Artemis Resources Limited — Capital/Financing Update 2013

Jun 17, 2013

ASX Announcement 18 June 2013

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About Artemis Resources

Artemis Resources is an ASX-listed mineral exploration company with a focus on gold and base metals in WA.

Artemis Set To Drill Antimony Project After Receiving WA Government Funding

Highlights

Key Gold Projects

Mt Clement – gold (WA) Eastern Hills – antimony (WA) Yandal – gold (WA) West Pilbara – gold/base metals (WA)

• WA Government (Exploration Incentive Scheme) approves co-funding to drill Artemis Eastern Hills Antimony deposit

• Eastern Hills drilling Program of Work (POW) receives green light from WA Mines Department

• Drilling planned for 3[rd] Quarter 2013 to upgrade exploration target to a JORC compliant resource

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

James Moses Investor Relations Tel: +61 2 8211 0612

www.artemisresources.com.au

• Current Exploration target: 410,000t-1.25Mt @ 1.5-1.9% Sb and 2.1-2.7% Pb

• Antimony demand from China is strong and prices have surged almost 400% over past 10 years, currently at ~US$10,500 per tonne

Western Australian focused explorer Artemis Resources Limited (ASX: ARV) is pleased to announce that it has successfully applied for co-funding of the drilling program proposed for the Eastern Hills antimony-lead (Sb-Pb) deposit, located in the Ashburton region of Western Australia (Figure 1), provided by the Western Australian Department of Mines and Petroleum (WA Mines Dept.)

The successful funding proposal, which will cover approximately half of the drilling costs, provides further support for the Eastern Hills deposit which has an exploration target of 410,000t-1.25Mt at 1.51.9% Sb and 2.1-2.7% Pb (as previously announced to the market [1] ). Artemis will now finalise details relating to the drill program, with the objective of completing the program in the September quarter.

Eastern Hills is adjacent to the Mt Clement Gold Project (ARV 80%) (Figure 1) - a joint venture gold project with Northern Star Resources Ltd (20%), operator of the nearby Paulsens (>1Moz) Gold Mine.

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

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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WA GOVERNMENT SUPPORTS DRILL PROGRAM

On 12 June, the WA Mines Dept. confirmed that Artemis’ application for co-funding under the Exploration Incentive Scheme (EIS – Round 7) had been successfully granted. Under this initiative, Artemis will receive up to $140,000 to fund 50% of direct drilling costs on the upcoming Eastern Hills drilling program, as outlined above.

The successful funding proposal provides further support for the Eastern Hills deposit, just months after it was “rediscovered”.

This funding boost is much appreciated by Artemis, and the WA Government should be commended for providing real financial support for exploration in under-explored areas of the State, in times of weakness in capital markets.

EASTERN HILLS ANTIMONY-LEAD DEPOSIT

In the mid 1990s, Taipan Resources NL defined a zone of antimony-lead mineralisation at the Eastern Hills deposit based on 19 reverse circulation (RC) holes for a total of almost 2,000 metres drilled. A review of historical exploration at Eastern Hills suggests that there is potential for an initial Exploration Target in the range of 410,000t-1.25Mt at 1.5-1.9% Sb and 2.12.7% Pb . The Eastern Hills exploration target also contains precious metal credits of around 0.22g/t gold and 26g/t silver.

As the Eastern Hills mineralisation is an exploration target only, 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.

Substantial commodity price increases over recent years have led to a re-evaluation of this prospect’s potential.

The Eastern Hills antimony-lead deposit is part of the Mt Clement Project in the Ashburton region of Western Australia (Figure 1).

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Figure 1 – Mt Clement Project - Location map

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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 Mt Clement Project includes a joint venture (ARV 80%) for gold with Northern Star Resources Ltd (ASX: NST), operator of the nearby Paulsens Gold Mine, where production is forecast to rise to 100-115,000oz gold in calendar year 2013 on the back of recent exploration success ( See NST ASX Announcement 11 March 2013 ). The Mt Clement gold deposit is less than 1km from the Eastern Hills deposit (Figures 1 and 2) and contains an Inferred Resource of 1.13Mt at 1.8g/t Au and 17.0g/t Ag (64,000oz gold and 618,000oz silver contained) that is compliant with the JORC Code (2004)[2] .

