Artemis Resources
Annual Report 2022

Loading PDF...

More annual reports from Artemis Resources:

2023 Report
2022 Report
2021 Report
2020 Report
2019 Report

Share your feedback:


Plain-text annual report

CORPORATE DIRECTORY ANNUAL REPORT For Year Ended 30 June 2022 ARTEMIS RESOURCES LIMITED ACN 107 051 749 Artemis Resources Limited Annual Financial Report 2022 0 CORPORATE DIRECTORY Directors Share Registry Mark Potter (Non-Executive Chairman) Alastair Clayton (Executive Director) Edward Mead (Non-Executive Director) Daniel Smith (Non-Executive Director) Simon Dominy (Non-Executive Director) Vivienne Powe (Non-Executive Director) Guy Robertson (Executive Director) Automic Registry Service Level 2, 267 St Georges Terrace Perth WA 6000 Telephone: 1300 288 664 Web: www.automicgroup.com.au Company Secretary Bankers Guy Robertson Westpac Limited Royal Exchange Corner Pitt & Bridge Streets Sydney NSW 2000 Registered Office Auditors Level 8, 99 St Georges Terrace Perth WA 6000 HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street Perth WA 6000 Telephone: +61 8 9486 4036 Email: info@artemisresources.com.au Web: www.artemisresources.com.au Telephone: +61 8 9227 7500 Facsimile: +61 8 9227 7533 Nominated Adviser and Broker WH Ireland Limited Telephone: +44 20 7720 1666 Principal Office Ground Floor, 1 Centro Avenue Subiaco WA 6008 Telephone: +61 8 6261 5463 Securities Exchange Listing Australia Securities Exchange Limited (ASX/AIM: ARV) OTC Markets Group (OTCQB: ARTFF) Frankfurt Stock Exchange (Frankfurt: ATY) Artemis Resources Limited Annual Financial Report 2022 1 TABLE OF CONTENTS CHAIRMAN’S LETTER OPERATIONS REPORT TENEMENT SCHEDULE CORPORATE GOVERNANCE DIRECTORS’ REPORT REMUNERATION REPORT AUDITOR’S INDEPENDENCE DECLARATION CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS DIRECTORS DECLARATION INDEPENDENT AUDITOR’S REPORT ASX ADDITIONAL INFORMATION 3 4 35 37 38 44 51 52 53 54 55 56 94 95 99 Artemis Resources Limited Annual Financial Report 2022 2 CHAIRMAN’S LETTER Dear Shareholders, On behalf of the Directors of Artemis Resources Limited, I am pleased to report on the activities of the Group for the year ended 30 June 2022. The Group continues to focus on its core projects, the Paterson Central gold and copper project and the Carlow Castle gold, copper and cobalt project, in the Pilbara region of Western Australia. Artemis’ 100% owned Paterson Central gold and copper project covers 605km2 and is located approximately 40km east of Newcrest Mining’s multi-million-ounce Telfer Gold-Copper mine and is contiguous to the Havieron gold and copper discovery by Greatland Gold Plc. A number of compelling magnetic and gravity anomalies have been identified by the Artemis exploration team which are now being systematically drill tested. Drilling at Paterson during the period focused on the Apollo and Atlas targets, with planning well advanced for drill testing the Enterprise, Juno and Voyager targets. The Artemis team continues to be optimistic in its assessment of the prospects of the Paterson project and continues its exploration drill campaign in earnest. At Carlow Castle, a further 24,641m of RC and diamond drilling was completed during the period. Drill results continued to expand the high grade gold-copper footprint of the deposit, in particular to the North and at depth. The high grades of gold and copper received from drill results were particularly welcome especially in an environment of high cost inflation. An updated resource estimate is expected to be completed shortly. Substantial exploration potential on a regional level remains at the Carlow Castle Project which will be further investigated over the coming months. During the year the Company completed its programme of disposing of non-core assets. In particular, the spin-off of non-core base metals assets into GreenTech Metals Limited (ASX: GRE) which raised $5m on a successful ASX IPO in January 2022 was a successful endeavour, as well as the completion of the sale of the 70% interest in the Munni Munni PGM project to AIM listed Alien Metals (AIM: UFO) for $4.9m in March 2022. In February 2022, the Company successfully completed a secondary listing on the AIM market of the London Stock Exchange and raised £5m. This listing provides more scope for London and European based institutional and retail investors to invest in Artemis and is expected to increase liquidity. In July 2022, the Company welcomed Vivienne Powe as a Non-Executive Director. Vivienne is a metallurgical engineer and highly experienced senior executive with a strong track record of creating shareholder value in top tier, global mining and oil & gas companies. I would like to take this opportunity to thank my fellow directors, the Artemis team and our shareholders for their ongoing commitment and support as we strive for a successful year ahead. Mark Potter Chairman Artemis Resources Limited Annual Financial Report 2022 3 OPERATIONS REPORT Artemis Resources Limited (“Artemis” or the “Company”) is pleased to outline the progress the Company has made at its projects for the financial year ended 30 June 2022. Artemis is a gold and copper focused resources company with two major projects, Paterson Central and Greater Carlow Castle, both located in the Pilbara region of Western Australia, as shown in Figure 1. The Company owns 100% of