Artemis Resources Limited — Capital/Financing Update 2010

Jul 28, 2010

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ASX Announcement 29 July 2010

About Artemis Resources

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

Progress on Mt Clement and Yandal Gold Projects

Key Projects

Gold Mt Clement (WA) Yandal (WA)

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

KEY POINTS

• 3‐D modelling of gold at the Mt Clement Gold Project in Western Australia leads to the identification of stratabound gold mineralisation

Uranium

Mundong Well (WA) TAG II/IV (Niger, Africa)

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

Gold forms a central platform for the Company’s growth strategy.

Australian Securities Exchange

• A geological and structural reappraisal of Mt Clement Gold Project identifies high grade gold drilling targets

• Auger drilling at the Yandal Gold Project in Western Australia highlights continuity of gold mineralisation

Code: ARV Options: ARVOB

Artemis Contact

David W. Price Executive General Manager Tel: +61 2 9299 8820

• Modelling of historical drilling at Yandal Gold Project commenced

• Capital raising of $1.025 million completed.

www.artemisresources.com.au

Media Contact

David Brook Professional Public Relations Tel: +61 8 9388 0944 Mob: +61 (0) 415 096 804

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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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Mt Clement Gold Project

Mt Clement was first discovered in 1972. Initially, BHP became involved with the project and completed 4 drill holes with notably high gold results. Subsequently, Mt Clement has been explored over various times by large corporations including WMC, ICI and Newmont. To date, 155 holes have been drilled at Mt Clement by previous explorers and a number of resource estimates have been quoted at various times. Since 2003, very little work has been undertaken at Mt Clement.

Artemis has more than 5 square kilometres under tenement in all directions leading away from Mt Clement, including 3 current and active Mining Leases directly over the Mt Clement Deposit itself.

During the Quarter, Artemis has focused on a review of the Mt Clement database by verification with the original drilling logs and the construction of a digital 3-dimensional model of the gold mineralisation. This has helped the Artemis exploration team of geologists to visualise the geometry of the gold mineralisation and understand the geology in detail, with a view to drilling during the next quarter.

Work to understand the morphology and geological characteristics of the gold mineralisation at Mt Clement is on-going. The folded sequence of stacked, mineralised layers at Mt Clement increases the targets for future exploration and provides Artemis with a project with considerable Gold potential.

Mt Clement is characterised by a silica-carbonate, chert and jasperoid affinity demonstrating good conformability to a “manto” or “sheet-like” morphology. The mineralised layers are stacked and moderately folded. The 3D model indicates that gold mineralisation remains untested in all directions. In part, the gold mineralisation appears to conform with a preferred rock layer and may be classified as “stratabound”.

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Mt. Clement Gold Deposit looking towards the north showing three gold lodes – the Pacific, Atlantic and Indian Lodes open in all directions.

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The Main Ridge (which is known to be strongly mineralised) is a result of “fold doming” and was primarily the target of previous exploration. A number of holes drilled away from the Main Ridge clearly demonstrate however, that gold mineralisation does occur away from the Main Ridge and particularly out towards the east and west.

Geological mapping completed in May 2010 has successfully identified the rock units hosting stratabound gold mineralisation at Mt Clement. The units have been traced at surface and can be identified in an old trench west of the Main Ridge. The preferentially mineralised rock unit can also be identified south of the Main Ridge in the position suggested by the recent 3D modelling. This has confirmed the geological model of stratabound mineralisation which remains open in all directions.

In a Prospectus by GTI Resources Limited dated June 2007, the Independent Geologist’s Report identified the same potential large tonnage deposit and states that:

“ Mt Clement gold deposit, initially explored by BHP and Newmont has been classified as a stratiform, syngenetic Au-Ag hot spring deposit. Both geologically and structurally, Mt Clement has some similarities to the giant Telfer Deposit situated in the Proterozoic Paterson Province ”.

The geological modelling has shown that two styles of gold mineralization occur. “Type 1” gold mineralization is typically high grade gold (up to 47g/t Au) and is closely associated with high silver and copper values. Type 1 mineralisation is also characterized by steep dipping structures and has a moderate plunge angle towards the south-southwest.

