Artemis Resources : Orders Gold Production Plant for Nickol River Gold Project - Karratha, Western Australia

Artemis Resources Limited

ARBN: 80 107 051 749

Level 3, IBM Building, 1060 Hay Street, West Perth, WA Australia, 6006

PO Box R933

Royal Exchange NSW

Australia, 1225

Phone: [phone]

Facsimile: [phone] Email: [e-mail] Website: artemisresources.com.au

Directors:

Executive Chairman

David Lenigas

Executive Directors

Edward Mead

Alex Duncan-Kemp

Non-Executive Directors George Frangeskides Campbell Baird

Company Secretary:

Guy Robertson

Corporate Information

ASX Code: ARV

ASX / Media Announcement 31 January 2017

Artemis orders gold production plant for Nickol River Gold Project - Karratha, Western Australia.

Artemis Resources Limited ("Artemis" or "the Company") (ASX: ARV) is pleased to announce that it has now placed an order for the 150 tonne per hour trial gold recovery plant for its Nickol River Gold Project located 12 km from Karratha (Figure 1).

The gravity plant is due to arrive on site in approximately 8 weeks and is expected to be operational shortly thereafter on the newly signed 127 hectares of approved Mining Leases, as announced on 25 January 2017.

David Lenigas, Artemis's Chairman, commented; "Artemis has significant gold resources available at Nickol River, Weerianna and Carlow Castle in the Karratha area, and getting Nickol River in to gold production as soon as possible is a key objective of the company. The latest mining deal signed with D&K Corps Investments last week on their approved Nickol River Mining Leases, in the heart of Artemis's tenement package, allows us the opportunity to fast track the installation of the 150 tonne per hour processing plant." Figure 1: Artemis's Tenements and Projects near Karratha (incl. Fox Resources Tenements which are subject to an acquisition agreement) ABOUT NICKOL RIVER GOLD PROJECT:

Artemis's Nickol River Gold Project is located only 12 km from the regional mining centre of Karratha (15 minutes by road) in the Pilbara area of Western Australia and close to excellent infrastructure straddling the Karratha - Roebourne Highway.

The Company has identified significant areas at Nickol River that are highly weathered and free-dig from surface to depths of between 2 to 6 metres that would potentially be amenable to bulk scale mining and processing using a modern gravity plant for gold recoveries.

Artemis announced on 25 January 2017 that it had signed a binding agreement with D & K Corps Investments Pty Ltd granting Artemis the exclusive rights to explore, mine, process and extract and sell gold and precious metals from 5 Mining Leases, covering 127 hectares, to a depth of 5 metres from surface or depth of free dig with an excavator, with Artemis receiving 90% by weight of the gold and precious metals recovered, for an initial two (2) year term and yearly renewable by mutual consent. These new Mining Leases have approved heritage surveys and approved water extraction rights and a number of these new leases have approved Programme of Works.

Also, as previously reported on 25 January 2017, previous trial mining operations at Nickol River reported by Sir Samuel Mines NL listing Prospectus, noted that in 1984 a 10 tonne per hour plant tested 600 tonnes of surface material yielding a recovered grade of 0.33 grams per tonne of gold ("g/t Au") and in 1985 a bigger 40 tonne per hour pilot plant processed 42,500 tonnes of surface material that yielded a recovered grade of 0.15 g/t Au.

More recent work completed by Artemis in 2012 and released to the ASX in the December 2012 Quarterly Report included auger soil sampling in the western portion of Artemis's P47/1518, and a limited rock chip sampling programme. The auger sampling identified broad gold anomalies, with a maximum assay result of 6.9 g/ t Au. The rock chip sampling completed also returned anomalous Au, with results of up to 14.8 g/t Au from the Samantha Lode. The work completed by Artemis confirmed the tenor of gold mineralisation as identified in historic work. The historic work included 58 Reverse Circulation Drill holes, mapping and soil sampling.

There are currently no JORC compliant resources at Nickol River as the previous work outlined in the 1980's in the Sir Samuel Mines NL Prospectus was published prior to the existence of JORC.

The company has also applied to convert its 38.7 Hectare Prospecting Licence (P47/1518), which covers the main Samantha, Tozer's and Boiler Prospects, to a Mining Lease and a heritage survey from the Ngarluma Aboriginal Corporation has been requested. The Company expects both of these to be obtained during Q1 2017. A Programme of Works ("POW") has been submitted to the Western Australian Department of Mines and Petroleum ("DMP") for P47/1518 for an extensive trenching and pitting programme. This will be used for detailed grade control purposes prior to commencement of mining and processing operations and this work will be aimed at providing advanced grade and tonnage scheduling for the processing plant and is designed to convert the historic work to JORC standard.

Artemis has a total of around 1,500 hectares of approved and pending licences in the Nickol River area (Figure 2).

Figure 2: Artemis's Nickol River Tenements, including D & K Corps Investments as highlighted. Artemis now controls all but one small excised tenement at Nickol River BACKGROUND INFORMATION ON ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration and development company with a focus on its prospective West Pilbara (gold, base metals, platinum and platinum group elements) and Mt Clement-Paulsens (gold) projects in Western Australia. On 16 December 2016, Artemis announced the signing of a binding conditional agreement ("Agreement") with Fox Resources Limited ("Fox") for a 3 month exclusive option to buy their fully permitted AGIP 425,000 tpa Radio Hill nickel and copper operations, processing plant and associated mining and exploration tenements with significant existing JORC 2004 and 2012 compliant resources of Nickel, Copper and Zinc situated within a 15 km radius of the Radio Hill plant, for a total consideration of $3.5 million. The Radio Hill Plant is located 35 km south of Karratha in the Pilbara Region of Western Australia.

CONTACTS

For further information on this update or the Company generally, please visit our website at www.artemisresources.co.au or contact:

Investors / Shareholders Edward Mead Executive Director Telephone: [phone] Email: [e-mail]

Media David Tasker Professional Public Relations Telephone: [phone] Email: [e-mail]

COMPETENT PERSONS STATEMENT

The information in this document that relates to Exploration Results and Exploration Targets is based on information compiled or reviewed by Edward Mead, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Mead is a Director of Artemis Resources Limited and is a consultant to the Company, and is employed by Doraleda Pty Ltd. Mr Mead 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 Mead consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE

This report contains forecasts, projections and forward looking information. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved. Expectations, estimates and projections and information provided by the Company 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.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company's securities.