S2 RESOURCES LTD — Regulatory Filings 2018

Apr 23, 2018

ASX Announcement

EXPLORATION UPDATE

Key points

• Drilling started at South Roberts project, Nevada
• Assays received for drilling at Storgroven and Onusberget prospects, Sweden
• Gearing up for summer gold and nickel exploration program in Finland

S2 Resources Ltd ("S2" or the "Company") advises that it has started its first drilling at the South Roberts project in Nevada, has received all assays from recent drilling programs in Sweden, and is preparing for a major summer exploration program in Finland.

South Roberts

Drilling has started on the first of two scheduled holes designed as an initial test of a blind Carlin-style gold target at the Company's South Roberts project in central Nevada, USA, where S2 is earning a 70% interest from TSXV-listed Renaissance Gold.

Previous broad (~1 kilometre) spaced drilling confirmed the presence of favourable stratigraphy, solution collapse breccias and anomalous gold, and also led to the inference of the presence of an anticline – an important trap site for Carlin style gold deposits (see Figure 1).

Recent controlled source audiomagnetotelluric (CSAMT) surveying has confirmed this interpretation, defining a north-south trending anticlinal crest hidden beneath transported gravels (see Figure 2).

Follow up enzyme leach surface geochemical sampling, which is designed to detect mineralization buried beneath transported material, has also identified several anomalous zones of gold and associated Carlin-suite elements broadly coincident with this anticline (see Figure 3).

Each of the two initial holesis planned to a depth of ~400 metres and is designed to test multiple target horizons associated with specific favourable stratigraphic units (see Figure 4) located in the apex of this 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)

Figure 1. Initial interpretation of the South Roberts target based on previous drilling, showing enzyme leach geochemistry and interpreted anticline.

Figure 2. 3D view looking to the northeast showing the position of the drill target (labelled as A and B) at the South Roberts project. The target occupies the apex of an anticline (as shown by the two CSAMT resistivity images) adjacent to an interpreted steep east-dipping fault (the fluid pathway). The entirety is covered by pediment (alluvium and colluvium) as shown by the unresistive (red coloured) horizontal layer in the CSAMT sections.

Figure 3. Gold, arsenic, thallium and antimony anomalism in recent enzyme leach geochemistry. The N-S trend of arsenic and antimony anomalism is interpreted to represent a fault running along the western edge of the anticline axis, to the west of a coincident gold-arsenic-thallium bullseye.

Figure 4. 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.

Drilling is expected to continue for the next month, and assays may take a further month.

Figure 5. View of hole NSRD0001 at South Roberts, looking northwest towards McEwen Mining's Gold Bar operations.

Sweden

Results have now been received for all eight holes drilled as a preliminary test of the Storgroven prospect. Aside from the intercept of 15.7m @ 0.8 g/t gold and 6 g/t silver from 25m downhole in hole SSTG180001 (see ASX announcement of 27 March 2018), no further significant zones of gold mineralization were intersected (see Table 1.1).

No furthersignificant intercepts were returned from drilling at the Nasvattnet prospect (see Table 1.2), and just prior to the end of the Swedish winter drill season, five short holes were drilled at the Onusberget prospect, but no significant intersections were noted (see Table 1.3).

Finland

Planning is underway for a significant summer exploration program comprising:

• A large VTEM survey over an area of the Company's Finnish tenure considered prospective for Sakatti-style copper-nickel-platinum magmatic sulphide mineralization
• An extensive multi-team reconnaissance geochemical campaign over the Company's Finnish tenure considered prospective for lode gold mineralization

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 statement

The information in this report that relates to Exploration Results from Nevada 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 hassufficient 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. The information in this report that relates to Exploration Results from Sweden and Finland is based on information compiled by Andy Thompson, who is an employee and shareholder of the Company. Mr Thompson 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 Thompson consentsto 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.