Paterson Central and Greater Carlow and also owns 100% of the strategically located Radio Hill processing plant (on care and maintenance) and associated infrastructure, located approximately 30km south of Karratha. Figure 1: Project map highlighting Artemis’ Greater Carlow Castle project in the West Pilbara and the location of the Paterson Central Tenement in the East Pilbara. During the financial year, the Company made significant progress with its Paterson Central and Greater Carlow Castle projects. All this work was completed despite a very challenging setting of Covid restrictions, acute industry wide personnel and rig shortages and extensive assay turnaround times. The following review is an update and summary of the key work programs completed during the current financial year, with a breakdown of the drilling statistics by Project for the year included in Table 1. Artemis Resources Limited Annual Financial Report 2022 4 OPERATIONS REPORT Table 1: Drilling Statistics by Project Project Hole Count by Drill Type Drilled (m) Samples Receipted 409.7 2,137.9 2,547.6 24,372.4 269.3 24,641.7 872 28,082 Paterson RC precoll Carlow DD Totals RC DD Totals Total holes drilled Total Metres drilled Total Samples Collected 4 4 4 105 2 107 111 27,189.3 28,954 PATERSON CENTRAL GOLD-COPPER PROJECT Background to the Paterson Central Project The Paterson Central Gold-Copper Project covers ~605 km2 and is located in the Yaneena Basin of the Paterson Province, which hosts large scale mineral deposits, such as the World class Telfer Gold- Copper Mine, recently discovered Winu copper-gold deposit, Nifty Copper Mine, and the rapidly growing Havieron gold and copper deposit. Figure 2 shows the location of major deposits in the region along with Havieron. Artemis’ tenement is highlighted in yellow and is strategically positioned in relation to the Havieron deposit. Figure 2: Paterson Central Tenement E45/5276 (yellow outline) overlying main geological units, and showing locations of major gold and base metal deposits. Green; Anketell Sediments, Blue; Paterson Formation, Dark Brown d T Y F ti i l di I d ll d T lf Artemis Resources Limited Annual Financial Report 2022 5 OPERATIONS REPORT The Company’s Paterson Central project forms a 100% owned exploration tenement E45/5276, which surrounds the Havieron gold deposit on three sides, and covers the same continuous geological domain as shown in Figure 3. The geology of the project area consists of Canning Basin sediments, primarily Permian siltstones in this part of the basin, which overlie Proterozoic meta-sedimentary basement rocks which form the main host rocks to large mineral deposits in the region. The sedimentary cover is 300m thick in the western part of the project area and is interpreted to deepen to over 800m in the far east. The Havieron gold and copper deposit is associated with a strong magnetic anomaly and sits under about 450m of Permian sedimentary cover. Mineralisation at Havieron is an ovoid shaped zone of variable brecciation, alteration and sulphide mineralisation with dimensions of 650m x 350m trending in a northwest orientation. Mineralisation in this system extends 1,200m below the base of sedimentary cover and continues to remain open at depth. The Company is exploring the Paterson Central Project for both Havieron and Telfer styles of gold and copper mineralisation. Summary of Geology at Paterson Central The procedure for targeting and drill planning has been to follow structural trends in Neoproterozoic bedrock, sitting below thick Permian cover sediments, interpreted from geophysical data sets, including a deep penetrating 2D seismic reflection survey line acquired for oil and gas exploration in the 1980s by BHP, and subtle gravity and magnetic highs from features occurring below the sedimentary cover. Figure 3 shows how the interpretation of geological structures occurring in bedrock below the Canning Basin Permian siltstone cover has likely identified a non-magnetic and low density granitic intrusive body, which would have likely been intruded during the regional Crofton Granite event (650- 600 Ma). Figure 3: Paterson Central Tenement E45/5276 (yellow outline), interpreted bedrock geology units and structures, on top of a merged magnetic anomaly image and location of 2D seismic reflection survey line. Nimitz Prospect as marked as red, was previously drilled in 2020. This interpreted NW-SE trending granitic intrusion is in close proximity to Havieron and could be the main source of heat for driving hydrothermal alteration and local skarn-like metamorphism associated with gold and copper mineralisation. Low angle, west-dipping thrust faults and late brittle cross faults have also been interpreted in the 2D seismic reflection data as well as in both gravity and magnetic data sets to offset folded Neoproterozoic (850-820 Ma) metasediments of the Lamil Group. Artemis Resources Limited Annual Financial Report 2022 6 OPERATIONS REPORT This years’ exploration activity at Paterson Central commenced to the north of Havieron at the Atlas and Apollo Prospect areas. Collar positions are shown in Figure 4. Figure 4: Location of drill collars at Apollo and Atlas in relation to the Havieron deposit. These drill holes were planned to test the various magnetic and gravity anomalies and had encountered a variety of rock types