Artemis Resources Limited — Capital/Financing Update 2018

Feb 14, 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.a u

Website: artemisresources.com.au

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

ASX / Media Announcement

15 February 2018

High Grade Gold Results from Purdy’s Reward - Karratha, Western Australia-

Highlights:

• Basal conglomerate bulk sampling returns gold grades including 87.7g/t, 46.1g/t, 17.7 g/t, 15.7 g/t and 10.6g/t.

• Basement (Dolerite) bulk sampling, below the conglomerates, returned gold grades up to 4.1 g/t.

• Bulk sample size has now increased to ~6 tonnes per sample from typically ~300 kg per sample with first results from these larger bulk samples expected shortly.

Ed Mead, Artemis’s Executive Director, commented;

“These excellent bulk sampling results, as received from Novo, clearly show very high grade gold results. The result is from the first of the shallow trenches dug at Purdy’s Reward, near the topographic basement high point for the area, where exposure of the gold bearing units daylight. The 2018 exploration season has now started in earnest.

Gold results from the basement dolerite unit grading up to 4.1 g/t are an extremely interesting development and further work is required to determine the ultimate significance of gold in the zone below the gold bearing conglomerates.

With an improved understanding of the extreme nugget effect at the Purdy’s Reward, increasing the bulk sampling size and a new reliable and consistent processing path now availbale through SGS Minerals, a lot more bulk sampling can be achieved in a shorter timeframe. Once we have the ability to quickly determine gold grade content, we can more accurately define the extent of the gold mineralisation in these conglomerates and the surrounding rocks.

Artemis is also pleased to see Novo’s comments with respect to their Powerline area on their adjacent Comet Well tenement, and the video link of the project within the text of the below release. This is seen as highly encouraging for the prosopectivity of our adjacent Elysian tenements immediately to the west of Comet Well.”

Artemis Resources Limited (“ Artemis ” or “ the Company ”) ( ASX: ARV ) is pleased to provide the following update by Novo Resources Corp. (“Novo” ) on the Purdy’s Reward Conglomerate Gold Project. Novo is the manager of this project under the 50/50 joint venture arrangements. Purdy’s Reward is located south of Karratha in the Western Pilbara Region of Western Australia.

The relevant parts of the Novo news release (including figures) published on 14 February are shown below, with the addition of the JORC ‘Table 1’ appended to this release to comply with ASX requirements. Novo’s release can be read in full on its website.

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NOVO COMMENCES WORK AT COMET WELL AND UPDATES RESULTS FROM PURDY’S REWARD

VANCOUVER, BC , February 14, 2018 - Novo Resources Corp. (“ Novo ” or the “ Company ”) (TSXV: NVO; OTCQX: NSRPF) is pleased to announce its 2018 exploration program at its Karratha gold project has begun. Diamond drilling and trenching have recently been initiated at Comet Well. At Purdy’s Reward, additional bulk sample results have returned allowing for planning of follow up work in this area. Comet Well, a farm-in and joint venture Novo has with two Pilbara-based prospectors, and Purdy’s Reward, a farm-in and joint venture Novo has with ASX-listed Artemis Resources Limited, are both part of Novo’s greater Karratha gold project located in the Pilbara region of Western Australia.

Exploration Program at Comet Well

Scout diamond core drilling recently commenced along a 2.5 km long, 500 m wide, northeast-trending corridor extending from areas drilled last year at Purdy’s Reward to an intensely prospected area called the Powerline showing on the Comet Well tenements ( Figure 1 ). This drill program is designed to evaluate the position, thickness and dip of gold-bearing conglomerates that subcrop along the length of this corridor.

Novo plans to drill vertical scout holes along this corridor on a 200 m grid, and more tightly spaced holes in areas where trenching will occur in order to better understand subsurface geology before bulk sampling commences. Bulk sampling will be the means by which Novo anticipates evaluating gold grades of the targeted conglomerates. Initial drilling encompasses approximately 60 holes and is expected to be completed over about three months.

