Artemis Resources Limited — Capital/Financing Update 2009

Oct 25, 2009

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26 October 2009

Dear Option holder,

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.

Participation by option holders

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

Artemis wishes to advise that existing option holders can participate in the rights issue by converting their options into ordinary shares before the Record Date. Optionholders should contact the Company’s share registrar on (08) 9315 2333 to obtain an Option Exercise Notice.

If you wish to convert your options into shares, you must complete the exercise notice, attach a cheque for the correct amount and deliver the exercise notice to Artemis’ share registry by 2 November to ensure you are entered onto the register by the Record Date. A pre-addressed envelope has been enclosed for your convenience.

Any exercise notices for options received after the Record Date will not convert into shares which are eligible to participate in the rights issue. Artemis will not be responsible for any postal or delivery delays.

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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Eligible option holders

Option holders outside of Australia and New Zealand (“overseas option holders”) unfortunately will not be able to participate in the rights issue (even if they convert their options to shares prior to the Record Date) as the costs of complying with securities regulations in countries other than Australia and New Zealand to enable participation by overseas option holders are prohibitive.

Prospectus

The offer will be made pursuant to a prospectus which will be sent to eligible shareholders shortly following the Record Date. 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.

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 Dateto 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

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ASX Information

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

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 8898.

Yours faithfully,

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Sevag Chalabian Non-Executive Chairman