Artemis Resources Limited — Capital/Financing Update 2017

Aug 1, 2017

ASX / Media Announcement

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2 August 2017

Artemis Resources Limited ARBN: 80 107 051 749

Level 3, IBM Building, 1060 Hay Street, West Perth, WA Australia, 6006

PO Box R933 Royal Exchange NSW Australia, 1225

Phone: +61 2 9078 7670 Facsimile: +61 2 9078 7661 Email: info@artemisresources.com.au Website: artemisresources.com.au

Directors:

Executive Chairman David Lenigas

Executive Directors Ed Mead Alex Duncan-Kemp

Company Secretary: Guy Robertson

Corporate Information ASX Code: ARV

14km of New Gold Bearing Conglomerates discovered at 100% owned Mt OscarWits Gold Project, Karratha, WA

• 14km of new gold bearing conglomerate sequences have been identified by Artemis geologists at Mt OscarWits Gold Project - located 16km from Purdy’s Reward.

• 75m thick stacked conglomerates with an east-west strike outcropping.

• Mt OscarWits is now 100% owned by Artemis.

• Approved 117.8km[2] Exploration Licence with heritage surveys.

• Gold grades up to 10.93 g/t Au from rock chip samples of conglomerates.

David Lenigas, Artemis’s Executive Chairman, commented;

“We have already traced these gold bearing conglomerates for a distance of about 14km and have identified extensive outcropping conglomerate with exposed widths of up to 75 metres as shown in Figure 1. The recent discovery of Archean aged conglomerate gold mineralisation at our Purdy’s Reward Gold Project to the south has been an exciting development for the Company and we have now also identified gold in a very large conglomerate sequence to the north of Purdy’s at our nearby 100% owned Mt OscarWits Project. The potential scale of these Mt OscarWits gold bearing conglomerates are very significant and makes this a new and exciting project for the Company.”

Artemis Resources Limited (“ Artemis ” or “ the Company ”) ( ASX: ARV ) is pleased to announce that it has now taken back 100% control of its 117.8km[2] Mt Oscar exploration licence 47/1217 from Magnetic South Pty Ltd. The tenement is a granted Exploration Licence, and is located approximately 35km south-east of Karratha and 16km north-east of the Company’s new Purdy’s Reward conglomerate hosted gold project.

Note: Mt Oscar Exploration Licence (E47/1217) does not form part of the Artemis Memorandum of Agreement as announced on 29 May 2017 with Novo Resources Corp.

Mt OscarWits Conglomerate Gold Project:

Artemis geologists have just completed a due diligence field inspection of the Mt Oscar tenement (Figure 3). The geological team, after the discovery earlier this year of conglomerate hosted gold at the Purdy’s Reward Gold Project, has now identified significant gold bearing sedimentary sequences within very coarse quartz conglomerate and sandstone units at the Mt OscarWits Project. The Company believes these are part of the Fortescue Group and hence can be directly correlated with the Company’s Purdy’s Reward sequence of mafic sediments and polymictic conglomerates located only 21km to the south-west.

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The Mt OscarWits sedimentary sequences extend over an east-west strike length of some 14km with true widths up to 75m thick in outcrops (Figure 1), with gold currently proven toward the eastern and western ends. The central zone does not appear to have been sampled for gold with the previous focus being primarily on iron ore.

The conglomerates at Mt OscarWits are quartz rich (Figure 2) and “cleaner” in character than the Purdy’s Reward mafic rich conglomerates, as the Mt OscarWits matrix “glue” within the conglomerates is primarily quartz sand and the conglomerate fragments consist of quartz and chert pebbles and boulders.

Figure 1: Mt OscarWits prospective conglomerate sequence is 75 metres thick at the Churnside Prospect, where a rock chip sample returned 10.93 g/t gold from a coarse-grained clast supported cobble conglomerate.

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There appear to be sedimentary sequences totaling up to 75m in true thickness, hosting the gold with an interlayered basaltic unit analogous to the Mt Roe Basalt. The sedimentary sequences at Mt OscarWits have been folded and faulted creating duplication with four units being mapped in several places over the significant strike length.

