Artemis Resources Limited — Interim / Quarterly Report 2013

Jan 29, 2014

30 January 2014

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Quarterly Activities Report

Highlights

• Maiden JORC resource at Eastern Hills Antimony Project - Taipan Zone

• Additional zones (Dugite, Gwardar, Tiger) indicate potential for significant addition to antimony resource inventory

• Antimony scoping study underway

• World Antimony Conference - meeting with potential strategic partners/investors in Hunan, China

Artemis Resources Limited (ASX: ARV) (“Artemis” or “the Company”) is pleased to provide its quarterly activities report for the period ending 31 December 2013.

EASTERN HILLS ANTIMONY-LEAD PROJECT

Maiden JORC Resource at Eastern Hills - Taipan Zone

Artemis achieved a significant milestone during the quarter by releasing its maiden JORC (2012) compliant Mineral Resource for the Eastern Hills Antimony-Lead Project[1] located in the Ashburton region of Western Australia, following the completion of a successful 15 hole drilling program in October 2013.

The combined Indicated and Inferred resource exceeded size expectations, comprising 1.3 million tonnes at 1.7% Sb and 2.5% Pb (see Table 1 and Figure 1). Importantly, the higher confidence Indicated resource category returned higher grades than expected in antimony (2.0%), lead (3.1%) and gold (0.41g/t) compared to the Company’s Exploration Target estimated in January 2013[2] .

			Grades	Grades		Contained Metal	Contained Metal
	Tonnes
		Sb(%)	Pb(%)	Ag (g/t)	Au(g/t)	Sb(t)	Pb(t)
Indicated	810,000	2.0	3.1	26	0.41	15,900	25,200
Inferred	500,000	1.3	1.5	16	0.20	6,500	7,500
Total	1,310,000	1.7	2.5	24	0.34	22,400	32,700
Table 1: Eastern Hills Mineral Resource estimate based on a 1.0% Sb cutoff grade1

This resource estimate only includes mineralisation from the Taipan Zone, with drill testing of the new high grade Dugite Zone[3] (containing rock chip sample results up to 35.7% Sb, 36% Pb, 1500g/t Ag and 6.80g/t Au), scheduled for the 2014 field season.

1 ASX announcement dated 29 November 2013, some rounding has been applied to reported results

2 ASX Announcements dated 16 and 18 January 2013

3 ASX Announcement dated 12 November 2013

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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

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The Total Mineral Resource for the Taipan Zone at a 1.0% Sb cutoff grade contains 22,400 tonnes of antimony (Table 2). Over 70% of the Total Mineral Resource[4] is within the Indicated category. The remaining 29% of the resource estimate is within the Inferred category, highlighting the potential for mineralisation to continue at depth. Antimony continues to trade at just under US$10,000/tonne.

Sb % Cutoff Grade			Contained Metal	Contained Metal
	Category
		Sb(t)	Pb(t)	Ag (oz)	Au(oz)
1.0	Indicated	15,900	10,800	687,000	25,200
	Inferred	6,500	3,600	257,000	7,500
	Total	22,400	14,400	945,000	32,700

Table 2: Eastern Hills Total Mineral Resource – contained metal

Detailed studies have yet to be completed to assess the viability of economically extracting and processing the Eastern Hills Mineral Resource however, the latest Mineral Resource estimate will form the basis of a Scoping Study which has now commenced.

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Figure 1: Eastern Hills – Mineral resource, antimony zones and drillhole locations

4 Calculated on the contained Sb metal tonnes at a 1% Sb lower cutoff grade – refer Table 2

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Figure 2 is a long section of the Taipan Zone deposit displaying contours of Sb grade x thickness from drillhole intercepts. This represents the distribution of antimony along the length of the deposit, to a depth of ~250m, and indicates that the higher grade areas of the deposit are most likely controlled by sub vertical cross cutting structures, with a significant higher grade section around the middle and to the east of the deposit, all the way to depth. The long section also displays the potential for additional mineralisation both down dip and along strike to the east where the resource remains open.

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Figure 2: Eastern Hills – Taipan Zone long section and grade x thickness contours

High grade potential resource additions (Dugite, Gwardar, Tiger Zones)

The Company announced in September[5] that it had identified three new zones of similar style mineralisation that appear to be part of a more widespread mineralised system – the Dugite, Gwardar and Tiger Zones (Figure 3).

Results from rock chip sampling, undertaken during the December quarter[6] from the Dugite Zone, located just north of the Taipan Zone (Figure 3), have returned up to 35.7% Sb - the highest antimony grade seen to date at the Eastern Hills Project . The same sample (Table 3) also included extremely high grades of 29.0% Pb, 1,335g/t silver (Ag) & 0.56g/t gold (Au). Significant rock chip results (Table 3) provide further evidence that Eastern Hills is a significantly mineralised multi-vein system (Figure 3) predominantly containing antimony-lead with locally rich precious metals.

