Artemis Resources Limited — Capital/Financing Update 2014

Mar 25, 2014

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ASX Announcement 26 March 2014

HIGH GRADES BOOST EASTERN HILLS EXPLORATION TARGET New Estimate Incorporates High Grade Dugite East Zone

EASTERN HILLS ANTIMONY-LEAD (Sb - Pb) PROJECT

• A new Exploration Target has been estimated for the Eastern Hills Sb-Pb Project, incorporating:

• The recent maiden JORC compliant resource estimate for the Taipan Zone;

• Extensions to the Taipan Zone 100m to the east, as indicated by surface sampling; and

• Potential mineralisation along the 1,200m length of the Dugite Zone

• Dugite East shows significant potential for a new high grade antimony-lead resource

• Resource potential of high grade Dugite Zone to be drill tested when 2014 field season commences

Artemis Resources Limited (ASX: ARV) is pleased to announce a significant new Exploration Target following a recent assessment of the exploration potential of the emerging Eastern Hills Antimony-Lead Project, located in the Ashburton region of Western Australia (Figure 3). The new Exploration Target builds on the foundation laid by the maiden Mineral Resource released late 2013[1] , estimated in accordance with JORC (2012) guidelines, covering the Taipan Zone and adds the potential of the sub-parallel Dugite Zone, where recent surface rock chip sampling has revealed a zone of very high grade assay results at Dugite East that eclipse those encountered along the Taipan Zone (Figure 1).

The new Exploration Target range for Eastern Hills has been estimated, in accordance with JORC (2012) guidelines, as the following (Table 1).

	Tonnage (Mt)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)	Contained Sb (t)	Contained Pb (t)
Eastern Hills
Exploration Target
	1.7 – 4.0	1.8 - 3.2	2.7 – 4.0	30 - 59	0.37 – 0.60	32,000-128,000	47,000-161,000
	The potential quantity and grade of the Exploration Target is conceptual in nature, and there has so far been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

Table 1: Exploration Target Feb14 – Eastern Hills Sb-Pb Project

The most recently reported rock chip sampling results[2] for the Dugite East Zone include high grade results up to 28% Sb, 34.4% Pb and 452g/t Ag and provide further strong support for, firstly, the existence of a very high grade zone at Dugite East and, secondly, the overall expansion potential of the Eastern Hills project area.

Artemis General Manager-Exploration, Trevor Woolfe, said: “The addition of the significant high grade potential of the Dugite Zone to the existing JORC compliant resource, reported for the adjacent Taipan Zone, has substantially increased the potential metal inventory of the Eastern Hills Project. High grades encountered at surface, particularly at Dugite East, indicate the potential for up to 128,000 tonnes of contained antimony metal in the latest Eastern Hills Exploration Target estimation. If confirmed by follow up drilling, this could rank Eastern Hills as one of the top antimony projects outside of China. Planning for drill testing of the Dugite Zone in the 2014 field season is well advanced.”

1 As per ASX announcement dated 29 November 2013

2 As per ASX announcement dated 5 March 2014

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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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Eastern Hills Project - Background

Artemis’ 2013 drilling program focused on the Taipan Zone and resulted in a maiden Indicated and Inferred Mineral Resource estimated in accordance with JORC (2012) guidelines of: 1.3Mt at 1.7% Sb and 2.5% Pb (22,400t contained Sb)[1] using a 1.0% Sb cutoff grade (Table 2).

Taipan Zone	Tonnes (Mt)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)	Contained Sb (t)	Contained Pb (t)
Indicated	0.81	2.0	3.1	26	0.41	15,900	25,200
Inferred	0.50	1.3	1.5	16	0.20	6,500	7,500
Total	1.31	1.7	2.5	24	0.34	22,400	32,700

Table 2: Eastern Hills Mineral Resource – Indicated and Inferred – November 2013

Exploration mapping and rock chip sampling over the area to the north of the Taipan Zone was undertaken in the second half of 2013 and identified a number of sub-parallel alteration zones with similar characteristics and mineral associations as the Taipan Zone. The three new zones identified were named the Dugite. Gwardar and Tiger Zones (Figure 1). While anomalous antimony and lead were encountered in each of the three zones, the Dugite Zone showed the best continuity and quantum of mineralisation with very high grades achieved, up to 35.7% Sb, 36% Pb, 1,500g/t Ag and 6.80g/t Au.

The high grade antimony-lead values are concentrated at the eastern end of the Dugite Zone, hence called Dugite East. The remainder of the Dugite Zone has been named Dugite Central and Dugite West (Figure 1). The latest high grade results[1 ] collected from Dugite East are up to 28% Sb and 34.4% Pb (Figure 1) and provide further strong support for both (1) the existence of a very high grade zone at Dugite, and (2) the overall expansion potential of the Eastern Hills Project area. The Dugite East high grade zone is still open to the east and has yet to be drill tested.

