Artemis Resources Limited — Interim / Quarterly Report 2012

Oct 23, 2012

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ASX QUARTERLY 24 October 2012

About Artemis Resources

Artemis Resources is an ASX-listed mineral exploration company with a focus on gold and base metals.

Key Projects

Yandal (WA) Gold

West Pilbara (WA) Gold, Base Metals Mt Clement (WA) Gold, Silver, Base Metals

Artemis’ corporate strategy is to maximise shareholder returns through a combination of exploration success and quality project acquisition.

The Company's focus on gold and base metals is viewed as an important growth strategy for the company.

QUARTERLY ACTIVITIES REPORT SEPTEMBER 2012

Highlights

• Yandal drilling identified new gold zones below known oxide and to the south of Lowlands

• Planning in progress for the next phase of the Yandal project

• Auger drilling undertaken on a limited number of West Pilbara tenements.

• Review of West Pilbara tenements in progress

Yandal - Lowlands Drilling Results

The results of the Lowlands 3,150m reconnaissance drilling programme in June 2012 strongly indicate:

• the presence of additional gold mineralisation both down plunge to the south west beneath the historical Lowlands resource; and

• to the south where gold mineralisation was encountered some 350m from the known resource within the southern extension of the altered magnetic basalt host rock.

Australian Securities Exchange

Code: ARV

Contact Guy Robertson Executive Director Tel: +61 2 9078 7670

Tony Dawe Investor Relations Tel: +61 8 9388 0944 Mob: +61 (0) 415 096 804

www.artemisresources.com.au

The drill results from the 2012 drilling samples (see Table 1) were:

YARC29 18m @ 2.13 g/t Au - known Lowlands oxide zone YARC23 6m @ 1.50 g/t Au – beneath known oxide YARC30 2m @ 5.50 g/t Au – beneath known oxide YARC28 1m @ 5.77 g/t Au – beneath known oxide YARC20 12m @ 1.78 g/t Au – 350m south of Lowlands

Previous drilling results at Lowlands include:

10m @ 5.13 g/t Au – Lowlands oxide zone 15m @ 3.73 g/t Au – Lowlands oxide zone 26m @ 1.77 g/t Au – Lowlands oxide zone

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia www.artemisresources.com.au

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At Lowlands , the drilling suggests that gold mineralisation occurs in a ‘pipe’ or shoot located at the intersection of a northerly trending zone of sheared and altered magnetic basalt, (the source of the IP anomalism) and a previously known north west striking, shallow south west dipping shear zone (see Figure 1).

Figure 1. Simplified Yandal Cross Section 7007625N

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The new deeper RC drilling on east-west cross sections has detected gold mineralisation below and to the south of Lowlands. There are strong indications that the known Lowlands oxide resource is a south west plunging shoot extending into the primary sulphide zone.

Holes YARC029 and YARC030 intersected significant gold mineralisation: 18m@ 2.13 g/t and 2m @ 5.5 g/t respectively. (Refer Figure 1). The second last metre of hole YARC028 also returned an assay of 5.77 g/t gold at a vertical depth of around 215 metres on Section 7007650mN (See Figure 2).

The recent drilling campaign has confirmed gold mineralisation below the previously known oxide zone with potential to host a large gold target.

At Lowlands South : Drill holes YAR022 and YARC020 intersected soil-covered gold mineralisation within and on the margins of the same sheared and altered magnetic basalt which host Lowlands.

Both holes returned significant gold intercepts. Hole YARC022 intersected 84m of low grade gold mineralisation with gold values up to 0.49g/t over 4m. The hole farthest south, YARC020, intersected a 12m interval of 1.78g/t gold. This mineralisation is open in all directions as no other drilling has been undertaken in this southern area.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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Figure 2. Plan of Lowlands Area - Magnetic Image, Showing Mineralised Lithologies, Shear Zones and Artemis RC Holes.

