Artemis Resources Limited — Interim / Quarterly Report 2011

Jan 22, 2012

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ASX QUARTERLY 23 January 2011

About Artemis Resources

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

QUARTERLY ACTIVITIES REPORT DECEMBER 2011

Highlights

Key Gold Projects

Mt Clement (WA) Yandal (WA)

Yandal

• Yandal geological review reveals setting similar to Bronzewing and Jundee gold deposits

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

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

• Further Nickel Gossan occurrences identified at Sandalwood

• Induced Polarisation work to be completed by end of January 2012 with drilling planned early 2012

Buchanan’s Creek

• Artemis reaches agreement for farm-in on Buchanan’s Creek to further exploration

Australian Securities Exchange

Code: ARV

Yandal

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

During the quarter Artemis completed a thorough review of the geological setting, geophysics and drilling data from the Yandal project, with the objective of locating targets with potential for +1 Moz gold.

Using the nearby large Bronzewing and Jundee gold deposits as models with similar geological settings, the review identified a number of new target areas that have not previously been tested. Details of these target areas are discussed below.

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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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•  A linear north-south striking magnetic feature immediately east of Lowlands which is interpreted to be an Archaean mafic sill (possibly dolerite), an excellent host for gold mineralisation,

•  A highly altered ultramafic unit striking northwards from Lowlands, and a second ultramafic unit east of Lowlands,

•  Several areas of extensive palaeochannel development and deep weathering, where north west and north east striking brittle structures are interpreted to intersect favourable host rocks such as mafic volcanics,

•  Two and possibly three steep north-south high grade structures have been interpreted from recent detailed geological mapping and review of the previous drilling at Lowlands prospect. These structures are open to the north, south, and at depth. The area to the east has potential for additional parallel structures and has not been drill tested to date.

•  The occurrence of potentially nickeliferous gossans near Sandalwood prospect has been known since 2007. A magnetic (TEM) survey over the area found four conductors. Recent detailed geological mapping near Sandalwood has detected further gossan occurrences. Drill testing of these gossans and Electro Magnetic (EM) conductors is planned.

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Figure 1. Artemis Yandal Project, Location Plan

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. TARGET AREAS

The rationale for each of these new target areas is briefly discussed below.

1. Lowlands Mafic & Ultramafic Intrusives

Interpretation of imagery from Artemis’ detailed airborne magnetic survey has identified a number of prominent north-south striking Archaean mafic/ultramafic units immediately north and east of Lowlands (Figure 2).

Archaean mafic rocks, which include dolerites, in areas of known gold mineralistion, such as at Lowlands, have proved to be excellent hosts for large high grade orogenic gold deposits. (Examples include The Golden Mile Dolerite at Kalgoorlie, the Barton Dolerite at Jundee, the Great Fingall Dolerite at Cue). The Lowlands Mafic Unit is shown in green in Figure 2.

The review of drilling data at Lowlands, combined with recent detailed geological mapping and magnetic interpretation, has also identified several occurrences of komatiitic ultramafics (shown in purple in Figure 2).

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Figure 2. Aeromagnetic Image, Geological Interpretation & Palaeochannel Drainages

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2. North West and North East Striking Brittle Structures (Faults)

The detailed aeromagnetic data also shows the existence of numerous late brittle north west and north east-striking brittle structures which are most evident in the flanking granites. These structures may be significant in localising gold mineralisation within “brittle – ductile” dilation zones within the greenstone sequence (Figure 3).

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Figure 3. Edge Enhanced Magnetic Image, Highlighting Brittle D3 Structures and Targets

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3. Palaeochannel Areas

The magnetic data also shows the existence of two large palaeochannels (Figure 4) which lie over the intersections of these north west and north east-striking brittle structures. These palaeochannels formerly drained eastwards from the centre of the Artemis tenements, whereas present day drainages trend south to south east. These favourable structural settings are often the locus for gold bearing fluids and attendant alteration. In many cases in the Eastern Goldfields, the primary gold deposits are hidden below depressions containing transported overburden, palaeochannels, and deeper zones of weathering. Examples are Bronzewing, ~2.3Moz (Figure 5 below), located with a 50 km radius of Yandal, and Mt McClure, ~1.8 Moz.