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Figure 1: Eastern Hills - Latest sampling along Dugite Zone

The importance of the high grade antimony results at Dugite East is highlighted by the comparison with average grades of existing antimony mines and development projects elsewhere in Australia (Table 3).

ASX Announcement dated 26 March 2014

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Project	Owner	Location	Tonnage (Mt)	Sbgrade(%)	Sb Content(t)	Sb Content(t)	Status
Hillgrove	Bracken	NSW	6.3	1.6	101,000		Development
Costerfield	Mandalay	Vic	1.4	3.3	46,000		Production
Eastern Hills	Artemis	WA	1.3	1.7		22,400	Exploration
Wild Cattle Creek	Anchor	NSW	1.0	1.8	18,800		Exploration
Blue Spec	NorthWest	WA	0.4	1.3	5,200		Exploration

Table 3: Australian antimony projects – Reported resources Potential re-rating of Eastern Hills Project Source: Company announcements/websites

Eastern Hills Project – New Exploration Target

Following successful exploration of the Eastern Hills Project by Artemis during 2013, a new Exploration Target has been estimated for the project that incorporates a combination of existing exploration results and proposed drill testing:

• i. The recent maiden JORC compliant resource estimate for the Taipan Zone (Details in JORC Table 1 – Appendix);

• ii. Extensions to the Taipan Zone 100m to the east, as indicated by surface sampling; and

• iii. Potential mineralisation along the 1200m length of the Dugite Zone, as indicated by surface sampling.

Due to the significantly higher grades that have been recorded thus far in Dugite East, this portion of the Dugite Zone has been estimated separately from the remainder of the zone.

An exploration target involves a range of possible tonnage and grade estimates and are here termed the Minimum and Maximum cases. For the Taipan Zone, the latest JORC resource estimate was taken as the minimum and the additional resource possible by extending the Taipan Zone resource by 100m to the east was included in the maximum case.

Exploration Target Parameters

Parameters for defining the minimum/maximum ranges for the Exploration Target are shown in Table 4.

For the Taipan Zone , average grades for Sb, Pb, Ag and Au were taken from the JORC resource[1] (Table 2). For the Taipan Extension , average grades used were extrapolated directly from the Taipan JORC resource[1] (Table 2).

For Dugite East – a total of 23 surface rock chip sample results have been used[2,3,4] .

Minimum grades were estimated by using an arithmetic average of all rock chip samples within the designated zone, with a top cut applied to high grades as follows:

• Sb>10%, cut to 10% (9 of 23 samples cut applied)

• Pb>15%, cut to 15% (6 of 23 samples cut applied)

• Ag>500g/t, cut to 500g/t (2 of 23 samples cut applied)

Maximum grades were estimated by using an arithmetic average of all rock chip samples within the designated zone, with no top cut applied to high grades.

While there is a possibility that there has been some surface enrichment resulting in the high grades achieved at Dugite East, Artemis is optimistic that high grades will continue at depth, given that there is very good correlation between surface rockchip samples and subsurface drilled samples on the adjacent Taipan Zone, where a maiden resource was recently announced[2] , indicating a lack of surface enrichment at Taipan.

For Central+West Dugite – a total of 21 surface rock chip sample results have been used[2,3,4] .

Minimum grades were estimated by using an arithmetic average of all rock chip samples within the designated zone, with a top cut applied to high grades as follows:

Sb>10%, cut to 10% (1 of 21 samples cut applied)

• Pb>15%, cut to 15% (1 of 21 samples cut applied)

Ag>500g/t, cut to 500g/t (0 of 21 samples cut applied)

Maximum grades were estimated by using an arithmetic average of all rock chip samples within the designated zone, with no top cut applied to high grades.

3 As per ASX announcement dated 26 September 2013

4 As per ASX announcement dated 12 November 2013

ASX Announcement dated 26 March 2014

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Table 4: Parameters for range of Exploration Target estimates

Parameter	Exploration Target Range	Taipan JORC Resource1	Taipan Extension	Dugite East	Dugite Central+West
True width(m)	Minimum	2.1	1.7	1.2	1.2
	Maximum	2.1	1.7	2.5	2.5
Vertical depth(m)	Minimum	300	300	120	120
	Maximum	300	300	300	300
Strike length(m)	Minimum	850	100	255	840
	Maximum	850	100	330	840
Average SG*(t/m3)	Minimum	2.9	2.9	2.8	2.8
	Maximum	2.9	2.9	2.9	2.9
Sbgrade(%)	Minimum	1.7	1.7	Topcut 10%	Topcut 10%
	Maximum	1.7	1.7	No topcut	No topcut
Pbgrade(%)	Minimum	2.5	2.5	Topcut 15%	Topcut 15%
	Maximum	2.5	2.5	No topcut	No topcut
Ag grade(g/t)	Minimum	24	24	Topcut 500g/t	No topcut
	Maximum	24	24	No topcut	No topcut
Augrade(g/t)	Minimum	0.34	0.34	No topcut	No topcut
	Maximum	0.34	0.34	No topcut	No topcut

*Note: Average SG based on estimates of 2.4t/m[3 ] (0-40m vertical depth) and 3.0 t/m[3] (40-300m)

Estimate of New Exploration Target

Assuming the parameters defined above, the new Exploration Target range for the Eastern Hills deposit, based on the minimum and maximum cases is:

1.7-4.0Mt at 1.8-3.2% Sb, 2.7-4.0% Pb, 30-59g/t Ag and 0.37-0.60g/t Au[5]

The breakdown of the revised Exploration Target is presented in Table 5 (below), on the basis of minimum and maximum cases for each of the zones making up the new Eastern Hills Exploration Target.

