Artemis Resources Limited — Capital/Financing Update 2013

Sep 1, 2013

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ASX Announcement

2 September 2013

Drilling Commenced at Eastern Hills Antimony Project

Highlights

• 3,000 metre Reverse Circulation drilling programme commenced

• WA Government (Exploration Incentive Scheme) co-funding of up to $140,000 to drill antimony deposit

• Objective to:

• upgrade existing target 410,000t-1.25Mt @ 1.5-1.9% Sb and 2.1-2.7% Pb to a JORC

  • compliant resource

• Test depth and strike extensions of the known mineralisation

• Potential for newly identified Northern EM conductor to add significant tonnage

Artemis Resources Limited (ASX: ARV) is pleased to announce that drilling commenced on the Eastern Hills Antimony Project late last week. The 3,000 metres Reverse Circulation drilling programme is expected to take approximately four weeks.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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The programme will include 16 holes + with the aim of achieving the following objectives:

• Validate the historical drilling, geological interpretation and analyses – at least two twin holes will be drilled;

• Establish a maiden JORC compliant resource at Eastern Hills;

• Expand known mineralisation down dip and along strike, where the main lode is currently still “open”; and

• Test an adjoining zone immediately to the northeast of the Eastern Hills antimony-lead lode, where recent remodelling of geophysical data defined a new Electromagnetic (EM) conductor with similar properties to the known antimony-lead lode, in what is interpreted to be a sub-parallel structure (Figure 2).

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Figure 2 Eastern Hills EM Conductors and drill hole plan

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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At the Eastern Hills Antimony Project the company has previously defined an exploration target of 410,000t-1.25Mt at 1.5-1.9% Sb and 2.1-2.7% Pb (as previously reported [1] ). This exploration target has been defined over a 600 metre strike length in what is now thought to be a mineralised system, based on EM conductors, of at least 1 kilometre in strike length and which is considered open at depth. It should also be noted that the current exploration target does not take into account the newly identified Northern EM Conductor which shows the same characteristics as the previously defined Southern Conductor mineralisation. This new zone has potential to add significant tonnage.

As the Eastern Hills mineralisation is an exploration target only, the potential quantity and grade remains conceptual in nature. There has so far, been insufficient exploration to define a Mineral Resource in compliance with the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource as defined by the JORC Code.

RECENT ANTIMONY TRANSACTIONS AND TAKE OVERS

Over the past two years there have been substantial commercial deals undertaken which affirm the strategic appeal of the antimony sector. These deals have included:

• May 2011 - China Shandong Jinshunda Group Co Ltd acquired 96% of ASX-listed Anchor Resources for AU$15.5M to secure ownership of the Bielsdown antimony deposit in NSW, Australia (1,060,000t @ 1.77% Sb and 0.23 g/t Au)[2]

• March 2013 – Bracken Resources Pty Ltd acquired the Hillgrove gold-antimony deposit (6,349,000t@ 1.59% Sb and 4.3 g/t Au) for $30M from ASX-listed Straits Resources Ltd[3]

• May 2013 – AIM-listed Tri-Star Resources PLC acquires the Bald Hill antimony deposit from Canadian explorer Portage Minerals Inc (exploration target of 725,000 – 1,000,000t range grading 4.11% to 5.32% Sb) in a deal worth £3.5M[4]

ANTIMONY USAGE AND MARKETS

Antimony is a specialty metal, commonly found in nature in its sulphide form of stibnite. Saleable products include antimony metal (ingot) and antimony trioxide (a white powder). Its uses include:

 fire retardant agent	 hardening/strengthening agent for lead and zinc alloys
 lead batteries, ammunition	 catalyst in PET (plastics) production
 ceramics

Antimony is currently trading at around US$10,000 per tonne, a five-fold increase since the Eastern Hills deposit was first reported in 1997. This has the potential to significantly enhance the economic parameters of the Eastern Hills deposit.

• 1 As reported in ASX Announcements dated 16 and 18 January 2013

• 2 Anchor Resources Ltd (ASX: AHR) June 2011 Quarterly Report released to the ASX 29th July 2011

• 3 Straits Resources Ltd (ASX: SRQ) announcement released to the ASX 11th March 2013

• 4 Tri-Star Resources PLC (AIM: TSTR) announcement released to AIM 2nd May 2013

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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Global antimony output has been dominated by the Chinese for many years (China supplies approximately 85% of world production). However, with lower output from China since 2009, alternative sources of antimony are required.

• Global output rose almost 70% from 2003 to 2008 and has stabilised post GFC

• Despite post GFC falls, China dominates global production (~85% in 2011 - USGS)

• China has imposed export quotas on strategic commodities such as antimony over recent years

• China production decreases reinforce the need for new antimony sources

• Alternative output currently from high sovereign risk countries

• Non-Chinese off-takers are searching for stable non-Chinese sources of antimony

• Corporate transactions are being completed on non-Chinese antimony projects

This reliance on China as a source of global antimony has led to the European Commission placing antimony on its list of 14 Critical Raw Materials, based on supply risk, economic importance and environmental country risk.

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Antimony has increased
600% in price over the
past 10 years.
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Mount Clement (gold and antimony), Yandal (gold) and West Pilbara (gold and base metals) 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 Executive Director Phone: +61 2 9078 7670 Email: info@artemisresources.com.au Web Site: www.artemisresources.com.au

James Moses Mandate Corporate

Mob: 0420 991 574 Email: james@mandatecorporate.com.au

Tony Dawe

Professional Public Relations

+61 8 9388 0944 Email: tony.dawe@ppr.com.au

Competent Person Statements

The information in this document that relates to Exploration Results and Exploration Targets is based on information compiled or reviewed by Mr Trevor Woolfe, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Woolfe is a consultant to the Company, and is employed by Alexander Cable Pty Ltd. Mr Woolfe 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 Woolfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Company’s Exploration Target includes potential quantity and grade and is conceptual in nature. There has been insufficient exploration to define these mineral resources and it is uncertain if further exploration will result in the determination of mineral resources.

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