Artemis Resources Limited — Capital/Financing Update 2009

Jul 15, 2009

16 July 2009

Artemis Resources Strengthens Uranium Interests

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HIGHLIGHTS

Mundong Well Uranium Project

• Purchase of 100% interest in Mundong West Uranium Project and 20% free carried interest in Mundong Well Uranium Project

• Significant historical results at Mundong Well include:

• Two separate sampling campaigns undertaken in the early 1970’s which returned unusually high uranium values of up to 3.9% U308 (or 39kg/t (85lbs/t)); and

• Follow-up drilling in the 1970’s which returned some encouraging results including 6m at 0.25% U308 and 4m at 0.10% U308, 30 – 40 metres below surface.

Niger Uranium Project

• Artemis has agreed to acquire an effective further 24% interest taking its interest in the Niger Project to 49%

• Artemis has the right to increase its interest in the Niger Project to 51%

MUNDONG WELL URANIUM PROJECT Mundong West (100%) Mundong Well (20% Free Carried)

Artemis has acquired an option to purchase the shares in Wombat Resources Pty Ltd which owns a 20% free carried interest in the Mundong Well Uranium Project (E08/1609) (“ Mundong Well ”) and a 100% interest in Mundong West (E08/1892) (“ Mundong West ”).

E 08/1609 is located in the Ashburton region of Western Australia, 300km south-west of Karratha ( see Figure 1 ). The tenement covers 169 square kilometres and hosts a vein type uranium deposit which has returned significant results for uranium and has also shown itself as being prospective for copper, lead, zinc and gold.

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Figure 1: Tenement Location Map

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History of E 08/1609

Mundong Well was discovered during exploration in the early 1970s. Exploration uncovered evidence of significant copper – uranium mineralisation at Mundong Well. Assays thought to have been taken from old copper workings on the tenement contained grades of up to 2% uranium.

In 1972 – 1973 Katanning Holdings assayed a 1m channel sample from the Elizabeth River Shear area with values of 6.0% Cu, 2.85% Pb and 3.9% U 9 (103lbs per ton U3O8). Later ESSO conducted a small drilling program, after mapping and radiometric surveys, which intersected 6m of 0.25% U3O8 at 37m and 4m of 0.1% U3O8 at 42m along strike. ESSO concluded that hydrothermal alteration may have had some influence in the distribution of base metals with the uranium being introduced at a later stage.

Recent Exploration Work

KTL Technologies (which owns 80% of Mundong Well) reviewed the historical data for E 08/1609 and carried out field work in May 2007. Results from rock chips taken from Mundong Well during this field work confirmed the presence of uranium and base metal mineralisation at a number of locations. Results included:

• Six samples returned uranium values in excess of 1000 ppm ( maximum 5311ppm ) and a further nine had uranium values between 100 and 1000 ppm;

• Five of the fifteen uranium-enhanced samples were copper-rich with values between 24.01% and 32.77 % copper . One uranium-rich sample returned a value of 43.14% lead;

• All four samples collected from the Monte Carlo workings (sample numbers 431 to 434) returned very high lead values varying from almost 10% to 22.4%; and

• Scintillometer measurements along traverses across a pronounced aerial radiometric anomaly on the tenement returned several readings in excess of 500 counts per second (cps) with a maximum 900cps , which could represent uranium enriched palaeochannels .

Terms of the Option

Artemis has agreed to pay a non-refundable option fee of $15,000 for an exclusive period of 60 days in which it will carry out due diligence.

If Artemis exercises the option it will:

• pay a further $85,000 in cash; and

• subject to shareholder approval, issue 3,000,000 fully paid Artemis shares (or, if shareholder approval is not obtained, pay a further sum of cash equivalent to 3,000,000 fully paid Artemis shares based on the volume weighted average price of Artemis shares on the ASX in the 10 days prior to completion).

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Figure 2: Aeromagnetic data for the two tenements

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NIGER URANIUM PROJECT (49%)

Artemis has agreed to acquire an effective further 24% of the Niger Project increasing its stake in the project to 49%.The Niger Project owns two uranium tenements in Niger, West Africa, Tag II and Tag IV and, under the terms of the joint venture, Artemis has the ability to increase its stake to a majority 51% holding.

The Niger Project is located within the Tim Mersoi Basin in North-East Niger, home to two uranium mines producing 12% of the world’s uranium supply. The Tag II and Tag IV tenements cover approximately 1,000 km[2] and are situated adjacent to another major uranium deposit, Teguidda.

Teguidda, which is 800 metres from the Niger Project tenement boundary, is currently being developed by a state owned Chinese company, SinoU, and has a resource of 15,000 tU of U3O8 grading 0.2%. Production at Teguidda is planned for 2010 with an initial expected output of 700 tonnes of U3O8 per year ( see Figure 4 ).

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Figure 3: Niger Project Location Map

Areva, the French nuclear engineering and mining company, has also continued to invest in the Tim Mersoi province. It is expected to spend some US$1.47 billion in developing the Imouraren deposit, with production of about 4000 tonnes per year expected by 2012. Areva also owns the mill and open pit mine at Somair.

CAMECO, the world’s largest uranium producer, recently announced a US$28 million investment in Goviex, an exploration company with its own uranium tenements in the Tim Mersoi province including Madaouela.

The Republic of Niger is the world’s 4[th] largest uranium producer, producing 9% of the global production. Over the last 40 years, in excess of 100,000 tU have been produced from areas close to the Artemis Niger Uranium Project, developing a well established mining infrastructure.

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Terms of the Acquisition

Artemis has agreed to acquire the remaining issued shares of its 51% owned subsidiary, Arminco Pte Limited, which holds a 49% stake in the Niger Uranium Project.

The net purchase price payable by Artemis for this acquisition of an effective additional 24% interest in the Niger Project, after outstanding debt is taken into account, is $800,000, which shall be payable as follows:

1. On Completion:

2. By the issue of 2,900,000 Artemis shares and 2,900,000 options to acquire Artemis shares at a price of 4 cents and an expiry date of 5 years from the date of issue; plus

3. The sum of $400,000 in cash.

4. Subject to shareholder approval:

5. The issue of a further 7,100,000 Artemis shares and 7,100,000 options to acquire Artemis shares at a price of 4 cents and an expiry date of 5 years from the date of issue, provided however that if shareholder approval is not given for the issue of these shares and options, a further $284,000 will instead be paid in cash.

Extraordinary General Meeting

A notice of Extraordinary General Meeting will shortly be issued in order to seek the approval of those matters that need to be approved by shareholders as a result of these two transactions.

Richard Sealy Director and General Manager

Phone: 0413 757 182 Email: richardsealy@artemisresources.com.au Website: www.artemisresources.com.au

The information in this Report that relates to Exploration Results is based on information compiled by Ed Mead who is a member of the Australian Institute of Mining and Metallurgy and an independent consultant. Ed Mead has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ed Mead consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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Telephone: +61 2 9299 8820 Facsimile: +61 2 9262 2885 Email: info@artemisresources.com.au Level 10, 1 Margaret Street, Sydney, NSW, 2000, AUSTRALIA Postal Address: PO Box R933, Royal Exchange, NSW, 1225 ABN: 80 107 051 749 www.artemisresources.com.au