The range of contained antimony estimated in the Exploration Target is from 32,000 to 128,000 tonnes[5] . This is a broad range but reflects the uncertainty of the continuity of mineralisation and the quantum of grades at depth below the surface rockchip sampling along the Dugite Zone. If the maximum contained antimony of the new Exploration Target (128,000t Sb) were to be confirmed from drilling and subsequent resource estimation, this would have a significant impact on the Eastern Hills project, potentially lifting it to the top antimony resource in Australia (Table 3).

Table 5: Exploration Target[5] February 2014 – Eastern Hills Project

		Range	Tonnes	Mt	Sb %	Pb %	Au g/t	Ag g/t	Cont Sb (t)	Cont Pb (t)	Cont Au (oz)	Cont Ag (oz)
Taipan	JORC Ind+Inf1	Minimum	1,312,000	1.3	1.7	2.5	0.34	24	22,300	32,800	14,300	1,012,000
	East Extension		148,000	0.1	1.7	2.5	0.34	24	2,500	3,700	1,600	114,000
	Total	Maximum	1,460,000	1.5	1.7	2.5	0.34	24	24,800	36,500	16,000	1,126,000
Dugite E		Minimum	103,000	0.1	5.0	7.0	0.28	100	5,100	7,200	900	331,000
		Maximum	717,000	0.7	10.0	11.0	0.36	180	71,700	78,900	8,300	4,151,000
Dugite Cent + West		Minimum	339,000	0.3	1.5	2.1	0.50	30	5,000	7,000	5,500	327,000
		Maximum	1,829,000	1.8	1.7	2.5	0.90	40	31,100	45,700	52,900	2,352,000
Combined Total		Minimum	1,754,000	1.8	1.8	2.7	0.37	30	32,400	47,000	20,700	1,670,000
		Maximum	4,006,000	4.0	3.2	4.0	0.60	59	127,600	161,100	77,200	7,630,000

*Some rounding errors may apply

5 Please refer to cautionary statement in Table 1

ASX Announcement dated 26 March 2014

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Proposed Drill Testing

To confirm the new Exploration Target, Artemis anticipates either one comprehensive phase of ~2,000-3,000m of drilling, both along strike and to depth on the Dugite Zone, or a staged approach with drilling undertaken incrementally over 1-2 years. Artemis is finalising plans to drill test the new Exploration Target with an initial RC drilling program around the middle of 2014. The program is anticipated to specifically test the Dugite Zone, focussing on confirming the sub-surface continuity of very high grade surface rock chip sampling results received thus far at Dugite East.

Expansion of Tenure – New EL Applications

Following Artemis’ successful 2013 exploration activities at Eastern Hills, the Company has submitted applications for two new Exploration Licences (ELs) that are contiguous with the Mt Clement–Eastern Hills Project Area (Figure 2). The applications have been made via a 100% owned subsidiary and will expand the footprint of prospective tenure surrounding the Mt Clement and Eastern Hills Projects – both of which now contain JORC compliant Mineral Resources. The two EL applications (E08/2602 and E08/2603) cover a combined ~92km[2] of prospective terrain that includes mineral prospects such as Hardey Junction (gold and lead) and Erny Bore (gold).

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Figure 2: Eastern Hills/Mt Clement Tenure Plan – new applications

ASX Announcement dated 26 March 2014

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ACTIVITY UPDATE

Artemis is finalising the next stage of its exploration program, which will commence after the current wet season (Table 3). The Dugite Zone will be a key focus in the Company’s strategy to increase the resource base at Eastern Hills with drilling scheduled to test the continuity of high grade surface results at depth and along strike.

Preliminary metallurgical testing of RC chip samples from the recent Taipan Zone drilling program is currently underway with results expected in coming weeks. More definitive metallurgical testing will be targeted once diamond drill core is available from the proposed phase 2 drilling program on the Taipan Zone, and also the Dugite Zone, subject to positive drill results.

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Table 3: Proposed activities and progress for Eastern Hills Project

ASX Announcement dated 26 March 2014

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ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Eastern Hills (antimony-lead), Mount Clement (gold), 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 metal 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:

Figure 3: ARV Project Locations

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

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 and a Member of the Australian Institute of Geoscientists. 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 2012 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 information in this document that relates to Mineral Resources is based on information previously reported to ASX on 29 November 2013. The Company is not aware of any new information or data that materially affects the information included in that report and confirms that all material assumptions and technical parameters underpinning those estimates continue to apply and have not materially changed.

