Artemis Resources Limited (ARV) 7 April 2021

TAYLOR COLLISON LTD. www.taylorcollison.com.au ABN 53008172450 AFSL 247083 1

MARK GORDON [email protected]

+612 9377 1500 www.taylorcollison.com.au

Artemis Resources Limited (ARV) Update – Ongoing Positive Results

Summary and Our View Activities completed after our November 2020 Initiation have confirmed the prospectivity of Artemis Resources Limited’s (ASX: ARV, ATY: FRA, ARTTF: US, “Artemis” or “the Company”) projects, located in the Pilbara region of WA.

Drilling at the most advanced project, the 418 koz Carlow Castle Au-Cu-Co deposit (“Carlow Castle”, within the broader 1,059 km2 Carlow Castle Gold-Copper-Cobalt Project), has returned strong results, confirming the potential to enlarge the current Resource, as well as make new discoveries along the 20 km long brittle/ductile structure that hosts the mineralisation identified to date.

Artemis has completed 21,816 m meters of drilling in 10 diamond and 118 RC holes in 2020/2021 under “Project One Million”, with the aim to increase the gold Resources at Carlow Castle to at least one million ounces. This has included infill, step out (laterally and vertically) and new discovery drilling, and has resulted in very encouraging results, including:

• 53 m @ 2.98 g/t Au, 0.85% Cu and 0.25% cobalt from 120 m in 20CCAD004 – infill diamond drilling,

• 44 m @ 2.00 g/t Au, 0.71% Cu and 0.15% Co from 132 m in hole ARC234 - a step out RC hole to the south of the main lode growing the resource at depth,

• 4 m @ 11.1 g/t Au, 2.0% Cu and 0.18% Co from 639 m in 20CCAD003 – deep “feeder zone” diamond drilling, ~500 m below the current Resource,

• Multiple mineralised zones in the Crosscut 1 discovery, including 11m @ 4.24g/t Au, 1.58% Cu from 71m in ARC 233, and,

• 14 m @ 7.03 g/t Au, 2.61% Cu and 2.61% Co from 123 m in ARC277 – extends mineralisation 30 m down dip at the eastern end of the Main Zone.

Drilling and further geochemical sampling at Paterson Central, surrounding Greatland Gold’s (LON: GGP, “Greatland”) Havieron discovery in the Paterson Orogeny of the East Pilbara has also returned encouraging results. Havieron, into which Newcrest Mining Limited (ASX: NCM, “Newcrest”) is earning 70% is shaping up to be a major gold-copper discovery, with an initial Inferred Resource of 52 Mt @ 2.0 g/t Au and 0.31 Cu for 3.4 Moz Au and 160 kt Cu.

Three diamond holes totalling 1,151 m were completed at the Nimitz Prospect, with 71 core grab samples submitted for assay. A number returned anomalous Au-Cu assays along with a trace element suite like that at Havieron, with intervals of the core also displaying brecciation and alteration typical of these systems. This suggests the presence of a hydrothermal system in Artemis’ ground, that may be associated with Havieron. The Company is now getting sections of core cut and assayed.

Further soil geochemical sampling was completed, with this identifying coincident Au-Ag-Cu anomalies at the Apollo and Atlas prospects, and gold only at Enterprise East and West, adding to the previously identified Viking and Lexington Au soil anomalies.

Our view is that the results of work over both projects are positive, and highlight the potential to grow Carlow Castle, and the prospectivity of the higher risk Paterson Central Project.

There should be steady news flow going forward, including the ongoing receipt of assays from the recently completed drilling at Carlow Castle. Further RC and diamond drilling to commence in early April, followed by an MRE upgrade in Q2, 2021 – there is the possibility of a second upgrade towards the back end of 2021.

Work at Paterson Central. is expected to include further geochemical sampling, and, subject to the usual heritage clearances, drilling at several of the key targets.

7 April 2021

Recommendation: Spec Buy

Summary (AUD) Market capitalisation (undiluted) $85.26m Share price (April 6, 2021) $0.081 52 week low $0.015 52 week high $0.175 Cash (31/12/20) $7.93m Cash on in-money option conversion $8.06m Ordinary shares (undiluted) 1,137m Unlisted options 140.3m In-money options 126.7m Diluted for in-money options 1,263m Fully diluted 1,277m Share price graph (AUD)

Directors & Management

Mr Mark Potter Non-Executive Chairman Mr Alastair Clayton Executive Director Mr Boyd Timler Executive Director Mr Dan Smith Non-Executive Director Mr Edward Mead Non-Executive Director

Top Shareholders

Battle Mountain Pty Ltd 4.58% Bennelong Resource Capital 4.44% Exchange Minerals FZE 4.44% Top 20 25.7% Directors and Management 1.06%


Artemis Resources Limited (ARV) 7 April 2021

Work Completed

Carlow Castle

The Greater Carlow Castle Gold-Copper-Cobalt Project located in the West Pilbara, includes the Carlow Castle gold-copper-cobalt deposit with an Inferred Mineral Resource Estimate containing 418 koz Au, 48 kt Cu and 7 kt Co, the permitted Radio Hill processing plant, and ~1,049 km2 of exploration ground.