5 ASX announcement dated 26 September 2013

6 ASX announcement dated 12 November 2013

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Sample ID	East (m)	North (m)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)
							Target Zone
238638	410,065	7,474,450	1.1	3.9	44	3.36	Dugite
238639	410,145	7,474,513	35.7	29.0	1335	0.56	Dugite
238640	410,533	7,475,097	3.8	11.7	50	0.24	Tiger
238641	410,528	7,475,093	1.6	3.0	17	0.13	Tiger
238798	409,837	7,474,399	0.5	0.3	4	3.16	Dugite
238799	409,829	7,474,393	5.4	9.2	277	1.53	Dugite

Table 3: Eastern Hills best reconnaissance sampling results[7] – October 2013[8]

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Figure 3: Eastern Hills - Latest sampling of new zones adjacent to Taipan Zone resource

The high grade results elevate the Dugite Zone (Figure 3) to become a key focus in the Company’s quest for additional resources to add to the JORC compliant resource at the adjacent Taipan Zone. This is reinforced by Artemis’ re-evaluation of previously unseen historical data on the Dugite Zone which also revealed rock chip results of up to 33.0% Sb, 36.0% Pb, 1,500g/t Ag & 6.80g/t Au in the vicinity of the most recent high grade results described above (Figure 4).

Additional rock chip sampling and mapping of the Dugite-Gwardar-Tiger Zones was completed late in the December quarter, with final assay results pending.

7 Best results selected if Sb>1.0% or Au>2.0ppm

8 Laboratory analysis of samples undertaken by ALS Laboratories Perth and Brisbane. Analysis of individual elements, with relevant method, is Sb (ME–XRF05, ME–XRF15b on assays greater than 1% Sb, and ME_XRF-15c on assays greater than 20% Sb), Ag (ME-ICP61 and OG62 on assays greater than 100ppm Ag), Pb (ME-ICP61 and OG62 on assays greater than 1% Pb), Au (Au-AA23)

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Figure 4: Dugite Zone (East) – Artemis and historic sampling results[9] (refer Fig 3)

Dugite Zone

The Dugite Zone lies immediately to the north of the Taipan Zone (Figures 1 and 3). The Dugite Zone currently has a mapped strike length of approximately 1.1km and is striking east-northeast. As mentioned above, further encouragement was obtained from the latest rock chip sampling campaign with one particularly high grade result (sample 238639 – Figure 4).

During the December quarter, Artemis uncovered, and reviewed, historical rock chip sampling results along the Dugite Zone. Significant historical results (Sb>5%) are displayed on Figure 4 with best results up to 33.0% Sb, 36.0% Pb, 1,500g/t Ag & 6.80g/t Au (Table 4) within a 50m zone of Artemis’ high grade antimony result (sample 238639). The historical results provide further evidence that the eastern end of the Dugite Zone is highly prospective for exceptionally high grade antimony, lead, silver and gold. This particular zone of mineralisation is interpreted to be the result of northwest-southeast faults cross-cutting the Dugite silica alteration zone roughly perpendicular to its strike. This later stage cross-cutting fault zone is interpreted to provide the fluid pathway for the antimony-lead-silver-gold mineralisation seen at the Eastern Hills deposit. This model provides encouragement for further discoveries of mineralisation on both the Gwardar and Tiger Zones, which at this point have not been mapped or sampled to the same level of detail as the Dugite Zone.

Tiger Zone

The Tiger Zone is located 500 metres to the northeast of the Taipan Zone (Figure 3) and returned a high grade result of 5.0% Sb in the previous quarter. Follow-up work during October detailed further encouraging mineralisation with 3.8% Sb and 1.6% Sb results obtained from rock chips. The Tiger Zone has a northeast orientation which, although slightly different from the more central alteration zones, still shows evidence of a pathway for mineralisation along the fault structure.

9 Best results shown if Sb>5.0%

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Sample ID	East (m)	North (m)	Sb (%)	Pb (%)	Ag (g/t)	Au (g/t)	Target Zone
EHG001	410,142	7,474,459	1.0	28.0	110	6.40	Dugite
EHG002	410,143	7,474,459	1.7	29.0	200	3.90	Dugite
EHG019	410,137	7,474,454	1.7	35.0	130	3.20	Dugite
EHG020	410,137	7,474,459	1.1	13.0	140	3.20	Dugite
EHG033	410,317	7,474,554	2.3	6.0	28	1.08	Dugite
EHG035	410,337	7,474,584	3.5	8.6	160	0.06	Dugite
EHG057	410,149	7,474,454	2.2	3.3	220	6.80	Dugite
EHG125	410,246	7,474,555	19.5	36.0	250	0.32	Dugite
EHG137	410,162	7,474,528	10.8	13.0	22	0.21	Dugite
EHG138	410,196	7,474,538	1.3	0.2	3	0.01	Dugite
EHG139	410,143	7,474,516	4.3	5.6	18	0.38	Dugite
EHG140	410,138	7,474,516	21.5	29.5	140	0.39	Dugite
EHG141	410,132	7,474,511	33.0	30.5	1500	0.50	Dugite
EHG142	410,121	7,474,505	8.6	9.4	135	1.25	Dugite
EHG143	410,235	7,474,519	6.2	10.6	35	0.82	Dugite
EHG144	410,307	7,474,521	8.2	9.0	9	0.10	Dugite
Coordinate system: MGA94		(Zone 50)
Table 4: Dugite Zone (East) -				Historical sampling results6

Gwardar Zone

The Gwardar Zone lies to the north of the Dugite Zone (Figure 3) with an approximate strike length of 700m. Only one rock chip sample was taken by Artemis from the Gwardar Zone and an encouraging result of 0.4g/t Au was reported in the September quarter. A gold result of this level is encouraging as it suggests a potential link between the nearby Mt Clement gold deposit and the western end of the Eastern Hills mineralisation. More systematic mapping and sampling of the Gwardar Zone was undertaken late in the December quarter with results pending.