Forward Looking Statements

This report contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Artemis’ control. Actual results and developments will almost certainly differ materially from those expressed or implied. Artemis has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. To the maximum extent permitted by applicable laws, Artemis makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

ASX Announcement dated 26 March 2014

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ASX Announcement dated 26 March 2014

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

Section 1	Sampling Techniques and Data	Sampling Techniques and Data
(Criteriainthis	sectionapply to allsucceeding sections.)
Criteria	JORC Code explanation		Commentary
Sampling	•	Nature and quality of sampling (eg cut channels,	•	Reverse circulation drilling was used to obtain 1m
techniques		random chips, or specific specialised industry		drill chip samples from which a 2-4kg sample was
		standard measurement tools appropriate to the		collected for submission to the laboratory for ICP
		minerals under investigation, such as down hole		and XRF analysis. Mineralised zones were
		gamma sondes, or handheld XRF instruments,		identified visually and supported by Sb-Pb
		etc). These examples should not be taken as		readings from a hand-held X-ray Fluorescence
		limiting the broad meaning of sampling.		(XRF) tool.
	•	Include reference to measures taken to ensure	•	Samples from each metre were collected in a
		sample representivity and the appropriate		cyclone and split using a 3 level riffle splitter.
		calibration of any measurement tools or systems		Artemis used a hand-held XRF to obtain an instant
		used.		qualitative geochemical analysis of each sample
	•	Aspects of the determination of mineralisation that are Material to the Public Report.		during the drilling. The hand-held XRF was calibrated against standards after every 20 readings. Current QAQC protocols include
	•	In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1		analysis of field duplicates. Based on statistical analysis of these results, there is no evidence to suggest the samples are not representative.
		m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or	•	As the hand-held XRF tool provides only a preliminary qualitative, rather than quantitative, indication of Sb presence, only final laboratory assay results will be reported publicly.
		mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole	•	Reverse Circulation drilling utilising a nominal 4½
techniques		hammer, rotary air blast, auger, Bangka, sonic,		inch diameter face-sampling hammer
		etc) and details (eg core diameter, triple or
		standard tube, depth of diamond tails, face-
		sampling bit or other type, whether core is
		oriented and if so, by what method, etc).
Drill sample	•	Method of recording and assessing core and	•	Recoveries are recorded by the geologist in the
recovery		chip sample recoveries and results assessed.		field at the time of drilling/logging.
	•	Measures taken to maximise sample recovery	•	If poor sample recovery is encountered during
		and ensure representative nature of the		drilling, the geologist and driller have endeavored
		samples.		to rectify the problem to ensure maximum sample
	•	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.		recovery. Visual assessment is made for moisture and contamination. A cyclone and splitter were used to ensure representative samples and were routinely cleaned.
			•	Sample recoveries to date have generally been
				high, and moisture in samples minimal. Insufficient
				data is available at present to determine if a
				relationship exists between recovery and grade.
				This will be assessed once a statistically valid
				amount of data is available to make a
				determination.
Logging	•	Whether core and chip samples have been	•	All drill chip samples are geologically logged at 1m
		geologically and geotechnically logged to a level		intervals from surface to the bottom of each
		of detail to support appropriate Mineral		individual hole to a level that will support
		Resource estimation, mining studies and		appropriate future Mineral Resource studies.
		metallurgical studies.	•	Logging is considered to be semi-quantitative
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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Whether logging is qualitative or quantitative in		given the nature of reverse circulation drill chips
		nature. Core (or costean, channel, etc)		and the inability to obtain detailed geological
		photography.		information.
	•	The total length and percentage of the relevant	•	All RC drill holes in the current program are
		intersections logged.		logged in full.
Sub-	•	If core, whether cut or sawn and whether	•	The RC drilling rig was equipped with an in-built
sampling		quarter, half or all core taken.		cyclone and triple tier riffle splitting system, which
techniques and sample preparation	• •	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique.	•	provided one bulk sample of approximately 20kg, and a sub-sample of 2-4kg per metre drilled. All samples were split using the system described above to maximise and maintain consistent representivity. The majority of samples were dry. For wet samplesthecleanliness of the cyclone and
	•	Quality control procedures adopted for all sub- sampling stages to maximise representivity of		splitter was constantly monitored by the geologist and maintained to avoid contamination.
		samples.	•	Bulk samples were placed in green plastic bags,
	•	Measures taken to ensure that the sampling is representative of the in situ material collected,		with the sub-samples collected placed in calico sample bags.
		including for instance results for field duplicate/second-half sampling.	•	Field duplicates were collected by re-splitting the bulk samples from large plastic bags. These
	•	Whether sample sizes are appropriate to the grain size of the material being sampled.		duplicates were designed for lab checks as well as lab umpire analysis.
			•	A sample size of 2-4kg was collected and
				considered appropriate and representative for the
				grain size and style of mineralisation
Quality of	•	The nature, quality and appropriateness of the	•	ALS Laboratory (Perth & Brisbane) was used for
assay data		assaying and laboratory procedures used and		all analysis work carried out on the 1m and 4m
and		whether the technique is considered partial or		composite drill chip samples. The laboratory
laboratory		total.		techniques below are for all samples submitted to
tests	•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument		ALS and are considered appropriate for the style of mineralisation defined at the Eastern Hills Antimony-Lead Project:
		make and model, reading times, calibrations		o PUL-32 & CRU-21 (Sample
		factors applied and their derivation, etc.		Preparation Codes)
	•	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.		o ME-ICP61 Ag-As-S-Pb-Zn (4 Acid Digest; AES Finish) Sb by ME- ICP61 for twinned drillholes only. o OG62 over-range Ag-Pb o Au-AA23 Au (Fire Assay Gold) o ME-XRF05 Sb (Pressed Pellet
				XRF)
				o ME-XRF15b for Sb >10,000 ppm;
				Sb Only (Fusion XRF)
			•	Hand held XRF was used in field for qualitative
				assessment only and results are not to be
				reported publicly.
			•	Blind field duplicates were collected at a rate of 1
				duplicate for every 20 samples that are to be
				submitted for ALS laboratory analysis. Field
				duplicates were split using an external splitter
				once the sample intervals were determined by the
				geologist in the field.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	Additional field duplicates were also collected at a
				rate of 1 in 40. These samples were submitted to
				SGS Laboratory (Perth) as umpire samples and
				results were found to be within acceptable ranges.
				The laboratory techniques detailed below are for
				all samples submitted to SGS and are considered
				appropriate for the style of mineralisation defined
				at the Eastern Hills Antimony-Lead Project.
				• The following sample methods were used for
				all samples sent to SGS:
				o PRP86 (Sample Preparation)
				o ICP40Q Ag-As-S-Pb-Zn (4 Acid
				Digest; OES Finish)
				o FAA505 Au (Fire Assay Gold)
				o XRF75V Sb (Pressed Pellet XRF)
				o ASH01/XRF78S Sb Where XRF75V
				> 4000 ppmSb Only (Fusion XRF)
Verification	•	The verification of significant intersections by	•	At least two company personnel verify all
of sampling		either independent or alternative company		significant intersections.
and assaying		personnel.	•	All geological logging and sampling information is
	•	The use of twinned holes.		completed firstly on to paper logs before being
	•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.		transferred to Microsoft Excel spreadsheets. All electronic field data is then transferred into a Microsoft Access database for validation and compilation. Physical logs and sampling data are
	•	Discuss any adjustment to assay data.		returned to the Artemis head office for scanning and storage. Electronic copies of all information
				are backed up daily.
			•	No adjustments of assay data are considered
				necessary.
Location of	•	Accuracy and quality of surveys used to locate	•	A Garmin GPSMap62 hand-held GPS is used to
data points		drill holes (collar and down-hole surveys),		define the location of the drill hole collars.
		trenches, mine workings and other locations		Standard practice is for the GPS to be left at the
		used in Mineral Resource estimation.		site of the collar for a period of 10 minutes to
	•	Specification of the grid system used.		obtain a steady reading. Collar locations are considered to be accurate to within 5m. Collars
	•	Quality and adequacy of topographic control.		will be picked up by DGPS in the future. Down hole surveys are conducted by the drill contractors
				using a Reflex electronic multi-shot camera with
				readings for dip and magnetic azimuth taken every
				30m down hole. The instrument is positioned
				within a stainless steel drill rod so as not to affect
				the magnetic azimuth.
			•	Grid system used is MGA 94 (Zone 50)
			•	Topographic control is obtained from surface
				profiles created by close spaced historical
				aeromagnetic survey data and calibrated with
				GPS surface measurements. It will be necessary
				to undertake more detailed topographic controls
				later in the program.
Data spacing	•	Data spacing for reporting of Exploration	•	Data spacing (drillhole spacing) is variable and
and distribution		Results.		appropriate to the geology and historical drilling.
	•	Whether the data spacing and distribution is sufficient to establish the degree of geological	•	A drillhole section spacing of 60-100m is used
		andgrade continuity appropriate for the Mineral		while hole spacings are variable, further details