Exploration activities in recent years have focused primarily on the magnetite iron ore potential of the tenement, where the Company now has a 100% owned indicated and inferred JORC Resource of 126Mt @ 33.8% Fe Head Grade[1] .

As part of the Mt Oscar iron ore rock chip exploration program, geologists sampled a conglomerate unit at the White Quartz Hill Prospect, located some 12km east-north-east of the Mt Oscar iron mineralisation and returned a peak gold assay of 6.38g/t Au (Table 1).

The conglomerate unit at the Churnside Prospect (Figure 1) was sampled. The Churnside Prospect is located 10km west of the White Quartz Hill prospect and 2km northeast of the Mt Oscar iron mineralisation in an area not covered by previous ground based exploration activities. A peak assay result of 10.93 g/t Au (average of 13.9 g/t Au primary and 7.96g/t Au repeat, (Table 1 ) was returned

1 As per Artemis Resources ASX announcement dated 16 Dec 2016

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from the 4 samples collected in the area. The 10.93g/t Au sample was recovered from a coarse-grained clast supported cobble conglomerate and likely represents a primary placer style form of mineralisation in a high-energy environment with a high coarse gold component. The mineralised unit is bounded by a larger matrix supported pebbly conglomerate.

Table 1: Mt OscarWits - White Quartz Hill and Churnside Gold Prospects.

FXMO004	East	North	Au	Au	Au	Au	Au Final	Pt	Pd	As
UNITS			ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm
METHOD			PGM-MS	Au-TL43	Au-AA25	Au-OG43	Average	PGM-MS23	PGM-MS	ME-ICP61
AKA17263	520220	7687302	>1.00	>1.00	13.90	7.96	10.93	0.0029	0.007	103
AKA17287	529369	7688628	>1.00	>1.00	7.48	5.29	6.38	0.0023	0.002	1200

A significant volume of conglomerates now exists within the Mt Oscar tenement and follow up work is now a priority for the Company.

Based on the recent field inspections, Artemis geologists interpret the conglomerate sequence to be analogous to the Purdy’s Reward prospect and being at the base of the Fortescue Group. This is contrary to the previous governmental mapping on the Roebourne 1:100,000 mapsheet, which interprets the sequence to be at the base of the older Whim Creek Group and part of the regional Pilbara Supergroup.

Fortuitously, the entire prospective sequence of the Mt OscarWits Project falls entirely within the 117.8km[2] Mt Oscar tenement, with the conglomerate sequence having a strike length of about 14km, with numerous repetitions of the prospective horizons evident. These horizons appear to have been caused by folding and faulting substantially increasing the prospective strike length.

Figure 2: Quartz and Chert Conglomerate with sand matrix.

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Figure 3: Artemis Resources Projects in Karratha Area.

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BACKGROUND INFORMATION ON ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration and development company with a focus on its prospective Pilbara (gold, cobalt, base metals, platinum, platinum group elements and iron ore) and the Mt Clement-Paulsens (gold) project in Western Australia. Artemis owns the fully permitted 425,000tpa Radio Hill nickel and copper operations, processing plant and associated mining and exploration tenements with significant existing JORC 2004 compliant resources of Nickel, Copper and Zinc situated within a 15 km radius of the Radio Hill plant. The Radio Hill Plant is located 35 km south of Karratha in the Pilbara Region of Western Australia.

CONTACTS

For further information on this update or the Company generally, please visit our website at www.artemisresources.com.au or contact:

Investors / Shareholders

Edward Mead Executive Director Telephone: +61 407 445 351 Email: Ed.Mead@artemisresources.com.au

