S2 RESOURCES LTD — Regulatory Filings 2021

Oct 10, 2021

ASX Announcement

FURTHER HIGH GRADE INTERCEPTS AT AARNIVALKEA

Key Points

• Further assays received for ongoing diamond drilling at the Aarnivalkea (Aarni') prospect with multiple high grade gold intercepts in hole FAVD0071 including:
  • o 18.8 metres at 2.5g/t gold, including 7.9 metres at 5.2g/t gold
  • o 8.2 metres at 3.6g/t gold, including 2.5 metres at 11.2g/t gold
  • o 2.0 metres at 20.4g/t gold, including 1.2 metres at 32.3g/t gold
• FAVD0071 mineralisation located 112 metres south of the previously reported high grade intercept of 6.8 metres at 11.8g/t gold in hole FAVD0062
• The intercept of 8.2 metres at 3.6g/t gold sits within a very broad, 48 metre zone averaging 1.0g/t gold
• Aarni' mineralisation remains open and unconstrained with only 11 deeper holes completed over a 1.3 kilometre strike. Diamond drilling is ongoing with hole FAVD0074 currently being drilled 40 metres southeast of hole FAVD0062.

S2 Resources Ltd ("S2" or the "Company") has received further assay results for ongoing diamond drilling at its 100% owned Aarnivalkea ("Aarni'") prospect in the Central Lapland Greenstone Belt ("CLGB") in northern Finland. The current program comprises very broad spaced scout drilling beneath a 1.3 kilometre gold anomaly identified in previous shallow diamond drilling (Figure 1). Three intervals or sub-intervals of high grade mineralisation (using a nominal 1.0g/t gold cut-off) were intercepted in hole FAVD0071 (see Figure 2), which include:

• 18.8 metres at 2.5g/t gold from 173.4 metres, including 7.9 metres at 5.2g/t gold from 173.4 metres, including 1.4 metres at 14.0g/t gold from 175.6 metres, and
• 8.2 metres at 3.6g/t gold from 253.9 metres, including 2.5 metres at 11.2g/t gold from 255.8 metres, including 0.8 metres at 32.2g/t gold from 255.8 metres, and
• 2.0 metres at 20.4g/t gold from 323.0 metres, including 1.2 metres at 32.3g/t gold from 323 metres

Mineralisation in hole FAVD0071 is located 112 metres south of an intercept of 6.8 metres at 11.8g/t gold in hole FAVD0062 (Figure 3) and 125m north of hole FAVD0065 with intercepts of 5.8 metres at 2.7g/t gold and 5.6 metres at 3.1g/t gold (Figure 4). The 8.2 metres at 3.6g/t gold in hole FAVD0071 sits at the base of a broad, 48 metres zone of lower grade mineralisation averaging 1.0g/t gold.

Assay results were also received for holes FAVD0067 to FAVD0070 with better intercepts listed below. No significant intercepts were recorded in hole FAVD0072 located at the southernmost end of the target area and assays are awaited for hole FAVD0073.

Hole FAVD0067

• 1.0 metre at 1.9g/t gold from 242.0 metres

Hole FAVD0068

• 0.5 metre at 4.0g/t gold from 70.6 metres

Hole FAVD0069 (see Figure 3)

• 2.7 metres at 1.2g/t gold from 257.5 metres, and
• 0.3 metre at 17.0g/t gold from 335.3 metres, and
• 1.5 metres at 1.1g/t gold from 437.0 metres, and
• 2.2 metres at 2.7g/t gold from 478.0 metres, including 1.2 metres at 4.3g/t gold

Hole FAVD0070

• 1.0 metre at 2.8g/t gold from 128.0 metres, and
• 1.0 metre at 1.6g/t gold from 253.5 metres

Aarni' mineralisation open in all directions

In broad spaced scout drilling, based on roughly 100 metre spaced lines over a 1.3 kilometre strike, Aarni' mineralisation remains unconstrained and open in every direction. A zone of higher grade mineralisation is clearly emerging in and around holes FAVD0062, FAVD0065 and FAVD0071, which currently extends over a 200 metre strike and is open to the north and south. While S2's understanding of the controls on gold mineralisation is evolving, the higher grade zone may represent a moderate southerly plunging body. What the current program of deeper drilling is defining is very wide lenses of stacked gold anomalism (grading 0.2g/t to 1.0g/t gold), which in several areas has concentrated into zones grading over 10g/t gold.

Diamond drilling is ongoing with the current hole (FAVD0074) being drilling roughly 40 metres southeast of hole FAVD0062 (see Figure 3).

