S2 RESOURCES LTD — Regulatory Filings 2018

Jun 17, 2018

ASX Announcement

Monday 18th June 2018

EXPLORATION UPDATE – SOUTH ROBERTS, NEVADA

S2 Resources Ltd ("S2" or the "Company") provides the following update regarding the results from its exploration programs in Nevada. Assay results have been received from the initial reconnaissance diamond drilling program completed in April/May to test a concealed gold target at the South Roberts project in Nevada, USA. Three holes were drilled into the crest of a concealed anticline as interpreted from two controlled source audiomagnetotellurics (CSAMT) survey lines (see Figure 1). Although favourable host rocks were intersected in the predicted position, no significant gold mineralization was intersected, with the best result being 1.65 metres @ 0.17g/t gold from 491.7 metres in hole NSRD0001, associated with a zone of strong brecciation and carbonate veining within dolomite.

As stated in S2's ASX announcement of 25 th April 2018, the prime objective was to test multiple target horizons associated with specific favourable stratigraphic units (see Figure 2) located in the crest of an anticline, as follows:

• The contact between the Mississippian Webb Formation and the Devonian Devils Gate Formation limestones (host to the Rain and Afgan deposits)
• The upper part of the Devonian Denay Formation limestones (host to the Gold Bar, Gold Canyon and Goldstone deposits), which may be equivalent to the Wenban Formation (host to the Goldrush deposit)
• Subject to depth, the Devonian McColley Canyon Formation limestones (host to the Gold Pick and Gold Ridge deposits)

All three holes intersected the Webb Formation-Devils Gate Limestone contact confirming the presence of an anticline. Holes NSRD0001 and NSRD0003 both intersected zones of collapse breccia textures, decalcification and minor silicification, with anomalous arsenic, antinomy and mercury (maximum values of 491 ppm, 38 ppm and 2ppm respectively). These results may represent a distal signature of Carlin style mineralization on this contact away from the drill holes. In drillhole NSRD0002, the contact between the Webb Formation and Devils Gate has been disrupted by later faulting and no anomalous results were present.

Drill hole NSRD0001 was continued deeper to test the lowerstratigraphic horizons, however it appears that both the upper Denay Formation limestones and the McColley Canyon Formation limestones have been structurally removed, with the lower contact of the Devils Gate Limestone in the drill hole (at 475.4 metres) being a faulted contact, passing into a thick sequence of dolomite, interpreted to represent the Lone Mountain Dolomite.

These results will be reviewed in June prior to any further work being undertaken at South Roberts.

Figure 1. Plan showing the position of recent diamond drill holes over gravity image with the two CSAMT resistivity images plotted to show the position of the crest of the targeted anticline.

Figure 2. Generalised stratigraphic column of the rocks present in the anticline, showing stratigraphic horizons known to host gold mineralization elsewhere in Nevada. The Ordovician Valmy Formation is thrust over the younger host rocks by the Roberts Mountain Thrust, and forms a seal above the trap site. Specific horizons and facies within the underlying Devonian age limestones of the Devils Gate, Denay and McColley Canyon formations are host to significant Carlin-style gold deposits elsewhere in the district.

For further information, please contact:

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

Managing Director & CEO Executive Director & Company Secretary

Competent Persons statements

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

Annexure 1

The following tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results. Co-ordinates in this table are given in North American NAD27, zone 11 grid.

Pluto RC Drilling

Hole No.	TotalDepth,m	North	East	RL	Dip	Azim	From,m	To,m	Width,m	Au,ppm
NSRD0001	607.5	4,395,800	563,550	1925	-80	270	491.7	493.35	1.65	0.17
NSRD0002	213.1	4,395,800	563,562	1925	-90	0			NSI
NSRD0003	279.5	4,395,000	563,440	1922	-75	90			NSI

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.	For diamond sampling, an unbiased half core sample is cut on anominal 5 foot intervals. The other half of the core sample isreturned to the core box and stored for future reference.
	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.For rock chip samples, material were selected randomlywithout bias to material appearance to give an accuraterepresentation of the sample being collected.
	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	Samples were dried crushed, split and pulverised (250 grams)and were analysed using an aqua regia digest with an ICP/MSfinish (Code AQ201) and by fire assay with an ICP-ES finish(Code FA330). The following elements are included in the assaysuite: Ag, Al, As, Au, B, Ba, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, Hg, K,La, Mg, Mn, Mo, Na, Ni, P, Pb, S Sb, Sc, Se, Sr, Te, Th, Ti, Tl, V,W, Zn.
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).	Drilling was completed using HQ3 (triple tube) diamond core tomaximise core recoveries.
Drill samplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed	Diamond core recoveries are calculated for every sample run(nominal 5 foot) and recorded in the database.

