S2 RESOURCES LTD — Interim / Quarterly Report 2018

Apr 25, 2018

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Name of entity

S2 Resources Ltd

ABN		Quarter ended ("current quarter")
18 606 128 090		31 March 2018

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	(1,218)	(3,117)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs*	(552)	(1,716)
	(e)administrationand corporate costs	(293)	(1,147)
1.3	Dividends received (see note3)	-	-
1.4	Interest received	50	169
1.5	Interest and other costs of finance paid	(2)	(7)
1.6	Income taxes paid	(236)	(236)
1.7	Research and development refunds	-	-
1.8	Other	-	-
1.9	Net cash from / (used in) operatingactivities	(2,251)	(6,054)

* includes pre-resource exploration expenditure of $808k.

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(2)	(3)
	(b)tenements(see item10)	-	(164)
	(c)investments	-	-

Consolidated statement of cash flows		Current quarter$A'000	Year to date(9 months)$A'000
	(d)other non-current assets	-	-
2.2	Proceeds from the disposalof:
	(a)property, plant and equipment	-	-
	(b)tenements(see item10)	-	-
	(c)investments–net proceeds		2,574
	(d)other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note3)
2.5	Other–sale of subsidiary includingtenements net of costs	2,829	2,829
2.6	Net cash from / (used in) investingactivities	2,829	5,236

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related toissues ofshares, convertible notes or options	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other–net payments for cash backedguarantees	(2)	(23)
3.10	Net cash from / (used in) financingactivities	(2)	(23)

Consolidated statement of cash flows Current quarter

Mining exploration entity and oil and gas exploration entity quarterly report

$A'000

			$A'000
4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	16,150	17,501
4.2	Net cash from / (used in) operatingactivities(item1.9above)	(2,251)	(6,054)
4.3	Net cash from / (used in) investingactivities(item2.6 above)	2,827	5,236
4.4	Net cash from / (used in)financingactivities(item3.10 above)	(2)	(23)
4.5	Effect of movement in exchange rates oncash held	110	174
4.6	Cash and cash equivalents at end ofperiod	16,834	16,834

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) tothe related items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	8,834	9,150
5.2	Call deposits	8,000	7,000
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	16,834	16,150

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 155
• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -
• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Salaries and fees paid to directors in the quarter including superannuation.

$A'000

Appendix 5B

Year to date

7. Payments to related entities of the entity and their associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2 -
• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -
• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

8.	Financingfacilities availableAdd notes as necessary for an understanding of theposition	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-

8.3 Other (please specify) - -

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter		$A'000
9.1	Exploration and evaluation				1,421
9.2	Development				-
9.3	Production				-
9.4	Staff costs				597
9.5	Administration	and corporate costs			254
9.6	Other (provide details if material)
9.7	Total estimated cash outflows				2,272
10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenement reference andlocation	Nature ofinterest	Interest atbeginning ofquarter	Interest atend of quarter

Current quarter $A'000

.1	Interests inmining	Scandinavian Tenements
	tenements and	Finland Reservations
	petroleum	(100% S2)
	tenements	Majava	Lapsed	100%	0%
	lapsed,relinquishedor
	reduced	Sweden ExplorationLicence
		(100% S2)
		Tjålmträsk nr 401	Expired	100%	0%
		Tjålmträsk nr 402	Relinquished	100%	0%
		Tjålmträsk nr 403	Relinquished	100%	0%
		Näsvattnet nr401	Expired	100%	0%
		Näsvattnet nr 402	Relinquished	100%	0%
		Nevada Tenements
		Pluto
		Pluto 1 NMC1098837	Withdrawn	earning 70%	0%
		Pluto 2 NMC1098838	From Pluto	earning 70%	0%
		Pluto 3 NMC1098839	Project	earning 70%	0%
		Pluto 4 NMC1098840		earning 70%	0%
		Pluto 5 NMC1098841		earning 70%	0%
		Pluto 6 NMC1098842		earning 70%	0%
		Pluto 7 NMC1098843		earning 70%	0%
		Pluto 8 NMC1098844		earning 70%	0%
		Pluto 9 NMC1098845		earning 70%	0%
		Pluto 10 NMC1098846		earning 70%	0%
		Pluto 11 NMC1108192		earning 70%	0%
		Pluto 12 NMC1108193		earning 70%	0%
		Pluto 13 NMC1108194		earning 70%	0%
		Pluto 14 NMC1108195		earning 70%	0%
		Pluto 15 NMC1108196		earning 70%	0%
		Pluto 16 NMC1108197		earning 70%	0%
		Pluto 17 NMC1108198		earning 70%	0%
		Pluto 18 NMC1108199		earning 70%	0%
		Pluto 19 NMC1108200		earning 70%	0%
		Pluto 20 NMC1108201		earning 70%	0%
		Pluto 21 NMC1108202		earning 70%	0%
		Pluto 22 NMC1108203		earning 70%	0%
		Pluto 23 NMC1108204		earning 70%	0%
		Pluto24 NMC1108205		earning 70%	0%
		Pluto 25 NMC1108206		earning 70%	0%
		Pluto 26 NMC1108207		earning 70%	0%