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COMPETENT PERSONS STATEMENT

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

FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE

This report contains forecasts, projections and forward looking information. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved. Expectations, estimates and projections and information provided by the Company 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.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut	•	Rock chip sampling of outcrops
techniques		channels, random chips, or specific
		specialised industry standard
		measurement tools appropriate to the
		minerals under investigation, such as
		down hole gamma sondes, or handheld
		XRF instruments, etc.). These examples
		should not be taken as limiting the broad
		meaning of sampling.
	•	Include reference to measures taken to
		ensure sample representivity and the
		appropriate calibration of any
		measurement tools or systems used.
	•	Aspects of the determination of
		mineralisation that are Material to the
		Public Report.
	•	In cases where ‘industry standard’ work
		has been done this would be relatively
		simple (eg ‘reverse circulation drilling was
		used to obtain 1 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 mineralisation types (eg
		submarine nodules) may warrant
		disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation,	•	Drilling not being reported
techniques		open-hole hammer, rotary air blast,
		auger, Bangka, sonic, 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	•	Not drill samples
recovery		and chip sample recoveries and results
		assessed.
	•	Measures taken to maximise sample
		recovery and ensure representative
		nature of the samples.
	•	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.
Logging	•	Whether core and chip samples have	•	Samples were geologically logged when
		been geologically and geotechnically		collected.
		logged to a level of detail to support
		appropriate Mineral Resource estimation,
		mining studies and metallurgical studies.
	•	Whether logging is qualitative or
		quantitative in nature. Core (or costean,
		channel, etc.) photography.
	•	The total length and percentage of the
		relevant intersections logged.
Sub-	•	If core, whether cut or sawn and whether	•	Not recorded.
sampling		quarter, half or all core taken.	•	A sample size of 1kg was collected and
techniques	•	If non-core, whether riffled, tube sampled,		considered appropriate and representative
and sample		rotary split, etc. and whether sampled wet		for the grain size and style of mineralisation
preparation		_or dry. _

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	For all sample types, the nature, quality
		and appropriateness of the sample
		preparation technique.
	•	Quality control procedures adopted for all
		sub-sampling stages to maximise
		representivity of samples.
	•	Measures taken to ensure that the
		sampling is representative of the in situ
		material collected, including for instance
		results for field duplicate/second-half
		sampling.
	•	Whether sample sizes are appropriate to
		the grain size of the material being
		sampled.
Quality of	•	The nature, quality and appropriateness	•	ALSglobal	Laboratories			(Perth)	were used
assay data		of the assaying and laboratory		for the analysis work carried out					on the rock
and		procedures used and whether the		chip samples. The laboratory					techniques
laboratory		technique is considered partial or total.		below:
tests	•	For geophysical tools, spectrometers,	•	Au by PGM-MS
		handheld XRF instruments, etc., the	•	Au by TL43
		parameters used in determining the	•	Au by Au-AA25
	•	analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures	• • •	Au by OG43 Pt & Pd by PGM-MS23 As by ME-ICP61
		adopted (eg standards, blanks,
		duplicates, external laboratory checks)
		and whether acceptable levels of
		accuracy (i.e. lack of bias) and precision
		have been established.
Verification	•	The verification of significant intersections	•	Not drill samples
of sampling		by either independent or alternative
and assaying		company personnel.
	•	The use of twinned holes.
	•	Documentation of primary data, data
		entry procedures, data verification, data
		storage (physical and electronic)
		protocols.
	•	Discuss any adjustment to assay data.
Location of	•	Accuracy and quality of surveys used to	•	Not recorded
data points		locate drill holes (collar and down-hole	•	Grid system		used for Fox Resources Ltd
		surveys), trenches, mine workings and		sampling is MGA 94 (Zone 50)
		other locations used in Mineral Resource
		estimation.
	•	Specification of the grid system used.
	•	Quality and adequacy of topographic
		control.
Data spacing	•	Data spacing for reporting of Exploration	•	Randomly		spaced		reconnaissance
and		Results.		sampling.
distribution	•	Whether the data spacing and distribution	•	Not for ore	resource estimation.
		is sufficient to establish the degree of	•	No compositing applied.
		geological and grade continuity
		appropriate for the Mineral Resource and
		Ore Reserve estimation procedure(s) and
		classifications applied.
	•	Whether sample compositing has been
		applied.
Orientation	•	Whether the orientation of sampling	•	Samples	have		been	obtained		whilst
of data in		achieves unbiased sampling of possible		conducting		reconnaissance			geological
relation to		structures and the extent to which this is		mapping which was seeking					to identify
geological		known, considering the deposit type.		mineralised structures/lodes.
structure	•	If the relationship between the drilling
		orientation and the orientation of key
		mineralised structures is considered to
		have introduced a sampling bias, this
		should be assessed and reported if
		material.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sample	•	The measures taken to ensure sample	•	Not known
security		_security. _
Audits or	•	The results of any audits or reviews of	•	No audit of rock sampling data has been
reviews		sampling techniques and data.		completed to date

