Artemis Resources Limited — Capital/Financing Update 2014

Jul 2, 2014

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3 July 2014

Dear fellow Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE

As we commence a new financial year the Artemis team has re-assessed its projects with a view to economically furthering their development to add maximum value to shareholders.

Our consensus view is that this is best done in the coming year by:

• Drilling of the West Pilbara base metals prospects which have refined Ground EM targets

• Drilling of the West Pilbara, Carlow Castle gold project to expand the size of the existing resource

• Drilling on the newly acquired West Pilbara, Weerianna gold project to expand the size of the existing resource

• Further drill testing of the high grade zone at the Eastern Hills antimony project

To continue to progress our operations and deliver value from the projects as outlined above, the Company has a requirement to raise additional funds. As recently advised (refer ASX announcement, 27 June 2014), Artemis announced a partially underwritten non-renounceable pro rata, one for two rights issue to shareholders to raise up to $1.27 million (before costs) ( Offer ). Funds raised under the Offer will be used to contribute towards the exploration outlined above and provide operational funds for the year ahead.

The Offer is partially and conditionally underwritten in the amount of approximately $542,000 by Armengael Investments Limited ( Underwriter ) who has shown particular interest in the West Pilbara project. The Underwriter will receive an underwriting fee of 6% on the underwritten amount. Shareholders will be given the opportunity of additional participation in the event that there is a shortfall, pro rata to their shareholding. Shareholders with less than a marketable parcel will have a unique opportunity as they will be given preference in participating in the shortfall offer to allow them to increase their holding to a tradeable amount.

A prospectus for the Offer has been lodged with the ASIC on 1 July 2014 and will be dispatched to Eligible Shareholders shortly after the Record Date. Eligible Shareholders should consider the prospectus carefully in deciding whether to participate in the Offer, and will need to complete the personalised entitlement and acceptance form accompanying the prospectus to take up their entitlements.

Details of the Rights Issue Offer

The offer applies to shareholders with a registered address in Australia or New Zealand ( Eligible Shareholders ) and may result in the issue of up to approximately 425.8 million fully paid ordinary shares on the basis of one (1) new share for every two (2) existing shares held as at 7:00pm (AEST) on 8 July 2014 ( Record Date ), at an issue price of $0.003 per share. Fractional entitlements will be rounded up to the nearest whole number. The new shares issued pursuant to the Offer will rank equally with existing fully paid ordinary shares in the Company.

Shareholders taking up their entitlements will also benefit from free attaching options. The free attaching options will be issued to participating shareholders on the basis of one (1) new option for every four (4) new

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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 15, 1 Alfred Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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shares issued. The free options will have an exercise price of $0.003 per option and expiry date of 31 July 2016.

Application has been made to ASX for quotation of the new securities.

The Company has a clear strategy to deliver value from its Western Australian based projects for the benefit of shareholders and the Board encourages all shareholders to participate in the Offer. I take this opportunity to thank shareholders for their support and trust that you will share my confidence in the development of our Company going forward.

Should you have any questions regarding the Offer you may contact the Company on +61 2 9078 7670 or consult your stockbroker or professional adviser. A copy of the prospectus may be viewed at the Artemis Company website at www.artemisresources.com.au or on ASX website.

Proposed timetable of the Offer:

Event	Date
Lodgment Date	1 July 2014
Ex Date – Shares trade ex Entitlement	4 July 2014
Record date to determine Entitlement	8 July 2014
Prospectus with Entitlement and Acceptance Form dispatched	11 July 2014
Offer opens for receipt of Applications (Opening Date)	11 July 2014
Closing date for acceptances (Closing Date)	7pm (AEST), 22 July 2014
Deferred settlement trading	23 July 2014
Notify ASX of under-subscriptions	25 July 2014
Issue of New Securities and dispatch of holding statements	29 July 2014
Trading of New Shares expected to commence	30 July 2014

Note: The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date. As such the date the New Shares are expected to commence trading on ASX may vary.

Yours sincerely,

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Guy Robertson Executive Director

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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 15, 1 Alfred Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia www.artemisresources.com.au