Artemis Resources Limited — Capital/Financing Update 2010

Sep 19, 2010

20[th] September 2010 ASX Announcement

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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' $5.4 million equity raising to fund on-going gold exploration

• Firm commitments received for placement to institutional and sophisticated investors to raise $3m

• 1 for 6 renounceable entitlement offer to existing shareholders to raise $2.4m

• Patersons Securities appointed as Lead Manager and Underwriter

• Placement and offer oversubscribed

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 92998820

www.artemisresources.com.au

Media Contact

David Brook Professional Public Relations Tel: +61 893880944 Mob: +61 (0) 415 096 804

• Capital to be used to fund gold exploration drilling at Mt Clement and Yandal projects

Australian Resources company, Artemis Resources ( ASX: ARV ) is pleased to announce that it has received firm commitments for a placement to raise gross proceeds of $3 million. The Company will also conduct an underwritten renounceable entitlement offer ( Entitlement Offer ) to existing shareholders to raise $2.4m, bringing the total gross proceeds on completion of both transactions to $5.4m.

Patersons Securities Limited has been appointed Lead Manager to the placement and Underwriter of the Entitlement Offer. Both offers were heavily oversubscribed.

Proceeds of the capital raising will be used to fund Phase 2 of drilling at the Mt Clement Gold/Silver/Copper Project and drilling at the Yandal Gold Project. Mt Clement is located in the Ashburton gold province which hosts the Mt Olympus, Xanadu and Paulsens gold mines. Yandal is located in the rich and highly prospective YandalBronzewing Gold Belt.

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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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Commenting on the decision to undertake the capital raising, Artemis’ Executive Chairman, Mr Graham Libbesson said: “This is an opportunity to invest in Artemis at a time when gold is currently trading at all time highs. The high level of interest following the recent roadshow by the Company demonstrated there is a very healthy investor appetite for junior gold companies with exciting prospects, high-level technical expertise and a recent track record of exploration success. We intend to build on that success and vigorously pursue exploration drilling at our exciting Mt Clement and Yandal projects over the coming months.”

“The equity raising will ensure the Company has sufficient capital to continue the successful exploration conducted by Artemis at Mt Clement as well as conduct work at the Company’s other projects to deliver value to shareholders.”

Capital Raising Overview

The capital raising will be undertaken at a price of 5.5c per share, plus free attaching options on a 1 for 4 basis (Listed Option: ARVOB exercise price 5c) and will comprise of:

• i) Placement to raise $3m to institutional and sophisticated investors; and

• ii) 1 for 6 underwritten renounceable pro-rata entitlement offer to existing and placement shareholders to raise approximately $2.4m.

As a renounceable entitlement offer, Artemis shareholders who do not take up their entitlement to participate in the Entitlement Offer may receive value for those entitlements. The Entitlements will be traded on the ASX.

Shareholder Enquiries

Shareholders will be sent details of the Artemis timetable for the Entitlement Offer shortly. Shareholders who have questions regarding the Entitlement Offer should call Artemis Share Registry on (08) 9315 2333 from 9am to 5pm (WST) from 30 September 2010.

Executive incentive options

In line with the Company’s growth and success, and in order to ensure key executives are appropriately incentivised, the Company intends to issue incentive options to key personnel of the Company subject to the relevant approvals as follows: 2.5m options to Graham Libbesson Chairman of Artemis at exercise price of 7c (expiry 30 September 2013), up to 3m options with an exercise price of 8c (expiry 30 September 2013) to management including David Price Executive General Manager, Tony Grey, Special Adviser to the Board and consultants and employees subject to usual vesting periods.

For further information, please contact:

David W. Price Executive General Manager Office: +61 (0)2 9299 8820 Email: info@artemisresources.com.au

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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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Web Site: www.artemisresources.com.au

ABOUT ARTEMIS RESOURCES

Artemis Resources ( ASX: ARV ) is a diversified resources exploration company with a focus on its prospective Mount Clement and Yandal gold projects in the rich Ashburton and Bronzewing provinces of 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.

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