Figure 1. Long projection of the Aarnivalkea prospect showing recently assayed holes (blue), the target zone for the ongoing drilling program (pink) and selected intercepts from previous diamond drilling (white labels). Intercept grades are quoted as g/t Au.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E admin@s2resources.com.au W www.s2resources.com.au

Figure 2. Cross section through 7551760Mn showing multiple zones of high grade mineralisation in hole FAVD0071 (blue labels) and previously reported intercepts (white).

Figure 3. Cross section through 7551840Mn showing high grade gold mineralisation in previously reported drill hole FAVD0062 (see S2 ASX announcement date 8 th December 2020) and newly reported hole FAVD0069, including recent intercepts (blue labels) and the planned trace for hole FAVD0074, currently in progress.

Figure 4. Cross section through 7551660Mn showing gold mineralisation in previously reported drill holes FAVD0061 and FAVD0065 (see S2 ASX announcements date 8 th December 2020 and 9 th September 2021). Note there is no shallow drilling above holes FAVD0061 and FAVD0065 due to swampy ground conditions.

This announcement has been provided to the ASX under the authorisation of Mark Bennett, Executive Chairman.

For further information, please contact:

Matthew Keane	Mark Bennett
Chief Executive Officer	Executive Chairman
+61 8 6166 0240	+61 8 6166 0240

Past Exploration results reported in this announcement have been previously prepared and disclosed by S2 Resources Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement. Refer to www.s2resources.com.au for details on past exploration results.

Competent Persons statements

The information in this report that relates to Exploration Results 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 mineralisation 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. Summary of drilling:

Aarnivalkea - 2021 diamond drilling by S2, previously unreported results in bold (refer to previous S2 ASX announcements on 8 October 2019 and 12 November 2019 for all 2019 drill results and previous S2 ASX announcements on 8 December 2020 and 4 January 2021 for all 2020 drill results).

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
FAVD0065	418460	7551700	238.8	-55	270	449.7	127	129	2	1.5
And						161	167.2	6.2	0.6
And							207.39	208	0.61	1.5
And							258.9	261.15	2.25	0.7
And							278.16	279.28	1.12	1.1
And							305.2	325	19.8	0.7
including						308.58	309.16	0.58	7.3
And							329.13	331	1.87	3.0
And							340.24	346.2	5.96	0.4
And							381.09	386.9	5.81	2.7
including							386.28	386.9	0.62	16.7
And							393.36	399	5.64	3.1
including							393.36	394.4	1.04	14.2
FAVD0066	418420	7552100	249.7	-50	270	419.7	172	261.66	89.66	0.4
including							228	246.6	18.6	1.1
And including							244.8	246.6	1.8	7.6
And						301	305	4	0.4
And						314.2	314.84	0.64	7.5
And						326.8	329.25	2.45	0.4
And						334.5	337.25	6.79	1.2
including						335.51	336.4	0.89	5.2
And						414.47	415.5	1.03	1.0
FAVD0067	418570	7552500	244.5	-55	270	323.8	35.71	36.4	0.69	1.5
And							138.6	142.08	3.48	0.3
And							156.5	161.9	5.4	0.8
And							165.4	167.3	1.9	0.6
And							242	243	1	1.9
FAVD0068	418480	7552700	242.1	-50	270	240.6	34	37.17	3.17	0.3
And							70.6	73.78	3.18	0.8
including					70.6	71.14	0.54	4.0
And					175.11	182.07	6.96	0.3
FAVD0069	418550	7551800	241.8	-55	270	518.7	189.13	192.4	3.27	0.5
And					257.5	260.2	2.7	1.2
And							335.28	335.56	0.28	17.0
And						425.5	432	6.5	0.6
And							437	438.5	1.5	1.1

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E admin@s2resources.com.au W www.s2resources.com.au

Hole	Easting	Northing	RL	Dip	Azimuth	Depth	From	To	Width	GradeAu g/t
And							445.06	445.76	0.7	1.3
And								451.7	3.2	0.4
And								480.2	2.2	2.7
including							479	480.2	1.2	4.3
FAVD0070	418470	7551895	245.3	-55	270	470	57	60	3	1.0
And							122	124	2	0.6
And							128	129	1	2.8
And							253.5	254.5	1	1.6
And							351.6	358	6.4	0.4
And							361.69	368.58	6.89	0.4
And							374	378	4	0.3
FAVD0071	418368.504	7551760	239.7	-55	270	370	27	29	2	1.3
And							75.63	77.4	1.77	0.6
And								104.3	3.9	0.7
And							140	150.32	10.32	0.3
And								165.75	11.95	0.6
And								192.2	18.8	2.5
including								181.26	7.86	5.2
And including							175.6	177	1.4	14.0
And including							179.3	181.26	1.96	7.2
And							220	232.99	12.99	0.5
And							240.57	251.6	11.03	0.7
And							253.85	262	8.15	3.6
including							255.75	258.2	2.45	11.2
And including							255.75	256.5	0.75	32.2
And							323	325	2	20.4
including						323	324.15	1.15	32.3
And							348.52	355	6.48	0.7
FAVD0072	418324.154	7551450	239.1	-50	270	295.6	129	134	5	0.2
FAVD0073	418560	7552300	246.9	-50	270	419.4	AWR
FAVD0074	418493.86	7551796.45	241.8	-50	270	IP	AWR

