Artemis Resources Limited — Interim / Quarterly Report 2008

Jan 28, 2009

Artemis Resources Limited (ASX: ARV) Announcement to the ASX

Quarterly Announcement December 2008 29 January 2009

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Highlights

• Artemis Resources has been granted E08/1841 at Mt Clement (Indicated Mineral Resource of 526,000 tonnes grading 2.4 g/t Au for 40,600 ounces of gold)

• Processed data for the aeromagnetic survey over the Yandal Gold Project was received and full geophysical interpretation is to commence in 2009 (Indicated Mineral Resource of 320,000 tonnes grading 2.29 g/t Au for 23,560 ounces of gold)

• Stage 2 exploration on the Niger Uranium Prospect due to commence in 2009

• High gold price increases the value of Artemis gold prospects with a combined resource of greater than 70,000 oz

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Yandal Project (Gold 100%)

Figure 1: Artemis Australian Project Locations

The Yandal Gold Project area lies in the Yandal Greenstone Belt in the northern part of the Eastern Goldfields Province of Western Australia (see Figure 1).

The Project covers 238 km[2] and is located about 95 km southeast of Wiluna. Since 1987, over 13 million ounces of gold have been delineated in the Yandal Belt in a number of deposits. The largest gold deposits include Jundee (5.4 m oz Au), Bronzewing (2.3 m oz Au), Darlot (2.9 m oz Au) and Thunderbox (1.4 m oz Au).

In the late 1980’s, Tectonic Resources reported two Inferred Mineral Resources (JORC 2004

compliant):

• 320,000 tonnes grading 2.29 g/t Au for 23,560 oz of Au at Lowlands; and

• 39,600 tonnes at 6.47 g/t Au at Slav Well.

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A high resolution, low level, aerial magnetic survey, covering the entire project area was flown by UTS Geophysics. The processed data for the magnetic survey that covered the entire Yandal project area has now been received and processed.

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Figure 2: Aero Magnetic Survey of the Yandal Project

The processed data included a suite of Total Magnetic Intensity Images and Reduce-to-Pole Magnetic Intensity Images (TMI) along with Digital Elevation and Radiometric Images. This included a preliminary TMI image with known gold prospects.

In 2009, Artemis is planning a geophysical interpretation of the aeromagnetic survey as part of its systematic approach to gold exploration over ground that is deeply weathered and poorly exposed. Data on regional and local geology, mineralization styles and trends will be incorporated into the geophysical interpretation.

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This programme will provide for the generation of a full block geological model with structural definition and gold target position definition from which the goal will be to identify additional targets within the licence areas for follow up sampling and subsequent RAB and RC drilling, in particular in the area known as Forked Stick.

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Mt Clement Project (Gold - 100% owned)

The Mt Clement Project is located in the Ashburton region of Western Australia about 185 km west-northwest of Paraburdoo and 35 km south-southwest of the Paulsens (gold mine owned by intrepid/Nustar) (see Figure 1)

With the granting of E08/1841 the Mt Clement Project now comprises 5 leases. The newly granted E08/1841 lease includes 22 blocks and is adjoining E08/1606 (2 blocks). It also entirely surrounds the mining leases M08/191, 192 & 193 (see Figure 3).

The Mt Clement gold/silver deposit is located within the mining leases. Gold mineralization (>1g/t), silver (>60g/t) and copper mineralization have been recorded at the Mt Clement Prospect along with other mineralization, notably lead, zinc, antimony and manganese.

Figure 3: Mt Clement Project Locality Plan

Exploration to date includes approximately 1,550 metres of trenching and 7,550 metres RAB, RC and DC drilling outlining a west to west-northwest striking Au-Ag-As-Cu mineralized zone measuring approximately 600 metres in length and 400 metres wide. Intersections include 9.2 metres grading 6.9 g/t gold and 901 g/t silver from 81.6 metres.

The most recent estimate was undertaken by Al Maynard & Associates for Redport Limited in May 2005. Maynard estimated a JORC (2004) compliant Indicated Mineral Resource of 526,000 tonnes grading 2.4 g/t Au for 40,600 ounces of gold.[1]

Previous metallurgical tests have shown low recoveries (approximately 30%) in the primary mineralised zones, with the figure rising to approximately 90% in the oxide material. The majority of resources discussed above occur within the oxide zone. The granting of E08/1841 adds substantially to the land package and the gold and silver prospectivity of the Mt Clement Project.