The “Type 2” stratabound mineralisation style is typically lower grade (between 0.2g/t Au and 3.0g/t Au). This mineralization varies from 5m to 25m in thickness and is broadly flat lying although the orientation varies considerably with folding convolutions. Historical drilling has mainly intersected Type 2 mineralisation.

A single silver value of 2400ppm (77 ounces/tonne) is a highly anomalous value related to a newly-identified steeply-dipping “Type 1” structure. This is associated with other high values of 47g/t Au and 4% Cu. The structure is identifiable in 3 adjacent drill holes with strong assay results. The identification of this structure provides the opportunity for a high grade zone at structural intersection points within the main broad zones of extensive “Type 2” mineralisation.

Underground mapping in the old adit at Mt Clement completed during May has also confirmed the geological model developed for the “Type 1” mineralisation. The sedimentary rocks are comprised mainly of iron-rich bands and chert. In the immediate vicinity of the Main Ridge of mineralisation at Mt Clement, the rocks have been strongly altered and mineralised. Sulphide-rich, bleached chert and iron-rich sediments are present and folding of these units is clearly visible in the underground workings. These observations are in line with expectations generated from the modeling of mineralisation.

Example of “Type 2” mineralization (photo shows 2m width)

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In the past, several metallurgical studies have been done on gold ore from Mt Clement and in each study a coarse gold component has been identified. In particular, 65% of gold is located in the +0.5mm size fraction. This provides opportunities for a gravity gold circuit to be considered as part of any future processing plan. Results of previous metallurgical studies indicate up to 93% of gold is won from a simple cyanide solution leach. Distribution charts of arsenic values from all previous drilling show low arsenic values and 81% of drilling assays report less than 0.40% As.

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Recent work on site included the determination of Specific Gravity (SG) for several rock types. As a result of SG testing, Artemis has concluded that historical calculations are likely to have underestimated tonnage.

Artemis is encouraged by the rise in the gold price to around $1,200 per ounce. This is significant as the most recent comprehensive exploration at Mt Clement was conducted in or around the year 2000 when gold prices were depressed at around US$250 per ounce. This significant increase in the gold price could significantly increase the value of Mt Clement.

Artemis is planning to undertake a drilling program to test the newly-identified steeply dipping “Type 1” mineralization style. This will ascertain whether this is continuous at depth and to determine the overall dimensions of this structure. It is hoped that multiple high grade zones may be present at other similar structural intersection points.

Four holes will test the lateral extensions to the “Type 2” gold mineralisation at Mt Clement. This program of reverse circulation drilling will test the flat plains away from the Main Ridge mineralisation. The aim of this will be to extend the known area of mineralisation in all directions.

With multiple drilling targets, large areas of untested ground and geological continuity, Mt Clement is viewed as a key project for Artemis. It is hoped that with early exploration success here, Mt Clement provides Artemis with a project capable of rapid and substantial growth.

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A cross section through Mt Clement showing the high grade gold zone. Drilling will test the high grade zone deeper.

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Yandal Gold Project

The 100%-owned Yandal Gold Project is situated within the highly productive Yandal gold belt in Western Australia which has produced more than 12 million ounces of gold to date. Yandal lies 90km south of the giant 5.4million ounce Jundee Gold Mine and 50km north of the 2.3million ounce Bronzewing Gold Mine. Yandal is host to the Lowlands, Slav Well, Forked Stick, 6 Mile Well and International Gold Deposits, each of which has been drilled by previous explorers with exceptionally good gold intersections. These explorers include MIM, Dominion, Tectonic Resources, Sandstone Resources and Chartfield Limited.

