Artemis Resources Limited — Capital/Financing Update 2012

Aug 19, 2012

==> picture [225 x 67] intentionally omitted <==

ASX Announcement 20 August 2012

About Artemis Resources

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

Key Gold Projects

Mt Clement – gold/copper (WA) Yandal – gold (WA) West Pilbara – gold/base metals (WA)

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

Artemis Contact

Guy Robertson Executive Director Tel: +61 2 9078 7670

Tony Dawe Investor Relations Tel: +61 8 9388 0944 Mob: 0405 989 743

www.artemisresources.com.au

YANDAL DRILLING IDENTIFIES NEW GOLD ZONES BELOW KNOWN OXIDE AND TO SOUTH OF LOWLANDS

Highlights

• Assays from Lowlands 4m composite RC samples highlight ‘pipe’ or shoot-like body of gold mineralisation plunging to south west, (40m at 1.2g/t Au in hole YARC 29 in oxide).

• Gold mineralisation interpreted to occur at intersection of mineralised altered magnetic basalt and north west trending shear zone.

• North-south trending mineralised altered magnetic basalt identified as primary mineralised structure 350m south of Lowlands (12m at 1.96 g/t in hole YARC 20).

• Assays from 1m samples pending.

Artemis Resources Ltd (ASX: ARV) is pleased to announce results from the recently completed RC drilling at its Yandal Project in Western Australia (Figure 4) which encountered a new gold zone south of known deposit and highlights new gold targets at the project.

The key new drill results were:

YARC29 40m @ 1.21 g/t Au- known Lowlands oxide zone YARC23 8m @ 1.52 g/t Au- beneath known oxide YARC30 12m @ 1.06 g/t Au- beneath known oxide YARC20 12m @ 1.96 g/t Au - 350m south of Lowlands

Previous drilling results at Lowlands include:

10m @5.13 g/t Au – Lowlands oxide zone 15m @3.73 g/t Au – Lowlands oxide zone 26m @1.77 g/t Au – Lowlands oxide zone

==> picture [64 x 63] intentionally omitted <==

Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | 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

==> picture [225 x 67] intentionally omitted <==

Results of this 3,150m reconnaissance drilling programme strongly indicate:

• The presence of additional gold mineralisation both down plunge to the south west beneath the historical Lowlands resource, and

• To the south where gold mineralisation was encountered some 350m away from the known resource within the southern extension of the altered magnetic basalt host rock.

The company has now received results from all 4m composite samples from the Yandal RC drilling programme (19 RC holes for 3,150m). The more significant drill hole results from Lowlands are listed in Table 1.

The programme was designed to test a variety of targets generated by the Company’s Induced Polarisation (IP) surveys completed in February 2012, and test for a northerly structure which was assumed as a control on mineralisation at the Lowlands prospect.

At Lowlands , the drilling strongly suggests that gold mineralisation occurs in a ‘pipe’ or shoot located at the intersection of a northerly trending zone of sheared and altered magnetic basalt, (the source of the IP anomalism) and a previously known north west striking, shallow south west dipping shear zone (see Figures 1 & 2).

Figure 1. Simplified Cross Section 7007625N

==> picture [482 x 254] intentionally omitted <==

The new deeper RC drilling on east-west cross sections has detected gold mineralisation below and to the south of Lowlands. There are strong indications that the known Lowlands oxide resource is a south west plunging shoot extending into the primary sulphide zone.

==> picture [64 x 63] intentionally omitted <==

Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | 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

==> picture [225 x 67] intentionally omitted <==

Holes YARC029 and YARC030 intersected significant gold mineralisation: 40m@ 1.21g/t and 12m @ 1.03g/t respectively. (Refer Figure 1). The final 3 metres of hole YARC028 also returned an assay of 0.71g/t gold at a vertical depth of around 215 metres on Section 7007650mN (See Figure 2).

The recent drilling campaign has confirmed gold mineralisation below the previously known oxide zone with potential to host a large gold target.

At Lowlands South : Drill holes YAR022 and YARC020 intersected soil-covered gold mineralisation within and on the margins of the same sheared and altered magnetic basalt which host Lowlands.

Both holes returned significant gold intercepts. Hole YARC022 intersected 84m of low grade gold mineralisation with gold values up to 0.49g/t over 4m. The hole farthest south, YARC020, intersected a 12m interval of 1.96g/t gold. This mineralisation is open in all directions as no other drilling has been undertaken in this southern area. (Refer Figure 3).