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number,	•	E47/1217 is in good standing and is 100%
tenement and		location and ownership including		owned by Artemis Resources Ltd.
land tenure		agreements or material issues with	•	See map elsewhere in this report for
status		third parties such as joint ventures,		locations.
		partnerships, overriding royalties,
		native title interests, historical sites,
		wilderness or national park and
		environmental settings.
	•	The security of the tenure held at the
		time of reporting along with any
		known impediments to obtaining a
		licence to operate in the area.
Exploration	•	Acknowledgment and appraisal of	•	The most significant historic exploration
done by other		exploration by other parties.		identified to date at Mt	Oscar (E47/1217)
parties				was completed by Fox Radio Hill Pty		Ltd
				from 2008, targeting iron	ore. A subsequent
				joint venture with Magnetic South Pty		Ltd
				continued to focus on the iron ore potential
				of Mt Oscar. This work included rock chip
				sampling, reverse circulation and diamond
				drilling.
			•	All exploration and analysis techniques
				conducted by Fox Resources and Magnetic
				South Pty Ltd are considered to have been
				appropriate given the available techniques
				at the time.
Geology	•	Deposit type, geological setting and	•	At Mt Oscar, gold mineralisation has been
		style of mineralisation.		identified as being associated with siliceous
				conglomerate lithologies.
			•	As exploration is at an	early stage at Mt
				Oscar, further work is required to determine
				the geological setting and	provenance of the
				gold mineralisation.
			•	Morphology of gold	mineralization	is
				unknown, assumed to be	potentially coarse
				grained.
Drill hole	•	A summary of all information material	•	Not relevant to the current rock chip
Information		to the understanding of the		sampling.
		exploration results 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

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Competent Person should clearly
		explain why this is the case.
Data	•	In reporting Exploration Results,	•	No upper or lower cut-off grade was
aggregation		weighting averaging techniques,		applied.
methods		maximum and/or minimum grade	•	No metal equivalents are used for
		truncations (eg cutting of high grades)		reporting.
		and cut-off grades are usually Material
		and should be stated.
	•	Where aggregate intercepts
		incorporate short lengths of high
		grade results and longer lengths of
		low grade results, the procedure used
		for such aggregation should be stated
		and some typical examples of such
		aggregations should be shown in
		detail.
	•	The assumptions used for any
		reporting of metal equivalent values
		should be clearly stated.
Relationship	•	These relationships are particularly	•	No mineralisation widths are being
between		important in the reporting of		reported.
mineralisation		Exploration Results.
widths and	•	If the geometry of the mineralisation
intercept lengths		with respect to the drill hole angle is
		known, its nature should be reported.
	•	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’). _
Diagrams	•	Appropriate maps and sections (with	•	Appropriate maps and sections are
		scales) and tabulations of intercepts		available in the body of this announcement.
		should be included for any significant
		discovery being reported 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 is
reporting		Exploration Results is not practicable,		considered	balanced.
		representative reporting of both low
		and high grades and/or widths should
		be practiced to avoid misleading
		reporting of Exploration Results.
Other	•	Other exploration data, if meaningful	•	No other significant exploration work has
substantive		and material, should be reported		been done	by Artemis.
exploration data		including (but not 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	•	Plans are to follow-up mapping and
		further work (eg tests for lateral		sampling	with further geochemical
		extensions, depth extensions or large-		sampling, trenching, and drilling.
		scale step-out drilling).
	•	Diagrams clearly highlighting the
		areas of possible extensions,
		including the main geological
		interpretations and future drilling
		areas, provided this information is not
		commercially sensitive.

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