and encouraging geological units including granodiorites, diorites gabbros and associated breccias and veining. Typical alterations styles included very intense silica–calcite–chlorite–actinolite +/- biotite with abundant pyrite and minor chalcopyrite in veins, halos and minor breccia infill. Figures 5 and 6 show some of the styles of breccia encountered in the drilling of Apollo. The drill holes had encountered encouraging geology indicating that the Apollo and Atlas areas are well located for making a discovery with further drilling. Figure 5: GDRCD007 - 547m, example of a large quartz calcite vein in altered diorite with semi-massive sulphides pyrite +/- chalcopyrite as well as chlorite actinolite infill and alteration halo. Figure 6: GDRCD007 - 559m, example of a quartz qalcite vein in altered diorite with pyrite +/- chalcopyrite, chlorite ‘jigsaw’ infill. Artemis Resources Limited Annual Financial Report 2022 7 OPERATIONS REPORT Artemis is now focussing on testing its 6 higher priority drill targets with the intention to execute about 8,000m of diamond drilling to test these targets during the 2022 -2023 field season. CARLOW CASTLE GOLD-COPPER-COBALT PROJECT The Carlow Castle gold, copper and cobalt project is located in the West Pilbara region of Western Australia, ~45 km by road east of the city of Karratha (Figure 7). Access is via the Northwest Coastal Highway and then by the unsealed Cherratta public road, which passes through the Project area. Carlow Castle is on the granted exploration license E47/1797 and is ~35 km from Artemis’ 100% owned Radio Hill Processing Plant. Figure 7: West Pilbara project map highlighting Artemis’ current tenement holdings. Artemis Resources Limited Annual Financial Report 2022 8 OPERATIONS REPORT Following a multifaceted strategy, multiple drilling campaigns at Carlow Castle have returned several significant results, which continues to highlight the potential of the deposit. The Main Carlow Castle zone returned positive results especially from the Crosscut Zone, where the majority of the drilling during the year was completed. Additional holes on the Quod Est Zone have further extended this high-grade mineralised shoot at depth. Targeting geophysical anomalies, drilling discovered the new Crosscut Zone that lies east of Quod Est and to the north of the Main Eastern Zone by approximately 300m. During the report year, a total of 106 holes were drilled for 24,641.3 metres of which two holes for 269.3 metres was diamond and 104 holes for 24,372 metres was RC. A total of 28,316 samples were collected, which included QAQC samples as well. Table 3 below summarised the breakdown of drilling according to prospects, with Figure 8 showing the prospect locations in relation to Carlow Castle. Table 2: Number of holes and drilled metres for the various prospects at Carlow tenement E47/1797 PROSPECT NO OF HOLES RC (M) DIAMOND (M) CARLOW EAST CARLOW WEST CARLOW EASTERN REGIONAL CHAPMAN MARILLION QUOD EST THORPE CROSSCUT ZONE 1 CROSSCUT ZONE 2 CROSSCUT ZONE 3 TOTALS 13 17 1 19 1 5 8 27 11 4 106 3776 3822 198 4714 210 766 2017 5465 2588 816 132.9 136.4 SAMPLES RECEIPTED (INCL QAQC) 4202 4044 178 5284 234 933 2489 6636 3322 994 24,372 TOTAL METRES DRILLED 269.3 28,316 24,641.3 Figure 8: Location of drill collars in the various prospects within the Carlow tenement E47/1797. Artemis Resources Limited Annual Financial Report 2022 9 OPERATIONS REPORT The additional drilling completed during the year has significantly added crucial information regarding the structural, alteration and mineralogical controls at Carlow Castle. The new interpretation and modelling for Carlow has allowed for accurate target generation, which has been instrumental to improving the ounce discovered per metre drilled. Carlow Castle Program Crosscut Zones The Crosscut Zone (XCZ) is defined by a series of parallel NW structure, hosting en echelon dilation structures that host mineralisation. The recent drilling in this area has indicated that these dilation features are striking north-south and have steep dips, usually to the east. Drilling had intersected significant sulphide zones at interpreted pierce point target zones at Crosscut, which is an encouraging result with respect to the interpretation of the model. Drill collar locations are shown in Figure 9. Figure 9: Location of drill holes at Crosscut and section lines. Note that only holes ARC403 and ARC404 were completed during the quarter period. Other holes are referenced in section figures. A diamond hole, 22CCRD008 was drilled in response to the high-grade intersection in ARC344 which returned 22m @ 2.23g/t Au, 1.39% Cu, 0.457% Co from 247m (refer to ASX Announcement 19th November, 2021). Significant results for 22CCRD008 are shown in Table 3 with the section showing the mineralised intervals shown in Figure 10. Table 3: Significant intersections for diamond hole 22CCRD008, based on >0.3% Cu, 2m internal dilution. SIGNIFICANT MINERALISED INTERSECTION FOR 22CCRD008 refer to ASX announcement 11th of July 2022 3.72m @ 0.32% Cu, 0.07g/t Au, 0.032% Co, from 233.06m 16.6m @ 2.73% Cu, 1.19g/t Au, 0.049% Co, from 255.8m Incl; 1.18m @ 15.65% Cu, 5.4g/t Au, 0.09% Co, from 256.84m Incl; 3.14m @ 6.38% Cu, 3.61g/t Au, 0.059% Co, from 265.92m 3.09m @ 0.58% Cu, 0.29g/t Au, 0.03% Co, from 285.79m 2.2m @ 0.43% Cu, 0.16g/t Au, 