Landsgold #1R	earning 70%	0%
NMC1149184	earning 70%	0%
Pluto 27 NMC1150089	earning 70%	0%
Pluto 28 NMC1150090	earning 70%	0%
Pluto 29 NMC1150091	earning 70%	0%
Pluto 30 NMC1150092	earning 70%	0%
Pluto 31 NMC1150093	earning 70%	0%
Pluto 32 NMC1150094	earning 70%	0%
Pluto 33 NMC1150095	earning 70%	0%
Pluto 34 NMC1150096	earning 70%	0%
Pluto 35 NMC1150097	earning 70%	0%
Pluto 36 NMC1150098	earning 70%	0%
Pluto 37 NMC1150099	earning 70%	0%
Pluto 38 NMC1150100	earning 70%	0%
Pluto 39 NMC1150101	earning 70%	0%
Pluto 40 NMC1150102	earning 70%	0%
Pluto 41 NMC1150103	earning 70%	0%
Pluto 42 NMC1150104	earning 70%	0%
Pluto 43 NMC1150105	earning 70%	0%
Pluto 44 NMC1150106	earning 70%	0%
Pluto 45 NMC1150107	earning 70%	0%
Pluto 46 NMC1150108	earning 70%	0%
Pluto 47 NMC1150109	earning 70%	0%
Pluto48 NMC1150110	earning 70%	0%
Pluto 49 NMC1150111	earning 70%	0%
Pluto 50 NMC1150112	earning 70%	0%
Pluto 51 NMC1150113	earning 70%	0%
Pluto 52 NMC1150114	earning 70%	0%
Pluto 53 NMC1150115	earning 70%	0%
Pluto 54 NMC1150116	earning 70%	0%
Pluto 55 NMC1150117	earning 70%	0%
Pluto 56 NMC1150118	earning 70%	0%
Pluto 57 NMC1150119	earning 70%	0%
Pluto 58 NMC1150120	earning 70%	0%
Pluto 59 NMC1150121	earning 70%	0%
Pluto 60 NMC1150122	earning 70%	0%
Pluto 61 NMC1150123	earning 70%	0%
Pluto 62 NMC1150124	earning 70%	0%
Pluto 63 NMC1150125	earning 70%	0%
Pluto 64 NMC1150126	earning 70%	0%
Pluto 65 NMC1150127

Western Australia
Tenements
Polar Bear
E15/1298
E15/1461	Sold	100%	100% Nickel
E15/1541	Sold	100%	100% Nickel
E63/1142	Sold	100%	100% Nickel
E63/1712	Sold	100%	100% Nickel
E63/1725	Sold	100%	100% Nickel
E63/1756	Sold	100%	100% Nickel
E63/1757	Sold	100%	100% Nickel
E63/1791	Sold	100%	100% Nickel
	Withdrawn	100%	0%
M15/651		when granted
M15/710	Sold	100%	100% Nickel
M15/1814	Sold	100%	100% Nickel
	Sold	100%	100% Nickel
M63/230		when granted	when granted
M63/255	Sold	100%	100% Nickel
M63/269	Sold	100%	100% Nickel
M63/279	Sold	100%	100% Nickel
M63/662	Sold	100%	100% Nickel
	Sold	100%	100% Nickel
P15/5638		when granted	when granted
P15/5639	Sold	100%	100% Nickel
P15/5640	Sold	100%	100% Nickel
P15/5958	Sold	100%	100% Nickel
P15/5959	Sold	100%	100% Nickel
P63/1587	Sold	100%	100% Nickel
P63/1588	Sold	100%	100% Nickel
P63/1589	Sold	100%	100% Nickel
P63/1590	Sold	100%	100% Nickel
P63/1591	Sold	100%	100% Nickel
P63/1592	Sold	100%	100% Nickel
P63/1593	Sold	100%	100% Nickel
P63/1594	Sold	100%	100% Nickel
	Sold	100%	100% Nickel
Eundynie JV
E15/1458
E15/1459	Sold	80%	80% Nickel
E15/1464	Sold	80%	80% Nickel

		E63/1726	Sold	80%	80% Nickel
		E63/1727	Sold	80%	80% Nickel
		E63/1738	Sold	80%	80% Nickel
			Sold	80%	80% Nickel
		Norcott
		E15/1487
		E63/1728	Sold	100%	100% Nickel
			Sold	100%	100% Nickel
10.2	Interests inminingtenements andpetroleumtenementsacquired orincreased

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ...26 April 2018....... (Director)

Print name: Anna Neuling

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.