Work subsequent to our Initiation Note has largely included drilling – 42 RC and diamond holes for 7,516.8 m in the late 2020 programme, and a 10,703 m, 55-hole RC programme in 2021 (with assays from around half of the holes from this latter programme yet to be released). This has included extensional and infill drilling over the current Resource, deep drilling of the interpreted feeder to the shallow mineralisation and drilling over newly defined targets, including Crosscut 1 (previously referred to as the New Northern Zone, Figure 1).

Figure 1: Carlow Castle drilling and Resource (Source Artemis)

The results have been very positive, with infill holes supporting the current MRE, and identification of the interpreted feeder zone in two holes (Figure 2). This zone was intersected at around ~500 m below the current Resource and has highlighted the presence of a ~4 m wide vertical zone of polymetallic Au-Cu-Co mineralisation, open along strike and at depth, that now requires further work. A number of holes have also extended the known depth extent of the Resource away from these deep holes.

Results from Crosscut 1 are also interesting, with the three holes drilled as part of the 2021 RC programme, ARC255 to ARC257 all intersecting Au-Cu-Co mineralisation. To date ~250 m of strike of this structure with an interpreted strike length of ~500 m has been drill tested. Results from ARC255 include:

• 1 m @ 6.11 g/t Au, 4.24% Cu and 0.47% Co from 86 m,

• 7 m @ 2.57 g/t Au, 2.07% Cu and 0.24% Co from 109 m; and,

• 11 m @ 0.75 g/t Au, 1.33% Cu and 0.12% Co from 132 m.

An east-west long section from the north trending Quod Est Zone to Crosscut 1 is shown in Figure 3. It is interpreted that Crosscut 1 will intersect with the eastern end of the Main Zone.



Figure 2: Carlow Castle cross sections 507520 mE and 507540 mE (Source Artemis)

Figure 3: Carlow Castle long section 7,698,940 mE showing Quod Est (left) and Crosscut 1 – both are subsidiary structures to the Main Zone(right, Source Artemis)



Paterson Central Paterson Central, located in the East Pilbara, is an early-stage exploration project with the target being “Havieron” style mineralisation – the 100% owned 607 km2 exploration licence (“EL”) abuts Greatland’s Havieron discovery, into which Newcrest is earning 70%, and which currently has an Inferred Resource of 52 Mt @ 2.0 g/t Au and 0.31 Cu for 3.4 Moz Au and 160 kt Cu.

Work has included drilling at the Nimitz Prospect and further Ionic Leach geochemical sampling, which is a proven tool for detecting geochemical anomalism under cover.

Figure 4 shows the gold results from the geochemical sampling, with the Atlas and Apollo targets also displaying coincident silver and copper anomalism. This also shows the planned locations of additional sampling, with a view to extend the southern gold anomaly which is open to the south.

Figure 4: Paterson Central gold Ionic Leach geochemistry (Source Artemis)



The three holes drilled at Nimitz intersected some intervals of brecciation and alteration similar to that seen at Havieron, indicating the presence of a hydrothermal system. Due to logistical difficulties at that time in transporting core to the processing facilities at Carlow Castle, the Company selected 71 grab samples for assay. Two of these returned assays with anomalous gold and copper, and a trace element suite like that at Havieron:

• Hole GDRCD003 sample 89042: 0.79g/t Au, 476ppm Cu, 59.5ppm Bi and 2.56ppm Te. A 5cm quartz-carbonate vein hosted in dolerite from 829m (Figure 3).

• Hole GDRCD002 samples 89015 & 89016: 0.26g/t Au, 1,565ppm Cu, 45.5ppm Bi and 4.26ppm Te. An 11cm quartz-carbonate vein calcarenite sandstone from 614m.

Core has subsequently been processed at Carlow Castle, with selected sections being cut and sent for assay, with results expected soon.

On January 28, 2021, Newcrest announced a 65,000 m drilling programme, that, in addition to testing for extensions of the current Havieron Resource, will test new targets outside of the immediate vicinity of the Resource within the relatively constricted Greatland/Newcrest JV area (Figure 4). Could some of these targets be close to Artemis’s ground?