0.031% Co, from 305.69m 6.01m @ 0.68% Cu, 0.63g/t Au, 0.176% Co, from 309.42m Artemis Resources Limited Annual Financial Report 2022 10 OPERATIONS REPORT The mineralisation style encountered in hole 22CCRD008 is quartz-carbonate infill breccias and veining with sporadic agglomerations of sulphides and massive sulphide infills. The visible sulphides include chalcopyrite, pyrrhotite and pyrite. These are shown in Figure 11 and Figure 12. Figure 10: Section 9,960mE showing significant intersections for hole 22CCRD008. High grade intersections for ARC344 included for comparisons. Hole ARC392 drilled updip from the massive sulphide occurrence is pending assay results. Refer to Figure 8 for section location. Figure 11: Part of the upper zone of the broader 16.6m showing the massive sulphide interval with brecciated upper contact which returned a result of 1.18m @ 15.65% Cu, 5.40g/t Au, 0.090% Co from 256.84m. Artemis Resources Limited Annual Financial Report 2022 11 OPERATIONS REPORT Figure 12: 22CCRD008 (263-273.5m) lower interval of significant vein hosted sulphide forming part of the broader 16.6m interval with a significant grade of 3.14m @ 6.38% Cu, 3.61% Cu, 0.059% Co from 265.92m Mineralisation continues untill end of hole, as shown in Figure 13. The hole was not continued as driller had run out of rods. Figure 13: 22CCRD008 mineralisation occurrence at EOH 315.3m. Two additional holes, ARC387 and ARC389 drilled on section 9,920mN Loc (40m to the south of 22CCRD008) have intersected mineralisation near the proposed pierce points. These holes are shown in Figure 14. Artemis Resources Limited Annual Financial Report 2022 12 OPERATIONS REPORT Figure 14: Section 9920mE looking Northwest showing additional holes that had intersected mineralisation 40m to the south of section 9960mE. This shows the continuation of what is the massive sulphide interval to the south through the sections. The intersection of 4m @ 1.02% Cu, 0.76g/t Au, 0.016% Co from 135m occurs in the Crosscut 2 zone. Refer to Figure 8 for section location. NORTHERN EXTENSION OF CROSSCUT The mineralised structure of Crosscut is known to extend and continue to the northwest and a series of holes were drilled to test the structure. Six holes to the north (ARC363 to 365 and ARC395 to 397) were drilled based on extending the Crosscut mineralisation to the north from the high-grade intersections encountered in hole ARC366 and ARC367 which returned grades of 8m @ 2.35% Cu, 5.01g/t Au, 0.400% Co from 80m and 8m @ 0.98% Cu, 1.08g/t Au, 0.020% Co from 167m, respectively as shown in Figure 15, with Figure 16 showing a cross section. Holes ARC363, 364 and 365 encountered massive basalts and returned no significant results. Artemis Resources Limited Annual Financial Report 2022 13 OPERATIONS REPORT Figure 15: Showing the location of the holes to test the mineralisation to the north. ARC403 encountered sulphides but assays are pending. Interpretation of the magnetics have identified similar NW structures to the west and NW along strike. These are north of the cataclasite ridge which is considered prospective for mineralisation. Figure 16: Section through 10,200mE Local Grid showing high-grade intersections for ARC366 and ARC376. Refer to Figure 15 for section location. Logging of holes ARC395, 396 and 367 showed that the NE holes encountered a major fault zone and intersected pelites and black shales. Hole ARC395 showed presence of sulphides associated with fuchsite with silicification and sericite alteration. Artemis Resources Limited Annual Financial Report 2022 14 OPERATIONS REPORT An additional hole ARC403 intersected sulphides (Figure 17) consistent with those in the high-grade zones to the south, meaning that the mineralised envelops had ‘stepped’ over to the west, in true en echelon form. Figure 17: Sulphide occurrence in ARC403 comprising pyrite and pyrrhotite. Not only is it common for mineralised structures to anastomose downdip, they also tend to stagger or step sideways within the confined margins of the NW zones. It appears that the Crosscut Zone is copper-rich, with zones of higher-grade Au. Table 4 shows the results for the Crosscut Zone. Table 4: Significant assay results for the Crosscut Zone for drill holes received during the reporting period. SIGNIFICANT MINERALISED INTERSECTION FOR CROSSCUT DRILLING refer to ASX announcement 11th of July 2022 8m @ 0.4% Cu, 0.55g/t Au, 0.061% Co, from 40m; Hole ARC366 6m @ 0.4% Cu, 0.25g/t Au, 0.036% Co, from 72m; Hole ARC366 8m @ 2.35% Cu, 5.01g/t Au, 0.4% Co, from 83m; ARC366 Incl: 1m @ 4.03% Cu, 9.04g/t Au, 0.377% Co, from 83m Incl: 1m @ 9.02% Cu, 11.25g/t Au, 1.265% Co, from 85m 8m @ 0.98% Cu, 0.96g/t Au, 0.149% Co, from 167m; ARC367 1m @ 1.64% Cu, 0.02g/t Au, 0.004% Co, from 227m; ARC369 1m @ 1.00% Cu, 3.41g/t Au, 0.082% Co, from 259m; ARC381 13m @ 2.58% Cu, 0.62g/t Au, 0.057% Co, from 130m; ARC387 Incl: 4m @ 7.59% Cu, 1.81g/t Au, 0.148% Co, from 131m 4m @ 1.02% Cu, 0.76g/t Au, 0.016% Co, from 135m; ARC389 15m @ 2.02% Cu, 0.63g/t Au, 0.171% Co, from 299m; ARC389 Incl: 1m @ 6.29% Cu, 1.9g/t Au, 0.2% Co, from 300m Incl: 1m @ 6.32% Cu, 0.33g/t Au, 0.044% Co, from 307m Incl: 1m @ 3.4% Cu, 2.08g/t Au, 0.687% Co, from 309m 9m @ 0.45% Cu, 0.34g/t Au, 0.074% Co, from 317m; ARC389 1m @ 0.88% Cu, 2.91g/t Au, 0.029% Co, from 76m; ARC390 6m @ 0.85% Cu, 0.26g/t Au, 