Figure 2. Plan of Lowlands Area - Magnetic Image, Showing Mineralised Lithologies, Shear Zones and Artemis RC Holes.

==> picture [369 x 413] intentionally omitted <==

3

Figure 3. Simplified Cross Section 7007250N

==> picture [225 x 67] intentionally omitted <==

==> picture [343 x 520] intentionally omitted <==

Nickel & Other IP Anomalies

Drilling at the Sandalwood Nickel prospect encountered only sub-economic enrichment of nickel and associated chromium. Maximum nickel assay returned was 4m @ 0.24% Ni.

Only a limited number of IP anomalies associated with palaeo-channels were drill tested and results were not conclusive.

4

==> picture [225 x 67] intentionally omitted <==

PLANNING

Commenting on the results, Artemis Executive Director Guy Robertson said, “The recent drill results combined with Induced Polarisation (IP) survey results have provided several priority targets for further RC drilling at the Yandal Project.

“One priority target is to pursue the down plunge and lateral extent of the Lowlands Pipe, and the other targets relate to further shear zones cross cutting the north-south trending mineralised altered magnetic basalt unit.

Once the 1 metre assay results have been received, we will be in a position to complete planning for the follow up infill drilling programme with a view to defining a resource.”

==> picture [132 x 97] intentionally omitted <==

Guy Robertson Executive Director

ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Mount Clement, Yandal and West Pilbara gold projects in Western Australia. These projects have significant exploration potential and close proximity to existing important deposits or producing mines. Artemis aims to develop a significant gold inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.

For further information, please contact:

Tony Dawe Professional Public Relations + 61 8 9388 0944 Email: tony.dawe@ppr.com.au

Artemis Resources Ltd Office: +612 9078 7670 Email: info@artemisresources.com.au Web Site: www.artemisresources.com.au

5

==> picture [225 x 67] intentionally omitted <==

Figure 4. Plan of Yandal Project Area and Lowlands Prospect

==> picture [402 x 480] intentionally omitted <==

6

==> picture [225 x 67] intentionally omitted <==

Table 1. Significant 4 metre Composite Drill Results

Hole No.	MGA94 East	MGA94 North	From (m)	To (m)	Interval (m)	Grade (g/t Au)
YARC20	308171	7007253	80	92	12	1.96
YARC23	308076	7007604	40	44	4	1.09
		and	52	60	8	1.52
YARC28	308166	7007650	28	36	8	0.52
		and	247	250(EOH)	3	0.71
YARC29	308055	7007630	16	56	40	1.21
YARC 30	308084	7007631	52	64	12	1.03

Notes: 1. Significant results using a cut off grade of 0.5g/t over 4 metres.

2. EOH = end of hole.

3. Gold result from 10gm aqua regia digest with AAS finish at Genalysis Intertek Laboratory Perth.

4. Full analytical results of 1 metre samples are pending.

Table 2. 2012 RC Drill Hole Collars

Prospect	Hole No.	GDA94 East	GDA94 North	RL (m)	Dip	Azimuth (Deg)	Depth (m)
Sandalwood	YARC017	305741	7020079	534	-60	305	225
Sandalwood	YARC018	305618	7019660	561	-70	270	150
Six Mile	YARC019	308196	7007848	486	-60	270	196
Lowlands	YARC020	308171	7007253	490	-60	270	257
Lowlands	YARC021	308612	7007251	487	-60	90	179
Lowlands	YARC022	308172	7007448	489	-60	270	250
Lowlands	YARC023	308076	7007604	489	-60	270	100
Lowlands	YARC024	308049	7007605	489	-60	270	41
Lowlands	YARC025	308084	7007630	488	-60	270	74
Lowlands	YARC026	308075	7007656	493	-60	270	130
Lowlands	YARC027	308124	7007654	489	-60	270	205
Lowlands	YARC028	308166	7007650	485	-60	270	250
Lowlands	YARC029	308055	7007630	487	-60	270	100
Lowlands	YARC030	308084	7007631	488	-60	270	110
Lowlands	YARC031	308064	7007680	488	-60	270	120
Forked stick	YARC032	306598	7009896	494	-60	72	195
Forked stick	YARC033	306446	7009853	494	-60	72	137
Palaeochannel	YARC034	307436	7012002	501	-60	90	250
Palaeochannel	YARC035	307227	7017500	546	-60	90	179

All co-ordinates in GDA94 Zone 50.

The information in this document that relates to Exploration Results is based on information compiled by Mr Frans Voermans, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Voermans 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 Voermans, who is the consulting geologist to 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.

7