Artemis Resources Limited — Capital/Financing Update 2013

Jul 31, 2013

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ASX Announcement 1 August 2013

New Massive Sulphides Targets Identified at Eastern Hills Project

Highlights

• New zones of potential massive sulphide mineralisation identified by Electromagnetic (EM) reprocessing at Eastern Hills Project in WA

• New northern conducted plate considered highly prospective

• Project hosts Exploration Target¹ of 410,000-1,250,000t @ 1.5-1.9% Sb (Antimony) and 2.1-2.7% Pb (Lead)

• 3,000m RC drilling programme to validate Exploration Target & confirm a JORC Resource estimate to commence this quarter

• WA Government Exploration Incentive Scheme co-funding of up to $140,000 for Eastern Hills drilling

• Strong antimony price and outlook; price currently ~US$9,500 per tonne²

Artemis Resources Limited (ASX: ARV) is pleased to announce that a recent study of electromagnetic (EM) data from the Eastern Hills Project in the Ashburton region of Western Australia has identified new zones of potential massive sulphide mineralisation at the project.

Existing geophysical from a previous EM Survey (conducted by Taipan Resources NL (Taipan) in 1997) was reprocessed using the latest modelling techniques. This study has produced a new EM conductor plate north of existing mineralisation at the Eastern Hills antimony-lead Project.

The study, by Southern Geoscience Consultants of Perth, outlined and extended the known EM conductor plate at Eastern Hills. The deposit consists of a main lode zone of mineralisation up to two metres wide associated with a fault structure, outcropping over a strike length of at least 600 metres. The antimony-lead mineralisation occurs as massive sulphides bounded by a broader zone of disseminated sulphides, forming a mineralised zone up to ~15 metres wide, and it is this massive sulphide that forms the EM conductor plates identified in the recent reprocessing study.

The EM conductor plate which outlines the currently identified antimony-lead mineralisation coincides exceedingly well with the massive sulphide zone identified from drilling by Taipan in 1997.

¹ 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.

²Metal Pages

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Importantly this EM conductor plate now extends a further 400 metres along strike (Figure 1) from the known and drilled mineralisation, and is also considered open at depth as can be seen in a cross section of previous drilling (Figure 2).

The newly identified northern EM conductor plate (see Figure 1) is considered highly prospective given the strong coincidence between the drill identified massive sulphide antimony-lead deposit and the southern EM Conductor, and will be a priority target for Artemis’ recently announced 3,000 metre Reverse Circulation drill programme scheduled to begin this month.

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Figure 1 Eastern Hills EM Conductors and Proposed Drilling

EASTERN HILLS ANTIMONY-LEAD DEPOSIT

In 1997, Taipan defined a zone of lead-antimony mineralisation based on 19 reverse circulation (RC) holes³. As detailed in ARV’s recent ASX release⁴, an initial exploration target in the range of 410,000 to 1,250,000 tonnes at a grade range of 1.5-1.9% Sb and 2.1-2.7% Pb has been outlined at Eastern Hills. This exploration target also contains precious metal credits of around 0.22g/t gold and 26g/t silver. Substantial commodity price increases over recent years (antimony price is up almost 500% since the 1997 discovery of Eastern Hills) have led to a re-evaluation of this prospect’s potential.

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For this exploration target, the potential quantity and grade is 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. The mineralisation contains high levels of antimony and lead, as well as minor gold and silver, associated with a linear quartz vein represented at surface by a thin, outcropping gossanous zone.

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Figure 2 Eastern Hills – Diagrammatic Cross Sections A (refer to Figure 2 for location of Section A)

³Eastern Hills Project Resource Report, Taipan Resources NL internal report, November 1997 ⁴Mt Clement Review Reveals Significant Antimony Exploration Target, ASX releases dated 16 and 18 January 2013

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ANTIMONY PRICES AND MARKET

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

• lead batteries, ammunition

• catalyst in PET (plastics) production

• ceramics

• hardening/strengthening agent for lead and zinc alloys

In 1997, when Taipan discovered the Eastern Hills mineralisation, the antimony price was depressed, at or below US$2,000 per tonne and the lead price was around US$550 per tonne. Global commodity prices, and specifically antimony prices, have undergone a significant surge, particularly in the past four years, following a period of sustained rises over the past decade (Figure 3).

For some years, antimony and copper prices tracked very closely (Figure 3), but despite the robust consistency of copper pricing over recent years, since early 2010, the antimony price has de-coupled from its more famous base metal “cousin” and has surged to record highs with antimony pricing currently 50% higher than that of copper.

Since the record monthly average price for Sb reached US$16,800 per tonne in March 2011, Sb prices have remained elevated, currently trading at ~US$9,500 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.

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Figure 3 Antimony price vs copper price Figure 4 Annual global antimony production by country

Global antimony output has been dominated by China for many years (Figure 4). However, with lower output from China since 2009, new sources of antimony are required.

• Global output rose almost 70% from 2003 to 2008 and has stabilised post GFC (2009)

• 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

• Remainder of output from high sovereign risk countries

• China production decreases reinforce the need for new antimony sources

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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.

For further information, please contact:

James Moses Mandate Corporate +61 420 991 574 Email: james@mandatecorporate.com.au

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

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

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.

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.

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