1 CORRECTION: The 2008 annual report incorrectly reported the resources as being “Non-JORC”.

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Yilgarn Property (Gold and Base Metals - 100% owned)

The Yilgarn project is comprised of two separate prospects located 200 km north of Southern Cross which lies approximately 350 km east of Perth in the Yilgarn Mineral Field (see Figure 4).

The northern prospect is Coppermine Bore and the southern Prospect is the Yarbu Copper Mine prospect. The tenements are prospective for gold and base metals and Coppermine Bore contains outcropping banded iron formation a rock type that can host economic concentrations of iron ore, gold and base metals.

During the quarter a review of the prospectivity of the Yilgarn Property was undertaken with examination of the regional geological setting and recent exploration works completed on the project with recommendations for further exploration going forward.

Spinifex Ridge/Bamboo Creek (Gold, Molybdenum and Copper - 100% owned)

The Spinifex Ridge/Bamboo Creek project is located in the Eastern Pilbara region of Western Australia (see Figure 1) and is adjacent to the world class Spinifex Ridge Molybdenum-Copper project held by Moly Mines Limited.

This tenement is prospective for molybdenum and other minerals such as copper and tungsten that are associated with molybdenum. Three areas with visible copper and associated gold and molybdenum enrichment have been identified. Near the largest copper find a North-North-West trending 400m long shear was identified as hosting pods with strong copper oxide staining. Maximum assay results from rock chip sampling were 26.6% cooper, 7.11 ppm gold, 478 ppm silver and 10.7 ppm molybdenum.

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Figure 4: Spinifex Ridge/Bamboo Creek Tenement Location Map

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Niger Project (Uranium - 25% Owned)

Artemis, through a 51% owned subsidiary (Arminco Pte Limited), holds a 49% stake in an incorporated Joint Venture with Trendfield Holdings Limited. The Joint Venture in turn holds two uranium tenements in Niger, West Africa (Tag 2 and Tag 4). Through the terms of this Joint Venture, Artemis has the ability to acquire a majority 51%.

The Niger Project is located within the Tim Mersoi Basin (NE Niger), home to two uranium mines producing 12% of the world’s uranium supply. The Tag 2 and Tag 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 state owned Chinese company and has 15,000 tons of U3O8 grading 0.2% (Somina Mine).

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Figure 5: Niger Project Location Map

An initial exploration programme has been carried out including:

• A ground spectrometer survey;

• Geochemical sampling;

• An extensive field mapping programme; and

• The construction of a local and regional structural model.

The results of the fieldwork were highly encouraging with the presence of broad low-level uranium anomalism confirmed over a large percentage of the tenement area. The Joint Venture intends to do stratigraphic drilling to confirm whether the uraniferous Agadez formation underlies the Joint Venture tenement at depth. The Joint Venture tenements are traversed by the Azelik fault, which plays an important role in the disposition of uranium mineralization in the region and which is stratigraphically controlled and contained in fluviatile sandstone channels, with organic matter.

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The Joint Venture is planning to drill in excess of 40,000 metres as part of the second stage of exploration. It is intended that the first targets for drilling will be centred in a 25 km strike through the centre of the tenements that have a potential to host uranium mineralisation at depth.

The information in this Report that relates to Exploration Results is based on information compiled by John Bridson who is a member of the Australian Institute of Mining and Metallurgy. John Bridson 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’. John Bridson consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Strategic Investments

The Company owns 5 million shares (approximately 7%) in Apollo Minerals Limited (ticker “ AON ”). The recent announcements by Apollo concerning the issue of exploration licences over the Mt Oscar tenement, the acquisition of 100% of Mt Oscar and the encouraging drilling results announced by Fox Resources Limited in the adjacent tenement has led the Directors to the view that the Company should continue to hold these shares in the medium term.

During the quarter the Company sold its 5,000,000 shares in Contact Uranium Limited (renamed “Ram Resources Limited”). This decision was taken due to the sharp fall of the uranium prices coupled with the global economic issues.

Changes in Capital Structure

During the quarter the Company issued 2,000,000 options to Directors with an exercise price of 15 cents each and an expiry date of 24 November 2011. The options vest 1/3[rd] on grant, 1/3[rd] on the 1[st] anniversary of grant and 1/3[rd] on the 2[nd] anniversary of grant.

Change in Management and Registered Office

During the quarter the Directors decided to relocate the Company headquarters to Sydney. As a result of the relocation, Richard Sealy became General Manager and John Hartigan became Company Secretary. The registered office of the Company is now located at 1 Margaret Street, Sydney, NSW 2000 Australia.

Richard Sealy General Manager

Phone: 9299 8820 Email: richardsealy@artemisresources.com.au Web Site: www.artemisresources.com.au