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Resource and Ore Reserve estimation		are provided in the collar co-ordinate table
		procedure(s) and classifications applied.		contained in the 6 November 2013 ASX release.
	•	Whether sample compositing has been applied.	•	No sample compositing is used in the referenced
				reports, all results detailed are the product of 1m
				down hole sample intervals. 4m compositing in the
				upper levels of the twinned hole did not return
				significant results and as such they are not
				discussed further in this report.
Orientation	•	Whether the orientation of sampling achieves	•	Most drill holes are planned to intersect the
of data in		unbiased sampling of possible structures and		interpreted mineralised structures/lodes as near to
relation to		the extent to which this is known, considering		a perpendicular angle as possible (subject to
geological		the deposit type.		access to the preferred collar position).
structure
	•	If the relationship between the drilling orientation	•	Hole AREHRC007 was intended to test the
		and the orientation of key mineralised structures		“Northern Conductor” is a feature previously
		is considered to have introduced a sampling		interpreted from EM geophysics to be dipping
		bias, this should be assessed and reported if		NNW. Further evaluation of this area now suggest
		material.		that a near vertical, south dipping, mineralised
				structure occurs within 5 metres of the collar
				location of AREHRC007, however given the near
				vertical nature of that body it is not considered that
				sampling bias has occurred in that hole.
Sample	•	The measures taken to ensure sample security.	•	The chain of custody is managed by the project
security				geologist who places calico sample bags in
				polyweave sacks. Up to 10 calico sample bags are
				placed in each sack. Each sack is clearly labelled
				with:
				• Artemis Resources Ltd
				• Address of laboratory
				• Sample range
			•	Samples were delivered by Artemis personnel to
				the Paulsens mine site freight dispatch area in
				order to be loaded on the next available truck of a
				reputable freight provider. The freight provider
				delivers the samples directly to the laboratory.
				Detailed records are kept of all samples that are
				dispatched, including details of chain of custody.
Audits or	•	The results of any audits or reviews of sampling	•	No audit of sampling data has been completed to
reviews		techniques and data.		date but a review will be subsequently conducted.
				Data is validated when loading into the database
				and will be validated again prior to any Resource
				estimation studies.