Scoping Study Underway

With successful completion of the JORC resource estimation, planning is now underway for follow up activities to advance the Eastern Hills deposit. A field campaign to further map and sample zones identified adjacent to the Taipan Zone, including the new high grade Dugite Zone, was completed pre-Christmas. Results of this work are pending and will lead to drill target generation for potential resource expansion. A scoping study to assess the economic parameters around the deposit is scheduled for early 2014 (Table 5), while planning is underway for follow up drilling to commence in 2014 following the northern wet season, subject to available funding.

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Table 5: Proposed activities and progress for Eastern Hills Project

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China – Corporate / Strategic Partners

With the Eastern Hills Antimony-Lead Project attaining its maiden JORC (2012) compliant resource status in November 2013, Artemis attended the World Antimony Conference in Guilin, China in December 2013. Artemis subsequently went on to meet a number of key antimony corporates in Guangxi, Hunan and Guizhou Provinces in the southeast of China, including miners, antimony ingot and trioxide producers, traders, off-takers and investors.

Artemis will continue to develop these relationships with companies seeking off-take agreements and potential strategic partnerships in order to fund the advancement of the project.

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China Antimony Corp – Antimony Trioxide Plant visit Location of Hunan, Guizhou and Guangxi - China

Corporate

In addition to liaising with potential strategic partners for advancement of the Eastern Hills Antimony Project, the Company is also currently reviewing a number of projects within Australia and offshore, with a focus on base metals and gold. The Company continues to assess new opportunities that will create shareholder value.

During the quarter the Company entered into a farm out arrangement in respect of the Grants Gully/Buchanans Creek project (Tantalum/Lithium) with Strategic Metals Australia Pty Limited (SMA) who will earn 75% of the project by spending $525,000 during 2014. SMA will then have an option over the remaining 25% for a payment of $250,000, 250,000 shares in SMA and a 2% royalty on net sales receipts.

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.

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Competent Person Statements

The information in this document that relates to Exploration Results is based on information compiled by Mr Trevor Woolfe, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Woolfe is a consultant to the Company, and is employed by Alexander Cable Pty Ltd. Mr Woolfe 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Woolfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this document that relates to Mineral Resources is based on information compiled by Mr Simon Coxhell, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Coxhell is a consultant to the Company, and is employed by CoxsRocks Pty Ltd. Mr Coxhell 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Coxhell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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

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Artemis – WA Project locations

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Tenement Schedule – All Projects are located in Western Australia with the exception of Grants Gully/Mosquito Creek

Project and	Tenement
Mt Clement	West Pilbara	West Pilbara
E08/1606¹	E47/1745	P47/1373
E08/1841	E47/1746	P47/1374
M08/191¹	E47/1797	P47/1375
M08/192¹	E47/1747	P47/1380
M08/193¹	P47/1360	P47/1386
	P47/1361	M47/288²
Yandal	P47/1362	E47/2652
E53/1026	P47/1363	E47/2645
E53/1213	P47/1364	E47/2696
E53/1214	P47/1365	P47/1518
E53/1412²	P47/1366	P47/1519
E53/1413²	P47/1367	P47/1520
E53/1525²	P47/1368	E47/1806³
E53/1526²	P47/1369	E47/1807³
E53/1574	P47/1370	E47/1878³
E53/1626	P47/1371	M47/177²
E53/1627	P47/1372	P47/1620
E53/1662
	Grants Gully/Mosquito Creek/Buchanans
E53/1665	Creek (Queensland) Note 1
E53/1689	ML3311
E53/1735	ML30123
P53/1619	ML30208
	EPM13694
Yangibana	EPM14988
E09/1043⁵	EPM18490
E09/1049⁵
E09/1703⁵	Mundong Well	Cambridge Creek
E09/1704⁵	E08/1609⁴	E08/1792
E09/1705⁵	E08/1892
E09/1706⁵	E08/2104-I
	E08/2105-I
	E08/2273

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

²80% Artemis

³40% Interest – Non managed joint venture with Fox Resources Limited ⁴90%

⁵10%

Note 1. During the quarter the Company entered into a farm out arrangement with Strategic Metals Australia Pty Limited (SMA) who will earn 75% of the project for spending $525,000 during 2014. SMA will then have an option over the remaining 25% for a payment of $250,000, 250,000 shares in SMA and a 2% royalty on net sales receipts.

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