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Table 1. Significant drill results

Hole_ID	InterceptDescription	mFrom	mTo
YARC020	12m@ 1.78g/t Au	80	92
YARC020	1m@1.14g/t Au	175	176
YARC023	6m@1.50g/t Au	54	60
YARC023	1m@1.40g/t Au	85	86
YARC025	2m@1.90g/t Au	57	59
YARC025	1m@1.20g/t Au	62	63
YARC027	1m@2.21g/t Au	176	177
YARC028	4m@1.50g/t Au	30	34
YARC028	1m@ 5.77g/t Au	248	249
YARC029	1m@2.13g/t Au	16	17
YARC029	18m@ 2.13g/t Au	24	42
YARC029	1m@2.32g/t Au	46	47
YARC029	4m@1.57g/t Au	52	56
YARC029	1m@1.35g/t Au	62	63
YARC029	1m@1.12g/t Au	67	68
YARC030	2m@ 5.55g/t Au	55	57

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In summary, these drill results indicate that the potential for a significant gold resource at Yandal remains high. A further drilling programme is planned to increase the size of the known resource.

Nickel & Other IP Anomalies

Drilling at the Yandal Sandalwood Nickel prospect encountered only sub-economic enrichment of nickel and associated chromium. Maximum nickel assay returned was 4m @ 0.24% Ni.

Only a limited number of IP anomalies associated with palaeo-channels were drill tested and results were not conclusive.

West Pilbara

West Pilbara Planning

The Company has engaged an independent consultant to undertake a thorough review of the West Pilbara package with a view to determining priorities for the exploration programme. The report is expected in the last quarter of calendar 2012

Auger Sampling Programme

During the quarter Artemis completed an auger sampling programme in two portions of its West Pilbara tenement package - Nickol and Mount Sholl (See Figure 3). The assay results are expected shortly.

The Nickol river prospect covers the central portion of the Nickol River goldfield, which is about 15kms east of Karratha in the west Pilbara. Considerable widespread, small scale, alluvial mining operations have been carried out since 1984. The area appears highly prospective due to the numerous, favourable structures and extensive known mineralisation, some of which is disseminated in the country rock, while other mineralization occurs in quartz reefs.

Mining Lease 47/288 is located immediately east of Mt Sholl about 25 km south of Karratha in the West Pilbara region of Western Australia. The lease together with adjacent lease M47/177 covers substantial alluvial and eluvial gold workings known as the Sholl East/Gold Reef Prospect.

The Sholl East/Golden Reef Project has a demonstrated potential to host substantial amounts of gold. To date only near surface targets have been tested by shallow drilling. The more regional structural targets remain untested despite the fact that substantial amounts of coarse surface gold has been found in a number of other places in the Mt Sholl area.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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Nickol River Gold
Mount Sholl
Figure 3. West Pilbara Tenement Location Plan
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About Artemis Resources

Artemis Resources Limited is a resources exploration company with a focus on its prospective Yandal, West Pilbara and Mount Clement (80% Artemis, 20% Northern Star) gold projects in Western Australia.

These projects have significant exploration potential for gold and base metals and close proximity to existing important deposits or producing mines. Artemis aims to develop a significant gold inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia www.artemisresources.com.au

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Board of Directors and Management Registered Office Guy Robertson Artemis Resources Limited Executive Director 50 Margaret Street Sydney, NSW, 2000 George Frangeskides AUSTRALIA Non Executive Director Phone: (+61) (2) 9078 7670 Shannon Coates Facsimile: (+61) (2) 9078 7661 Non Executive Director www.artemisresources.com.au Share Registry Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross, WA, 6153 AUSTRALIA Phone: (+61) (8) 9315 2333 Facsimile: (+61) (8) 9315 2233 www.securitytransfer.com.au Please direct all shareholding enquiries to the share registry

Competent Person’s Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Andy Border. Andy Border is a consultant to the Company and a member of the Australian Institute of Mining and Metallurgy. Andy Border has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this presentation and to the activity which they are 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’ (“JORC Code”). Andy Border consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: info@artemisresources.com.au Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia www.artemisresources.com.au