Artemis Resources : Commences Work at Weerianna Gold Project

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

Ed Mead

Alex Duncan-Kemp

Non-Executive Directors George Frangeskides Campbell Baird

Company Secretary:

Guy Robertson

Corporate Information

ASX Code: ARV

ASX / Media Announcement 9 January 2017 ARTEMIS COMMENCES WORK AT WEERIANA GOLD PROJECT DESIGNED TO INCREASE RESOURCES FROM 70,000 OUNCES - KARRATHA, WESTERN AUSTRALIA HIGHLIGHTS:

• Weerianna has a current JORC (2012) compliant Inferred Mineral Resource of 1Mt at 2.2 g/t Au for total contained metal of 70,000 ounces of Au.

• The current resource outcrops at surface and remains open at depth and along strike.

• Best drill intersections to date include:
  • 45 metres @ 3.1 g/t Au from 28 metres, WRC133
  • 19 metres @ 4.05 g/t Au from 1 metres, WRC36
  • 16 metres @ 15.35 g/t Au from 15 metres, WRC116
  • 9 metres @ 21.5 g/t Au from 87 metres, WRC140
• Extensive trenching programme commenced to test the core 600 metres gold mineralised zone over much wider widths of 250-400 metres.
• Artemis believes that the trenching will support a second perpendicular orientation of gold mineralisation previously unidentified from drilling.
• If this second orientation is validated, a significant drill programme will be required potentially significantly improving the economics of the deposit by increasing the ounces per vertical metre.
• Weerianna is located only 35 km from the Radio Hill Plant, which Artemis has an option to acquire.

David Lenigas, Artemis's Chairman, commented;

"Weerianna is a significant and under explored asset of the Company, close to excellent infrastructure and we believe there is considerable scope to rapidly increase the size of this gold deposit. This project could prove valuable as potential plant feed for the nearby Radio Hill plant, which Artemis has under option to acquire for $3.5 million."

Artemis Resources Limited ("Artemis" or "the Company") (ASX: ARV) is pleased to announce that it has commenced a 1,975 metre trenching programme at its Weerianna Gold Project, located near Karratha in Western Australia, designed to increase the known 70,000 ounces of JORC complaint Inferred Resources.

The Weerianna Gold Project [M47/223] is 80% owned by Artemis and is located 25 km east of Karratha and 5 km west of Roebourne in Western Australia and adjacent to the Karratha - Roebourne highway (Figure 1). It is also conveniently located only 35 km by road from the Radio Hill Plant. The company has an exclusive option to buy the fully permitted AGIP 425,000 tpa Radio Hill nickel and copper operations, processing plant and associated mining and exploration tenements for a total consideration of $3.5 million1.

The Weerianna Gold Project hosts a JORC (2012) compliant Inferred Mineral Resource of 1Mt at 2.2 g/t Au for total contained metal of 70,000 ounces of Au2. The current resource outcrops at surface and remains open at depth and along strike.

Best drill intersections exceeding 2 metres at 4 g/t gold to date at Weerianna refer to Table 1. These results are from between proposed trenches WT2 and WT3 in Figure 2.

Table 1: Drill intersections exceeding 2 metres at 4 g/t gold.

Hole No	Local	Grid	Azimuth	EOH	From	To	Interval	Grade
WRC	Easting	Northing	(o)	(m)	(m)	(m)	(m)	(g/tAu)
14	10800	9975	333	65	34	42	8	4.05
17	10800	10010	333	60	47	51	6	4.09
19	10900	10030	153	60	14	18	4	7.66
36	10850	10041	152	46	1	20	19	4.05
38	10795	10021	152	60	19	27	8	7.10
39	10795	10021	152	39	31	36	5	9.71
47	10800	10031	332	37	16	23	7	5.96
53	10875	10040	152	49	8	11	3	6.21
61	10777	10011	152	60	17	22	5	10.17
62	10776	10031	332	60	32	35	3	5.18
66	10725	10026	332	60	37	39	2	4.18
68	10675	10071	332	60	9	11	2	4.72
75	10199	10099	152	44	9	12	3	4.35
83	10496	10100	152	60	43	49	6	4.26
116	10523	10069	332	60	15	31	16	15.35
121	10302	9862	152	60	30	32	2	5.63
123	10198	9890	152	60	1	11	10	4.15
129	10540	9905	332	60	37	41	4	4.47
133	10550	10060	152	119	28	73	45	3.31
and	90	107	17	3.43
134	10550	9930	332	120	8	11	3	4.26
and	53	55	2	4.02
137	10752	9940	332	119	87	91	4	5.35
138	10650	9980	332	120	29	38	9	5.25
140	10700	9980	332	120	87	96	9	21.50
142	10550	10062	333	80	29	32	3	6.63
146	10502	10020	332	120	90	96	6	4.49

The 2017 Weerianna trenching programme (Figure 2) will comprise 6 long trenches totalling 1,975

1 ASX Announcement dated 16th December 2016 2 ASX Announcement dated 26th June 2014

metres, ranging from 250 metres to 450 metres in length, across the 1,200 metres of known strike length with priority being given to the first 3 trenches totalling 875 metres, the core 600 metres of strike.

This trenching programme is looking to advance the inferred resource to a higher JORC category and to refine the geological model, by looking at structural controls on gold mineralisation near surface. This can then be extrapolated through the gold deposit.

Gold mineralisation at Weerianna outcrops at surface and is associated with quartz veining within chlorite-serpentinite schists, with variable degrees of silicification and carbonate alteration. Previous drilling has only focused on one orientation and a new interpretation of the geological model has indicated that two orientations to gold mineralisation are potentially present. The one orientation of gold mineralisation being drilled forms the basis of the 70,000 oz gold resource.

Artemis believes that the trenching will support the second perpendicular orientation of gold mineralisation. If this second orientation is validated, a significant drill programme will be required and this will significantly improve the economics of the deposit by increasing the ounces per vertical metre.

The contractors commenced work on the 9 January 2017 with initial results expected within the next few weeks.

Figure 1: Artemis's Tenements and Projects near Karratha (incl. Fox Resources Tenements) Figure 2: Weerianna Gold Project (Previous drilling and Proposed Trenching)

CONTACTS

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

Investors / Shareholders Mr. Ed Mead Executive Director Telephone: [phone] Email: [e-mail]

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

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) (Figure 1) 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.