The first few diamond core holes at the Powerline showing have revealed thick intercepts of conglomerate. Holes collared in the Mt Roe basalt, the cap rock to the conglomerate sequence, have encountered 30 to 35 meter intercepts of conglomerate before entering the dolerite footwall at the base. Given the dip appears to be quite shallow, less than 10 degrees, these intervals are probably close to true thicknesses. Interestingly, the uppermost beds of conglomerate encountered in these holes resemble those seen at Purdy’s Reward. The lowermost 15 m of conglomerate appears unique to the Powerline area. In places, boulder clasts in this lower unit are over 1 m across and are ubiquitously well rounded. Pyrite, both detrital and late, appears frequently.

Novo’s first trench at the Powerline showing has exposed the lower conglomerate unit seen in core drilling. Metal detecting has readily identified numerous strikes within exposed bedrock. A video showing Novo staff detecting and marking the bottom of the first trench can be accessed at https://www.youtube.com/watch?v=Xxm-SftswLs. Unlike at Purdy’s Reward where most gold nuggets appear to occur near the base of the conglomerate sequence, detector strikes have been noted in multiple horizons above the basal contact at Powerline ( Figure 2 ). Several gold nuggets have been exhumed from this conglomerate ( Figure 3 ). Weathered pyrite is observed in the matrix of conglomerate exposed in trenching confirming observations of drill core ( Figure 4 ).

Novo is carefully cleaning the bottom of trenches to expose the top of fresh rock in preparation for bulk sampling. As discussed in its news release dated February 6, 2018, Novo has contracted SGS Minerals, Perth, who has a fit for purpose circuit, capable of processing and analysing larger samples containing coarse, nuggety gold like that found at Karratha, in a time frame that would normally be expected from RC or diamond samples. Bulk samples will be sealed in crates and shipped to the test plant facility over the coming weeks.

Purdy’s Reward Update

Novo has received Au results for multiple bulk samples collected late last year from trenches at Purdy’s Reward ( Please see Figure 5 for a tabulation of results and Figure 6 for location map showing trenches 1, 2 and Diamond Drill holes. ). Bulk samples discussed here were some of the first samples taken from the project and each weigh approximately 300 kg, a size Novo has recently determined insufficient to evaluate grades of this nuggety gold system. Nonetheless, results from these initial bulk samples provide insight into the grade distribution within the conglomerate section at Purdy’s Reward. Observations include:

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• Concentrates from all samples yielded multiple flattened, “melon seed” nuggets attesting to the nuggety nature of the deposit ( Please refer to Figure 4 in Novo’s news release dated December 21, 2017 for an image of such concentrate. ).

• The richest gold grades appear to be concentrated near the base of the conglomerate package immediately above the dolerite footwall. Grades of 87.8, 46.1, 10.6 and 15.7 gpt Au were obtained from samples of this material from trench 1 and 17.7 gpt Au from a sample from trench 2. ( Please refer to Novo’s news releases dated August 8 and December 21, 2017).

• Samples of footwall dolerite yielded significant gold, perhaps reflecting penetration of nuggets into this unit from above. Bulk samples of this material yielded grades of 4.1, 0.4 and 0.03 gpt Au from trench 1, and 2.2 and 2.7 gpt Au from trenches 2 and 3. Clearly, the underlying rock is prospective in areas immediately below the basal conglomerate.

• Conglomerate samples taken from areas above the base contain occasional nuggety gold. Grades of 1.3 and 0.2 gpt Au were obtained from two samples of this material from trench 1 and 1.3 gpt Au from a sample from trench 2. Novo views these results as indicative only since field observations indicate nuggets originate from upper conglomerates. Novo thinks samples of 5- 15 tonnes will be necessary to better assess gold grades from these units.

