Artemis Resources Limited — Interim / Quarterly Report 2014

Apr 29, 2014

30 April 2014

==> picture [226 x 66] intentionally omitted <==

Quarterly Activities Report

Highlights

• New Exploration Target for Eastern Hills Antimony Project, incorporates:

• High antimony (Sb) - lead (Pb) grades from the new Dugite Zone; and

• Existing JORC resource from the Taipan Zone

• Rock chip results at the Dugite Zone up to 28% Sb and 34.4% Pb

• Gwardar Zone rock chip results up to 11.1g/t gold and 1,150g/t silver

• Expansion of tenure – two new Mt Clement/Eastern Hills applications

• Strategic review of West Pilbara identifies opportunities now under review

Artemis Resources Limited (ASX: ARV) (“Artemis” or “the Company”) is pleased to provide its Quarterly Activities Report for the period ending 31 March 2014.

EASTERN HILLS ANTIMONY-LEAD PROJECT

During the quarter the company received additional high grade assay results from the geological mapping and sampling undertaken in late 2013 at the Dugite Zone. The assay results revealed higher grades (up to 62.4% combined antimony plus lead) than the project’s existing Taipan Zone Mineral Resource, which is in close proximity.

The sampling included new high grade results up to 28% Sb, 34.4% Pb and 452g/t Ag (sample 39651, as shown in Table 1) and provides further strong support for the existence of a very high grade zone at Dugite and the expansion potential of the Eastern Hills project area.

Table 1 Dugite Zone – selected high grade rock chip results

Sample ID	East(m)	North(m)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)	Target Zone	Report Date
39601	409,784	7,474,392	12.2	18.1	139	0.97	Dugite Central	5 March 2014
39651	410,289	7,474,645	28.0	34.4	452	0.07	Dugite East	5 March 2014
39652	410,289	7,474,670	15.4	15.0	46	0.52	Dugite East	5 March 2014
39653	410,295	7,474,670	19.9	27.0	103	0.53	Dugite East	5 March 2014
39667	410,271	7,474,593	12.0	13.8	111	0.72	Dugite East	5 March 2014
Coordinate system: MGA94 (Zone 50); selected samples where Sb>10% See full results in ASX Announcement of 5 March 2014

Artemis’ 2013 drilling program focused on the Taipan Zone and resulted in a maiden Indicated and Inferred resource estimated in accordance with JORC (2012) guidelines of 1.3Mt at 1.7% Sb and 2.5% Pb (22,400t contained Sb)[1] using a 1.0% Sb cutoff grade.

1 As per ASX announcement dated 29 November 2013

==> picture [65 x 64] intentionally omitted <==

Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | 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

==> picture [226 x 66] intentionally omitted <==

The quartz-sericite alteration identified at Dugite, Gwardar and Tiger is equivalent to mineralised alteration on the Taipan Zone and confirms that the Eastern Hills system is not a lone vein, but a multiple vein system (Figure 1).

==> picture [490 x 344] intentionally omitted <==

Figure 1: Eastern Hills - Latest rock chip sampling (Sb-Pb) of new zones adjacent to Taipan Zone resource

DUGITE ZONE

The latest high grade results are located primarily at the eastern end of the Dugite Zone (Figure 1), known as Dugite East. This rock chip sampling has extended the strike length of the Dugite East alteration/ mineralisation from 200m to around 350m and also takes the total number of high grade samples (>10% Sb and >10% Pb) to date to nine (Figure 2). The Dugite East high grade zone is still open to the east and has yet to be drill tested. The importance of these high grade antimony results at Dugite East is highlighted by the comparison with average grades of existing antimony mines and development projects in Australia (Table 3).

While there is a possibility that there has been some surface enrichment resulting in the high grades achieved at Dugite East, Artemis is optimistic that high grades will continue at depth, given that there is very good correlation between surface rock chip samples and subsurface drilled samples on the adjacent Taipan Zone, where a maiden resource was recently announced[1] , indicating a lack of surface enrichment at Taipan.

Quarterly Activities Report March 2014

2

==> picture [226 x 66] intentionally omitted <==

==> picture [251 x 258] intentionally omitted <==

Figure 2: Dugite East – High grade Sb-Pb rock chip results

The Dugite Central area (refer Figure 1) also showed a number of elevated results (Figure 3) with one sample containing 12.2% Sb and 18.1% Pb collected approximately 350 metres southwest of Dugite East.

