	-90	360				NSI
SPBA3755	Monsoon	65	6476940	394480	262	-90	360				NSI
SPBA3756	Monsoon	51	6476940	394520	262	-90	360				NSI
SPBA3757	Monsoon	76	6477100	394260	262	-90	360				NSI
SPBA3758	Monsoon	64	6477100	394300	262	-90	360				NSI
SPBA3759	Monsoon	54	6477100	394340	262	-90	360				NSI
SPBA3760	Monsoon	70	6477100	394380	262	-90	360				NSI
SPBA3761	Monsoon	61	6476700	394360	262	-90	360				NSI
SPBA3762	Monsoon	80	6476700	394400	262	-90	360				NSI
SPBA3763	Monsoon	60	6476700	394440	262	-90	360				NSI
SPBA3764	Monsoon	54	6476700	394480	262	-90	360				NSI
SPBA3765	Monsoon	93	6476700	394320	262	-90	360				NSI
SPBA3766	Monsoon	63	6476620	394240	262	-90	360				NSI
SPBA3767	Monsoon	93	6476620	394280	262	-90	360				NSI
SPBA3768	Monsoon	63	6476620	394320	262	-90	360				NSI
SPBA3769	Monsoon	75	6476620	394360	262	-90	360				NSI
SPBA3770	Monsoon	78	6476620	394400	262	-90	360				NSI
SPBA3771	Monsoon	75	6476460	394160	262	-90	360				NSI
SPBA3772	Monsoon	84	6476460	394200	262	-90	360				NSI
SPBA3773	Monsoon	90	6476460	394240	262	-90	360				NSI
SPBA3774	Monsoon	60	6476460	394280	262	-90	360				NSI
SPBA3775	Monsoon	72	6476460	394320	262	-90	360				NSI
SPBA3776	Monsoon	83	6476460	394360	262	-90	360				NSI
SPBA3777	Monsoon	57	6476460	394400	262	-90	360	12	16	4	0.41
SPBA3778	Monsoon	63	6476460	394120	262	-90	360				AWR
SPBA3779	Monsoon	51	6476300	393920	262	-90	360				AWR
SPBA3780	Monsoon	58	6476300	393960	262	-90	360				AWR
SPBA3781	Monsoon	48	6476300	394000	262	-90	360				AWR
SPBA3782	Monsoon	51	6476300	394040	262	-90	360				AWR
SPBA3783	Monsoon	45	6476300	394080	262	-90	360				AWR
SPBA3784	Monsoon	43	6476300	394120	262	-90	360				AWR
SPBA3785	Monsoon	54	6476300	394160	262	-90	360				AWR
SPBA3786	Monsoon	73	6476300	394200	262	-90	360				AWR
SPBA3787	Monsoon	86	6476300	394240	262	-90	360				AWR
SPBA3788	Monsoon	64	6476300	394280	262	-90	360				AWR
SPBA3789	Monsoon	39	6476300	394320	262	-90	360				AWR

Table 1:

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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 industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	The mineralised trend at Monsoon is sampled by aircore drilling on a nominal 40 m hole spacing and 80 m lines, drilled to refusal. Aircore holes are sampled using an aluminium scoop to produce a four metre composite sample.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used	Sampling and QAQC procedures is carried out using S2 protocols as per industry best practice.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information	Reconnaissance aircore samples are composited at 4 m to produce a bulk 3 kg sample. Samples were dried, pulverised (total prep), and split to produce a 25 g sub sample which is analysed using aqua-regia digestion with ICP-MS finish with a 1 ppb detection limit. A 1m end of hole sample was collected for all aircore holes. Sample preparation was the same as above and were analysed using a four acid digest with an ICP/OES and fire assay. The following 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.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	Aircore drilling is carried out using a 3 ½ inch blade bit. Where necessary a 3 ½ inch face sampling hammer is employedto penetrate through hard zones.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed	RC and aircore sample recoveries are visually estimated qualitatively on a metre basis and are recorded in the database.
	Measures taken to maximise sample recovery and ensure representative nature of the samples	Sample quality is qualitatively logged on a metre basis, recording sample condition and contamination.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Insufficient drilling and geochemical data is available at the present stage to evaluate potential sample bias.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	The initial sampling is considered a qualitative sampling technique and not appropriate for mineral resource estimation Lithology, alteration and veining is recorded directly to a digital
		format and imported into S2 Resources central database.