At the end of 2017, Novo collected a few approximately 6-tonne samples from a few trenches at Purdy’s Reward. These samples were collected after the recognition of the extreme nuggety nature of mineralization and that most nuggets are concentrated near the base of the conglomerate sequence. In an effort to standardize bulk sampling protocols, Novo extracted each sample from flat panels of rock each 0.5 m thick and with a set footprint of 4 sq meters.

One of these bulk samples will be the first through the new SGS plant. Results of this are expected shortly after processing.

Novo is considering collecting additional samples in a similar manner at Purdy’s Reward and Comet Well pending return of these results.

“We are pleased to commence work again at Karratha,” commented Dr. Quinton Hennigh, Chairman and President of Novo Resources Corp. “Last year, we cut our teeth on this unusual gold deposit and gained valuable knowledge in the process. The erratic spread in gold grades seen from early small volume bulk samples of circa 300 kg bulk of footwall dolerite and upper conglomerates from Purdy’s Reward confirms the nuggety nature of mineralization. Five to fifteen tonne bulk samples are clearly necessary to get a better handle on gold grades, and we are now in a position to collect these having recently secured a test plant at SGS, capable of processing such large volumes of material. Purdy’s Reward bulk samples will be the first through this new plant, and results are expected shortly. At Comet Well, we are quickly getting our scout diamond core holes and a few trenches in place to evaluate stratigraphy in preparation for bulk sampling. Over the coming months, we anticipate collecting numerous bulk samples at Comet Well and Purdy’s Reward to begin to assess grade and continuity of this deposit.”

Quality Control and Quality Assurance:

Novo staff, under the supervision of Dr. Quinton Hennigh, Novo’s President and Chairman, collected bulk samples and drill samples discussed in this news release. Bulk samples were submitted to Nagrom Metallurgical Laboratory in Perth, Australia, where they were processed according to procedures detailed in Novo’s news release dated August 31, 2017.

Dr. Quinton Hennigh, the Company’s, President and Chairman and a Qualified Person as defined by National Instrument 43-101, has approved the technical contents of this news release.

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( Figure 1 : Photograph of the Powerline showing looking southeast. Trenches are being opened immediately right of the location of the diamond core rig. The base of the conglomerate sequence is in the foreground and the top is approximately where the two white vehicles are parked along the ridgeline. True thickness of the conglomerate section is approximately 30 meters and is dipping away from the camera at about 3-4 degrees.)

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( Figure 2 : Aerial photograph of the Powerline showing looking southwest. The first trench to expose bedrock is immediately behind the mast of the diamond core drill. Numerous detector strikes were encountered in multiple layers. The footwall contact of the conglomerate sequence is not exposed in this trench. In situ gold nuggets as see in Figure 3 have been extricated from rock matrix material.)

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( Figure 3 : Gold nugget extricated from matrix of the lower conglomerate at the Powerline showing.)

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( Figure 4 : Wall of the first trench at the Powerline showing. Large boulders are evident in the conglomerate. Dark orange and red staining is from weathered pyrite occurring in the matrix of the conglomerate. Otherwise, the rock is nearly fresh. Trenches are carefully being cleaned of weathered rock in preparation for bulk sampling.)

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( Figure 5 : Schematic section through the basal conglomerate section and footwall dolerite at Purdy’s Reward. Red boxes show the location of bulk samples taken from the lithologic section. Results in the table on the right show respective grades returned from bulk samples from trenches 1, 2 and 3. These bulk samples each weigh approximately 300 kg, small compared to the recommended minimum sample size of five tonnes. Highest gold grades are situated in the basal part of the section. Gold is also present in overlying conglomerates, but Novo believes large samples will be necessary to better evaluate grades in this lower grade material. Gold in samples of the footwall dolerite may be coming from cracks and crevasses along the contact. Samples KX078, CS001 and KX083 were first reported in a news release dated December 21, 2017. Samples PRBS1 Split 1 and Split 2 were first reported in a news release dated August 8, 2017.)

