S2 RESOURCES LTD — Regulatory Filings 2019

Sep 25, 2019

ASX Announcement

th September 2019

Thursday 26

VERY ENCOURAGING RESULTS FROM EARLY DRILLING AT FINNISH GOLD PROSPECTS

Key points, Aarnivalkea:

• Phase 2 reconnaissance drilling defines a 200 metre long northwest striking mineralised zone open along strike and at depth within a broader anomalous north-south corridor, also open
• Latest intercepts include 13.97 metres @ 1.8 g/t gold (including 0.6m @ 30.7 g/t gold) in FAVD0039, and 2.01 metres @ 18.4 g/t gold (including 1.01 metres @ 36.2g/t gold) and 6.46 metres @ 2.0 g/t gold in FAVD0040 on northernmost line
• Best intercepts on northernmost line suggesting mineralisation is improving to the northwest, with drilling underway to the north
• Drilling is identifying multiple parallel lodes, a very encouraging sign of a potentially large system
• Another base of till (BOT) gold anomaly also identified 3 kilometres to southeast
• Drilling ongoing and more assays awaited

Key points, Aakenusvaara:

• Historic drilling replicated with intercept of 11.62 metres @ 3.8g/t gold in FAKD0001
• Best intercept of 2.11 metres @ 86.0 g/t gold (FAKD0002), located 50 metres down dip from this and open at depth
• Other intercepts include 16.6 metres @ 2.0g/t gold in FAKD0009
• Variable grade gold mineralisation intersected in initial drilling and high variability in assays due to nuggety gold, addressed using screen fire assays
• Follow up drilling being planned

S2 Resources Ltd ("S2" or the "Company") advises that it has received more assay results from early stage drilling at its 100% owned Aarnivalkea and Aakenusvaara gold prospects in Finland. At Aarnivalkea, the second phase of reconnaissance diamond drilling has now defined a 200 metre long northwest striking zone of gold mineralisation that remains open along strike and at depth, within a broader north-south trending gold anomalous corridor. Extensional base of till (BOT) drilling has also identified a new gold anomaly to the southeast of this.

At Aakenusvaara, the first phase of diamond drilling has defined a variably mineralised zone with both high and low grade intercepts containing nuggety gold mineralisation.

Aarnivalkea

The gold mineralised trend at Aarnivalkea was discovered by S2 in a previously unrecognised and unexplored area using a systematic regional targeting approach comprising sequential ionic leach geochemistry, geophysics and BOT drilling. The extensive BOT gold anomaly is now being diamond drilled on a wide-spaced reconnaissance grid. The first phase of reconnaissance diamond drilling defined multiple zones of shearing, alteration and gold anomalism in bedrock beneath the BOT anomaly.

The second phase is aimed at continuing to expand the coverage of this anomaly and tighten up drill spacing to delineate specific zones within the broader anomaly. Results have now been received for the first ten holes of the second phase of reconnaissance drilling.

The new results continue to demonstrate the presence of widespread bedrock gold anomalism along the entire corridor, to define multiple parallel mineralised structures, and have now zeroed in on a discrete 200-metre long northwest striking gold mineralised zone within this.

This zone has now been intersected over a strike length of 200 metres on three separate 80 metre spaced drill lines (see Figures 1-4) and is open along strike and at depth, with the best intercepts being on the northernmost line, and also in the deeper holes, which are still only relatively shallow (<100 metres below surface) so there is considerable untested depth and strike potential. Mineralisation starts at a depth of approximately 5 metres immediately beneath the glacial clay cover.

Additionally, the presence of multiple parallel lodes is a very encouraging sign of a potentially large system.

These results are significantly better than expected given that the program isstill only part way through the second stage of three planned phases of reconnaissance-style drilling; that the drilling to date is very broad spaced and shallow; and that this is the first drilling in an entirely new area. They are, however, entirely consistent with the Company's view on the intrinsic prospectivity and lack of prior effective exploration in this region, and the opportunities available to companies prepared to pursue a long term systematic exploration approach.