0.027% Co, from 104m; ARC390 Incl: 1m @ 3.47% Cu, 0.69g/t Au, 0.037% Co, from 107m 4m @ 1.11% Cu, 0.39g/t Au, 0.099% Co, from 143m; ARC391 Artemis Resources Limited Annual Financial Report 2022 15 OPERATIONS REPORT ADDITIONAL HOLES DRILLED TO TEST SAM SURVEY A series of holes were drilled to the east of Crosscut to test additional structures identified from magnetic interpretation and SAM survey anomalies. These are shown in Figure 18. No significant results were reported from holes ARC368, ARC370, ARC371, ARC379, ARC380 and ARC381. It is noted that ARC370 and ARC371 had intersected unusually high magnetite occurring as very fine layers within what has been noted as a komatiite. Ni values are unusually consistent through this unit at an average of around 0.14% Ni, with Cr showing a zonation, with high values of around 0.125% Ni and Cr shows a distinct segregation to the NE and indicates the presence of ultramafics in the system, however not economically mineralised. SAM was successful in identifying highly magnetic and conductive units to the east of the Crosscut Zone. Figure 18: Drill collar location on background of SAM survey. Note the strong to intense SAM anomaly to the east which has defined conductive ultramafic rocks. Carlow East Zone Drilling These recent results have shown that the potential of the eastern zone lies in depth extensions while further discoveries of offset high-grade shoots to the south of the main East Zone will widen the mineralised area at depth. Figure 19 shows the location of the collars for the programme along with sections lines for the cross- sections presented in this announcement. Reinterpretation of the Carlow Castle deposit suggests that high-grade steeply-plunging shoots occur in the East Zone, which in turn potentially identifies the East Zone as the feeder to the Carlow system. This interpretation has enabled Artemis to plan drill targets with accuracy, with the majority of the targets intersecting mineralisation returning excellent results. Artemis Resources Limited Annual Financial Report 2022 16 OPERATIONS REPORT Figure 19: Section lines and collar locations of holes for the East Zone. Most of these results extend existing mineralised trends downward in the East Zone, such as the results for ARC355 Section 507360mE as shown in Figure 20. These results extend the current mineralised envelops 80 metres below the 2021 optimised pit outline. Figure 20: Hole ARC355 Section 507360 showing a series of mineralised intervals down along the drill trace, well below the 2021 optimised pit outline. This remains open at depth. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section. Other holes, such as ARC356, shown on Section 507400mE; in Figure 21, intersected another zone of high-grade of 6m @ 4.61g/t Au, 0.44% Cu, 0.02% Co from 294m that effectively extends the current mineralised envelope 60 metres below the 2021 optimisation pit. Artemis Resources Limited Annual Financial Report 2022 17 OPERATIONS REPORT Figure 21: Hole ARC356 Section 507400mE showing significant intersections well below the 2021 optimised pit outline, with mineralisation open at depth. This section of the East Zone is near the Crosscut Zone, as shown by the significant intersection in hole ARC344. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section. A thick interval of 20m @ 2.06g/t Au, 0.40% Cu, 0.254% Co from 258m is particularly interesting, not just for the Au and Cu, but significant Co values as well as shown in Figure 22. Figure 22: Hole ARC359 Section 507540mE highlighting the thick mineralised intersection outside of the 2021 optimised pit outline. This mineralised trend remains open down dip. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section. Artemis Resources Limited Annual Financial Report 2022 18 OPERATIONS REPORT Continuation of the mineralised trend can be seen in Figure 23 and Figure 24, with significant values extending below the 2021 optimised pit outline. These mineralised trends remain open at depth. Figure 23: Hole ARC357 Section 507570mE showing the wide interval of mineralisation below the 2021 optimised pit. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section. Figure 24: Hole ARC358 Section 507600mE showing the continuation of the mineralisation at depth and well below the 2021 optimised pit outline. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section. Artemis Resources Limited Annual Financial Report 2022 19 OPERATIONS REPORT Figure 25 places the sections into context, showing the various lodes that make up the Carlow mineralised trend. Figure 25: Oblique view of the Carlow System looking northeast, displaying its typical vein splay. New shoot developments occur on the western side of the East Zone pit. Further drilling is required to extend these systems along strike and down dip. Grid scale is approximately 300m. Mineralisation on the East Zone is enveloped by a low-grade Cu-Au halo which is likely a result of fracturing of the host rock during high-grade shoot development. Grades of this halo are typically >0.25g/t Au and >0.25% Cu but seem to be more confined than that of the West Zone. CARLOW WEST ZONE DRILLING Five holes were drilled in the western zone, as shown in Figure 26 to test the high-grade shoots geometry and assays for these holes are pending. Figure 26: Location of Carlow West drill