Upcoming Activities Newsflow and planned activities at Carlow Castle include:

• Ongoing assay results from the Q1 RC drilling programme (results from 28 holes are yet to be received) – April 2021,

• 10,000 m RC step out drilling (all zones) and 1,500 m diamond geotechnical and structural drilling on the Main Zone; and,

• 2021 Q2 MRE upgrade, with CSA global engaged to undertake this work, with the potential for a further upgrade towards the end of 2021.

At Paterson Central, the Company is currently planning a multi-hole programme targeted to commence in Q2, 2021, with timing dependent upon a final Heritage agreement with the Traditional Owners and a ground heritage clearance. This programme will initially test the Apollo and Atlas prospects as well as the Enterprise W and E targets and any follow up drilling at Nimitz subject to assays pending. Further geochemical sampling is also planned to the southwest of the sampling thus completed as shown in Figure 4.

Risks • Exploration/Resource definition risk – This is the key technical risk facing Artemis, in that sufficient Resources to justify

a restart of operations in the West Pilbara will need to be discovered and delineated. We note, that with the recent drill results, that any future Resource will probably contain both open cut and underground mineralisation, and thus will need to be sufficient (particularly with regards to tonnage and grade for the underground) to justify both. Exploration is the key risk at Paterson Central, with this being exacerbated by the depth of the cover sequence.

• Markets – The market and appetite for risk is currently reasonably high, however can turn on a dime, with the riskier resource stocks being the first to feel negative market sentiment.

• Gold/silver prices and currency rates – These will affect the viability of any future operation, access to capital and the sentiment of investors.



Disclaimer The following Warning, Disclaimer and Disclosure relate to all material presented in this document and should be read before making any investment decision. Warning (General Advice Only): Past performance is not a reliable indicator of future performance. This report is a private communication to clients and intending clients and is not intended for public circulation or publication or for the use of any third party, without the approval of Taylor Collison Limited ABN 53 008 172 450 (“Taylor Collison”), an Australian Financial Services Licensee and Participant of the ASX Group. TC Corporate Pty Ltd ABN 31 075 963 352 (“TC Corporate”) is a wholly owned subsidiary of Taylor Collison Limited. While the report is based on information from sources that Taylor Collison considers reliable, its accuracy and completeness cannot be guaranteed. This report does not take into account specific investment needs or other considerations, which may be pertinent to individual investors, and for this reason clients should contact Taylor Collison to discuss their individual needs before acting on this report. Those acting upon such information and recommendations without contacting one of our advisors do so entirely at their own risk. This report may contain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “predict”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this report are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Any opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice and Taylor Collison assumes no obligation to update this document after it has been issued. Except for any liability which by law cannot be excluded, Taylor Collison, its directors, employees and agents disclaim all liability (whether in negligence or otherwise) for any error, inaccuracy in, or omission from the information contained in this document or any loss or damage suffered by the recipient or any other person directly or indirectly through relying upon the information.

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Disclosure: Analyst remuneration is not linked to the rating outcome. Taylor Collison may solicit business from any company mentioned in this report. For the securities discussed in this report, Taylor Collison may make a market and may sell or buy on a principal basis. Taylor Collison, or any individuals preparing this report, may at any time have a position in any securities or options of any of the issuers in this report and holdings may change during the life of this document. Taylor Collison was Joint Lead Manager in a placement in July 2020 which raised $5.6 million and for which fees were received.

Analyst Interests: The Analyst holds no Artemis shares or options.

Taylor Collison Interests: At the time of writing of this report, Principals and Staff hold approximately 290,000 shares in Artemis Resources.

Analyst Certification: The Analyst certifies that the views expressed in this document accurately reflect their personal, professional opinion about the financial product(s) to which this document refers.

Date Prepared: April 7, 2021 Analyst: Mark Gordon Release Authorised by: David Cutten

TAYLOR COLLISON LIMITED Sharebrokers and Investment Advisors Established 1928 ADELAIDE Level 16, 211 Victoria Square Adelaide SA 5000 GPO Box 2046 Adelaide SA 5001 Telephone 08 8217 3900 Facsimile 08 8321 3506 [email protected] SYDNEY Level 10, 151 Macquarie Street Sydney NSW 2000 GPO Box 4261 Sydney NSW 2001 Telephone 02 9377 1500 Facsimile 02 9232 1677 [email protected] Participant of the Australian Securities Exchange (ASX) Group. ABN 53008172450 AFSL 247083

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Artemis Resources Limited (ARV) 7 April 2021