Some of the latest intercepts from the three central sections are summarised below:

Section 7551760mN (southernmost line):

• 9.91 metres @ 1.8 g/t gold from 74.02 metres, including 0.5 metres @ 16.5 g/t gold from 83 metres in FAVD0034

Section 7551840mN (central line):

• 3 metres @ 3.0 g/t gold from 103 metres (including 1 metre @ 6.9 g/t gold from 103 metres) in FAVD0014, located 50 metres down dip from the previous intercept of 6 metres @ 5.4g/t gold in FAVD0015

Section 7551920mN (northernmost line):

• 2.01 metres @ 18.4 g/t gold from 41.49 metres (including 1.01 metres @ 36.2 g/t gold from 41.9 metres), 6.46 metres @ 2.0 g/t gold from 47.29 metres (including 1.0 metre @ 7.6 g/t gold from 50 metres), and 3.96 metres @ 1.5g/t gold from 58.72 metres in FAVD0040
• 13.97 metres @ 1.8 g/t gold from 64.63 metres (including 0.6 metres @ 30.7 g/t gold from 76 metres) in FAVD0039, located 40 metres down dip from the intercepts in FAVD0040

The mineralised zone is hosted within strongly sheared and altered basalt at a contact with strongly sheared porphyry. The gold mineralisation is associated with intense albite-sericite-carbonate alteration, with abundant disseminated arsenopyrite and multi-generational deformed quartz veining (see Figure 5).

The Company is continuing to expand its overall first pass diamond drilling coverage of thistrend whilst also following up specific hotspots with more detailed drilling in order to ensure it is able to identify and focus on the best parts. Other intercepts of note from elsewhere in the corridor include:

• 0.95 metres @ 2.8 g/t gold form 56.05 metres in FAVD0023
• 9.5 metres @ 0.8 g/t gold from 82 metres (including 1.45 metres @ 4.1 g/t gold from 85.18 metres) in FAVD0031
• 2.21 metres @ 2.9 g/t gold from 16.53 metres in FAVD0037

Assay results are still awaited from a further seven holes already drilled and drilling is ongoing. The program will continue into the winter to allow additional holes to be drilled in those areas difficult to access in the summer. Other than a small component of swampy areas, which can only be accessed during the winter freeze, the prospect is readily accessible all year round.

Figure 1. Plan projection of drilling at Aarnivalkea,showing location of diamond drillholes, key sections, and northweststriking mineralised zone.

Figure 2. Cross section 7,551,760mN at Aarnivalkea. New intersections are shown as blue labels.

Figure 3. Cross section 7,551,840mN at Aarnivalkea. New intersections are shown as blue labels.

Figure 4. Cross section 7,551,920mN at Aarnivalkea. New intersections are shown as blue labels.

Figure 5. Photographs of core from the mineralised zone showing strongly sheared and albite-sericite-carbonate altered basalt with disseminated arsenopyrite and multi-generational quartz veining. Top photo is from 76.0-76.6 metres in FAVD0039 and bottom photo is from 50.0-50.2 metres in FAVD0040.

Meanwhile, additional regional base of till (BOT) drilling, undertaken to extend the initial BOT anomalous corridor, has defined a new gold anomaly 3 kilometres to the southeast of this zone (see

Figure 6). The anomaly has been defined on two consecutive lines, spaced 400 metres apart, and remains open to the north and south. This will also be drilled as part of the ongoing program.

Figure 6. Plan of overall BOT anomaly corridor showing location of Aarnivalkea prospect within it and new BOT anomalous area to the southeast.

Aakenusvaara

S2 has received results for all diamond holes drilled at the Aakenusvaara prospect. One hole was drilled to verify a reported historical intercept of 11 metres @ 9.6g/t gold, and the remaining holes were drilled on nominal 40 metre centres to assess the down dip and strike potential.

The verification hole replicated the historical intercept within the expected margins and the step-out holes returned mixed results, with the deepest hole intersecting very high grade mineralisation and the balance intersecting lower grade material (see Figure 7). Key intercepts are summarised below:

• 11.62 metres @ 3.8 g/t gold from 94 metres (including 1.38 metres @ 28.9 g/t gold form 104.24 metres) in FAKD0001
• 2.11 metres @ 86.0 g/t gold form 139 metres (including 0.71 metres @ 254 g/t gold from 140 metres) in FAKD0002
• 14.7 metres @ 2.3 g/t gold from 10.4 metres (including 1.6 metres @ 12.2 g/t gold from 10.4 metres) in FAKD0009

Figure 7. Long projection of Aakenusvaara gold prospect showing drillhole pierce points and intercepts.