Figure 2 Eastern Hills location on Google Earth image

The Eastern Hills antimony-lead deposit consists of a zone of mineralisation up to two metres wide associated with a fault structure and outcropping over a strike length of at least 600 metres. The dominant fault structure trends ENE (Figure 3) and dips steeply to the SSE.

The mineralisation occurs as massive sulphides bounded by a broader zone of disseminated sulphides. 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.

Sulphide mineralogy consists of pyrite, boulangerite and arsenopyrite – a lead-antimony sulphide – with minor pyrrhotite, chalcopyrite and galena. Both arsenopyrite and pyrite extend into the disseminated zone for up to eight metres, forming a mineralised zone up to ~15 metres wide.

A preliminary metallurgical assessment was designed by Normet and commissioned to Ammtec by Taipan. Initial metallurgical testing indicated that recoveries for antimony and lead up to 98% are possible.

The drilling in the 1990s successfully demonstrated continuity of the antimony-lead mineralisation along a strike length of at least 600 metres (Figure 3) and to a vertical depth of 120 metres however the mineralisation remained open, both at depth and along strike. There has been no follow-up exploration since the 1990s, of the Eastern Hills deposit to assess its additional potential, nor formulate a mineral resource estimate in accordance with the JORC Code.

Artemis has now planned follow-up exploration to assess the potential of the Eastern Hills deposit, and formulate a mineral resource estimate in accordance with the JORC Code.

EASTERN HILLS DRILLING PROGRAM

While the 1990s drilling was sufficient to estimate an exploration target, Artemis recently announced (ASX Announcement dated 24 April 2013) an initial reverse circulation (RC) drill program designed to:

• Validate the historical drilling and analyses – at least one twin hole 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 earlier surface sampling identified anomalous gold in rockchips in what could be a sub-parallel structure (Figure 3).

2 Mt Clement Inferred Resource previously reported in ASX Announcement dated 26 July 2011

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Figure 3 Eastern Hills geology, rockchip samples and drill hole plan

The proposed RC drill program at Eastern Hills will entail up to 16 drillholes (Figure 3) for a total drilling metreage of approximately 2,800m, and can be funded from Artemis’ existing cash reserves. Drillholes will range from 100m to 250m downhole depth. As identified during recent field reconnaissance, site access to Eastern Hills will be relatively straightforward, with logistics and infrastructure also located close by. Only minor drill site preparation will be required .

Earlier in the year, a Program of Work (POW) was submitted to the WA Mines Dept outlining the details of the proposed Eastern Hills drill program. Approval of the POW has now been received from the WA Mines Dept.

With all necessary approvals now in place drilling is anticipated to begin as soon as a suitable drill rig has been sourced. It is anticipated that drilling will be completed during 3Q13 with results to follow soon after.

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:

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• fire retardant agent

• hardening/strengthening agent for lead and zinc alloys

• lead batteries, ammunition

• catalyst in PET (plastics) production

• ceramics

Sb used in PET Plastics production

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In 1997, when the Eastern Hills mineralisation was discovered, 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 4).

For some years, antimony and copper prices have tracked very closely (Figure 4). 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 almost 50% higher than that of copper.

Since the record monthly average price for antimony ingot reached US$16,800 per tonne in March 2011, antimony prices have remained well above long term averages, currently trading at around US$10,500 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 4 Antimony price vs copper price Figure 5 Annual global antimony production by country

Global antimony output has been dominated by the Chinese for many years (Figure 5)(China supplies approximately 90% of world production). However, with lower output from China since 2009, new sources of antimony are required. The Chinese-owned Beaver Brook mine in Canada filled that void in 2010 and 2011 but recent announcements indicated that this mine was to be closed down.

• 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

• Non-Chinese off-takers are searching for stable no-Chinese sources of antimony

• Chines companies are acquiring Antimony projects

• Alternative output currently from high sovereign risk countries

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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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.

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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 Mineral Resources, 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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