Artemis Resources Limited — Capital/Financing Update 2010

Sep 20, 2010

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About Artemis Resources

Artemis Resources is an ASX-listed mineral exploration company with a focus on gold:

Key Projects

Gold Mt Clement (WA) Yandal (WA)

Rare Metals Yangibana (WA) Buchanan's Creek (QLD)

Uranium Mundong Well (WA) TAG II/IV (West Africa)

Artemis’ corporate strategy is to maximise shareholder returns through a combination of exploration success and quality project acquisition.

The Company's focus on gold is viewed as an important growth strategy for the company.

Australian Securities Exchange

Code: ARV Options: ARVOB

Artemis Contact

David W. Price Executive General Manager Tel: +61 2 8221 2255

www.artemisresources.com.au

Media Contact

David Brook Professional Public Relations Tel: +61 8938 80944 Mob: +61 (0) 415 096 804

ASX Announcement 21[st] September 2010

Substantial drilling program planned at Mt Clement following recent discovery of High Grade zone

• Discovery of high grade gold, silver and copper at Mt Clement delivers results far exceeding expectations

• 4 holes into high grade zone returned;

• ARMCRC001 - 6m @ 8.8g/t gold, 558g/t silver

ARMCRC002 - 2m @ 3.22g/t gold

ARMCRC007 - 20m @ 7.3g/t gold, 395g/t silver

ARMCRC008 - 35m @ 2.9g/t gold, 119g/t silver

• Mt Clement now ready for sustained extension and in-fill drilling

• “Project” status achieved - Mt Clement warrants substantial, on-going exploration and drilling expenditure

Australian resources company, Artemis Resources Ltd. (80%) ( ASX: ARV ) as operator of the Mt Clement JV with Northern Star Resources Ltd. (20%) ( ASX:NST ) today announced that its gold prospect at Mt Clement in Western Australia has now reached “Project” status. The Mt Clement Gold/Silver Project is sited on 3 granted Mining Leases, providing impetus for expedited development.

The Company plans to implement a significant and sustained program of resource definition drilling and a Program of Work (POW) has been submitted to the WA Department of Minerals and Energy encompassing the commencement of this sustained work.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9299 8820 | Facsimile: +61 2 9262 2885 | Email: info@artemisresources.com.au Level 10, 1 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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By achieving “Project” status, the high rate of successful intersections of gold, silver and copper mineralisation at Mt Clement has demonstrated that sustained, on-going exploration, resource definition and pre-development expenditure is now warranted. The successful discovery of a significant high grade mineralised zone now traced over an area 100m x 100m has assisted the rise of Mt Clement to attain this level of status so rapidly.

In the recent, initial phase of drilling at Mt Clement, a number of important milestones were achieved;

• 1) A perceived steep-dipping “high grade” zone was modelled from historical drilling but little evidence was available for its existence

• 2) The high grade zone was successfully encountered in the first drill hole to test the modelled target (6.0m @ 8.81g/t gold, 558g/t silver and 2.37% copper in hole ARMCRC001)

• 3) A further 3 drill holes all successfully unveiled the high grade mineralisation and confirmed the high grade nature (+6g/t gold, +100g/t silver, +0.4% copper), morphology and true width (5m)of the zone

• 4) The high grade zone was successfully drilled over an area greater than 100m x 100m with gold, silver and copper mineralisation extending beyond the limits of drilling

• 5) The near-surface stratabound gold mineralisation was confirmed and the grade enhanced

• 6) The drilling program was completed on time and within budget

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Figure 1 – A view of the Mt Clement Gold Project looking north showing the newly-discovered high grade gold, silver, copper zone in yellow colour. The high grade mineralisation continues in all directions and at depth.

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Four drill holes have now been drilled by Artemis into the high grade zone shown in yellow in Figure 1. These four holes have tracked high grade mineralisation over a 100m x 100m area with mineralisation still continuing in all directions. High grade gold, silver and copper is now understood to be a west-dipping, south-plunging layer of mineralisation, probably related to a specific host unit similar to the stratabound mineralisation near surface. In Figure 1, the yellow layer represents the newly-discovered high grade gold, silver and copper. In the image, mineralisation appears fold-related and the deepest holes drilled at Mt Clement (including ARMCRC002) have intersected high grade mineralisation. Drilling has not closed off the limits of mineralisation and it remains open.

This continued extension has led the Artemis technical team to expand its initial resource target and the team is now more confident that an economic resource of gold, silver and copper will be delineated with continued drilling.

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Figure 2 – A plan view of the Mt Clement Gold Project showing a 100m x 100m area of high grade gold, silver and copper outlined in yellow colour. This area of mineralisation has been identified by the recent successful drilling program by Artemis.

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Figure 2 shows a plan view of the mineralisation at Mt Clement. On this plan, the faint red line outlines the near-surface gold mineralisation “Type 2” and the newly-discovered high grade zone “Type 1” can be seen in yellow colour. This image demonstrates the high grade zone extends over an area of 100m x 100m already and remains open. Planned drilling will track high grade mineralisation towards the west and south on 50m centres.

The Mt Clement tenements are situated on granted mining leases. This minimises the requirements with regard to some regulatory approvals and production can potentially be fasttracked if necessary. Planning for both reverse circulation (RC) and diamond drilling is well underway with a Program of Work now approved by the government and a drilling contractor has now been appointed. Mobilisation to site is anticipated at the end of September/early October with a start date soon after.

Rights Issue Details

Following the recent announcement of a $5.4m Placement and underwritten Rights Issue, the Company is now well-placed to undertake this planned substantial drilling program. Full details of the accompanying Rights Issue, for which the record date is expected to be the 14[th] October 2010, will be provided to shareholders next week. Announcements will be made closer to this date to ensure shareholders are provided ample opportunity to participate.

For further information, please contact:

David W. Price Executive General Manager Office: +61 (0)2 82212255 Email: info@artemisresources.com.au Web Site: www.artemisresources.com.au

ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a diversified resources exploration company with a focus onits prospective Mount Clement and Yandal gold projects in Western Australia. The Company also has exposure to rare earths through its Yangibana (Western Australia) and Buchanan’s Creek (Queensland) projects and Uranium through its Mundong Well and TAG II/IV projects in Western Australian and West Africa. Its projects were targeted because of their quality, exploration potential and close proximity to existing deposits or producing mines.

The Mount Clement Gold project comprises three mining leases and two exploration licenses over 14.5km[2] in the Ashburton area of Western Australia, approximately 35km from the operating Paulsen’s Gold Mine owned by ASX-Listed Northern Star Resources Limited. As part of its recent acquisition of the nearby Paulsen’s Gold Mine, Northern Star Resources also acquired a 20% interest in the 3 Mining Leases at Mt. Clement.

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. David W. Price, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr. Price 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’. Mr. Price, who is an officer of the Company, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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