Previous outstanding drilling results include the most recent results obtained in 2007:

SNC05 4m @ 3.90g/t gold from 20 – 24m inclined depth at Slav Well Deposit BRC029 7m @ 11.44g/t gold from 17 – 24m inclined depth at Forked Stick Deposit BRC043 2m @ 4.15g/t gold from 51 – 53m depth at International Deposit BRC037 2m @ 3.75g/t gold from 46 – 48m depth at 6 Mile Well Deposit L89 8m @ 6.30g/t gold from 28 – 36m inclined depth at Lowlands Deposit

Results of shallow auger drilling at Yandal during March 2010 has identified and confirmed that gold mineralisation continues along strike from previously known gold occurrences. Shallow auger drilling (down to 1.5m deep) completed by Artemis in late March 2010 has identified anomalous gold in north-west-trending patterns which may reflect multiple en echelon tension gashes occurring along the main Celia Fault.

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Exploration Drilling completed in March 2010 included shallow auger drilling of 1,114 holes to a maximum depth of 1.5 metres. Holes were generally spaced 10m apart on lines 50m apart and were drilled to the maximum depth of one rod. This drilling was completed between the various gold deposits at Yandal to infill between areas of known gold mineralisation. The purpose of the drilling was to test previously untested areas for gold anomalism.

The results highlight distinct northwest trends, as well as occasional northeast-trending anomalies. These could be interpreted as reidel shear traces although further work is required to interpret this hypothesis accurately.

Artemis is planning to construct a 3D model of the Yandal Gold Project. There has been extensive historical drilling undertaken at Yandal and a digital database and model has not been developed. The construction of a 3D model will enable Artemis’ geological team to understand the geology and structures responsible for emplacement and possible displacement of gold mineralisation at Yandal.

Gold exploration targets identified at the Yandal Gold Project. This is a Total Magnetic Intensity image with east gradient shading.

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The interpretation of a high resolution magnetic and radiometric survey has identified a number of prospective targets for additional gold mineralisation at Yandal. The airborne survey was originally flown in August 2008 by Artemis. As part of our reappraisal of the Yandal Gold Project, Southern Geoscience Consultants was commissioned in April 2010 to undertake a comprehensive review and interpretation of the data.

In its summary of the interpretation work, Southern Geoscience states that “Twelve gold target areas are identified within the survey area, one of which also has high potential for nickel”. Based on the high resolution magnetic data, the distribution of gold shows a marked similarity between the Wiluna-Leinster Belt and the eastern side of the Yandal Belt where Artemis’ tenements are sited.

As part of the interpretation, Southern Geoscience completed data processing which included Total Magnetic Intensity Reduced to Pole (TMI) processing with northeast and southeast shadowing, a non-linear colour stretch application, along with first and second vertical derivative image processing. Other interpretive work completed includes high resolution radiometrics (including ternary and individual channel images) and the construction of a Digital Terrain Model (DTM). An area of high Ternary radiometric response has been identified in the northern part of the tenement however this has not been verified on the surface to date.

The interpretation of the magnetics in particular suggests a structural emplacement for gold mineralization throughout the Yandal tenements. A principle shear (the Celia Fault) trending broadly north-south is intersected by northeast and northwest-trending fractures. These intersection points are zones of dilation and subsequent emplacement of gold-bearing fluids. The eastern side of the Celia Fault remains untested but highly prospective for gold deposition.

Work on the re-appraisal of the existing Yandal drilling database is continuing with validation of the existing 1,471 historical drill holes now complete. The re-evaluation will proceed to 3-dimensional geological and mineralisation modeling using Micromine software. The aim of this work is to identify accurate drill targets at each of the gold deposits identified to date along the strike of the Yandal Belt for a sustained drilling campaign.

TAG II/IV Uranium Project, Niger

Recent stratigraphic drilling undertaken on the Tagaza joint venture tenements in Niger has successfully intersected the target geological horizon as predicted.

Six vertical, open hole mud rotary holes were completed for a total of 1,892m. As part of the programme, five holes were drilled near the eastern boundary of the tenements in an area where the prospective geology was predicted to be present at a relatively shallow depth. The same formation hosts the major Teguidda (Somina) Uranium Mine (15,000 tonnes of contained uranium at 0.2% U3O8), which is located just 10km to the east of Tagaza.