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( Figure 6 : Plan map at Purdy’s Reward showing the location of Trenches 1, 2 and 3. Bulk sample locations are also highlighted. Drill holes shown were discussed in a news release dated December 21, 2017.)

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-END OF NOVO NEWS RELEASE-

COMPETENT PERSONS STATEMENT

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

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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Figure of Artemis’s Tenements in the Karratha Area (Including Purdy’s Reward)
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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 Karratha (gold, cobalt, base metals, platinum group elements and iron ore) and the Mt Clement Paulsens (gold) project in Western Australia.

Artemis owns the fully permitted ~500,000tpa Radio Hill nickel and copper operations 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. Further definitive agreements covering approximately 19 Artemis tenements/tenement applications that are already subject to third party interests are expected to be signed once all necessary third-party consents have been obtained.

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 techniques	•	Nature and quality of sampling (eg	•	Samples were collected from
				cut channels, random chips, or		trenches and diamond drill holes.
				specific specialised industry	•	Where possible, and to ensure
				standard measurement tools		representivity, trenches were
				appropriate to the minerals under		excavated to the conglomerate
				investigation, such as down hole		basal unconformity.
				gamma sondes, or handheld XRF	•	Trench walls were sampled from
				instruments, etc). These examples		top to bottom, and to ensure
				should not be taken as limiting the		sample representivity samples
				broad meaning of sampling.		were constrained by geological
			•	Include reference to measures		units. They were effectively
				taken to ensure sample		treated as vertical drill holes with
				representivity and the appropriate		their collar locations marked by
				calibration of any measurement		Trimble GPS.
				tools or systems used.	•	Samples had a minimum interval
			•	Aspects of the determination of		of 30 cm and a maximum interval
				mineralisation that are Material to		of 1 m.
				the Public Report.	•	Samples were collected in 200
			•	In cases where ‘industry standard’		litre drums, until these were full.
				work has been done this would be	•	Sample heterogeneity studies
				relatively simple (eg ‘reverse		were carried out to optimise the
				circulation drilling was used to		sample sizes and improve the
				obtain 1 m samples from which 3		representivity. This showed that
				kg was pulverised to produce a 30		the 300-kg samples were not
				g charge for fire assay’). In other		large enough to appropriately
				cases more explanation may be		capture the inherent variability of
				required, such as where there is		the ore.
				coarse gold that has inherent	•	Once on the basal unconformity,
				sampling problems. Unusual commodities or mineralisation		a 30-cm deep lateral sample was collected until the 200L drum was
				types (eg submarine nodules) may		full.
				warrant disclosure of detailed	•	Diamond drill core was cut in half
				information.		with a diamond bladed core saw
			•	Measures taken to ensure that the sampling is representative of the in situ material collected, including for		and sampled at nominal 1-metre intervals, or to lithological contacts
				instance results for field
				duplicate/second-half sampling.
			•	Whether sample sizes are
				appropriate to the grain size of the
				_material being sampled. _
		Drilling techniques	•	Drill type (eg core, reverse	•	Diamond drilling is PQ.
				circulation, 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 recovery	•	Method of recording and assessing	•	The recovered core length was
				core and chip sample recoveries		divided over the distance
				and results assessed.		recorded between core blocks
			•	Measures taken to maximise		placed at the end of each drill rod
				sample recovery and ensure		pull.
				representative nature of the	•	Diamond drilling recovery has
				samples.		generally been excellent and
			•	Whether a relationship exists		close to 100%.
				between sample recovery and	•	Best drilling practices were
				grade and whether sample bias		employed to maximise sample
				may have occurred due to		recoveroes, including the use of
				preferential loss/gain of fine/coarse		appropriate drilling fluids.
				material.	•	A relationship between recovery

