Artemis Resources Limited — Capital/Financing Update 2012

Jan 17, 2012

==> picture [226 x 66] intentionally omitted <==

ASX Announcement 18 January 2012 ARTEMIS TARGETS MAJOR GOLD ZONE AT YANDAL

About Artemis Resources

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

Key Gold Projects

Mt Clement (WA) Yandal (WA)

Highlights

• Yandal geological setting similar to Bronzewing (2.3m oz) and Jundee (5.4m oz) gold deposits.

• Further Nickel Gossan occurrences identified at Sandalwood

• Induced Polarisation work to be completed by end January 2012 with drilling planned early 2012.

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

---

Artemis Resources Ltd (ASX: ARV) is pleased to announce that it has completed a thorough review of the geological setting, geophysics and drilling data from its Yandal project, with the objective of locating targets with potential for +1Moz gold.

Although further support work is required, this review has identified a number of new target areas that have not previously been tested. Details of the targets areas are discussed below.

Using the Bronzewing and Jundee gold deposits and their geological setting as the models, the following areas have been identified:

•  A linear North-South striking magnetic feature immediately east of Lowlands which is interpreted to be an Archaean mafic sill (possibly dolerite), an excellent host for gold mineralisation,

•  A highly altered ultramafic unit striking northwards from Lowlands, and a second ultramafic unit east of Lowlands,

•  Several areas of extensive palaeochannel development and deep weathering, where North West and North East striking brittle structures are interpreted to intersect favourable host rocks such as mafic volcanics,

==> picture [65 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 [226 x 66] intentionally omitted <==

•  Two and possibly three steep north-south high grade structures have been interpreted from recent detailed geological mapping and review of the previous drilling at Lowlands prospect. These structures are open to the north, south, and at depth. The area to the east has potential for additional parallel structures and has not been drill tested to date.

•  The occurrence of potentially nickeliferous gossans near Sandalwood prospect has been known since 2007. A magnetic (TEM) survey over the area found four conductors. Recent detailed geological mapping near Sandalwood has detected further gossan occurrences. Drill testing of these gossans and Electro Magnetic (EM) conductors is planned.

Executive Director Guy Robertson said, “In order to test the validity of the Bronzewing model at Yandal, the Company will carry out several IP (Induced Polarisation) traverses across the Lowlands Prospect and also the main palaeodrainages and the nickel gossan area which will be completed in January 2012. This technique has been successful in identifying deeper seated large gold mineralised systems at various places including Bronzewing and Darlot. A comprehensive drilling programme testing the various targets is planned for March 2012 ”.

==> picture [314 x 375] intentionally omitted <==

Figure 1. Artemis Yandal Project, Location Plan

==> picture [65 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 [226 x 66] intentionally omitted <==

TARGET AREAS

The rationale for each of these new target areas is briefly discussed below.

1. Lowlands Mafic & Ultramafic Intrusives

Interpretation of imagery from Artemis’ detailed airborne magnetic survey has identified a number of prominent North-South striking Archaean mafic/ultramafic units immediately north and east of Lowlands (Figure 2).

Archaean mafic rocks, which include dolerites, in areas of known gold mineralistion, such as at Lowlands, have proved to be excellent hosts for large high grade orogenic gold deposits. (Eg. The Golden Mile Dolerite at Kalgoorlie, the Barton Dolerite at Jundee, the Great Fingall Dolerite at Cue).

The review of drilling data at Lowlands, combined with recent detailed geological mapping and magnetic interpretation, has also identified several occurrences of komatiitic ultramafics (shown in purple in Figure 2).

==> picture [295 x 420] intentionally omitted <==

Figure 2. Aeromagnetic Image, Geological Interpretation & Palaeochannel Drainages

3

==> picture [226 x 66] intentionally omitted <==

2. North West and North East Striking Brittle Structures (Faults)

The detailed aeromagnetic data also shows the existence of numerous late brittle North West and North Eaststriking brittle structures which are most evident in the flanking granites. These structures may be significant in localising gold mineralisation within “brittle – ductile” dilation zones within the greenstone sequence (Figure 3).

==> picture [347 x 562] intentionally omitted <==

Figure 3. Edge Enhanced Magnetic Image, Highlighting Brittle D3 Structures and Targets

4

==> picture [226 x 66] intentionally omitted <==

3. Palaeochannel Areas

The magnetic data also shows the existence of two large palaeochannels (Figure 4) which lie over the intersections of these North West and North East-striking brittle structures. These palaeochannels formerly drained eastwards from the centre of the Artemis tenements, whereas present day drainages trend south to South East. These favourable structural settings are often the locus for gold bearing fluids and attendant alteration. In many cases in the Eastern Goldfields, the primary gold deposits are hidden below depressions containing transported overburden, palaeochannels, and deeper zones of weathering. Examples are Bronzewing, ~2.3Moz (Figure 5 below), located with a 50 km radius of Yandal, and Mt McClure, ~1.8 Moz.

==> picture [261 x 260] intentionally omitted <==

==> picture [260 x 260] intentionally omitted <==

Figure 4. Artemis Resources Lowlands Magnetic Image, Showing Palaeodrainages

Figure 5. Bronzewing Magnetic Image, Showing Palaeodrainage over Deposit (Discovered by Great Central Mines)

5

==> picture [226 x 66] intentionally omitted <==

4. Sandalwood Nickel Gossans

The occurrence of potentially nickeliferous gossans outcropping some 500 metres north of the Sandalwood prospect has been known since 2007. (Refer Figure 6) The gossans were partially sampled late in May 2011, returning values in the range 369-3,670 ppm Ni and 200-496 ppm Cu. A TEM survey conducted earlier in the year found four conductors.

Recent detailed geological mapping has detected further gossan occurrences. RC drill testing of these gossans and EM conductors is planned.

==> picture [481 x 261] intentionally omitted <==

Figure 6. Sandalwood Magnetic Image Showing Magnetic Komatiite and Location of Nickel Gossans

5. Lowlands Prospect

This prospect contains the highest drill grades of gold mineralisation in the Yandal Project. Mineralisation has previously been interpreted to be solely hosted within a North West trending, southwest dipping (35-40[0] ) shear zone of altered and intensely weathered fine grained basalts.

Recent detailed geological mapping and review of the previous drilling indicates that the North West trending structure hosts mainly low grade mineralisation, and the drilled high grade mineralisation is controlled by two and possibly three steep north-south structures which have been inadequately drill tested to date.

These interpreted structures are open to the north, to the south, and at depth. The area to the east has potential for additional parallel structures and has not been drill tested to date. Refer Figure 7 overleaf, which shows a surface plan and cross sectional view of the interpreted structures controlling high grade mineralisation.

6

==> picture [226 x 66] intentionally omitted <==

==> picture [484 x 299] intentionally omitted <==

----- Start of picture text -----

High Grade Zone
----- End of picture text -----

Figure 7. Lowlands Surface Plan and Cross Section 7007,675N (+/-12.5m) Showing Interpreted Steep North-South High Grade Structures and Proposed drill Holes

ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Mount Clement and Yandal 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:

Guy Robertson Artemis Resources Ltd Tony Dawe Office: +612 9078 7670 Professional Public Relations Email: info@artemisresources.com.au +61 8 9388 0944 Web Site: www.artemisresources.com.au Email: tony.dawe@ppr.com.a

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 a non-executive Director 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.

7