The highest grade intercept of 2.11 metres @ 86.0 g/t gold is located 50 metres down dip from the verification hole. It is also the deepest hole and the mineralised zone remains open down dip and either side of this (see Figure 7).

A high degree of variability between repeat assays was noticed, which is often an indicator of coarse grained nuggety gold, so several intercepts were re-assayed using the screen fire assay technique in order to obtain more reliable and representative results. Preliminary testwork on selected intervals has confirmed the presence of coarse gold and additional samples have been submitted to better quantify the magnitude of coarse gold in the system.

Assay results for the additional screen fire assay repeats are expected over the next few weeks. Follow up drilling at Aakenusvaara will continue as and when priorities at Aarnivalkea permit. Part of the Aakenusvaara tenement has an environmental exclusion zone with restricted access in spring/early summer, and part is within a recreational planning zone that has various development restrictions, so the extent and timing of future drilling will also be undertaken in accord with these considerations.

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 Finland is based on information compiled by Mr 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.

Table 1. Details of all diamond holes completed at Paana central lease (including Aarnivalkea) in 2019 by S2. Note Holes marked with an asterisk* have preliminary results only; NSI – No significant Intercept; and AWR – awaiting results.

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
FAVD0001	418381	7552400	245	-60	270	95.2	16.08	16.71	0.63	2.0
and								27.00	3.34	1.3
including							23.66	24.36	0.70	4.6
FAVD0002	418341	7552401	244	-60	270	92.8	87.00	88.00	1.00	1.7
FAVD0003	418301	7552399	244	-60	270	83.8			NSI
FAVD0004	418260	7552400	243	-60	270	80.0	21.31	22.19	0.88	1.2
and							62.77	64.19	1.42	0.7
FAVD0005	418221	7552399	243	-60	270	47.8	16.00	17.70	1.70	2.0
FAVD0006	418261	7552400	244	-60	90	100.0	87.00	97.00	10.00	1.0

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
including							90.00	91.00	1.00	3.6
FAVD0007	418420	7552396	246	-60	270	104.6	32.00	34.00	2.00	0.8
and								64.60	1.80	1.1
including								63.70	0.90	3.3
and								79.30	4.30	0.4
and							88.00	91.00	3.00	0.5
FAVD0008	418210	7551521	239	-60	270	80.4	25.50	27.80	2.30	0.4
and								65.00	1.00	3.0
FAVD0009	418170	7551521	240	-60	270	71.3			NSI
FAVD0010	418131	7551521	240	-60	270	80.6	65.00	71.30	6.30	1.1
FAVD0011	418226	7551441	239	-60	270	81.0	66.00	69.00	3.00	0.6
FAVD0012	418260	7551840	242	-60	270	77.4	35.00	36.05	1.05	2.0
and							42.00	47.50	5.50	2.0
Including							43.41	44.13	0.72	6.7
Including							46.50	47.50	1.00	5.3
And							59.90	62.00	2.10	1.6
FAVD0013	418221	7551841	242	-60	270	77.9	65.28	67.44	2.16	1.9
FAVD0014*	418178	7551841	241	-60	270	165.0	56.16	68.00	11.84	0.5
And							71.50	72.50	1.00	1.0
And							103.00	106.00	3.00	3.0
Including							103.00	104.00	1.00	6.9
And							114.70	120.70	6.00	0.8
FAVD0015	418140	7551841	241	-60	270	89.7	12.21	21.00	8.79	0.3
And							25.00	38.00	13.00	0.3
And							59.00	65.00	6.00	5.4
Including							61.00	65.00	4.00	7.8
And							73.99	78.75	4.76	0.4
FAVD0016	418104	7551842	240	-60	270	89.6	45.00	48.00	3.00	0.4
FAVD0017	418380	7552160	250	-60	270	86.8	71.00	73.00	2.00	0.5
FAVD0018	418340	7552162	250	-60	270	89.8	5.60	9.00	3.40	0.3
And							19.00	22.26	3.26	0.3
FAVD0019	418302	7552161	249	-60	270	89.6	24.00	26.00	2.00	0.4
And							75.94	79.53	3.59	0.3
FAVD0020	418260	7552161	249	-60	270	89.8	5.10	12.48	7.38	0.7
And							18.63	48.00	29.37	0.3
FAVD0021	418221	7552163	249	-60	270	89.8			NSI
FAVD0022	418181	7552164	247	-60	270	89.6	54.90	56.00	1.10	1.2
And							71.60	73.00	1.40	0.7

