Artemis Resources Limited — Interim / Quarterly Report 2009

Oct 29, 2008

30 September 2008

ASX Codes: ARV and ARVO

Gold Price $A 1,147/oz at 30/9/2008

HIGHLIGHTS

Uranium Price $US 53/lb at 30/09/2008

Address Level 4, 673 Murray Street West Perth Western Australia

Telephone + 61 8 9226 3399 Facsimile + 61 8 9226 5405 Email info@artemisresources.com.au Website www.artemisresources.com.au ABN 80 107 051 749

• Strong cash position of over A$4m at quarter end

• Received A$1.9m performance fee due under Apollo management agreement.

• Airborne geophysical survey completed at Yandal Gold Project

• Sampling programme completed at Spinifex Ridge Project

Niger Joint Venture (Uranium - ARV 25%)

Artemis through a majority controlled entity (Arminco) holds a 49 per cent stake in an incorporated joint venture company Uranium Exploration S.A. (UREX) with Trendfield Holdings Limited. UREX holds two highly prospective uranium tenements in Niger, West Africa (TAG 2 and TAG 4). Artemis has the ability to acquire up to 51% in the joint venture.

Niger is one of the world’s largest uranium producers and is ranked behind only Canada, Australia and Kazakhstan in terms of production and total known uranium reserves. The UREX project is within the Tim Mersoi Basin (NE Niger), home to two uranium mines (with another under construction) producing 12% of the world’s uranium supply.

The TAG 2 & 4 tenements cover approximately 1,000 km[2] and are situated adjacent to another major uranium deposit (Teguidda) which is currently being developed by a Chinese company. (See figure 1). Teguidda is reported to contain some 15,000 tonnes at 0.2% U3O8 and will likely be another significant producer in the near term with trial mining having commenced.

The initial exploration program carried out in March and April 2008 confirms the view that the tenement has the potential to host primary uranium mineralisation adjacent to the Azelik fault resource at depth (100 -150m). All of the known deposits in the eastern part of the Tim Mersoi Basin are less than 10 kilometers from a major fault and lie on the flanks of an earlier Permo-Triassic inlier/anitformal-domal structure.

May to September in Niger is the wet season and as such no work was carried out on site during this quarter. The Company and its joint venture partner are currently planning the next phase of work which is likely to comprise a drilling programme of approximately 8,000m.

30 September 2008

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Figure 1 Urex Project Location in Niger
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SPINIFEX RIDGE/BAMBOO CREEK (Copper & Molybdenum - ARV 100%)

The Company’s Spinifex-Ridge/Bamboo Creek Project (E45/2596) is located in the Eastern Pilbara region of Western Australia and is adjacent to the world class Spinifex Ridge Molybdenum-Copper Project held by Moly Mines Ltd. This tenement is highly prospective for molybdenum and other minerals such as copper and tungsten that are associated with molybdenum. There are also a number of anomalous gold-copper targets.

The Company received results this quarter from the infill sampling undertaken the previous quarter to further detail areas of previously located surface mineralisation. These samples were taken immediately to the east of the Moly Mines Spinifex Ridge Project. See Figure 2 below.

Little additional anomalism was located outside the known anomalous areas. The Company is considering the option to undertake a small drilling programme to test the most promising anomaly at Norms Find.

Reconnaissance rock chip sampling is also planned over the northern portion of the Artemis’ project area to investigate the iron ore potential of the prominently outcropping Spinifex Ridge which extends from the adjacent ground owned by Moly Mines Ltd into the top area of the Company’s E 45/2596. Drilling has been undertaken by Moly Mines Ltd (Drilling Area 1, see Figure 2) on the ridge to the west of the Company’s tenements. Highlights of the drill results reported by Moly Mines Ltd included 42m @ 66.2% Fe from a depth of 30 metres in hole SRC 212 and 63% Fe over 68 metres from a depth of 12 metres in hole SRC 214.

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30 September 2008

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YANDAL PROJECT (Gold ARV-100%)

The Yandal Gold project covers a total area of 238 km[2] and is located some 95 km southeast of Wiluna and approximately 1,000 km by road from Perth. The project area lies in the Yandal Greenstone Belt in the northern part of the Eastern Goldfields Province of Western Australia.

A high resolution, low level, aerial magnetic survey, covering the entire project area was flown by UTS Geophysics during the first week in September. Data processing is presently being undertaken. A preliminary TMI image over the major gold prospects is shown in Figure 3.

The survey will greatly assist in the geological and structural understanding of the poorly exposed auriferous greenstones. The principal goal is the identification of additional targets for follow up sampling and subsequent RAB and RC drilling in various areas including the Forked Stick prospect.

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30 September 2008

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Figure 3 - Yandal Project Total Magnetic Image

APOLLO MINERALS (AON) (6% Interest - Strategic Investment)

In July 2008 the Company announced that it was entitled to a management fee of $226,628 and an incentive fee of $1,898,183 due under the management agreement with Apollo for the year ended 30 June 2008. Up to 90% of the incentive fee was payable in shares or cash at the option of Apollo. The Company confirms that Apollo made payment of the incentive fee in cash during the quarter.

The incentive component of the management fee is based on the amount equal to 20% of the amount, if any, by which the Apollo return (based on a weighted average market capitalisation) for any given financial year outperforms the Standard & Poors ASX 300 Metals and Mining Index. Apollo shares outperformed the broader market from its listing through to the end of financial year closing at 50 cents, up from its IPO price of 25 cents a return of 100%, whilst for the same period the broader market index increased less than 1%

Artemis holds 5,000,000 Apollo shares which have a current market value of approximately $1,250,000. Artemis also took up its entitlement (of 2,500,000 options) in Apollo’s First Loyalty Option issue completed in September.

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30 September 2008

CORPORATE

As at 30 September 2008 the Company held cash in excess of $4,000,000 and marketable securities with a value of approximately $1,600,000.

At the end of the quarter the Company moved into new offices which are located at:

Level 4 673 Murray Street West Perth Western Australia 6005

PH +618 9226 3399 Fax +618 9226 5405

DISCLAIMER

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Frans Voermans, who is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy. Mr Frans Voermans is employed by Voermans Geological Services Pty Ltd. Mr Frans Voermans 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Frans Voermans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears .

For further information please contact:

Mike Drew Warwick Hazeldine Chief Operating Officer Director Artemis Resources Limited Purple Communications Tel: +618 9226 3399 / 0417 969 995 Tel +618 9485 1254

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