	Table 1.1 Storgroven prospect
Hole No.	Total Depth	North	East	RL	Dip	Azim	From,m		To, m		Width,m	Zn%	Cu%	Aug/t		Agg/t
SSTG180001	158.2	7223577	716759	282	-60	270	20		21		1	<0.1	<0.1	1.4		4
		and					25		40.7		15.7	<0.1	<0.1	0.8		6
		including					38		40		2	<0.1	<0.1	2.4		15
SSTG180002	192.6	7223578	716800	279	-60	270					NSI
SSTG180003	181.75	7223615	716762	278	-60	270					NSI
SSTG180004	196.35	7223615	716796	276	-60	270					NSI
SSTG180005	100.95	7223698	716740	272	-60	270	10		11.1		1.1	<0.1	<0.1	0.5		9
		and					16.1		17.2		1.1	<0.1	0.2	0.8		5
		and					19.22		19.82		0.6	<0.1	<0.1	0.7		2
		and					45		46		1	<0.1	0.1	0.7		1
		and					51.9		53.3		1.4	<0.1	0.2	0.5		2
SSTG180006	180.95	7223420	716720	288	-60	270					NSI
SSTG180007	127.95	7223420	716760	289	-60	270	14.68		15		0.32	0.1	0.7	1.2		31
		and					97.2		97.62		0.42	0.2	0.2	0.3		119
		and					107.7		108.12		0.42	3.1	0.2	3.2		29
SSTG180008	160.1	7223560	716760	289	-60	270					NSI
Table 1.2 Nasvattnet prospect
Hole No.	TotalDepth	North	East	RL		Dip	Azim		From,m	To,m	Width,m		Zn%	Cu%	Aug/t		Agg/t
SNSV180001	75.9	7213136	583538	447.4		-50	90					NSI
SNSV180002	80	7213144	583582	444.68		-50	90					NSI
SNSV180003	79.5	7213137	583636	441.46		-50	90					NSI
SNSV180004	150	7213143	583687	437.2		-50	90					NSI
SNSV180005	80	7213642	583502	430.87		-50	90					NSI
SNSV180006	80	7213649	583551	428.05		-50	90	NSI
SNSV180007	19	7213651	583597	424.3		-50	90	NSI
SNSV180008	80	7213648	583611	424.3		-50	90	NSI
SNSV180009	67.9	7213496	583948	418.47		-50	90	NSI
Table 1.3 Onusberget prospect
Hole No.	TotalDepth	North	East	RL		Dip	Azim		From,m	To,m	Width,m		Zn%	Cu%	Aug/t		Agg/t
SONU180001	79	7218965	714580	243.7		-55	45					NSI
SONU180002	78.5	7219000	714615	246.8		-55	45					NSI
SONU180003	79.4	7219035	714650	248.8		-55	45					NSI
SONU180004	50	7219386	714196	274.7		-55	45					NSI

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.	Base of Till (BoT) drilling is undertaken by Moreenityo MacklinOy of Sattanen, Finland. Holes are drilled to bedrock or bladerefusal and a 20cm sample is collected at the end of hole forgeochemical analysis and lithological logging.Drilling is undertaken using Arctic Drilling of Rovaniemi, Finlandor by Oy Kati AB of Kalajoki Finland drilling NQ2 rod size with aDDH size of 75.7mm and core size of 50.7mm. NQ2 coresamples are logged and marked up by S2 personnel. Unbiasedcore sample intervals were cut in half by diamond saw with halfcore sent for analysis at ALS Laboratories.All rock grab and rock float samples are collected from outcropby S2 personnel and marked into sample books and arepresentative portion of the sample retained. All areforwarded for analyses by ALS Laboratories.
	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsused	Sampling and QAQC procedures are 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	Diamond drilling was used to obtain core samples that havebeen cut and sampled on intervals that are determined bylithology and mineralisation.The drill core samples are sent to ALS Laboratories for analysesfor gold and base metals. Drill core is sampled at S2's facilitiesin Mala, Sweden.
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).	Base of Till drilling is by a percussion flow through sample bitthat can collect a 20cm sample of bedrock material at the baseof glacial deposits up to 20m thick.Diamond drilling with NQ2 wireline bit producing a 50.7mmdiameter core.
Drill samplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed	BoT samples are visually inspected to assess if they are likely tobe a basement sample or whether the hole has failed to reachbasement due to boulders or excessive cover thickness.DiamondDrillcorerecoveriesarevisuallyestimatedqualitatively 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.
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	No relationship has been seen to exist
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	The logging uses a standard legend developed by S2 which issuitable for wireframing. Exploration holes are notgeotechnically logged but resource holes are.