holes. Note trend of a NW structure in the vicinity of ARC401. Yellow solids are Carlow mineralised polygons. Artemis Resources Limited Annual Financial Report 2022 20 OPERATIONS REPORT All holes except ARC400 intersected significant sulphide mineralisation with, Figure 27, Figure 28 and Figure 29 showing some of the sulphide intervals for the series of holes. Figure 27: Sulphide mineralisation in Hole ARC398 from 99 to 103m Figure 28: Mineralisation occurrence in ARC401 showing some 'massive' style of sulphides Figure 29: Additional mineralisation in hole ARC401 from 159 -160m Artemis Resources Limited Annual Financial Report 2022 21 OPERATIONS REPORT It is possible that hole ARC401 has intersected mineralisation obliquely that is related to the NW structure as interpreted from magnetics. Table 5 shows the significant intersections for the drilling competed in the East and West Zones of the Carlow Main Area. Table 5: Significant intervals for drill holes in the East and West Zone of the Carlow Main Zone SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING refer to ASX announcement 29th of November and 21st December 2022 5m @ 1.73% Cu, 1.47g/t Au, 0.1% Co, from 67m; Hole ARC316 Incl: 1m @ 3.15% Cu, 2.7g/t Au, 0.126% Co, from 71m; Hole ARC316 5m @ 5.75% Cu, 2.67g/t Au, 0.057% Co, from 111m; Hole ARC316 Incl: 2m @ 11.48% Cu, 5.07g/t Au, 0.067% Co, from 112m; Hole ARC316 4m @ 1.09% Cu, 1.44g/t Au, 0.175% Co, from 140m; Hole ARC316 13m @ 5.86% Cu, 0.21g/t Au, 0.137% Co, from 58m; Hole ARC317 Incl: 4m @ 10.41% Cu, 0.28g/t Au, 0.228% Co, from 59m; Hole ARC317 Incl: 2m @ 5.45% Cu, 0.37g/t Au, 0.163% Co, from 64m; Hole ARC317 Incl: 3m @ 6.02% Cu, 0.2g/t Au, 0.082% Co, from 67m; Hole ARC317 5m @ 1.25% Cu, 0.27g/t Au, 0.152% Co, from 175m; Hole ARC317 Incl: 1m @ 3.75% Cu, 0.4g/t Au, 0.113% Co, from 177m; Hole ARC317 2m @ 1.74% Cu, 0.78g/t Au, 0.182% Co, from 196m; Hole ARC317 1m @ 1.22% Cu, 0.28g/t Au, 0.259% Co, from 206m; Hole ARC317 3m @ 11.39% Cu, 6.82g/t Au, 0.063% Co, from 108m; Hole ARC318 Incl: 2m @ 16.4% Cu, 9.72g/t Au, 0.09% Co, from 108m; Hole ARC318 1m @ 1.04% Cu, 0.28g/t Au, 0.011% Co, from 120m; Hole ARC318 3m @ 2.71% Cu, 2.83g/t Au, 0.058% Co, from 124m; Hole ARC318 Incl: 1m @ 6.95% Cu, 4.74g/t Au, 0.054% Co, from 125m; Hole ARC318 1m @ 3.03% Cu, 0.39g/t Au, 0.097% Co, from 152m; Hole ARC318 2m @ 8.43% Cu, 0.5g/t Au, 0.475% Co, from 159m; Hole ARC318 1m @ 2.08% Cu, 0.72g/t Au, 0.024% Co, from 30m; Hole ARC319 1m @ 1.01% Cu, 0.32g/t Au, 0.066% Co, from 44m; Hole ARC319 1m @ 1.02% Cu, 0.87g/t Au, 0.016% Co, from 111m; Hole ARC320 1m @ 9.23% Cu, 0.85g/t Au, 0.026% Co, from 119m; Hole ARC320 2m @ 1.06% Cu, 0.32g/t Au, 0.067% Co, from 130m; Hole ARC320 2m @ 1.07% Cu, 0.17g/t Au, 0.103% Co, from 133m; Hole ARC320 1m @ 2.74% Cu, 0.01g/t Au, 0.004% Co, from 235m; Hole ARC320 1m @ 1.13% Cu, 0.18g/t Au, 0.005% Co, from 50m; Hole ARC321 1m @ 1.12% Cu, 0.38g/t Au, 0.288% Co, from 135m; Hole ARC322 2m @ 1.43% Cu, 1.08g/t Au, 0.221% Co, from 149m; Hole ARC322 4m @ 1.03% Cu, 0.29g/t Au, 0.204% Co, from 24m; Hole ARC323 1m @ 3.47% Cu, 0.14g/t Au, 0.021% Co, from 260m; Hole ARC323 2m @ 1.97% Cu, 0.21g/t Au, 0.021% Co, from 266m; Hole ARC323 1m @ 1.9% Cu, 0.08g/t Au, 0.032% Co, from 112m; Hole ARC324 1m @ 1.24% Cu, 1.4g/t Au, 0.061% Co, from 151m; Hole ARC324 2m @ 1.79% Cu, 0.47g/t Au, 0.055% Co, from 159m; Hole ARC324 1m @ 2.5% Cu, 0.47g/t Au, 0.113% Co, from 180m; Hole ARC324 4m @ 1.12% Cu, 0.11g/t Au, 0.062% Co, from 188m; Hole ARC324 1m @ 1.12% Cu, 0.2g/t Au, 0.039% Co, from 146m; Hole ARC325 8m @ 1.32% Cu, 0.21g/t Au, 0.092% Co, from 177m; Hole ARC325 Incl: 1m @ 4.7% Cu, 0.69g/t Au, 0.355% Co, from 181m; Hole ARC325 Artemis Resources Limited Annual Financial Report 2022 22 OPERATIONS REPORT SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING 4m @ 1.18% Cu, 3.96g/t Au, 0.102% Co, from 104m; Hole ARC326 1m @ 3.76% Cu, 0.18g/t Au, 0.202% Co, from 160m; Hole ARC326 2m @ 1.09% Cu, 0.13g/t Au, 0.005% Co, from 292m; Hole ARC326 1m @ 1.27% Cu, 1.08g/t Au, 0.013% Co, from 84m; Hole ARC327 2m @ 3.07% Cu, 5.34g/t Au, 0.256% Co, from 118m; Hole ARC327 Incl: 1m @ 3.98% Cu, 3.36g/t Au, 0.178% Co, from 119m; Hole ARC327 3m @ 4.22% Cu, 1.18g/t Au, 0.238% Co, from 127m; Hole ARC327 Incl: 1m @ 9.29% Cu, 1.39g/t Au, 0.474% Co, from 127m; Hole ARC327 3m @ 1.49% Cu, 0.68g/t Au, 0.111% Co, from 138m; Hole ARC327 1m @ 1.1% Cu, 3.08g/t Au, 0.043% Co, from 248m; Hole ARC334 2m @ 3.73% Cu, 0.03g/t Au, 3.211% Co, from 256m; Hole ARC334 5m @ 3.92% Cu, 1.22g/t Au, 0.05% Co, from 275m; Hole ARC334 1m @ 1.3% Cu, 1.51g/t Au, 0.505% Co, from 168m; Hole ARC335 3m @ 1.01% Cu, 0.11g/t Au, 0.163% Co, from 184m; Hole ARC335 1m @ 1.65% Cu, 0.15g/t Au, 0.126% Co, from 150m; Hole ARC337 1m @ 2.4% Cu, 0.33g/t Au, 0.072% Co, from 160m; Hole ARC337 10m @ 1.6% Cu, 2.11g/t Au, 0.34% Co, from 16m; Hole ARC338 Incl: 2m @ 4.23% Cu, 3.51g/t Au, 0.893% Co, from 16m; Hole ARC338 2m @ 1.13% Cu, 1.33g/t Au, 0.209% Co, from 36m; Hole ARC338 13m @ 5.95% Cu, 5g/t Au, 0.689% Co, from 42m; Hole ARC338 Incl: 5m @ 8.31% Cu, 8.1g/t Au, 0.659% Co, from 42m; Hole ARC338 Incl: 4m @ 8.42% Cu, 5.46g/t Au, 1.337% Co, from 50m; Hole ARC338 4m @ 2.59% Cu, 0.95g/t Au, 0.024% Co, from 80m; Hole ARC338 Incl: 1m @ 5.98% Cu, 1.6g/t Au, 0.019% Co, from 83m; Hole ARC338 3m @ 1.14% Cu, 2.31g/t Au, 0.161% Co, from 100m; Hole ARC338 1m @ 