==> picture [339 x 237] intentionally omitted <==

Figure 3: Dugite Central – High grade rock chip results

GWARDAR ZONE

The Gwardar Zone lies to the north of the Dugite Zone (Figures 1 and 4) with an approximate strike length of 700m. Only minor mapping and sampling of this zone was undertaken during the most recent sampling program. However, the western end – closest to the Mt Clement Gold Project – returned a high grade result including 11.1g/t Au and 1,150g/t Ag, as well as a sample with 1.2g/t Au and 21.6g/t Ag (Figure 4). More detailed mapping and sampling of the western end of the Gwardar Zone is planned.

Quarterly Activities Report March 2014

3

==> picture [226 x 66] intentionally omitted <==

==> picture [399 x 279] intentionally omitted <==

Figure 4: Eastern Hills – Latest gold and silver rock chip results

NEW EXPLORATION TARGET

Following the encouraging assay results received from the Dugite Zone, Artemis has developed a new Exploration Target which builds on the foundation laid by the maiden Mineral Resource released late in 2013[1] , estimated in accordance with JORC (2012) guidelines, covering the Taipan Zone and adds the potential of the sub-parallel Dugite Zone, that incorporates the very high grade assay results at Dugite East discussed above, that eclipse those encountered along the Taipan Zone (Figure 1).

The Exploration Target range for Eastern Hills has been estimated, in accordance with JORC (2012) guidelines, as follows (Table 2)[2] . Details of the estimation are found in ASX release dated 26 March 2014.

Table 2: Exploration Target – Eastern Hills Antimony Project

Eastern Hills	Tonnage (Mt)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)	Contained Sb (t)	Contained Pb (t)
Exploration Target	1.7 – 4.0	1.8 - 3.2	2.7 – 4.0	30 - 59	0.37 – 0.60	32,000-128,000	47,000-161,000
	The potential quantity and grade of the Exploration Target is conceptual in nature, and there has so far been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

PROPOSED DRILL TESTING

To confirm the new Exploration Target, Artemis is finalising plans to drill test the new Exploration Target with an RC drilling program of up to 3,000m that would commence in 2014 subject to exploration finance. The program is anticipated to initially test the Dugite Zone, focussing on confirming the sub-surface continuity of very high grade surface rock chip sampling results received thus far at Dugite East. If this drilling program validates the exploration target it has the potential to significantly re-rate the Eastern Hills Project (Table 3).

2 As per ASX announcement dated 26 March 2014

Quarterly Activities Report March 2014

4

==> picture [226 x 66] intentionally omitted <==

Table 3: Australian antimony projects – Reported resources

Project	Owner	Location	Tonnage (Mt)	Sb grade (%)	Sb Content (t)	Status
Hillgrove	Bracken	NSW	6.3	1.6	101,000	Development
Costerfield	Mandalay	Vic	1.4	3.3	46,000	Production
Eastern Hills	Artemis	WA	1.3	1.7	22,400	Exploration
Wild Cattle Creek	Anchor	NSW	1.0	1.8	18,800	Exploration
Blue Spec	NorthWest	WA	0.4	1.3	5,200	Exploration

Source: Company announcements/websites

Potential re-rating of Eastern Hills

ACTIVITY UPDATE

Artemis is finalising the next stage of its exploration program, which will commence after the current wet season (Table 4). The Dugite Zone will be a key focus in the Company’s strategy to increase the resource base at Eastern Hills with drilling scheduled to test the continuity of high grade surface results at depth and along strike. Preliminary metallurgical testing of RC chip samples from the 2013 Taipan Zone drilling program is currently underway with results expected shortly. More definitive metallurgical testing will be targeted once diamond drill core is available from the proposed phase 2 drilling program on the Taipan Zone, and also from the Dugite Zone, subject to positive drill results.

Table 4: Proposed activities and progress for Eastern Hills Project

==> picture [352 x 189] intentionally omitted <==

EXPANSION OF TENURE – NEW EL APPLICATIONS

Following Artemis’ successful 2013 exploration activities at Eastern Hills, the Company has submitted applications for two new Exploration Licences (ELs) that are contiguous with the Mt Clement–Eastern Hills Project Area (Figure 5). The applications will expand the footprint of prospective tenure surrounding the Mt Clement and Eastern Hills Projects – both of which now contain JORC compliant Mineral Resources.

The two EL applications (E08/2602 and E08/2603) cover a combined ~92km[2] of prospective terrain that includes mineral prospects such as Hardey Junction (gold and lead) and Erny Bore (gold). The antimony potential of these two areas has yet to be fully explored and will be targeted by Artemis, along with their precious and base metals potential, once granted.

Quarterly Activities Report March 2014

5

==> picture [226 x 66] intentionally omitted <==

==> picture [243 x 357] intentionally omitted <==

Figure 5: Eastern Hills/Mt Clement – new tenement applications

CHINA – CORPORATE / STRATEGIC PARTNERS

Following Artemis’ attendance at the World Antimony Conference in Guilin, China in December 2013, and the contacts made with important antimony sector players, the Company continues to discuss possible strategic partnerships with interested parties.