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				and gradeisnotknownto exist.
Logging	•	Whether core and chip samples		• Trenches and diamond core were
		have been geologically and		geologically logged to a level of
		geotechnically logged to a level of		detail appropriate for Mineral
		detail to support appropriate		Resource estimation.
		Mineral Resource estimation,		• Core and trench intervals logging
		mining studies and metallurgical		was qualitative and quantitative
		studies.		in nature.
	•	Whether logging is qualitative or		• All available core and trench
		quantitative in nature. Core (or		intervals were logged.
		costean, channel, etc)
		photography.
	•	The total length and percentage of
		_the relevant intersections logged. _
Sub-sampling techniques and	•	If core, whether cut or sawn and	•	Bulk samples derived from trenches
sample preparation		whether quarter, half or all core taken.		were crushed to 100% passing 60 mm and then dry screened at 10 mm
	•	If non-core, whether riffled, tube		and 2 mm.
		sampled, rotary split, etc and	•	The >10 mm and 2-10 mm fractions
		whether sampled wet or dry.		were fefd through a Steinert XSS
	•	For all sample types, the nature,		sorting machine to generate a
		quality and appropriateness of the		concentrate of rock particles
		sample preparation technique.		containing coarse gold (‘sorted
	•	Quality control procedures adopted		concentrate’) and tailings (‘sorted
		for all sub-sampling stages to		tailings’). The sorted concentrate
		maximise representivity of		was crushed to 100% passing 2 mm
		samples.		and subjected to standard laboratory
				analysis.
			•	The sample preparation procedure
				is appropriaite for the material and
				minimizes bias and variance and the
				sample treatment and preparation
				process.
			•	Diamond core is cut in half with a
				diamond bladed core saw. Samples
				were then crushed to 85% passing 2
				mm, and pulverized to 95% passing
				75 micron.
Quality of assay data and	•	The nature, quality and	•	Bulk samples derived from trenches
laboratory tests	•	appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF		in August 2017 were crushed to -60 mm (P100) and dry screened at 10 mm and 2 mm. •The +10 mm and 2-10 mm fractions were fed through the
		instruments, etc, the parameters		Steinert XSS T sorting machine
		used in determining the analysis		to generate a concentrate of rock
	•	including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards,		particles containing coarse gold (“sorted concentrate”) and tailings (“sorted tailings”). The _sorted concentrate_was crushed to -2mm (P100) and subjected to
		blanks, duplicates, external		intense CN leaching and
		laboratory checks) and whether		analysis. Tailings from intense
		acceptable levels of accuracy (ie lack of bias) and precision have been established.		CN leaching were subjected to metallic screen fire assay to ensure no loss of gold. The gold
				content of the_sorted concentrate_
				was determined by
				mathematically combining the Au
				recovered by CN leaching with
				residual gold detected by metallic
				screen fire assay.

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• Criteria JORC Code explanation Commentary • Sorted tailings were crushed to - 2 mm (P100) and recombined with any -2 mm material generated during initial screening. A 30 kg split of -2 mm material was taken and pulverised to -75 microns (P95). Three, 1 kg splits of the pulverised material was subjected to intensive CN leaching and analysis. A weighted average grade of these three analyses will constitute the sorted tailings grade.

• • A final bulk sample grade was calculated by mathematically combining the sorted concentrate grade and the sorted tailings grade

• • Bulk samples derived from trenches after August 2017 were crushed to 1mm and screened. • Material that was +1mm was then subject to jigging, the -1mm then reported to a Knelson with the concentrate being tabled.

• • The combined tabled and jig concentrate was then screen fire assayed.

• • Tails material was then subject to up to 50 x 1kg LeachWell assays. The concentrate assay and the Leachwell assay was then combined to arrive at a Calculated Head assay that was reported.

• • Diamond core samples were analysed by Intertek Genalysis (Perth).

• • The laboratory techniques below are for all samples submitted to Genalysis and are considered ‘total’ and appropriate for the style of mineralisation defined within the Purdy’s Reward Project area:

  • 1,000 gram CN-leach digestion with MS finish - Au.