Drilling successfully intersected the contact zone between the overlying Irhazer Formation and the underlying Agadez Formation at a depth of 325m to the north of the Azelik Fault. Drill holes were designed to test the depth to the Agadez Formation and were collared well away from the Azelik Fault to minimise drilling difficulties in strongly broken ground expected close to the fault. Table 1 below provides the location of each drill hole. Uranium anomalies were returned from downhole logging, including 4m at 155ppm eU at 351m depth and 2.5m at 135ppm eU from 325m depth. Holes closer to the Azelik Fault might be expected to return higher uranium grades than those drilled to date.

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Drillhole ID	UTM mE	UTM mN	EOH (m)
Taga 1-1	244257	1928209	318.00
Taga 1-2	244282	1926945	362.00
Taga 1-3	242573	1927928	368.00
Taga 1-4	242588	1926455	399.00
Taga 1-5	244271	1929712	353.00
Taga 1-6	229182	1924303	92.00

Table 1: Drilling statistics for April drilling at TAG II and IV tenements in Niger (Note that all holes were drilled vertical)

The sixth hole was drilled as a stratigraphic hole in the western part of the tenement and here too, the target was successfully encountered as predicted. Mapping undertaken throughout the drilling programme successfully located an area of uranium oxide-bearing calcareous sediments. Three trenches were dug, all of which host strong, elevated scintillometer readings. It is believed that calcrete-style mineralisation could be present at this site, along with the possibility for further enhancement of grade within an incised Quaternary channel that cuts through the calcrete.

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Photograph showing drilling operations at TAG II/ IV in Niger, April 2010

The company is awaiting an extension to the duration of the exploration tenements from the Government of Niger and an announcement will be made once this extension is received. Future planned work includes continuing geological mapping, a radon cup survey and an electromagnetic (EM) survey, which may highlight buried channels hosting uranium.

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Mundong Well Uranium Project, WA

An integrated photogeological and geophysical image interpretation study of the Mundong Well area was completed during the Quarter by GeoImage Pty. Ltd. on behalf of Artemis Resources. This study made use of recently-acquired high-resolution QUICKBIRD (QB) satellite data, merged with LANDSAT TM and ASTER multispectral data to increase spectral information. Spectral processing of the scenes was designed to highlight Epithermal minerals, Iron oxide and Propylitic alteration.

A set of digitally enhanced geophysical images were prepared by GeoImage Pty Ltd from Government 400 m line spacing regional airborne survey data, acquired in 2005 as part of the North Gascoyne airborne survey. Eight 1:25,000 scale natural colour QuickBird hardcopy stereopairs (Vertical and Left-Stereo images) were prepared for photogeological interpretation

The main results of the study have been the revised definition of regional stratigraphy and a new understanding of the relationship between late structures and mineralisation. Image interpretation has defined six major litho-stratigraphic associations. Observed structures are all late-stage and some of the known polymetallic (U Pb Cu Zn Ag) mineral occurrences appear to be related to the late N10E and N30W structures and reactivated earlier shears. Three areas of very strong Th-Channel anomalism have been identified. The areas strong in thorium are late- or post-tectonic granitoids.

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Reprocessed ASTER and QuickBird data shown as a red/green/blue image Mundong Well lies central to the image and demonstrates a blue/green thorium-rich colour.

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Corporate

Artemis raised $1.025 million in July 2010 to enable it to further its drilling programs on the Mt Clement and Yandal gold projects.

Board of Directors Registered Office Sevag Chalabian (Non‐Exec. Chairman) Artemis Resources Limited Frans Voermans (Non‐Exec. Director) 1 Margaret Street Jonathan Robinson (Non‐Exec. Director) Sydney NSW 2000 John Miles (Non‐Exec Director) Australia Phone (61 2) 9299 8820 Company Secretary Fax (61 2) 9262 2885 Guy Robertson www.artemisresources.com.au Share Registry Management Security Transfer Registrars Pty Ltd David Price Exec. General Manager 770 Canning Highway Applecross WA 6153 Phone (61 8) 9315 2333 Fax (61 8) 9315 2233 www.securitytransfer.com.au Please direct shareholding enquiries to the share registry

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.