1.46% Cu, 4g/t Au, 0.029% Co, from 39m; Hole ARC340 5m @ 1.22% Cu, 1.69g/t Au, 0.024% Co, from 47m; Hole ARC340 Incl: 1m @ 3.76% Cu, 1.83g/t Au, 0.023% Co, from 49m; Hole ARC340 5m @ 1.66% Cu, 0.78g/t Au, 0.015% Co, from 57m; Hole ARC340 Incl: 1m @ 5.22% Cu, 1.18g/t Au, 0.02% Co, from 60m; Hole ARC340 1m @ 2.14% Cu, 0.09g/t Au, 0.102% Co, from 95m; Hole ARC340 1m @ 2.4% Cu, 7.05g/t Au, 0.082% Co, from 129m; Hole ARC340 1m @ 4.87% Cu, 0.02g/t Au, 0.003% Co, from 158m; Hole ARC340 3m @ 5.29% Cu, 0.8g/t Au, 0.185% Co, from 111m; Hole ARC342 Incl: 2m @ 6.68% Cu, 1.1g/t Au, 0.209% Co, from 112m; Hole ARC342 7m @ 1.9% Cu, 2.35g/t Au, 0.098% Co, from 126m; Hole ARC342 Incl: 1m @ 8.53% Cu, 11.25g/t Au, 0.175% Co, from 126m; Hole ARC342 1m @ 1.17% Cu, 1.42g/t Au, 0.549% Co, from 180m; Hole ARC342 1m @ 1.52% Cu, 2.39g/t Au, 0.477% Co, from 227m; Hole ARC342 2m @ 19.36% Cu, 1.58g/t Au, 0.051% Co, from 243m; Hole ARC342 2m @ 2.75% Cu, 0.42g/t Au, 0.009% Co, from 87m; Hole ARC344 Incl: 1m @ 4.9% Cu, 0.33g/t Au, 0.009% Co, from 87m; Hole ARC344 22m @ 2.23% Cu, 1.39g/t Au, 0.457% Co, from 247m; Hole ARC344 Incl: 4m @ 4.15% Cu, 1.78g/t Au, 0.517% Co, from 250m; Hole ARC344 Incl: 1m @ 4.89% Cu, 1.16g/t Au, 0.831% Co, from 258m; Hole ARC344 Incl: 4m @ 2.94% Cu, 2.08g/t Au, 0.978% Co, from 262m; Hole ARC344 7m @ 5.23% Cu, 0.74g/t Au, 0.054% Co, from 286m; Hole ARC344 Incl: 4m @ 7.65% Cu, 1.15g/t Au, 0.058% Co, from 286m; Hole ARC344 Artemis Resources Limited Annual Financial Report 2022 23 OPERATIONS REPORT SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING 2m @ 1.83% Cu, 0.44g/t Au, 0.02% Co, from 73m; Hole ARC349 1m @ 1.23% Cu, 0.47g/t Au, 0.007% Co, from 132m; Hole ARC349 3m @ 2.78% Cu, 0.54g/t Au, 0.032% Co, from 139m; Hole ARC349 Incl: 1m @ 7.17% Cu, 1.13g/t Au, 0.045% Co, from 140m; Hole ARC349 1m @ 1.18% Cu, 0.17g/t Au, 0.016% Co, from 160m; Hole ARC349 3m @ 1.57% Cu, 1.7g/t Au, 0.008% Co, from 228m; Hole ARC349 1m @ 1.82% Cu, 0.14g/t Au, 0.02% Co, from 15m; Hole ARC350 1m @ 3.15% Cu, 0.78g/t Au, 0.11% Co, from 42m; Hole ARC350 5m @ 3.51% Cu, 1.39g/t Au, 0.173% Co, from 47m; Hole ARC350 Incl: 1m @ 10.9% Cu, 3.59g/t Au, 0.012% Co, from 47m; Hole ARC350 Incl: 1m @ 4.31% Cu, 1.07g/t Au, 0.614% Co, from 50m; Hole ARC350 1m @ 1.98% Cu, 2.88g/t Au, 0.021% Co, from 78m; Hole ARC350 1m @ 1.16% Cu, 0.96g/t Au, 0.1% Co, from 171m; Hole ARC350 6m @ 1.38% Cu, 0.62g/t Au, 0.1% Co, from 42m; Hole ARC351 1m @ 1.63% Cu, 4.27g/t Au, 0.014% Co, from 249m; Hole ARC352 2m @ 4.87% Cu, 0.01g/t Au, 0.006% Co, from 68m; Hole ARC353 2m @ 1.49% Cu, 0.07g/t Au, 0.005% Co, from 122m; Hole ARC353 1m @ 1.2% Cu, 1.36g/t Au, 0.302% Co, from 314m; Hole ARC353 1m @ 3.89% Cu, 1.38g/t Au, 0.582% Co, from 298m; Hole ARC354 1m @ 3.54% Cu, 0.4g/t Au, 0.006% Co, from 211m; Hole ARC355 3m @ 1.45% Cu, 0.59g/t Au, 0.011% Co, from 215m; Hole ARC355 1m @ 1.33% Cu, 2.01g/t Au, 0.008% Co, from 237m; Hole ARC355 3m @ 21.91% Cu, 0.8g/t Au, 0.009% Co, from 246m; Hole ARC355 Incl: 2m @ 31.63% Cu, 1.1g/t Au, 0.011% Co, from 246m; Hole ARC355 Incl: 1m @ 53.1% Cu, 1.27g/t Au, 0.01% Co, from 246m; Hole ARC355 5m @ 1.31% Cu, 0.18g/t Au, 0.121% Co, from 283m; Hole ARC355 2m @ 11.93% Cu, 0.67g/t Au, 0.025% Co, from 199m; Hole ARC356 1m @ 6.23% Cu, 1.05g/t Au, 0.01% Co, from 231m; Hole ARC356 1m @ 1.24% Cu, 0.47g/t Au, 0.009% Co, from 254m; Hole ARC356 6m @ 4.61% Cu, 0.44g/t Au, 0.019% Co, from 294m; Hole ARC356 Incl: 1m @ 3.33% Cu, 0.12g/t Au, 0.013% Co, from 294m; Hole ARC356 Incl: 2m @ 5.75% Cu, 0.42g/t Au, 0.015% Co, from 296m; Hole ARC356 Incl: 1m @ 7.22% Cu, 1.05g/t Au, 0.04% Co, from 299m; Hole ARC356 1m @ 1.12% Cu, 0.03g/t Au, 0.005% Co, from 185m; Hole ARC357 11m @ 1.69% Cu, 0.49g/t Au, 0.256% Co, from 246m; Hole ARC357 Incl: 2m @ 6.68% Cu, 0.75g/t Au, 0.916% Co, from 246m; Hole ARC357 1m @ 1.21% Cu, 1.38g/t Au, 0.011% Co, from 294m; Hole ARC357 1m @ 1.1% Cu, 0.03g/t Au, 0.004% Co, from 315m; Hole ARC357 1m @ 25.1% Cu, 0.43g/t Au, 0.009% Co, from 245m; Hole ARC358 5m @ 1.71% Cu, 0.46g/t Au, 0.069% Co, from 262m; Hole ARC358 Incl: 1m @ 3.77% Cu, 0.57g/t Au, 0.016% Co, from 266m; Hole ARC358 20m @ 2.06% Cu, 0.4g/t Au, 0.254% Co, from 258m; Hole ARC359 Incl: 3m @ 8.78% Cu, 1.18g/t Au, 1.14% Co, from 258m; Hole ARC359 Incl: 7m @ 1.16% Cu, 0.38g/t Au, 0.128% Co, from 267m; Hole ARC359 2m @ 1.31% Cu, 6g/t Au, 0.014% Co, from 274m; Hole ARC361 1m @ 2.33% Cu, 0.36g/t Au, 0.05% Co, from 330m; Hole ARC361 6m @ 1.01% Cu, 1.81g/t Au, 0.027% Co, from 351m; Hole ARC361 1m @ 1.42% Cu, 0.54g/t Au, 0.018% Co, from 198m; Hole ARC362 1m @ 4.85% Cu, 4.72g/t Au, 0.059% Co, from 224m; Hole ARC362 Artemis Resources Limited Annual Financial Report 2022 24 OPERATIONS REPORT QUOD EST ZONE The Quod Est Zone mineralisation trends north-northeast, with a steep plunge dipping to the southeast, controlled by a gabbro/basalt contact. Collar locations are shown in Figure 30. Results for this drilling have returned 5m @ 2.90g/t Au, 0.62% Cu, 0.010% Co from 79m which includes 1m @ 7.14g/t Au, 1.26% Cu, 1.095% Co from 80m (Hole ARC323) and 4m @ 2.02g/t Au, 0.72% Cu, 0.263% Co which includes 1m @ 3.27g/t Au, 1.12% Cu, 0.365% Co from 104m (Hole ARC333). Additional results are shown in Table 6. Figure 30: Drill collar locations for the drilling at Quod Est Zone. Table 6: Significant Intersections for the Quod Est Drill Holes SIGNIFICANT MINERALISED