  • • 4 Acid Digest ICP-AES Finish (4A-MS48) – Including Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn.

• Quality control during the analytical process at Genalysis included the laboratory’s internal processes of consistency monitoring (using certified reference materials), blanks, replciates and duplicates.

• • Genalysis performance verification included external laboratory checks by Novo.

• • Both internal QC and external lab checks did not indicate any issues

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				withbias orprecision.
Verification of sampling	•	The verification of significant	•	At this stage of the project,
and assaying		intersections by either independent or alternative company personnel.		significant intersections have not been verified.
	•	The use of twinned holes.	•	At this stage of the project, no twin
	•	Documentation of primary data,		holes have been used.
		data entry procedures, data	•	All data collection and processing is
		verification, data storage (physical		carried out and controlled by
		and electronic) protocols.		standard operating procedures.
	•	Discuss any adjustment to assay		Logging data is collected on paper
		data.		and then transferred to a database
			•	Final bulk sample grades were
				calculated by mathematically
				combining the sorted concentrate
				grade and the sorted tailings grade.
Location of data points	•	Accuracy and quality of surveys	•	Sample sites are determined using
		used to locate drill holes (collar		differential GPS.
		and down-hole surveys), trenches,	•	The grid system used for Novo
		mine workings and other locations		Resources drilling is GDA94 (MGA
		used in Mineral Resource		94 Zone 50)
		estimation.	•	Topographic control was obtained
	•	Specification of the grid system		from surface profiles DEM and
		used.		differential GPS traverses and is of
	•	Quality and adequacy of		suitable quality.
		topographic control.
Data spacing and distribution	•	Data spacing for reporting of	•	Current trench spacing is irregular.
		Exploration Results.	•	Diamond drill holes have been
	•	Whether the data spacing and		completed on a nominal 50 metre by
		distribution is sufficient to establish		50 metre grid in the core target area
		the degree of geological and grade		and further spaced away from this.
		continuity appropriate for the		At this stage of the project, this
		Mineral Resource and Ore		spacing is not considered
		Reserve estimation procedure(s)		appropriate to establish the degree
		and classifications applied.		off geological and grade continuity
	•	Whether sample compositing has		required to establish Mineral
		been applied.		Resources.
Orientation of data in relation to	•	Whether the orientation of	•	Trenches were oriented to
geological structure		sampling achieves unbiased		appropriately intersect the target
		sampling of possible structures		geological formation of interest.
		and the extent to which this is	•	At this stage of the project the
		known, considering the deposit		location and orientation of the trench
		type.		samples is not considered to have
	•	If the relationship between the		introduced a sampling bias.
		drilling orientation and the	•	Diamond drill holes have been
		orientation of key mineralised		drilled vertically into the
		structures is considered to have		conglomerate layer which dips at a
		introduced a sampling bias, this		shallow angle. All lithological units
		should be assessed and reported i		intersected in drill holes are near true
		material.		widths.
Sample security	•	The measures taken to ensure	•	Bulk Samples were scrutineered by
		sample security.		independent consultants RSC,
				whilst the samples were being
				collected and also at arrival at
				Nagrom Laboratories.
			•	Sealed bulk sample drums were
				dispatched by Novo representatives
				to Nagrom Laboratories for testing.
			•	Drums were sealed with a unique
				security seal which is matched up
				with the drums sample ID.
			•	Diamond core samples were
				dispatched by Novo to Genalysis.
			•	The sample transport preparation,
				transport and sample receipt were
				carefully controlled by a Chain of
				Custody standard operating

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				procedure.
Audits or reviews	•	The results of any audits or	•	The sampling	processes were under
		reviews of sampling techniques		constant scrutiny by both internal
		and data.		staff and	various	external
				consultants