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Figure 4. Artemis Resources Lowlands Magnetic Image, Showing Palaeodrainages

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Figure 5. Bronzewing Magnetic Image, Showing Palaeodrainage over Deposit

(Discovered by Great Central Mines)

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4. Sandalwood Nickel Gossans

The occurrence of potentially nickeliferous gossans outcropping some 500 metres north of the Sandalwood prospect has been known since 2007. (Refer Figure 6) The gossans were partially sampled late in May 2011, returning values up to 3670 ppm Ni and 4370 ppm Cr. A ground TEM survey conducted earlier in the year outlined four conductive bodies.

Recent detailed geological mapping has detected further gossan occurrences. RC drill testing of these gossans and EM conductors is planned.

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Figure 6. Sandalwood Magnetic Image Showing Magnetic Komatiite and Location of Nickel Gossans

5. Lowlands Prospect

This prospect contains the highest drill grades of gold mineralisation in the Yandal Project. Mineralisation has previously been interpreted to be solely hosted within a north west trending, southwest dipping (35-40[0] ) shear zone of altered and intensely weathered fine grained basalts.

Recent detailed geological mapping and review of the previous drilling indicates that the north west trending structure hosts mainly low grade mineralisation, and the drilled high grade mineralisation is controlled by two and possibly three steep north-south structures which have been inadequately drill tested to date.

These interpreted structures are open to the north, to the south, and at depth. The area to the east has potential for additional parallel structures and has not been drill tested to date. Refer Figure 7 overleaf, which shows a surface plan and cross sectional view of the interpreted structures controlling high grade mineralisation.

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High Grade Zone
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Figure 7. Lowlands Surface Plan and Cross Section 7007,675N (+/-12.5m) Showing Interpreted Steep North-South High Grade Structures and Proposed drill Holes

Buchanan’s Creek – Farm-In Agreement

Artemis has reached an agreement with Resmetco Limited in relation to its Buchanan’s Creek project.

Resmetco has agreed to pay Artemis $70,000 by 31 March 2012, and will earn a 51% interest after spending $400,000 and a further 24% interest on spending a further $400,000. Artemis will have a free carried interest until the earlier of (a) the completion of a Bankable Feasibility Study and the taking of a Decision to Mine and (b) spending a further $1 million in exploration on the tenements.

Artemis currently holds 100% of the Buchanan’s Creek Project, southwest of Georgetown in central Queensland. The tenements comprise Mining Leases 3311, 30123 and 30208, as well as an Exploration Permit for Minerals (EPM 14988). The Grant’s Gully area (EPM 13694) and application area, EPMA 18490 (Mosquito Creek) also form part of the Buchanan’s Creek Project. The tenements are prospective for lithium, tantalum, niobium and gold.

Yangibana

Artemis retains a 10% interest in the Yangibana rare earths project being further explored by Hastings Rare Metals Limited. Artemis has agreed to a further deferral of the second installment payable of $1m in installments until 31 December 2012, however has the ability to convert a portion of this to equity at Artemis’ election.

Artemis will earn a commercial rate of interest on the outstanding debt and retains security over the Yangibana project while any amount remains unpaid.

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Mount Clement

No exploration activity was undertaken at the Mount Clement project during the quarter.

About Artemis Resources

Artemis Resources Limited is a resources exploration company with a focus on its prospective Yandal and Mount Clement gold projects in Western Australia. These projects have significant exploration potential 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.

	Board of Directors and Management Guy Robertson Frans Voermans Shannon Coates		Registered Office Artemis Resources Limited 50 Margaret Street Sydney, NSW, 2000 AUSTRALIA Phone: (+61) (2) 9078 7670 Facsimile: (+61) (2) 9078 7661 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

The information in this document that relates to Exploration Results is based on information compiled by Mr Frans Voermans, who is a Fellow of The Australasian Institute of Mining and Metallurgy.Mr 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 Voermans, who is a non-executive Director of the Company, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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