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	All core has been photographed both dry and wet. Geologicallogging of the diamond drill holes is onto physical log sheetsfollowed by importing into S2's central database
	The total length and percentage of the relevantintersections logged	All drill holes were logged in full.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter,half or all core taken.	Core sawn in half and half core taken.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	Bot samples are dried and sieved at 2mm and the fine fractionsubmitted for assay.The coarse fraction is retained and logged
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	Samples were delivered by S2 personnel to ALS Mineralslaboratory in Mala, Sweden. All samples were forwarded to ALSMinerals Ojebyn, Sweden Laboratory where they are to becrushed with >70% <2mm (code CRU-31), split by riffle splitter(code SPL-21), and pulverised 1000grm to 85% <75 um (codePUL-32). Crushers and pulverizers are washed with QAQC testsundertaken (codes CRU-QC, PUL-QC). The prepared samples areforwarded to ALS Minerals Loughrea, Ireland, for analysis.
	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Full QAQC system in place to determine accuracy and precisionof assays
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.	For DDH's non biased core cutting through using an orientationline marked on core and cut to the line
	Whether sample sizes are appropriate to the grainsize of the material being sampled.	Samples of appropriate size
Quality of assay dataand laboratory tests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	All samples were analysed by ALS Minerals Loughrea, Ireland.Samples analysed for gold undergo a 50g fire assay with AA finish(code Au-AA26). Samples analysed for Ag, As, Bi, Ca, Cd, Cu, Fe,Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl & Zn undergo an oxidisingdigestion with ICP-AES Finish (code ME-ICPORE).
	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.
	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.	Full QAQC system in place including Certified Standards andblanks of appropriate matrix and levels
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	Andy Thompson has personally inspected all drill cores and rocksamples.
	The use of twinned holes.	A second BoT hole was drilled within 3m of the initial high valuesample that returned 1.1g/t gold at Storgroven to assess therepeatability of the sample. The repeated BoT hole returned2.2g/t gold in a similar lithology.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary sampling data is collected in a set of standard Exceltemplates. The information is managed by S2's databasemanager for validation and compilation into S2's centraldatabase.

Criteria	JORC Code explanation	Commentary
	Discuss any adjustment to assay data.	No adjustments made
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.	BoT collars were located with a handheld GPS with an accuracyof within 3 metres.
	Specification of the grid system used.	The grid system used is the Standard Swedish National Grid –SWEREF 99 TM unless otherwise stated.
	Quality and adequacy of topographic control.	Excellent quality topographic maps produced by the SwedishAuthorities - Landmateriat
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Drill holes are BoT geochemical samples at this stage and drilledto define geochemical and geophysical targets. No set spacing ofdrillholes at this stage.
	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.	Data spacing and distribution is not sufficient at this stage toallow the estimation of mineral resources.
	Whether sample compositing has been applied.	No sample compositing has been applied
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.	Drillhole orientation is designed to test geophysical targets andis not necessarily drilled perpendicular to the orientation of theintersected mineralisation.
	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.	The drilling at this stage is preliminary and exploratory. It is notpossible to assess if any sample bias has occurred due to holeorientation at this stage.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 personnel. Drill samples andcore is visually checked at the drill rig and then transported toS2's logging and cutting facilities by S2 personnel for logging,cutting and sampling. Bagged samples are transferred to ALSLaboratories in Malå, Sweden by S2 personnel.
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 Storgroven prospect is located within the Petitrask 402Exploration Licence.The exploration licences are 100% owned by S2 Sverige AB, aSwedish registered 100% owned subsidiary of S2.
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	All of the Exploration Licences are in good standing and noknown impediments exist on the tenements being activelyexplored.

Criteria	JORC Code explanation	Commentary
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	Storgroven is approximately 500m north of an historic VMSprospect named Aliden that was trenched in the 1930's anddrilled by Boliden in 1969 by a total of 20 holes. The drillholecollars at Aliden have been GPS located and are 450m south ofthe Storgroven anomaly. Assay and collar information ofhistoric drilling with significant intersection is tabulated in themain text.Two historic Boliden holes were drilled close to the Storgrovensoil anomaly, these collars have not been field verified. TheBoliden historic holes have not been sighted but the data hasbeen assessed and is considered of an excellent standard albeitto standards of a major mining and processing company duringthe 1960's rather than contemporary JORC standards.Minor historic trenching has been located 500m south east.
Geology	Deposit type, geological setting and style ofmineralisation.	The area occupies the central portion of the Skellefte Belt, aproductive base and precious metal mining district dominatedby bimodal volcanics, primarily felsic in composition.The mineralisation style is structurally remobilised volcanogenicmassive sulphide style mineralisation within greenschist grademetamorphic rocks.
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 sample plans in text.
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 intersections of drilling undertaken by S2 have beenlength weighted and density weighted.A nominal 0.5g/t Au, 1% Zn or 0.5% Cu lower cut-off is used fordiamond drill intersections (unless otherwise stated inpolymetallic intersections).
	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 intervals internal to broader zones of mineralisationare reported as included intervals.
	The assumptions used for any reporting of metalequivalent values should be clearly stated.	None used.
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 trend of mineralisation at the targets/prospects described isnot known at present. Planned diamond drilling will determinethis.Refer to figures in body of text.

Criteria	JORC Code explanation	Commentary
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.	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.	All results considered significant are reported.
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.	Geological mapping by Dr Tobias Bauer of Lulea University hasbeen used to help determine the prospective sediment /volcanic contact and cross faults.
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	Drilling at Storgroven is possible in winter and summer. Resultsfrom all 8 holes will be assessed and further drilling testing ofplunge extensions and EM plates planned if appropriate.