Criteria	JORC Code explanation	Commentary
	Measures taken to maximise sample recovery andensure representative nature of the samples	HQ3 triple tube was utilised to maximise recoveries andminimise the washing out of fine material. Short drill runs wereutilised (maximum of 5 foot) to minimise core loss.Various drilling additives (including muds and polymers) havebeen used to condition diamond drill holes to maximiserecoveries and sample quality.
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	No sample recovery issues have been identified relating topotential sample bias within RC drilling.Sample loss was recorded within the hole associated withwashing out of unconsolidated fines as well voids within thelimestone rock units
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	Geological logging is completed for all holes to a level of detailthat would, where sufficient drill density is completed, supportan appropriate Mineral Resource and mining study.Lithology, alteration and veining, is recorded directly to a digitalformat and imported into S2 Resources central database.
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	Logging is both qualitative and quantitative in nature dependingon the field being captured.
	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.	Half core sampling was taken for sampling for all drill holes.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	Not applicable – no non-core samples were taken.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	The sample preparation follows industry best practice in samplepreparation. Samples are dried, crushed as required andpulverized to produce a homogenous representative subsample for analysis. A grind quality target of 85% passing 75μmhas been established and is relative to sample size, type andhardness.
	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Laboratory Quality control procedures include submission ofCertified Reference Materials (CRM's), blanks and duplicatesamples with each batch of samples. Selected samples are alsore-analysed to confirm 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.	Duplicates are taken at regular intervals by taking a second splitform the crushed sample and submitted into the sequence withthe rest of the drill hole.
	Whether sample sizes are appropriate to the grainsize of the material being sampled.	Sample sizes are considered appropriate for gold mineralisation.

Criteria	JORC Code explanation	Commentary
Quality of assay dataand laboratory tests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	Samples are analysed for gold using 30g lead collection fireassay with an ICP/ES finish at the Bureau Veritas laboratory inReno, Nevada. This sample is considered a total digest and thehighest quality assay technique available.In addition an extensive multi-element suite (including Ag, Al,As, Au, B, Ba, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, Hg, K, La, Mg, Mn,Mo, Na, Ni, P, Pb, S Sb, Sc, Se, Sr, Te, Th, Ti, Tl, V, W, Zn) isanalysed using an aqua regia digest with an ICP-MS finish. Thismethod is a partial digest, but is considered appropriate toidentify potential pathfinder elements which may assist inlocating nearby gold mineralisation.
	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 the results.
	The use of twinned holes.	Given the early stage of exploration, no twining of drill holes hastaken place.
	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.	Sample sites were recorded by a Garmin handheld GPS with anaccuracy about +/– 3m for easting and northing.
	Specification of the grid system used.	The grid system used was NAD 27 Zone 11.
	Quality and adequacy of topographic control.	A topographic surface has been created from aerial geophysicaldata, and this has been used to confirm RL levels for drill holes(note that given the cut and fill nature of the drill pads, thecollars have not been corrected to this surface.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Given the reconnaissance nature of the initial drilling, a notionalgrid spacing has not been used.
	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.	Drill spacing does is not currently of adequate spacing forMineral Resource and Ore Reserve estimate procedures.
	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.

Criteria	JORC Code explanation	Commentary
	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 based sampling bias has been identified in thedata at this point.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 Resources. Samples arestored on site and were either picked up from site by thelaboratory or delivered to the laboratory in Elko. Tracking sheetshave been 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		S2 Resources Ltd, through its subsidiary Nevada StarExploration LLC, is earning into the following mineral tenure viaan agreement with Kinetic Gold (US) Inc and its parentcompany Renaissance Gold Inc. ("RenGold")
	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.	Kinetic Gold (US) Inc (a wholly-owned subsidiary of Rengold)holds60MineralClaims(NMC1080648–1080681;NMC1080684-1080698; NMC1080700-1080711) within EurekaCounty, NV.
		Kinetic Gold (US) Inc (a wholly-owned subsidiary of Rengold)holds a Lease and Option to Purchase under the RW Agreement29 Mineral Claims (NMC1029818-1029829; NMC1029846-854;NMC1029878-885) from Harvest Gold Corp (US) within EurekaCounty, NV.
		All are subject to certain confidential royalty agreements,payable by Nevada Star Exploration LLC to Kinetic Gold (US) Incand third parties.
		Based on a due diligence process, no commercial, historical,native title, heritage or environmental impediments are known
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	Based on a due diligence process, the claims are in goodstanding and no known impediments exist on tenementactively explored.
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	Previous exploration comprising enzyme leach soil geochemistryand gravity surveying was completed by Kinetic Gold (US) Inc(now a wholly-owned subsidiary of Rengold). Under JV withKinetic Gold in 2014, McEwan Mining Nevada completed sixwide-spaced (~1km) drill holes (2 diamond and 4 RC) totalling2,188m. The data for the drilling has been reviewed but the drillholes and the core of the two diamond drill holes have not beensited.
Geology	Deposit type, geological setting and style ofmineralisation.	The project is located within the Great Basin of Nevada and thedeposit type being explored consists of the Carlin-style whichcomprises fine-grained disseminated replacement sulphide(pyrite) mineralisation in zones of silicified, decarbonatised,argillised, silty calcareous rocks and associated jasperoids.The mineralisation is hosted within Palaeozoic carbonate andsiliciclastic sedimentary rocks which were deposited in a marinesetting ranging from deep to shallow water on a former westerncontinental margin of North America. These units weredeformed by the Antler Orogeny and later intruded by felsicbodies of varying ages. The age of the mineralisation is Eoceneand ranges between 34-42 Ma. Later faulting developed thedistinctive 'Basin and Range' topography of the area.

Criteria	JORC Code explanation	Commentary
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.
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/or minimum	All reported assays have been length weighted.
	grade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.	A nominal 0.1 g/t Au lower cut-off is used for diamond drilling,given the reconnaissance nature of the drilling
	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.	Following S2 standard procedures, where high grade goldintervals are present within a broader zone of mineralization,they will be 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 notknown').	The geometries of controls to gold mineralisation at Pluto arecurrently unknown.
Diagram	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.	All Figures are contained in the body of the 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.

Criteria	JORC Code explanation	Commentary
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	A detailed review of the results of the current drilling is to beundertaken before any future exploration work is planned.