ASX Announcement

20 October 2014

DRILLING UNDERWAY TO TEST HIGH GRADE ZONE

AT EASTERN HILLS ANTIMONY-LEAD PROJECT

EASTERN HILLS ANTIMONY-LEAD (Sb - Pb) PROJECT

./ Reverse circulation (RC) drill program has begun to test high grade Dugite East zone

./ Drilling will test below surface rockchips that returned up to 35.7% Sb and 36.0% Pb

./ Drill program will test a potentially high grade zone of 250m strike length

./ Short program (<500m) will be completed within one week

./ Program is partly funded through WA Government EIS co-funding scheme

Artemis Resources Limited (ASX: ARV) is pleased to announce that the Company's second drill program at the emerging Eastern Hills Antimony-Lead Project, located in the Ashburton region of Western Australia (Figure 3), has now commenced. The project is part of the Mt Clement Joint Venture - in which Northern Star Resources Ltd (ASX: NST) holds a 20% free carried interest (gold).

This second drill program, which follows the 2013 drilling that resulted in an Indicated and Inferred Mineral Resource at the adjacent Taipan Zone, is focused on testing the high grade antimony-lead zone at Dugite East, and will consist of 4 reverse circulation (RC) drill holes (Figures 1 and 2) for a total of approximately 435m (Table 1). The program will test depth extensions and continuity of high grade surface rockchip samples, examine the antimony-lead mineralogical associations and potentially provide material for further metallurgical testing of extraction methods for higher grade antimony-lead minerals.

Eastern Hills - Antimony-Lead RC Drilling

Artemis Resources Limited ABN: 80 107 051 749

Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: [email protected]

Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia www.artemisresources.com.au

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Table 1: Eastern Hills Proposed Drill Program - Dugite East Zone * Showing actual end of hole metreage
Details of the current drill program are shown in Table 1 and Figure 2. Drill hole depths will vary from 75m to 160m and will be drilled in a north or north westerly direction, based on the assumption from surface mapping that the Dugite East zone is steeply south to southeast dipping. Access work and site preparation has been completed for all four holes.

Drilling commenced on hole AREHRC016 on 16 October with the short program expected to be completed within a week.
Figure 1: Eastern Hills - Proposed drilling on Dugite Zone

WA Government EIS Co-funding Approved for Eastern Hills

The company was successful with its recent application for WA Government Exploration Incentive Scheme (EIS) co- funding for a 10 hole program to drill test the high grade Dugite Zone (Figure 1) at Eastern Hills. Drilling under a similar grant in 2013 resulted in an inaugural Mineral Resource estimation for the Taipan Zone, in accordance with JORC (2012) guidelines1, of 1.3Mt at 1.7% Sb and 2.5% Pb (22,400t contained Sb) using a 1.0% Sb cutoff grade (Table 2). The EIS grant awarded in 2014 is for an amount up to approximately $60,000.

1 As per ASX announcement dated 29 November 2013 "Maiden JORC Resource Achieved at Eastern Hills"

ASX Announcement dated 23 September 2014 2

Figure 2: Eastern Hills - Proposed drilling and rock chip results (>10% Sb) along Dugite East Zone4

Eastern Hills Project - Background

Artemis' 2013 drilling program focused on the Taipan Zone (Figure 1) and resulted in a maiden Indicated and Inferred Mineral 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 (Table 1).

Table 2: Eastern Hills (Taipan Zone) Mineral Resource1 - Indicated and Inferred - November 2013
Exploration mapping and rock chip sampling over the area to the north of the Taipan Zone was undertaken in the second half of 2013 and identified the Dugite and Gwardar sub-parallel alteration zones with similar characteristics and mineral associations as the Taipan Zone (Figure 1). While anomalous antimony and lead were encountered in each of the new zones, the Dugite Zone showed the best continuity and quantum of mineralisation with exceptional grades achieved (Figure 2), up to 35.7% Sb, 36% Pb, 1,500g/t Ag and 6.80g/t Au.
The high grade results collected from Dugite East provide strong support for both (1) the existence of a very high grade zone at Dugite, and (2) the overall expansion potential of the overall Eastern Hills Mineral Resource.