Section 2 Reporting of Exploration Results

Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results
(Criteria listed in theprecedingsection also applyto this section.)
Criteria	JORC Code explanation		Commentary
Mineral	•	Type, reference name/number, location and	•	M08/193 – 100% held by Artemis Resources
tenement and		ownership including agreements or material		Ltd
land tenure status		issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national		• Gold rights – Artemis 80%, joint venture with Northern Star Resources Ltd 20%
		park and environmental settings.	•	E08/1841 – held by Artemis Resources Ltd

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	The security of the tenure held at the time of	•	The tenements are in good standing and no
		reporting along with any known impediments to		known impediments exist (see map elsewhere
		obtaining a licence to operate in the area.		in this report for locations).
Exploration	•	Acknowledgment and appraisal of exploration	•	Previous exploration of the Eastern Hills
done by other		by other parties.		Antimony-Lead Project was conducted in 1996-
parties				97 by Taipan Resources NL. This exploration
				comprised geological mapping, rock and soil
				sampling plus two programs of RC drilling.
			•	All exploration and analysis techniques
				conducted by Taipan Resources are considered
				to have been appropriate given the limited
				knowledge of the area and available techniques
				at the time.
Geology	•	Deposit type, geological setting and style of	•	The Eastern Hills antimony-lead deposit is a
		mineralisation.		fault/vein hosted subvertical structure and
				outcropping over a strike length of at least
				800m. Historical drilling identified mineralisation
				to at least 120m vertical depth. The deposit
				remains open along strike to the east and at
				depth.
			•	Mineralisation occurs as massive sulphides
				bounded by a broader zone of disseminated
				sulphides. Sulphide mineralogy consists of
				pyrite, boulangerite – a lead-antimony sulphide
				– and arsenopyrite with minor pyrrhotite,
				chalcopyrite and galena.
Drill hole	•	A summary of all information material to the	•	Refer to details of drilling in table in the body of
Information		understanding of the exploration results		the ASX releases referred to in this report.
		including a tabulation of the following
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole
		collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
	•	If the exclusion of this information is justified on
		the basis that the information is not Material and
		this exclusion does not detract from the
		understanding of the report, the Competent
		Person should clearly explain why this is the
		case.
Data	•	In reporting Exploration Results, weighting	•	All intervals previously reported are composed
aggregation		averaging techniques, maximum and/or		of 1m down hole intervals and as such are
methods		minimum grade truncations (eg cutting of high		length weighted. A lower cut-off grade of 1% Sb
		grades) and cut-off grades are usually Material		has been used for assessing significant
		and should be stated.		intercepts, and no upper cut-off grade was
	•	Where aggregate intercepts incorporate short		applied.
		lengths of high grade results and longer lengths	•	Maximum internal dilution of 1m was
		of low grade results, the procedure used for		incorporated in reported significant intercepts.
		such aggregation should be stated and some typical examples of such aggregations should	•	No metal equivalents are used for reporting.
		be shown in detail.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	The assumptions used for any reporting of
		metal equivalent values should be clearly
		stated.
Relationship	•	These relationships are particularly important in	•	True widths for mineralisation have not been
between		the reporting of Exploration Results.		calculated and as such only down hole lengths
mineralisation widths and intercept lengths	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	•	have been reported in ASX releases referred to in this report. While interpretation of the deposit is in the early
	•	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).		stages, a better understanding of the geometry of the deposit will be achieved, and true widths reported, later in the exploration phase. It is expected that true widths will be less than down hole widths, due to the apparent steep nature of
				the mineralisation.
Diagrams	•	Appropriate maps and sections (with scales)	•	Appropriate maps and sections are available in
		and tabulations of intercepts should be included		the body of the relevant ASX announcements
		for any significant discovery being reported		referred to in this report.
		These should include, but not be limited to a
		plan view of drill hole collar locations and
		appropriate sectional views.
Balanced	•	Where comprehensive reporting of all	•	Reporting of results, in this report and other
reporting		Exploration Results is not practicable,		ASX releases referred to in this report, is
		representative reporting of both low and high		considered balanced.
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other	•	Other exploration data, if meaningful and	•	No other significant exploration work has been
substantive		material, should be reported including (but not		done by Artemis.
exploration data		limited to): geological observations; geophysical
		survey results; geochemical survey results; bulk
		samples – size and method of treatment;
		metallurgical test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious or
		contaminating substances.
Further work	•	The nature and scale of planned further work	•	Insufficient results from Artemis drilling have
		(eg tests for lateral extensions, depth		been received to date and as such there is
		extensions or large-scale step-out drilling).		currently insufficient data to confirm a plan for
	•	Diagrams clearly highlighting the areas of		follow-up work.
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

