S2 Resources Strengthens Gold Exploration Across Four Australian Projects with A$18.57 Million Cash Reserve

Jillewarra Project: Exploring 60 Kilometres of Karbah Shear Zone Strike

S2 Resources is earning up to a 70% interest in the Jillewarra gold and base metals project under a two-stage joint venture agreement. The company must invest A$5 million by 2 October 2026 to acquire an initial 51% stake, with the option to increase this to 70% by completing a feasibility study by 2 October 2028. The Jillewarra project includes exploration licences covering prospective greenstone belts approximately 50 kilometres west of Meekatharra in Western Australia's Murchison Goldfields, featuring 35 kilometres of strike along the Karbah shear zone.

The Karbah shear zone is recognized as the extension of the regional structure hosting Westgold's Big Bell gold mine, containing 2.4 million ounces of gold, and Ramelius Resources' Dalgaranga operations, which hold 2.9 million ounces including the Never Never deposit. Along with an additional 25 kilometres of strike under a 100% S2 exploration licence application to the north, the company controls roughly 60 kilometres of strike on the Karbah shear zone. This strike length is "almost entirely undercover and effectively unexplored," presenting a significant exploration opportunity within a proven mineral district.

Environmental Approvals and Heritage Surveys Propel Drilling at Jillewarra

In the June 2026 quarter, the Western Australian Department of Mines, Petroleum and Exploration granted two large Exploration Licences—E51/1955 and E51/1956—forming part of the Jillewarra joint venture and covering 35 kilometres of strike on the Karbah shear zone. S2 completed an initial heritage survey with traditional owners to clear areas for the upcoming aircore drilling program. This heritage consultation marks a vital milestone in advancing exploration while honoring Indigenous land rights and cultural heritage.

Environmental approval applications, known as Programmes of Work, have been submitted to the Department of Mines, Petroleum and Exploration. The company awaits approval of drilling permits, aiming to commence drilling in mid-August 2026. The planned 30,000 metre aircore program will consist of approximately 300 holes along several widely spaced lines, using two rigs over two to three months. This "sighter" program is designed to establish a preliminary understanding of geology, structure, cover depth, and the presence of anomalous gold and pathfinder elements across the project area.

Aeromagnetic Survey at Jillewarra Guides Exploration Strategy

S2 Resources completed a detailed aeromagnetic survey across the Jillewarra project area, providing essential subsurface imaging of the Karbah shear zone and adjacent geological structures. This geophysical data enables refined targeting for the planned aircore drilling program. Aeromagnetic surveys are fundamental in greenstone belt exploration, helping map structural features, lithological boundaries, and alteration zones linked to mineralisation.

The company acknowledges that due to the extensive target area and the broad, arbitrary spacing of the initial drilling, multiple exploration campaigns may be needed before identifying and drilling high-priority targets. This phased approach aligns with standard early-stage greenstone belt exploration practices, where broad reconnaissance drilling precedes focused follow-up on promising anomalies.

Warraweena Project in NSW Secures Environmental Drilling Approval

S2 Resources is earning a 70% interest in the Warraweena project through an agreement with prospect generator Oxley Resources Limited, established in December 2023. The project covers Exploration Licence EL9269, spanning 932 square kilometres northeast of Bourke in northern New South Wales. Additionally, S2 owns 100% of three adjacent exploration licences, expanding its landholding by 1,670 square kilometres in the region.

During the June 2026 quarter, S2 obtained environmental approvals for drilling at Warraweena, marking a significant advancement in exploration. Securing these permits removes a key regulatory barrier and enables the company to move from planning to active fieldwork, subject to final operational arrangements.

Loch Lilly Project Advances with Tenement Grants and Land Access Agreements

Post-June 2026 quarter, the Loch Lilly project in New South Wales progressed with tenement grants and key land access agreements. These developments confirm regulatory approval for exploration and formal permissions from landholders to conduct activities. Land access agreements are critical for commencing exploration in Australia, ensuring cooperation with property owners and leaseholders.

The announcement does not specify the tenement size, location relative to other assets, or planned exploration timelines at Loch Lilly. Investors await further updates outlining exploration strategies and work programs for this project.

Yeungroon Gold-Antimony Project Reveals Soil Sampling Anomalies

At the Yeungroon project in Victoria, S2 Resources identified additional gold-antimony anomalies through soil sampling during the June 2026 quarter. These anomalies indicate a gold mineralisation system with an antimony signature, a common pathfinder element associated with certain gold styles. The findings suggest the soil sampling program is generating valuable geochemical data across the area.

Details regarding anomaly locations, sample counts, result grades, or follow-up plans were not disclosed. Investors may look for future updates on the extent of anomalies and planned investigations.

Strong Cash Position and Valkea Resources Stake Support Ongoing Exploration

As of 30 June 2026, S2 Resources held A$18.57 million in cash. During the quarter, the company recorded operating cash outflows of approximately A$1.1 million, including A$1.07 million in exploration and evaluation, A$0.10 million in corporate overheads, and A$0.20 million in staff costs. These were partially offset by A$0.23 million in net interest income from cash holdings, benefiting from elevated interest rates.

S2 holds 14.375 million shares in Valkea Resources, a TSXV-listed company, valued at about A$5.41 million as of 30 June 2026 based on a C$0.37 closing price and a 1.017 exchange rate. This represents a 16.86% ownership after dilution from a recent Valkea capital raise. The company forecasts approximately A$3.5 million in cash outflows for the September 2026 quarter, reflecting increased exploration activity.

Capital Structure and Potential Unlisted Options Exercise

At 30 June 2026, S2 Resources had 531,586,373 ordinary shares outstanding. The capital structure includes 46.45 million unlisted options held by directors, employees, and contractors with an average exercise price of A$0.17, potentially raising about A$7.9 million if fully exercised. Additionally, 24,305,494 unlisted options issued under a Shareholder Purchase Plan have an exercise price of A$0.11, which could generate a further A$2.67 million.

Full exercise of all unlisted options could inject approximately A$10.57 million, providing additional funds to accelerate exploration if option holders act. Related party payments during the quarter totaled A$127,950, covering remuneration to the Executive Chairman and directors' fees including superannuation for Non-Executive Directors, in line with ASX listing rules.

Strategic Positioning in Established Goldfields Enables Exploration Growth

S2 Resources' projects are strategically located within Australia's most prolific goldfields. The Jillewarra project lies in Western Australia's Murchison Goldfields, a region with multi-million ounce gold production from major mines. Controlling 60 kilometres of strike on the Karbah shear zone—the same structure hosting large deposits—provides a significant exploration base. Much of this area is "almost entirely undercover," meaning superficial sediments obscure it, suggesting previous surface exploration may have missed key targets and offering potential for major discoveries.

Transitioning from planning and approvals to active drilling marks a pivotal stage for S2. With environmental permits approved or pending at multiple projects, secured land access, and a strong cash position, the company is set to implement systematic exploration campaigns to test its holdings’ prospectivity. The planned two to three month aircore program at Jillewarra, deploying two rigs to drill 30,000 metres across 300 holes, represents a substantial exploration commitment expected to generate critical data guiding future focused drilling efforts.