Artemis Resources Limited — Capital/Financing Update 2018

Mar 11, 2018

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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

ASX / Media Announcement

12 March 2018

Positive Pit Optimisation Outcome on Weerianna Gold Project - Karratha, Western Australia -

Highlights:

• Weerianna gold deposit Mineral Resource estimate of 1 million tonnes at 2.2 g/t Au was optimized at a gold price of A$1,650/oz to assess potential first 4 months of Radio Hill Processing Plant feed options, at the rate of 50,000 tonnes per month, from June 2018.

• 2 Initial starter pits resulted.

• East (Stage 1) Pit which included 184,735 tonnes at a grade of 2.01 g/t Au at a strip ratio of 1.5:1; and

• North West Pit which included 90,908 tonnes at a grade of 2.96 g/t Au at a strip ratio of 5.9:1.

• The Weerianna deposit is located only 35 km from Artemis’ 100% owned Radio Hill Plant.

Directors:

Executive Chairman David Lenigas

Executive Directors Edward Mead Alex Duncan-Kemp

Non-Executive Director: Sheikh Maktoum Hasher al Maktoum

Company Secretary: Guy Robertson

Corporate Information ASX Code: ARV

David Lenigas, Artemis’s Executive Chairman, commented;

“As announced last week, Artemis is reviewing all of its projects in the Karratha area to prioritise potential plant feed for the Radio Hill Plant in readiness for its recommissioning scheduled for June this year. Current plans are to kick-off with a gold only strategy to commission the plant’s new gold circuit for a number of months. Weerianna, Silica Hills and the gold bearing conglomerates in the area are all currently being assessed. These results from Weerianna are positive and now allows us to move forward with seeking approvals from the authorities to have Weerianna ready for mining by the end of June.”

Artemis Resources Limited (“Artemis” or “the Company”) (ASX: ARV) advises that it has received positive results from pit optimisations of its Weerianna Gold Project’s Mineral Resource. The optimisation was done to potentially prioritise initial plant feed of Artemis’ Radio Hill Processing Plant at the rate of 50,000 tonnes per month for the first few months after its re-commissioning scheduled for June 2018.

The Weerianna Gold Project (Figure 2) is located about 35 km north-east of Artemis’ Radio Hill Plant site.

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Weerianna is on a granted Mining Lease and has a current Inferred Mineral Resource classified and reported in compliance with the JORC Code (2012) of 1 Mt at 2.2 g/t Au for total contained metal of 70,000 ounces of Au[1] . The current resource outcrops at surface and remains open at depth and along strike.

Note: In accordance with ASX Listing Rule 5.23.2, Artemis confirms that it is not aware of any new information or data that materially affects the information included in the 26 June 2014 market announcement referred to above, and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in that announcement continue to apply and have not materially changed.

Best drill intersections to date include[2] :

• 16 metres @ 15.35 g/t Au from 15 metres (WRC116)

• 9 metres @ 21.5 g/t Au from 87 metres (WRC140)

• 45 metres @ 3.1 g/t Au from 28 metres (WRC133)

• 19 metres @ 4.05 g/t Au from 1 metres (WRC36)

Pit Optimisation Parameters:

Open pit optimisations using Whittle software were completed by AMC Consultants Pty Ltd. The 26 June 2014 Mineral Resource model (total resources) was optimised at a base case gold price of A$1,650/ounce, and utilising input parameters as shown in Table 1 below.

Table 1: Weerianna Gold Project - Pit Optimisation Input Parameters and Assumptions

Goldprice(AU$/oz)	1,650
Gold royalty (%)	2.5
Gold recovery (%)	95
Processingcost - incl. all transport related cost(AU$/t)	28
MiningCost(AU$/t)	3.5
Incremental miningcost(AU$/tper 5m vertical)	0.025
Miningdilution(%)	22%
Mine losses(%)	14%
Slope angle of Pits (degrees)	65 degree batter angle with 5m berms equates to overall slope of 40 degrees with ramps.
Haul road width (m)	single lane 12m for the first 20m vertical from bottom and then double lane 20m.

