Artemis Resources Limited — Capital/Financing Update 2007

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7 September 2007

Registered Office 34 Parliament Place West Perth WA 6005 ABN 80 107 051 749

Telephone: +618 9488 5266 Facsimile: +618 9321 6699 Email: [email protected]

Dear Shareholder

PRIORITY ALLOCATION IN APOLLO IPO

Further to the release made on 9 August 2007 and 13 August 2007, the Board of Artemis Resources Limited (Artemis or the Company) advised its shareholders of a priority allocation and other relevant details in the proposed Initial Public Offering (IPO) of Apollo Minerals Ltd (Apollo). The Apollo IPO is expected to occur around the third quarter of calendar year 2007. Further details of the Priority Offer and the First and Second Loyalty Options are listed below.

Apollo will commence a geological review and assessment of an iron ore magnetite deposit located in South Australia immediately. Apollo has appointed a first class iron ore team to review the deposit which is located near existing infrastructure and the Adelaide to Darwin Railway, which transgresses Apollo’s tenements. Further details of the Commonwealth Hill Project are set out in the enclosed prospectus. See also Figure 1 below.

The Priority Offer Details: As you were registered at the Record Date of 17 August 2007, you are entitled to a priority right to subscribe for Offer Shares in the Apollo IPO. At least 8,000,000 Offer Shares at an issue price of $0.25 each ($2,000,000) will be made available for this purpose. The Priority Offer is not a pro-rata offer and Artemis Shareholders are not restricted as to the number of Offer Shares they may wish to apply for under the Priority Offer, although the minimum offer accepted is 8,000 shares. Please complete the Blue Application Form in the enclosed Prospectus and follow the instructions. Please be advised that the IPO may close early, as such Artemis shareholders are encouraged to make their applications as soon as possible.

First Loyalty Option details are as follows: Apollo proposes to issue First Loyalty Options on the basis of one (1) First Loyalty Option for every two (2) Shares held on the relevant record date at an issue price of ½ a cent ($0.005) per First Loyalty Option. The First Loyalty Options will have an exercise price of $0.25 and will be exercisable before 1 February 2009.

Second Loyalty Option details are as follows: For every First Loyalty Option that is properly exercised in accordance with its terms, the Company will issue one Second Loyalty Option for nil cash consideration with such Second Loyalty Option having an exercise price of $0.40 each and being exercisable before 1 February 2010.

The Indicative Timetable* for the Apollo IPO is:

Note: If funds are transferred to the Apollo Minerals Limited Share Subscription Bank Account (as listed on the Priority Application form), you must fax or post a copy of your completed Priority Application Form together with a copy of your stamped bank receipt to the Company.

Appropriate references should be included on the bank transfer to ensure your Priority Allocation is correctly matched.

www.artemisresources.com.au

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Registered Office 34 Parliament Place West Perth WA 6005 ABN 80 107 051 749

Telephone: +618 9488 5266 Facsimile: +618 9321 6699 Email: [email protected]

If you have any questions, please call the Company’s registered office on (08) 9488 5266. Yours sincerely

ARTEMIS RESOURCES LIMITED

Barry Woodhouse

DIRECTOR AND COMPANY SECRETARY

Figure 1 – Apollo Minerals Limited Project Location

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www.artemisresources.com.au