(Criterialistedinsection 1also apply to this section.)	(Criterialistedinsection 1also apply to this section.)	(Criterialistedinsection 1also apply to this section.)
Criteria	JORC Code explanation		Commentary
Database	•	Measures taken to ensure that data has not been	•	Data was provided as a validated Access
integrity		corrupted by, for example, transcription or keying		Database and digitally imported into Micromine
		errors, between its initial collection and its use for		Mining Software. Micromine validation routines
		Mineral Resource estimation purposes.		were run to confirm validity of all data.
	•	Data validation procedures used.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Site visits	•	Comment on any site visits undertaken by the	•	No site visits have been undertaken, the
		Competent Person and the outcome of those visits.		competent person is familiar with the general
	•	If no site visits have been undertaken indicate why this is the case.		area and geological model and sufficient data and documentation has been provided to negate a site visit.
Geological	•	Confidence in (or conversely, the uncertainty of )	•	The confidence in the geological interpretation
interpretation		the geological interpretation of the mineral deposit.		is good.
	•	Nature of the data used and of any assumptions	•	Detailed geological logging and surface
		made.		mapping allows extrapolations of drill
	•	The effect, if any, of alternative interpretations on		intersections from section to section.
		Mineral Resource estimation.	•	Alternative interpretations will result in similar
	•	The use of geology in guiding and controlling		tonnage and grade estimation techniques
		Mineral Resource estimation.	•	Geological boundaries are determined by the
	•	The factors affecting continuity both of grade and geology.		spatial locations of the various mineralised structures
			•	Quartz rich zones associated with sulphide
				accumulations and corresponding increase in
				Sb, Pb, Ag and Au are the key factors affecting
				continuity
Dimensions	•	The extent and variability of the Mineral Resource	•	The Indicated Mineral Resource is 850 metres
		expressed as length (along strike or otherwise),		long (NE) by 75 metres wide (series of stacked
		plan width, and depth below surface to the upper		parallel minerals veins) by 250 metres deep.
		and lower limits of the Mineral Resource.	•	The Inferred Mineral Resource has similar
				dimensions except is extrapolated below the
				base of the Indicated Resource a further 50
				metres vertical extent.
Estimation	•	The nature and appropriateness of the estimation	•	Grade estimation using Inverse Distance
and modelling		technique(s) applied and key assumptions,		Cubed was used for Sb%, Pb%, Ag (ppm) and
techniques		including treatment of extreme grade values,		Au (ppm). Eight Individual wireframes were
		domaining, interpolation parameters and maximum		used to subset and constrain the data points
		distance of extrapolation from data points. If a		used in the interpolation and only individual
		computer assisted estimation method was chosen		grades from individual wireframes were used.
		include a description of computer software and parameters used.	•	A previous non JORC compliant resource has been made and is consistent given the drilling
	•	The availability of check estimates, previous		at the time in comparison with this latest
		estimates and/or mine production records and		estimate.
		whether the Mineral Resource estimate takes appropriate account of such data.	•	No assumptions have been made regarding recovery of by-products.
	•	The assumptions made regarding recovery of by- products.	•	No estimation of any deleterious elements have been made
	•	Estimation of deleterious elements or other non- grade variables of economic significance (eg sulphur for acid mine drainage characterisation).	•	The block model was constructed using a 2m x 2m x 2m block size, constrained by 8 individual wireframes.
	•	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	•	Two interpolation passes were made, the first with a 200m x 160 m x 8 m search orientated parallel to the azimuth and dip of the
	•	Any assumptions behind modelling of selective		mineralised zones (no plunge component
		mining units.		assumed) to ensure all portions of the
	•	Any assumptions about correlation between variables.		wireframe were filled and a second interpolation pass to fine tune the grade estimation in the immediate vicinity of the drill
	•	Description of how the geological interpretation		holes.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		was used to control the resource estimates.	•	Geological interpretation of a series of narrow
	•	Discussion of basis for using or not using grade cutting or capping.		stacked silica and sulphide fault structures was constrained by 8 individual wireframes.
	•	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	•	Visual validation of comparing block grades with drill hole assay values, via cross sections, plans and long sections was completed.
Moisture	•	Whether the tonnages are estimated on a dry basis	•	Tonnages are estimated on a dry basis.
		or with natural moisture, and the method of
		determination of the moisture content.
Cut-off	•	The basis of the adopted cut-off grade(s) or quality	•	A nominal cut off 0.5% Sb corresponds with
parameters		parameters applied.		the visual mineralisation as determined by
				quartz and sulphide and effectively maps the
				mineralised zones.
Mining factors	•	Assumptions made regarding possible mining	•	The mining scenario if the deposit is shown to
or		methods, minimum mining dimensions and internal		be economically viable would likely be a small
assumptions		(or, if applicable, external) mining dilution. It is		open pit followed by a boxcut and underground
		always necessary as part of the process of		development. Further studies are planned to
		determining reasonable prospects for eventual		address possible mining scenarios.
		economic extraction to consider potential mining
		methods, but the assumptions made regarding
		mining methods and parameters when estimating
		Mineral Resources may not always be rigorous.
		Where this is the case, this should be reported with
		an explanation of the basis of the mining
		assumptions made.
Metallurgical	•	The basis for assumptions or predictions regarding	•	Representative samples have been collected
factors or		metallurgical amenability. It is always necessary as		from the recent drilling campaign to conduct
assumptions		part of the process of determining reasonable		metallurgical testwork.
		prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting	•	It is thought that simple flotation techniques may be applicable for the production of a high grade Sb/Pb concentrate +/- Ag, Au.
		Mineral Resources may not always be rigorous.
		Where this is the case, this should be reported with
		an explanation of the basis of the metallurgical
		assumptions made.
Environmental	•	Assumptions made regarding possible waste and	•	No assumptions at this stage in regards to
factors or		process residue disposal options. It is always		environmental factors or assumptions have
assumptions		necessary as part of the process of determining		been made.
		reasonable prospects for eventual economic
		extraction to consider the potential environmental
		impacts of the mining and processing operation.
		While at this stage the determination of potential
		environmental impacts, particularly for a
		greenfields project, may not always be well
		advanced, the status of early consideration of
		these potential environmental impacts should be
		reported. Where these aspects have not been
		considered this should be reported with an
		explanation of the environmental assumptions
		made.
Bulk density	•	Whether assumed or determined. If assumed, the	•	An in situ bulk density of 3.0 tonnes per cubic
		basis for the assumptions. If determined, the		metre has been assumed for the fresh rock
		method used, whether wet or dry, the frequency of		and 2.4 tonnes per cubic metre for the oxidised
		the measurements, the nature, size and		rock. Past experiencewithsimilar