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
FAVD0023	418142	7552165	247	-60	270	89.3	56.05	57.00	0.95	2.8
And							59.15	60.00	0.85	1.1
FAVD0024	4180617552160244-6027098.8								NSI
FAVD0025	418002	7552162	241	-60	270	98.8	96.80	98.80	2.00	0.4
FAVD0026	418461	7552396	246	-60	270	145.9	57.00	61.00	4.00	0.3
And			77.47	78.49	1.02	1.9
And			81.00	84.00	3.00	1.1
And			86.98	88.90	1.92	2.0
And								107.42	1.73	1.1
And							117.58	134.92	17.34	0.4
FAVD0027	418480	7552719	243	-60	270	89.7			NSI
FAVD0028	418440	7552720	242	-60	270	89.8			NSI
FAVD0029	418401	7552721	242	-60	270	89.9			NSI
FAVD0030	418360	7552721	242	-60	270	68.9	47.90	50.90	3.00	1.3
FAVD0031	418300	7551840	242	-60	270	150.0	82.00	91.50	9.50	0.8
Including								86.63	1.45	4.1
And								126.80	3.17	0.9
And							137.68	146.00	8.32	0.4
FPAD0001	419580	7553800	251	-60	270	83.7		NSI
FAVD0032*	418300	7551760	239	-60	270	110.0	79.50	81.09	1.59	0.6
FAVD0033*	418260	7551760	239	-60	270	110.9	66.00	68.00	2.00	3.4
							77.00	80.00	3.00	0.4
							97.00	100.91	3.91	0.3
FAVD0034*	418220	7551760	239	-60	270	110.6	16.00	20.00	4.00	0.4
And							63.00	63.88	0.88	2.1
And							67.00	69.00	2.00	0.5
And							74.02	83.93	9.91	1.8
Including							83.00	83.50	0.50	16.5
And							86.50	87.53	1.03	4.2
And							108.00	110.00	2.00	2.4
FAVD0035*	418300	7551920	244	-60	270	111.0	30.00	44.30	14.30	0.4
And							75.00	76.38	1.38	0.9
FAVD0036*	418260	7551920	244	-60	270	110.6	56.00	61.00	5.00	0.3
FAVD0037*	418220	7551920	243	-60	270	110.3	16.53	18.74	2.21	2.9
And							76.00	82.00	6.00	0.2
FAVD0038*	418180	7551920	243	-60	270	110.7			NSI
FAVD0039*	418140	7551920	243	-60	270	110.9	64.63	78.60	13.97	1.8
Including							76.00	76.60	0.60	30.7

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
And							94.47	97.85	3.38	0.4
FAVD0040*	418100	7551920	243	-60	270	110.7	17.60	20.20	2.60	0.7
And								33.67	1.47	1.2
And								43.50	2.01	18.4
Including							41.49	42.50	1.01	36.2
And								53.75	6.46	2.0
Including							50.00	51.00	1.00	7.6
And							58.75	62.71	3.96	1.5
FAVD0041*	418060	7551920	243	-60	270	110.7	5.90	8.00	2.10	0.3
FAVD0042*	418340	7552000	246	-60	270	110.4	87.00	91.00	4.00	0.3
FAVD0043	418300	7552000	246	-60	270	110.5		AWR
FAVD0044*	418260	7552000	246	-60	270	110.3	16.00	22.00	6.00	0.2
And							66.00	70.00	4.00	0.7
FAVD0045*	418220	7552000	246	-60	270	110.4	74.23	76.00	1.77	0.7
FAVD0046	418180	7552000	246	-60	270	111.0		AWR
FAVD0047	418140	7552000	245	-60	270	110.9		AWR
FAVD0048	418100	7552000	244	-60	270	110.8		AWR
FAVD0048	418100	7552000	244	-60	270	110.8		AWR
FAVD0049	418060	7552000	244	-60	270	110.4		AWR
FAVD0050	418120	7552080	244	-60	270	110.3	AWR
FAVD0051	418080	7552080	244	-60	270				In progress