Criteria	JORC Code explanation	Commentary
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Logging of aircore records lithology, mineralogy, mineralisation, weathering, colour and other features of the samples, and is qualitative in nature.
	The total length and percentage of the relevant intersections logged	All drillholes were logged in full.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Not applicable.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Aircore samples consist of a 4 metre composite pled 1 metre samples are collected via an on-board cone splitter. Samples were collected both wet and dry.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The sample preparation follows industry best practice in sample preparation All samples are pulverised utilising Essa LM1, LM2 or LM5 grinding mills determined by the size of the sample. Samples are dried, crushed as required and pulverized to produce a homogenous representative sub-sample for analysis. A grind quality target of 85% passing 75μm has been established and is relative to sample size, type and hardness.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	Quality control procedures include submission of Certified Reference Materials (CRM’s), blanks and duplicate samples with each batch of samples. Selected samples are also re-analysed to confirm anomalous results. Grind size checks are routinely completed to ensure samples meet the industry standard of 85% passing through a 75µm mesh.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Field duplicates are taken at regular intervals. Samples are selected to weigh less than 3kg to ensure total preparation at the pulverisation stage.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate for gold mineralisation.
Quality of assay data and laboratory tests		RC and diamond core samples are analysed for Au only using a
		40g or 50g Lead Collection fire Assay with either an ICP/MS or
		AAS finish.
	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	4m composite samples from AC drilling are analysed for Au only using a 25g aqua-regia digestion with an ICP/MS finish. The method gives a near total digestion of the regolith intercepted in aircore drilling and is suitable for the reconnaissance style sampling undertaken. All aircore holes have a 1m end-of-hole sample is collected for all 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 four acid digest with an ICP/OES and ICP/MS finish. Au, Pt And Pd is analysed for using 25g or 50g Lead Collection fire assay with an ICP/MS finish.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools were used to determine any element concentrations used in this resource estimate.
	N li l d dd	Sample preparation checks for fineness were carried out by the
	ature of quaty contro proceures aopte (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	laboratory as part of their internal procedures to ensure the grind size of 85% passing 75 micron was being attained. Laboratory QAQC involves the use of internal lab standards using certified reference material, blanks, splits and replicates as part of the in house procedures.

Criteria	JORC Code explanation	Commentary
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	The Exploration Manager of S2 has visually verified significant intersections.
	The use of twinned holes.	No twin holes have been drilled on the project to date.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Primary data was collected using a set of standard Excel templates using lookup codes. The information was sent to an external database consultant for validation and compilation into a Perth based SQL database.
	Discuss any adjustment to assay data.	No adjustments or calibrations were made to any assay data reported.
Location of data points	Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource 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.
		A topographic surface has been created from aerial geophysical
	Quality and adequacy of topographic control.	data, This has been calibrated with DGPS survey data. All reconnaissance drill holes have been corrected to this surface
		where DGPS pickup is not available.
		All resource drilling will be picked up by DGPS to within a +/- 50mm accuracy.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Data spacing is currently defined by the geological criteria regarded appropriate to determine the extents of mineralisation. Reconnaissance AC drilling is on a nominal spacing of between 80m x 40m and 160m x 40m drill pattern.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Drilling is currently preliminary in nature had the mineralised domains have not yet demonstrated sufficient continuity in both geological and grade continuity to support the definition of Mineral Resource and Reserves, and the classifications applied under the 2012 JORC Code.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of data in relation to geological structure	Whh h ii li hi	The drilling is not necessarily drilled perpendicular to the
	eter te orentaton of sampng aceves bd l bl d h	orientation of the intersected mineralisation. All reported
	uniase samping of possie structures an te hh h k d h	intervals are downhole intervals and not calculated true width.
	extent to wic tis is nown, consiering te	This will be established with further drilling.
	deposit type.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No orientation biased sampling bias has been identified in the data at this point.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 Resources. Samples are stored on site and either delivered byS2personnel to Perth and then to the assay laboratory, or collected from site by Centurion Transport and delivered direct to the assay laboratory. Whilst in storage, they are kept on a locked yard. Tracking sheets have been set up to track the progress of batches of samples.
Audits or reviews
	The results of any audits or reviews of sampling hi d d	No audits or reviews have been conducted at this stage.
	tecnques an ata.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation		Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.		The Monsoon prospect is located within Exploraiton License _E63/1142,_which is located within the Polar Bear Project, 100% owned by Polar Metals Pty Ltd, a wholly owned subsidiary of S2 Resources Ltd. All projects are situated within the Ngadju Native Title Claim (WC99/002).
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		The tenement is in good standing and no known impediments existon tenement actively explored.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.		Gold Exploration Plutonic Operations Limited and Homestake Gold of Australia Limited conducted reconnaissance AC drilling (PBAC prefix) over Lake Cowan on predominantly 100 m drillhole spacing and 800 m line spacing from 1997-1999. Location of these drillholes cannot be verified as the collars are now mostly obscured. AC sampling was done by 4 m composites with 1 m re-splits on samples greater than 0.1 g/t. Samples were assayed by aqua-regia digest with AAS finish although this cannot be verified as the original laboratory.
Geology	Deposit type, geological setting and style of mineralisation.		The Polar Bear project is situated within the Archaean Norseman- Wiluna Belt which locally includes basalts, komatiites, metasediments, and felsic volcanoclastics. The primary gold mineralisation is related to hydrothermal activity during multiple deformation events. Indications are that gold mineralisation is focused on or near to the stratigraphic boundary between the Killaloe and Buldania Formation.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  easting and northing of the drill hole collar  elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar  dip and azimuth of the hole  down hole length and interception depth  hole length.		Refer to Annexure1 in body of text.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.		All reported assays have been length weighted. A nominal 0.2 g/t Au lower cut-off is used to report AC intersections.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.		High grade gold intervals internal to broader zones of mineralisation are reported as included intervals.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.		No metal equivalent values are used for reporting exploration results.

Criteria	JORC Code explanation	Commentary
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	The trend of mineralisation atMonsoonis not known at present due to the lack of deeper drilling and the early stage of exploration. Refer to Annexure 1 and Figures in body of text.
Diagram	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to Figures in body of text.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	The accompanying document is conserved to represent a balanced report with grades and/or widths reported in a consistent manner.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No other exploration data collected to date is considered material or meaningful at this stage.
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive	RC follow-up of high grade ntercepts to establish the controls and geometry of mineralization is proposed.