ASX Announcement dated 20 October 2014 3

Figure 3: Eastern Hills - Location map and tenure

ASX Announcement dated 20 October 2014 4

ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Eastern Hills (antimony-lead), 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 metal inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.

For further information, please contact: Figure 4: ARV Project Locations

Guy Robertson James Moses Executive Director Mandate Corporate Phone: +61 2 9078 7670 Mob: 0420 991 574

Email: mailto:[email protected][email protected] Email: [email protected]

Web Site: www.artemisresources.com.au

Competent Person Statements

The information in this document that relates to Exploration Results is based on information compiled or reviewed 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 extracted from the report entitled "Maiden JORC Resource Achieved at Eastern Hills" created on 29 November 2013 and available to view on www.asx.com. 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 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.

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.

ASX Announcement dated 20 October 2014 5

rternis

0 O U R C E S

ANTIMONY USAGE AND MARKETS

ANTIMONY USES: Antimony (Sb) is a specialty or minor meta/, commonly found in nature in its su/phide form of stibnite. Saleable products include antimony meta/ (ingot) and antimony trioxide (a white powder). lts uses include:

• fire retardant agent

• hardening/strengthening agent in lead & zinc alloys

• lead batteries,ammunition

• catalyst in PET (plastics) production

• ceramics

$20.000 $20,000

$18,000 $18,000

$16.000 $16,000

a$10.000 $10.000 a

$8,000 $8,000

Sources: LME. Meta/ Pages

ANTIMONY PRICE: Antimony prices have remained we/1 above long term averages, currently trading araund US$10,500/t. Antimany price is -so% higher than copper price (US$7,000/t).

Globo/ antimany autput has been dominated by the Chinese far many years. However, with lower output from China since 2009, new sources of antimony are required.

..r Global output rose almost 70% from 2003 to

2008 and has stabilised post GFC

..r Despite post GFC falls, China dominates global production (-85% in 2011- USGS)

..r China imposed export quotas on commodities such as antimony over recent years

ANTIMONY M&A: Over the past four years some substantia/ acquisitions have been camp/eted which affirm the strategie nature of antimony. These dea/s have included:

• September 2009 - Hunan Nonferrous Metals

Corp. acquired 100% of Canadian Beaver Brook

Antimony Mine Inc for C$29.5M.

• May 2011 - China Shandong Jinshunda Group Co

ltd acquired 96% of ASX-Iisted Anchor Resources

for A$15.5M to secure ownership of the

Bielsdown antimony deposit - NSW (1,060,000t

@ 1.77%Sb} 1

• March 2013 - Bracken Resources Pty ltd

acquired the Hillgrove gold-antimony deposit

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..r China production decreases reinforce the need

for new antimony sources

(6,349,000t @ 1.59% Sb and 4.3 g/t Au)

$30M from ASX-Iisted Straits Resources ltd

for

..r Non-Chinese off-takers are searching for stable no-Chinese sources of antimony

..r Chinese companies are acquiring offshore antimony projects

..r Alternative output currently from high sovereign risk countries

This reliance on China as a source of globo/ antimony hos led to the European Commission placing antimony on its list of 14 Criticai Raw Materia/s. based on supply risk, economie importance and environmenta/ country risk.

ASX Announcement dated 20 October 2014

• May 2013 - AIM-Iisted Tri-Star Resources PLC

acquired the Bald Hill antimony deposit from Canadian Portage Minerals lnc (exploration target of 725,00D-1,000,000t range grading

4.11% to 5.32% Sb) for a scrip only deal worth f3.5M 3

1Anchor Resources Ltd (ASX:AHR) June 2011Quarterly Report released to the ASX 29'h July 2011

'Straits Resources Ltd (ASX:SRQ) announcement released to the ASX 11'"

March 2013

'Tri Star Resources PLC (AIM:TSTR) announcement released to AlM 2"" May 2013

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