Table 2. Details of holes completed at Aakenusvaara by S2 together with re-assayed historic holes drilled by Outokumpu. Holes marked with an asterisk* have preliminary results only.

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
FAKD0001	394134	7520878	278	-62	180	161.2	4.80	7.99	3.19	0.4
and								27.75	7.71	0.4
and								48.36	1.36	7.2
and								62	6.52	1.6
including								56.41	0.93	9.1
						and	87.37	90	2.63	6.1
						including	87.37	88.02	0.65	23.7
						and	94.00	105.62	11.62	3.8
						including	104.24	105.62	1.38	28.9
						and	123.00	125.49	2.49	1.6
FAKD0002	394132	7520923	277	-60	180	191.9	39.50	50	10.5	0.6*
						and	91.00	97	6	1.1

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
and								107	2	0.6
and								141.11	2.11	86.0
including								140.71	0.71	254
and								160	1	0.6
and								178.48	1.91	1.8
FAKD0003	394214	7520855	278	-60	180	132.4	25.85	27.40	1.55	3.6
including							25.85	26.35	0.50	9.7
and								117.97	3.97	0.7
FAKD0004	394214	7520815	280	-60	180	111.1	68.09	71.00	2.91	1.6
including								69.16	0.52	5.5
FAKD0005*	394214	7520895	276	-60	180	179.4	18.80	26.80	8.00	0.2
						and	126.00	140.00	14.00	0.3
FAKD0006	394175	7520807	281	-60	180	91.9	41.00	42.90	1.90	2.4
						and	54.00	58.00	4.00	0.3
FAKD0007	394254	7520855	277	-60	180	172.7	57.00	64.80	7.80	0.5
						and	121.53	122.70	1.17	1.1
						and	124.90	128.70	3.80	0.3
FAKD0008*	394254	7520815	279	-60	180	123.4	29.10	31	1.90	0.5
						and	88.40	92.4	4.00	0.6
FAKD0009*	394175	7520760	282	-60	180	65.0	10.40	25.1	14.70	2.3
						including	10.40	12	1.60	12.2
						and	41.30	48.3	7.00	0.4
AAV-10	394177	7520790	282	-50	183	62.4	35.80	41.00	5.20	8.4
						including	39.25	41.00	1.75	23.03
AAV-11	394179	7520845	280	-55	183	82.5	74.50	77.70	3.20	3.14
AAV-27	394173	7520748	282	-57	183	72.9	22.20	28.30	6.10	1.78

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

Aarnivalkea

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 MK Drilling of Ranua, Finlanddrilling NQ2 rod size with a DDH size of 75.7mm and core sizeof 50.7mm. NQ2 core samples are logged and marked up by S2personnel. Unbiased core sample intervals were cut in half bydiamond saw with half core sent for preparation and analysis atALS 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 Kittila, Finland.
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.Diamond Drill core recoveries are recorded by the driller andwritten on core block markers. The exact recovery is thenrecorded on a metre basis after core mark-up and recorded inthe 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.