WEST PILBARA STRATEGIC REVIEW

The Company has undertaken a further strategic review of its West Pilbara project during the quarter and has held discussions with a number of other explorers in the region. One of these discussions is in an advanced stage and the Company is hopeful that this will be consummated shortly.

The West Pilbara is receiving renewed interest from explorers. The Company’s tenements have good prospects for copper, nickel and precious metals and are in close proximity to the nickel sulphide operations at Radio Hill.

Artemis continues to work with the Ngarluma Aboriginal Group in an endeavour to conclude a Native Title Agreement, expected in Q2 2014, which will allow the Company to undertake the next stage of its exploration program.

The Company is awaiting a decision of the Wardens Court in relation to plaint applications on three of its key West Pilbara tenements – E47/1797, E47/1745 and E47/1746.

6

Quarterly Activities Report March 2014

==> picture [226 x 66] intentionally omitted <==

ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Eastern Hills (antimony), Mount Clement (gold), Yandal (gold) and West Pilbara (gold and base metals) 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.

For further information, please contact:

Guy Robertson Executive Director Phone: +61 2 9078 7670 Email: info@artemisresources.com.au Website: www.artemisresources.com.au

James Moses Mandate Corporate Mob: 0420 991 574 Email: james@mandatecorporate.com.au

==> picture [222 x 317] intentionally omitted <==

Artemis – WA Project locations

Forward Looking Statements

This report contains forecasts, projections and forward looking information. Such forecasts, projections and information 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.

Competent Person Statements

The information in this document that relates to Exploration Results and Exploration Targets is based on information previously reported to ASX. The information is extracted from the reports entitled “High Antimony Grades Expand New Zone at Eastern Hills” created on 5 March 2014 and “High Grades Boost Eastern Hills Exploration Target” created on 26 March 2014 and is available to view on the ASX website. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement.

The information in this document that relates to Mineral Resources is based on information previously reported to ASX. The information is extracted from the report entitled “Maiden JORC Resource Achieved at Eastern Hills” created on 29 November 2013 and is available to view on the ASX website. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Quarterly Activities Report March 2014

7

==> picture [226 x 66] intentionally omitted <==

Tenement Schedule (as at 31 March 2014)

– All Projects are located in Western Australia with the exception of the SMA JV

West Pilbara	West Pilbara	Yandal
E47/1745	P47/1124(a)	E53/1026
E47/1746	P47/1126(a)	E53/1213
E47/1747	P47/1127(a)	E53/1214
E47/1797	P47/1131(a)	E53/1412²
E47/1806³	P47/1134(a)	E53/1413²
E47/1807³	P47/1619(a)	E53/1525²
E47/1878³	P47/1620	E53/1526²
E47/2645	P47/1621(a)	E53/1626
E47/2652	P47/1622(a)	E53/1627
E47/2696		E53/1662
E47/2716(a)	Mt Clement	E53/1665
E47/2724(a)	E08/1606¹	E53/1689
E47/2908(a)	E08/1841	E53/1729(a)
M47/177²	E08/2602(a)	E53/1735
M47/288²	E08/2603(a)	E53/1742(a)
P47/1360	M08/191¹	E53/1749(a)
P47/1361	M08/192¹	E53/1759(a)
P47/1362	M08/193¹	P53/1606(a)
P47/1363		P53/1607(a)
P47/1364	SMA JV –QLD6	P53/1608(a)
P47/1365	ML 3311	P53/1609(a)
P47/1366	ML 30123	P53/1610(a)
P47/1367	ML 30208	P53/1611(a)
P47/1368	EPM 13694	P53/1612(a)
P47/1369	EPM 14988	P53/1613(a)
P47/1370	EPM 18490	P53/1614(a)
P47/1371		P53/1615(a)
P47/1372	Yangibana	P53/1616(a)
P47/1373	E09/1043⁵	P53/1617(a)
P47/1374	E09/1049⁵	P53/1618(a)
P47/1375	E09/1703⁵	P53/1619
P47/1380	E09/1704⁵
P47/1386	E09/1705⁵
P47/1518	E09/1706⁵
P47/1519
P47/1520	Mundong Well
P47/1112(a)	E08/1609⁴

(a) Tenement applications

¹80% Artemis - Gold joint venture with Northern Star Resources (20%)

²80% Artemis

³40% Interest – Non managed joint venture with Fox Resources Limited

⁴90% Interest

⁵10% Interest

6Strategic Metals Australia Pty Limited (SMA) earning 75%, with an option over the remaining 25%

Quarterly Activities Report March 2014

8