Suppose a maps to 0 in A[S−1]; that is, 1a=0. By definition, there exists s∈S so that as=0 in A. Conversely, suppose a∈A is annihilated by S, i.e., as=0 for some s∈S. Then in A[S−1], we have
1a=sas=0,
so the elements in A which map to zero in the localization are precisely the elements annihilated by S.
"⟹"
Assume the ideal I=S−1p is prime. If there exists s∈p∩S, then I is all of A[S−1], but this means I is not prime. Thus, p∩S=∅.
"⟸"
Suppose p∩S=∅, and assume sa⋅tb∈I, where I is as above. Then stab=rp for some p∈p. Thus, rab=pst∈p, and by assumption, r∈/p, so because p is prime, we have ab∈p. Thus, a or b is in p, which implies sa or tb is in I, so I is prime.