SECTION 1 SAMPLING TECHNIQUES AND DATA

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.	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 implicit wireframing. All diamond holes aregeotechnically and structurally logged.
	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 into tough books usingstandardised codes and templates. These logs are then importedinto 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 for assay.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	Bot samples are dried and sieved with 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 Sodankyla, Finland, where they are crushed with>70% <2mm (code CRU-31), split by riffle splitter (code SPL-21),and pulverised 1000grm to 85% <75 um (code PUL-32). Crushersand pulverizers are washed with QAQC tests undertaken (codesCRU-QC, PUL-QC). The prepared samples are forwarded to ALSMinerals 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.BoT samples analysed for gold undergo a 25g aqua regiadigestion with ICP-MS finish (code Au-TL43). Samples analysedfor Ag, As, Bi, Ca, Cd, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl& Zn undergo an aqua regia digestion with ICP-AES Finish (codeME-ICP41).Core samples analysed for gold undergo a 50g fire assay with AAfinish (code Au-AA26). Selected samples are analysed for Ag, As,Bi, Ca, Cd, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl & Znundergo an oxidising digestion with ICP-AES Finish (code MEICPORE).
	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.

Criteria	JORC Code explanation	Commentary
	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.	all significant intercepts have been verified by senior S2exploration personnel, including verifying against drill logging,core photos and/or direct visual inspection of drill core.
	The use of twinned holes.	No twinned diamond holes have been drilled at Arnievalkea
	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.
	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.Diamond drill collars are pegged using a Trimble DGPS to +/-1m accuracy. Drill rigs are aligned to Grid west using StandardFinnish National Grid ETRS-TM35FIN. The holes are downholesurveyed using a Deviflex tool.
	Specification of the grid system used.	The grid system used is the Standard Finnish National GridETRS-TM35FIN.
	Quality and adequacy of topographic control.	Elevation data for all collars is determined by a digital elevationmodel derived from public domain 2m Lidar data. Topographiccontrol and map data is excellent.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	BoT geochemical samples are drilled at 400m by 20m for initialreconnaissance and 100m by 10m for detailed infill.Diamond drilling is currently being drilled on 320m x 40mspacing's over the geochemical anomaly to scope out thebasement stratigraphy and structure and will be progressivelyinfilled to 80m x 40m with deeper holes as deemed appropriate.
	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 intersect the mineralisedpackage of rocks and be perpendicular to shearing andmineralisation. Structural measurements from orientated coreindicate that the main fabric and contacts are dipping steeply tothe east and hence holes collared at -60dip 270deg azimuth areappropriate.
	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 drillholeorientation 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 Sodankyla, Finland 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.

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 Aarnivalkea prospect is located within the Paana CentralExploration Licence. ML2018:0081The exploration licences are 100% owned by SakumpuExploration Oy, a Finnish registered 100% owned subsidiary ofS2
	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.
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	The Aarnivalkea prospect is a greenfield discovery with historicBoT holes drilled in the region by Outukumpu not having beenassayed for gold.
Geology	Deposit type, geological setting and style ofmineralisation.	The prospect is a shear zone hosted orogenic gold deposit withinthe Kittila Group of the Paleoproterozoic Central LaplandGreenstone belt.The primary host rocks include altered and sheared basalt,dacites and sedimentsAlteration assemblages include albite, sericite, carbonate,chlorite with disseminated pyrite, pyrrhotite and arsenopyrite.
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.A nominal 0.2g/t lower cut-off is used for the reconnaissancediamond drill intersections. No top cut has been applied.
	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 isestimated to be dipping steeply to the east at approximately 75to 80 deg.Refer to figures in body of text.

SECTION 2 REPORTING OF EXPLORATION RESULTS

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.	None at present
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	BoT drilling will continue where ground is accessible throughoutsummer. This will initially focus immediately south and southwest of Arnievalkea where the geochemical anomaly is stillopen.Diamond drilling is currently being drilled on 320m x 40mspacing's over the geochemical anomaly to scope out thebasement stratigraphy and structure and will be progressivelyinfilled to 80m x 40m with deeper holes as deemed appropriate.A detailed airborne magnetic survey is planned so as tocomplement infill the current excellent but more regional data.Infill gravity over the Paana tenements is also being planned.

Aakenusvaara

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.	Drilling is undertaken using MK Drilling of Ranua, Finlanddrilling NQ2 rod size with a DDH size of 75.7mm and core sizeof 50.7mm. NQ2 core samples are logged and marked up by S2personnel. Unbiased core sample intervals were cut in half bydiamond saw with half core sent for preparation and analysis atALS 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.

