Ann: Presentation - Activities Update, page-27

This Report is a ‘must read’ for all S2 investors. I have cut and pasted some positive extracts on Goornong below. There is a chance of a significant new discovery but the Report also details the extensive exploration effort undertaken historically. On balance, the market valuation of $84m is too high for the risks in my opinion. Have a look at other junior miners with a MC around the same. They have positive drilling results, a mineral resource estimate etc, some on the feasibility path. I see S2 correcting from here on to about a $70m MC and on disappointing drill results $50m imo.

Relinquishment Report EL3539 Goornong Victoria Submitted May 2019

Licensee: Fosterville Gold Mine Pty Ltd ABN 42 010 604 878

8.2.7 GOORNONG SOUTH (2011)

Following reinterpretation and modelling of existing RC drilling data at the Goornong South deposit, a total of 5 holes for 1532.7m were drilled to test down-dip and along strike to the south of the existing drilling. A number of encouraging intersections were achieved during the drill program including a best of 16.3m @ 2.8g/t Au from 103.9m. A new mineralised structure was discovered west of the main zone of gold mineralisation and the trend of the Goornong South mineralised system was extended a further 800m to the south.

8.2.1 GOORNONG SOUTH AND SHARKEYS NORTH (2018)

A drilling program designed to extend known mineralisation of the Goornong South resource corridor, in 500m step outs to the south, testing an east dipping structural concept as well as looking for parallel systems. The program consisted of 8 diamond drill holes, totalling 3,525.9 metres. The results of the drilling confirmed mineralisation in two parallel- trending corridors. The Goornong trend drilling intersected mineralised felsic porphyritic dyke that potentially stoped out existing mineralisation as well as a number of minor gold bearing structures.

This program identified two areas of interest for significant mineralisation: the strike projection of the existing Goornong South corridor as well as the newly interpreted ‘Goornong East’ corridor. The parallels between the Goornong system and the Fosterville system include regional anticline and syncline pairs, and offset by cross- cutting faults hosting the anomalous gold mineralisation.

8.1.4 GOORNONG SOUTH PHASE 2 (2019)

Program comprising one hole for a total of 1178.6m, designed to test strike continuation of the parallel Goornong and Goornong East corridors. Four holes in total were planned, on sections incrementally stepping 1km along strike, but were unable to be completed due to time constraints imposed by the relinquishment of EL3539. The hole intersected multiple zones of mineralization associated with west dipping faults and felsic dyke contained in an offset anticline hinge within the targeted Goornong South corridor.