S2 Resources Ltd. advises that diamond drilling will commence in the next few days on Lake Cowan to test the electromagnetic (EM) conductors identified in an electromagnetic (EM) survey undertaken in July, as well as repetitions and extensions of nickel sulphide mineralisation along the partly drilled trend containing the previously discovered Halls Knoll, Taipan and Gwardar nickel prospects. The conductors identified in the recent EM survey will be drilled in a program scheduled to run through to January/February 2023. These conductors were identified beneath Lake Cowan, a large salt lake, using the low temperature superconducting quantum interference device ("SQUID") EM technology, which can "see" more clearly through the conductive lake surface.

These conductors are spatially associated with strongly anomalous nickel, copper and platinum-palladium levels in aircore holes previously drilled by the Company for both gold and nickel, and in rock chip samples collected from outcropping gossans. Drilling will also follow up significant nickel sulphide mineralisation at the Taipan, Gwardar and Halls Knoll prospects, on the shores of Lake Cowan, where previous aircore, reverse circulation (RC) and diamond drilling by the Company has intersected zones of disseminated and massive nickel sulphides.