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 tenement and land	•	Type, reference name/number,	•	Trenching by Novo Resources was
		tenure status		location and ownership		carried out	on E47/1745 –		50%
				including agreements or		owned by Artemis Resources Ltd.
				material issues with third		50% by Novo Resources		Corp.
				parties such as joint ventures,	•	The tenement is part		of a	Joint
				partnerships, overriding		Venture with Novo		being	the
				royalties, native title interests,		Manager and	Operator.
				historical sites, wilderness or	•	This tenement is in good standing
				national park and		and no known impediments			exist
				environmental settings.		(see map provided in this report for
			•	The security of the tenure held		location).
				at the time of reporting along
				with any known impediments to
				obtaining a licence to operate in
				_the area. _
		Exploration done by other	•	Acknowledgment and appraisal	•	Previous gold exploration activities
		parties		of exploration by other parties.		by Artemis	were restricted to
						orientation soil and stream sediment
						sampling, with bulk sampling using
						mini-excavators and metal detectors
						to identify the precise position of the
						source geological units of the coarse
						nugget gold.
		Geology	•	Deposit type, geological setting	•	The deposit	is inferred to be a
				and style of mineralisation.		sedimentary-hosted gold deposit,
						with strong	affinities	to	the
						Witwatersrand style, given the			early
						stage of	investigation specific
						aspects of the deposit are unknown.
		Drill hole Information	•	A summary of all information	•	The trenches and drill		holes are
				material to the understanding of		being picked	up with a	differential
				the exploration results including		GPS.
				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 aggregation methods	•	In reporting Exploration	•	Not relevant	to exploration being

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Results, weighting averaging		undertaken.
		techniques, maximum and/or
		minimum grade truncations (eg
		cutting of high grades) 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 between	•	These relationships are	•	A better understanding of the deposit
mineralisation widths and		particularly important in the		geometry	will	be achieved	on
intercept lengths		reporting of Exploration		thorough interpretation of the data.
		Results.		True thicknesses may be reported at
	•	If the geometry of the		a later date	if warranted.
		mineralisation with respect to	•	Due to the moderately to flatly
		the drill hole angle is known, its		dipping nature		of the mineralised
		nature should be reported.		zones, it	is expected that true
	•	If it is not known and only the		thicknesses will approximate			the
		down hole lengths are reported,		reported down-hole thicknesses.
		there should be a clear
		statement to this effect (eg
		‘down hole length, true width
		_not known’). _
Diagrams	•	Appropriate maps and sections	•	Appropriate	maps and sections are
		(with scales) and tabulations of		available in	the body of this
		intercepts should be included		announcement.
		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 reporting	•	Where comprehensive	•	Reporting of results in this report			is
		reporting of all Exploration		considered balanced.
		Results is not practicable,
		representative reporting of both
		low and high grades and/or
		widths should be practiced to
		avoid misleading reporting of
		_Exploration Results. _
Other substantive	•	Other exploration data, if	•	Targeting for the diamond drilling
exploration data		meaningful and material,		(coring) by Novo has been designed
		should be reported including		on geological		mapping and	the
		(but not limited to): geological		surface expression of the targeted
		observations; geophysical		mineralised	horizons. The coring
		survey results; geochemical		programme	has	just begun.
		survey results; bulk samples –
		size and method of treatment;
		metallurgical test results; bulk
		density, groundwater,
		geotechnical and rock
		characteristics; potential
		deleterious or contaminating
		substances.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Further work	•	The nature and scale of	•	Trenching will continue along	the
		planned further work (eg tests		contact surface expression.
		for lateral extensions, depth	•	Diamond drilling/Coring	will
		extensions or large-scale step-		continue.
		out drilling).	•	Bulk sampling to of layers within	the
	•	Diagrams clearly highlighting		conglomerate to be undertaken	to
		the areas of possible		refine understanding of distribution
		extensions, including the main		and grade of mineralisation.
		geological interpretations and
		future drilling areas, provided
		this information is not
		commercially sensitive.

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