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

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised 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 limitingthe broad meaning of sampling.	The reported drilling was 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 byS2 personnel. Unbiased core sample intervals were cut in halfby diamond saw with half core sent for preparation andanalysis at 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 foranalyses for gold. Drill core is sampled at S2's facilities inKittila, 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 levelof detail 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 thenimported into S2's central database

Criteria	JORC Code explanation	Commentary
	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.	Not applicable
	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 SPL21), and pulverised 1000grm to 85% <75 um (code PUL-32).Crushers and pulverizers are washed with QAQC testsundertaken (codes CRU-QC, PUL-QC). The prepared samplesare forwarded 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 andprecision of 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 anorientation line 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 assaydata and laboratorytests	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 from Aarnivalkea are analysed for gold undergoa 50g fire assay with AA finish (code Au-AA26).
	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.	No twinned diamond holes have been drilled at Aarnivalkea
	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 usingStandard Finnish National Grid ETRS-TM35FIN. The holes aredownhole surveyed using a Deviflex tool.

Criteria	JORC Code explanation	Commentary
	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 digitalelevation model derived from public domain 2m Lidar data.Topographic control and map data is excellent.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	Recent drilling was not completed on a regular grid. Previousdiamond drilling at Aarnivalkea has been completed on 40mdrill spacings on lines between 80 – 240 metres apart.
	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.	At Aarnivalkea, drillhole orientation is designed to intersectthe mineralised package of rocks and be perpendicular toshearing and mineralisation. Structural measurements fromorientated core indicate that the main fabric and contacts aredipping steeply to the east and hence holes collared atbetween – 50˚ and -60˚ dip 270˚ azimuth are appropriate. S2have drilled two holes (FAVD0061 and FAVD0063) obliquelydue to the local terrain, but the hole orientations are stillconsidered appropriate.
	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 isnot possible to assess if any sample bias has occurred due todrillhole orientation at this stage.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by S2 personnel. Drill samplesand core is visually checked at the drill rig and thentransported to S2's logging and cutting facilities by S2personnel for logging, cutting and sampling. Bagged samplesare transferred to ALS Laboratories in Sodankyla, Finland by S2personnel.
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 materialissues with 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 (ML2018:0081).The exploration licence is 100% owned by Sakumpu ExplorationOy, a Finnish 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.
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.

Criteria	JORC Code explanation	Commentary
Geology	Deposit type, geological setting and style ofmineralisation.	Aarnivalkea 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 resultsincluding a tabulation of the followinginformation for all Material drill holes:•easting and northing of the drill holecollar•elevation or RL (Reduced Level –elevation above sea level in metres)of the drill hole collar•dip and azimuth of the hole•down hole length and interceptiondepth•hole length.	Refer to sample plans in text.
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting of highgrades) and cut-off grades are usually Materialand should be stated.	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 lengthsof low grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shownin detail.	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 andintercept lengths	These relationships are particularly important inthe reporting of Exploration Results.If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported.If it is not known and only the down hole lengthsare reported, there should be a clear statementto this effect (e.g. 'down hole length, true widthnot known').	AtAarnivalkea,thetrendofmineralisationatthetargets/prospects described is estimated to be dipping steeplyto the east at approximately 75 to 80 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 viewof drill hole collar locations and appropriatesectional views.	Refer to Figures in body of text.
Balanced reporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low and highgrades and/or widths should be practiced toavoid misleading reporting of ExplorationResults.	All results considered significant are reported.

Criteria	JORC Code explanation	Commentary
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.	Not applicable
Further work	The nature and scale of planned further work(e.g. tests for lateral extensions or depthextensions or large-scale step-out drilling).Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive	Drilling is ongoing at Aarnivalkea, with the current drillingplanned to scope out the gold potential beneath the shallowdrilling to date.