Artemis Resources Limited — Capital/Financing Update 2009

Oct 25, 2009

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26 October 2009

Dear Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE

As announced to the ASX today, eligible shareholders will shortly have the opportunity to participate in a non-renounceable rights under which shareholders will be entitled to subscribe for 1 new option for every 5 shares held at an issue price of $0.001 per new option. The options will be listed, will have an exercise price of $0.05 and will expire on 30 June 2011.

Eligible shareholders

You must be registered as a shareholder on 4 November 2009 to be eligible to participate in the rights issue.

Shareholders outside of Australia and New Zealand (“overseas shareholders”) unfortunately will not be able to participate in the rights issue as the costs of complying with securities regulations in countries other than Australia and New Zealand to enable participation by overseas shareholders are prohibitive.

Prospectus

The offer will be made pursuant to a prospectus which will be sent to eligible shareholders on 6 November 2009. If you wish to participate in the rights issue you will need to complete and return the personalised entitlement and acceptance form that will accompany the prospectus. Overseas shareholders will receive a copy of the prospectus for information purposes only.

A copy of the prospectus has been lodged with the ASX and is available on the ASX website and the Artemis website (www.artemisresources.com.au).

ABN: 80 107 051 749

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Telephone: +61 2 9299 8820 Facsimile: +61 2 9262 2885 Email: info@artemisresources.com.au Address: Level 10, 1 Margaret Street, Sydney NSW 2000 Postal Address: PO Box R933, Royal Exchange NSW 2205

www.artemisresources.com.au

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Shortfall

In the event of any shortfall in the rights issue, shareholders who take up their full entitlement will be entitled to apply for additional shortfall options.

The rights issue is not underwritten. However, in accordance with ASX Listing Rules, the directors reserve the right to place the shortfall at their discretion. The placement price of any shortfall will be the same price at which options are offered to shareholders.

Use of funds

The funds raised by the rights issue will be used for general corporate purposes.

Timetable

The timetable for the rights issue is as follows:

Event

Date

Announcement of the Offer 26 October 2009 Existing Shares quoted on “ex” basis 28 October 2009 Record Date to determine entitlements under the 5.00 pm (AWST) on Offer 4 November 2009 Prospectus and entitlement and acceptance forms 6 November 2009 despatched ( Opening Date ) Final time and date for receipt of acceptance and 5.00 pm (AWST) on payment in full ( Closing Date ) 20 November 2009 Deferred settlement trading commencements 23 November 2009 Last date for allotment and issue of new shares and 30 November 2009 despatch of holding statements

ASX Information

An information sheet is overleaf which sets out some key information about the rights issue.

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Enquiries

If you have any questions in relation to the rights issue, please do not hesitate to contact our Company Secretary, John Hartigan on +61 2 9299 8890.

Yours faithfully,

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Sevag Chalabian Chairman

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Artemis Resources Limited – Non-Renounceable Rights Issue Information Sheet

The following information is provided to shareholders in accordance with the ASX Listing Rules. Full details of the rights issue are contained in the prospectus which will be sent to eligible shareholders on 6 November 2009.

Is security holder approval required	No
Is the issue renounceable or non-renounceable	Non-renounceable
Ratio in which the securities will be offered	1 option for every 5 shares held on the Record Date at an issue price of $0.001 per option. The options have an exercise price of $0.05 and will expire on 30 June 2011. Shareholders may apply for additional options beyond their entitlement.
Class of securities issued or to be issued	Listed options (ASX: ARVOB)
Number of securities issued or to be issued (if known) or the maximum number which may be issued	Listed options – 33,339,990
Do the securities rank equally in all respects from the date of allotment with an existing class of securities	Yes
Record date to determine entitlements	5.00 pm (AWST) on 4 November 2009
Policy for deciding entitlements in relation to fractions	Fractional entitlements will be disregarded
Name of countries in which the entity has security holders who are eligible to participate in offer	Australia and New Zealand. Shareholders outside of Australia and New Zealand are unable to participate in the offer.
Closing date for receipt of acceptances	5.00 pm (AWST) on 20 November 2009
Name of any underwriters	N/A
Date prospectus and entitlement and acceptance form will be sent to eligible shareholders	6 November 2009
If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders	26 October 2009
Despatch date of holding statements for new securities	30 November 2009