Criteria	JORC Code explanation	Commentary
	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 Kittila, Finland.
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).	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	Diamond Drill core recoveries are recorded by the driller andwritten on core block markers. The exact recovery is thenrecorded on a metre basis after core mark-up and recorded inthe 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 implicit wireframing. All diamond holes aregeotechnically and structurally logged.
	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 into tough books usingstandardised codes and templates. These logs are then importedinto 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 for assay.
	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.	Bot samples are dried and sieved with 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 Sodankyla, Finland, where they are crushed with>70% <2mm (code CRU-31), split by riffle splitter (code SPL-21),and pulverised 1000grm to 85% <75 um (code PUL-32). Crushersand pulverizers are washed with QAQC tests undertaken (codesCRU-QC, PUL-QC). The prepared samples are forwarded to ALSMinerals 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

Criteria	JORC Code explanation	Commentary
	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.Core samples analysed for gold undergo a 50g fire assay with AAfinish (code Au-AA26). Selected samples are analysed for Ag, As,Bi, Ca, Cd, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl & Znundergo an oxidising digestion with ICP-AES Finish (code MEICPORE).
	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.	All significant intercepts have been verified by senior S2exploration personnel, including verifying against drill logging,core photos and/or direct visual inspection of drill core.
	The use of twinned holes.	FAKD0001 was designed to replicate historical drill holeAAV0003 to confirm historically reported intersection. Resultsof FAKD0001 confirmed the widths and general grades (allowingfor natural variation for gold mineralisation)
	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.
	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.	Diamond drill collars are pegged using a Trimble DGPS to +/-1m accuracy. Drill rigs are aligned to Grid west using StandardFinnish National Grid ETRS-TM35FIN. The holes are downholesurveyed using a Deviflex tool.
	Specification of the grid system used.	The grid system used is the Standard Finnish National GridETRS-TM35FIN.
	Quality and adequacy of topographic control.	Elevation data for all collars is determined by a digital elevationmodel derived from public domain 2m Lidar data. Topographiccontrol and map data is excellent.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Diamond drilling is currently being drilled on a nominal 40m x40m spacing's over the geochemical anomaly to scope out thebasement stratigraphy and structure and will be progressivelyinfilled to 80m x 40m with deeper holes as deemed appropriate.
	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

Criteria	JORC Code explanation	Commentary
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 intersect the mineralisedpackage of rocks and be perpendicular to shearing andmineralisation. Structural measurements from orientated coreindicate that the main fabric and contacts are dipping steeply tothe north and hence holes collared at -60dip 180deg azimuth areappropriate.
	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 drillholeorientation 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 Sodankyla, Finland 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 Aakenusvaara prospect is located within the AakenusvaaraExploration Licence. ML2018:0105-01The exploration licences are 100% owned by SakumpuExploration Oy, a Finnish registered 100% owned subsidiary ofS2
	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.Part of the Aakenusvaara tenement has an environmentalexclusion zone with restricted access in spring/early summer.Aakenusvaara tenement is within a recreational planning zonethat has various development restrictions.
Exploration done byother parties	Acknowledgment and appraisal of exploration byother parties.	The Aakenusvaara is a historic prospect discovered byOutokumpu Oy using BoT drilling along the Sirkka Shear zone in1984.The multiple high grade (up to 50g/t) till anomalies were testedby predominantly shallow diamond holes with several goldbearing zones intersected. Drilling was relatively limited inwhat appears to be the main plane of continuity and betterintersections were not followed up.Follow up drilling was restricted to shallow RC drilling to "test"the method on a known occurrence.
Geology	Deposit type, geological setting and style ofmineralisation.	The prospect is a shear zone hosted orogenic gold deposit withinthe Sirkka shear zone of the Paleoproterozoic Central LaplandGreenstone belt.Alteration assemblages include albite, sericite, carbonate,chlorite with disseminated pyrite, pyrrhotite and arsenopyrite.

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 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.A nominal 0.2g/t lower cut-off is used for diamond drillintersections. No top cut has been applied.
	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 isestimated to be dipping to the north at approximately 50 deg.Refer to figures in body of text.
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.	None at present

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	Currently awaiting results of screen fire assay before any followup drilling is to be planned.