S2 Resources Ltd ('S2' or the 'Company') advises that its wholly owned subsidiary, Southern Star Exploration Pty Ltd ('Southern Star'), has recommenced diamond drilling at the Goornong prospect within its 100% owned Greater Fosterville project in Victoria, Australia.
It has also completed an induced polarisation (IP) geophysics program over the northern part of the project area.
Drilling at Goornong
Diamond drilling has recommenced to follow up gold mineralisation intersected in the first six holes drilled at the Goornong prospect, located immediately north of Agnico eagle's Fosterville mining lease. The firstsix holes identified numerouszones of goldmineralisation in verywidely spaced holes.
Geophysics
The broad induced polarisation (IP) geophysical survey described in previous announcements has been completed, and results are anticipated in the next few weeks. This survey covered a large area over fourteen farm properties in the northern part of the Company's exploration licence.
Goornong prospect background
Previous exploration has identified a strongly mineralised corridor centred on the Goornong South prospect where drilling during the 1990's intersected significant oxide gold mineralisation. During the last year that the exploration licence was held by Kirkland Lake (now Agnico Eagle) a series of diamond drill holes were completed to the south along strike of the historic oxide mineralisation. S2 Resources has been able to relog the Kirkland Lake core holes and use the information to interpret the stratigraphic and structural architecture of what is now interpreted to be the next parallelstructure to the east of the O'Dwyers and Fosterville trends, which host the orebodies being mined byAgnico Eagle. This first drill program by S2 Resources, is testing immediately beneath and down plunge to the south of the Goornong South oxide mineralisation, testing multiple structures where they cross the main anticline that is interpreted to be the focus for mineralised fluids. Along the favourable anticline corridor any mineralised structure could refract into a favourable dilation position with the potential to form a significant high-grade trap for gold mineralisation akin to the Swan Zone (the Swan Zone, located along the Fosterville trend, had an initial Mineral Ore Reserve of 2.34Moz of gold at a grade of 49.6g/t, refer to the NI 43-101 Report dated 31 December 2018)
To effectively testfor significant mineralisation along the Goornong South anticline trend S2 Resources has undertaken a combination of conventional across strike holes in the shallower part of the system and unconventional strike parallel holes down the axial plane of the target anticline corridor that test multiple structural positions that cross the anticline. The axial plane holes were designed to test positions down plunge to the south of the oxide gold mineralisation as well as numerous other mineralised structures intersected by the historic diamond drilling completed by Kirkland Lake, anyone which could yield a significant discovery where they refract and dilate across the fold corridor. The strike parallel holes drilling down the axial plane have broadly tested a vertical depth window of 600 metres. This allowed these drill holes to test for multiple structural levels within the anticline corridor. It is interpreted that favourable geometry for significant mineralisation will be where structures refract into relatively flat positions across strike, where they pass through the hinge zone. Current interpretations provide for south plunging anticline hinge zones and a parallel plunge to mineralised fault intersections. Drilling was angled towards the north to provide the optimal intersection angle forsouth plunging shoots, with angled drilling enabling core orientation and detailed structural measurements which are vital to interpreting the three-dimensional position of structures relative to localstratigraphy and the overall architecture, such that any near misses can be interpreted for later drill follow-up. The first pass drill program is designed to deliver a more detailed understanding of the structural and stratigraphic architecture of the Goornong South trend. The shallow drill holes beneath the oxide gold mineralisation will provide the firstoriented core holes acrossthe entire width of the anticline corridor, proximal to significant gold mineralisation so as to provide critical information on the orientation and continuity of gold mineralised structures at this location. The deeper axial plane parallel drill holes are spaced to provide a better understanding of the distribution of alteration, the validity of the overall south plunging fold model, and the potential to identify a larger mineralised shoot early in the exploration program. Drilling was also a direct test of some specific target positions interpreted fromprevious drilling, as well as providing new information with which to vector towards targets in subsequent follow-up drill campaigns. The broad spacing of these holes is tailored to finding a large gold deposit, so it is important to not be mesmerised by narrow high grade intercepts and to not drill too close too soon - a situation that can result in over-drilling and overspending for too few ounces defined. As previously stated, itis important to first understand the overall three dimensional stratigraphic and structural architecture before attempting to zero in on sweet spots
Project background
S2's 100% owned subsidiary, Southern Star Exploration Pty Ltd, was announced as the winner of the highly competitive tender for the sole right to apply for an Exploration Licence (EL) over the ground surrounding Agnico Eagle's (Agnico) world class Fosterville gold mine in October 2021. The ground was granted as Exploration Licence 7795 (EL7795) in early October, and covers an area of 394 square kilometres, extending 55 kilometres north to south, and abuts and surrounds Agnico Eagle's Fosterville mine lease. By virtue
its position, its size, and its inherent prospectivity, EL7795 is a highly strategic asset. EL7795 has a minimum expenditure commitment of A$10.4 million over the first five year term of the licence, inclusive of a minimum A$2.1 million commitment in the first two years. As winners of the tender, S2 has also inherited a substantial amount of data acquired by previous explorers over the area, including the relatively recent exploration work undertaken by Kirkland Lake Gold (the owner of Fosterville prior to its acquisition by Agnico) on the tenement before it expired. This data includes extensive and high quality geophysical and geochemical surveys such as gravity, induced polarisation (IP), electromagnetic (EM), seismic, magnetic and LIDAR surveys, which are being used to generate drill targets. The inheritance of such a significant amount of data represents a huge saving for the Company in terms of time and money that would otherwise be required to get it to the point of having drill ready targets for testing. It also includes drilling data and drill core from holes drilled immediately prior to the expiry of the previous tenement, which although widely spaced and/or shallow and/or highly localised, have identified gold mineralisation in several locations. As a consequence, the Company has a range of targets at various stages of definition from early stage reconnaissance up to and including defined prospects simply requiring further drilling to determine the extent and quality of gold mineralisation at those locations. These targets are located on a mix of Crown Land, freehold land (both broadacre farms and smaller blocks), and road reserves, which require the Company to obtain land access agreements and other relevant permits, as well as heritage clearances, before commencing exploration1 .
Contact:
Mark Bennett
Executive Chairman
Tel: +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 statement
Information in this report that relates to Exploration Results from Victoria and the Glenlogan project (New South Wales) is based on information compiled by Rohan Worland, who is an employee and equity holder of the Company. Mr Worland is a member of the Australian Institute of Geoscientists (AIG) 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
the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Worland consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Information in this report that relates to Exploration Results from Western Australia, the Koonenberry and Warraweena projects (New South Wales) and Finland is based on information compiled by John Bartlett, who is an employee and equity holder of the Company. Mr Bartlett is a member of the Australian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartlett consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
S2 RESOURCES LTD 