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		representativeness of the samples.		mineralisation is the basis for the assumption.
	•	The bulk density for bulk material must have been	•	A digital terrain model (DTM) has been used to
		measured by methods that adequately account for		discriminate between the oxide and fresh
		void spaces (vugs, porosity, etc), moisture and		boundaries and is based on geological logging
		differences between rock and alteration zones		of the drill holes.
		within the deposit.
	•	Discuss assumptions for bulk density estimates
		used in the evaluation process of the different
		materials.
Classification	•	The basis for the classification of the Mineral	•	The Mineral Resources are based on different
		Resources into varying confidence categories.		categories according to the drill density. The
	•	Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal		indicated resources are within 60 metres of existing drilling, while the inferred resource is the main mineralised zone extrapolated down dip a further 50 vertical metres.
		values, quality, quantity and distribution of the	•	The result of the Resource Estimation reflects
		data).		the view of the Competent Person
	•	Whether the result appropriately reflects the
		Competent Person’s view of the deposit.
Audits or	•	The results of any audits or reviews of Mineral	•	This is the maiden JORC compliant Resource
reviews		Resource estimates.		Estimate for Eastern Hills.
Discussion of	•	Where appropriate a statement of the relative	•	The relative accuracy of the Mineral Resource
relative		accuracy and confidence level in the Mineral		is reflected in the reporting of the Mineral
accuracy/		Resource estimate using an approach or		Resource as per the guidelines of the 2012
confidence		procedure deemed appropriate by the Competent		JORC Code.
		Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence	•	The statement relates to global estimates of tonnes and grade.
		limits, or, if such an approach is not deemed
		appropriate, a qualitative discussion of the factors
		that could affect the relative accuracy and
		confidence of the estimate.
	•	The statement should specify whether it relates to
		global or local estimates, and, if local, state the
		relevant tonnages, which should be relevant to
		technical and economic evaluation. Documentation
		should include assumptions made and the
		procedures used.
	•	These statements of relative accuracy and
		confidence of the estimate should be compared
		with production data, where available.

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