It is assumed that Weerianna material is transported to the Radio Hill Plant by semi-trailer road trains.

Pit Optimisation Results:

At a gold price of A$1,650/ounce the optimal pit shell, based on the maximum undiscounted operating cash flow were estimated (see Table 2 below) and then potential haul roads was added, resulting in the generation of the West (45m depth) and East Stage 1 (30m depth) starter pits (Figure 1). The tonnes and diluted mining grades of both starter pits are also shown in Table 2.

1 Artemis Resources Limited ASX announcement dated 26 June 2014 – Acquisition Of Gold Deposit To Kickstart West Pilbara Gold And Base Metals Exploration Weerianna

2 Artemis Resources Limited ASX announcement dated 9 January 2017 – Artemis Commences Work At Weerianna Gold Project Designed To Increase Resources From 70,000 Ounces

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Table 2: Weerianna Gold Project’s Optimised and Designed Pits:

	Ore Tonnes(t)	Au Grade(g/t)	Waste Tonnes(t)	Strip Ratio
Optimised North West Pit	88,471	3.01	389,587
**West Pit Design **	90,908	2.96	533,781	5.9
Optimised East Pit #1	169,518	2.09	199,240
**East Stage 1 Pit Design **	184,735	2.01	269,959	1.5

An isometric view of the optimal pit shell and the Mineral Resource model is shown in Figure 1 below.

Figure 1: Weerianna Gold Project – Isometric View of the two initial starter pits.

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Next Steps:

A Reverse Circulation (RC) drilling programme is planned for Weerianna in April 2018 to infill drill the deposit and test for extensions of the mineralisation along strike and down dip. Artemis is targeting an updated Mineral Resource before the end of June 2018.

Artemis will now work on submitting a Mining Proposal and a Project Management Plan to the WA Department of Mines Regulations, Industry and Safety (DMIRS) to seek approval to mine Weerianna.

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Figure 2: Artemis’ Tenements in the Karratha Area

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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

Media Advisor / Chapter One Advisors

David Tasker Telephone: +61 433 112 936 Email: dtasker@chapteroneadvisors.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 that 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.

BACKGROUND INFORMATION ON ARTEMIS RESOURCES:

Artemis Resources Limited is a resources exploration and development company with a focus on its prospective Karratha (gold, cobalt, base metals, platinum group elements and iron ore) and the Mt Clement Paulsens (gold) project in Western Australia.

Artemis owns the ~500,000tpa Radio Hill nickel, copper and cobalt mine and processing plant located 25km south of Karratha. JORC 2004 compliant resources of Gold, Nickel, Copper PGE's and Zinc, all situated within a 40km radius of the Radio Hill plant and on 1,838km[2] form the newly consolidated assets of Artemis Resources.

Artemis have signed Definitive Agreements with Novo Resources Corp. (“Novo”), and pursuant to the Definitive Agreements, Novo has satisfied its expenditure commitment, and earned-in to 50% of gold (and other minerals necessarily mined with gold) in conglomerate and/or paleoplacer style mineralization in Artemis’ tenements within 100km of the City of Karratha, including at Purdy’s Reward (“the Gold Rights”). The Gold Rights do not include (i) gold disclosed in Artemis’ existing (at 18 May 2017) Mineral Resources and Reserves reported in compliance with the JORC Code (2012), or (ii) gold which is not within conglomerate and/or paleoplacer style mineralization or (iii) minerals other than gold. Artemis’ Mt Oscar tenement is excluded from the Definitive Agreements.

The Definitive Agreements cover 38 tenements / tenement applications that are 100% owned by Artemis. Pursuant to Novo’s successful earn-in, three 50:50 joint ventures have been formed between Novo’s subsidiary, Karratha Gold Pty Ltd (“Karratha Gold”) and three subsidiaries of Artemis (KML No 2 Pty Ltd, Fox Radio Hill Pty Ltd, and Armada Mining Pty Ltd). The joint ventures are managed as one by Karratha Gold. Artemis and Novo will contribute to further exploration and any mining of the Gold Rights on a 50:50 basis.

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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