INTERSECTION FOR QUOD EST DRILLING refer to ASX announcement 29th of November 2m @ 1.64g/t Au, 0.88% Cu, 0.149% Co, from 46m; Hole ARC329 3m @ 3.14g/t Au, 0.43% Cu, 0.383% Co, from 111m; Hole ARC330 Incl; 1m @ 6.54g/t Au, 0.72% Cu, 0.766% Co, from 112m; Hole ARC330 3m @ 3.8g/t Au, 4.06% Cu, 1.563% Co, from 121m; Hole ARC330 Incl; 2m @ 4.52g/t Au, 4.99% Cu, 1.855% Co, from 121m; Hole ARC330 1m @ 1.93g/t Au, 0.25% Cu, 0.01% Co, from 127m; Hole ARC330 1m @ 1.24g/t Au, 2.09% Cu, 0.071% Co, from 146m; Hole ARC331 5m @ 2.9g/t Au, 0.62% Cu, 0.551% Co, from 79m; Hole ARC332 Incl; 1m @ 7.14g/t Au, 1.26% Cu, 1.095% Co, from 80m; Hole ARC332 Incl; 1m @ 3.33g/t Au, 0.61% Cu, 0.119% Co, from 82m; Hole ARC332 1m @ 4.35g/t Au, 0.77% Cu, 1.69% Co, from 96m; Hole ARC332 4m @ 2.02g/t Au, 0.72% Cu, 0.263% Co, from 102m; Hole ARC333 Incl; 1m @ 3.27g/t Au, 1.12% Cu, 0.365% Co, from 104m; Hole ARC333 Artemis Resources Limited Annual Financial Report 2022 25 OPERATIONS REPORT DRILLING AT CHAPMAN PROSPECT Chapman lies ~1km southeast of Carlow Castle as shown in Figure 8. The drilling at Chapman was completed as part of the last phase of the 14,725 metre RC program, which was completed in September 2021. These holes are prefixed with ‘GLC’ and are shown in Figure 31. Figure 31: Location of drill collars and simplified geology for the Chapman Prospect. Direction of drill label does not reflect the drill direction. Q3 2021 drilling is prefixed GLC, Q1 2022 drilling prefixed ARC. These holes were planned to test various Versatile Time Domain Electromagnetic (VTEM) plates with several holes intersecting low levels of copper and nickel. GLC007 was targeting a VTEM plate that was isolated and seemed ‘off-trend’. Significant sulphides (up to 15%) were intersected, comprising predominately of pyrite and pyrrhotite, hosted in quartz veining. GLC007 has returned values of 10m @ 3.40% Cu, 1.75g/t Au, 24.65g/t Ag from 116m, including: 5m @ 6.23% Cu, 3.01g/t Au, 45.32g/t Ag, from 117m and 3m @ 1.73% Cu, 1.04g/t Au, 12.67g/t Ag from 138m. The significant intersection in GLC007 and coincident VTEM plate is shown in Figure 32 with Table 7 showing significant results. Figure 32: Slight oblique section looking northeast along the drill trace of GLC007 showing the location of the high-grade intersections in relation to the VTEM plates. Artemis Resources Limited Annual Financial Report 2022 26 OPERATIONS REPORT Table 7: Significant intersections for holes drilled in the Chapman Prospect. SIGNIFICANT MINERALISED INTERSECTION FOR CHAPMAN DRILLING refer to ASX announcement 06th of December 2m @ 0.02g/t Au, 0.56% Cu, 2.9g/t Ag, from 129m; Hole GLC003 1m @ 0.02g/t Au, 0.81% Cu, 3.6g/t Ag, from 125m; Hole GLC004 3m @ 0.01g/t Au, 0.65% Cu, 3.17g/t Ag, from 81m; Hole GLC005 3m @ 0.02g/t Au, 0.69% Cu, 3.8g/t Ag, from 101m; Hole GLC005 Incl; 1m @ 0.04g/t Au, 1.08% Cu, 6.1g/t Ag, from 102m; Hole GLC005 3m @ 0.01g/t Au, 0.5% Cu, 2.23g/t Ag, from 17m; Hole GLC006 4m @ 0.28g/t Au, 0.56% Cu, 2.33g/t Ag, from 56m; Hole GLC006 Incl; 1m @ 0.85g/t Au, 1.04% Cu, 4.8g/t Ag, from 58m; Hole GLC006 3m @ 0.02g/t Au, 0.6% Cu, 3.43g/t Ag, from 126m; Hole GLC006 1m @ 0.06g/t Au, 0.51% Cu, 2.4g/t Ag, from 80m; Hole GLC007 10m @ 1.75g/t Au, 3.41% Cu, 24.65g/t Ag, from 116m; Hole GLC007 Incl; 5m @ 3.01g/t Au, 6.23% Cu, 45.32g/t Ag, from 117m; Hole GLC007 3m @ 1.04g/t Au, 1.73% Cu, 12.67g/t Ag, from 138m; Hole GLC007 Incl; 2m @ 1.28g/t Au, 2.28% Cu, 16.65g/t Ag, from 139m; Hole GLC007 In addition to the drilling, 52 x Ultrafine Fraction (UFF) soils were taken on a 200 x 50m grid to assist in identifying the structures that may host mineralisation as illustrated in Figure 33. It can be seen that the higher Cu values in the UFF soils fall within an interpreted structural corridor that trends to the northwest. Figure 33: Image showing the first pass UFF soil sampling for Cu values, which are highlighting a NW trend. Note that the significant Cu values occur within the two inferred bounding structures, also trending to the NW. Hole GLC007 is highlighted with its significant result, using a 0.3% Cu cut off. Image is mag 2VD with draped satellite image. Artemis Resources Limited Annual Financial Report 2022 27 OPERATIONS REPORT Additional holes were planned to test not only the VTEM targets but also the structural trend as interpreted from magnetics. A total of 11 holes for 2,878m was completed, of which one hole was diamond core for 132.9m. A total of 2,784 samples, including QAQC was sent for analysis. These are shown in Figure 35 and are prefixed ARC. A total of 11 holes for 2,507m was completed, of which one hole was diamond core for 103.8m. A total of 2,784 samples, including QAQC was sent for analysis. Post period the assay results were released in ASX release dated 13 September 2022 “Chapman Prospect – Copper Nickel System Identified”. LITTLE FORTUNE PROSPECT Drilling here is also targeting VTEM plates, along with trends as defined by geological exposure. A total of 7 holes for 2,017 metres was drilled. Location of the collars are shown in Figure 34. Several holes were cased with PVC to enable any future downhole geophysics. Sulphides were also encountered downhole, coincident with VTEM plates, however no significant results were encountered in these holes. Figure 34: Diagram showing collar locations and simply geology for the Little Fortune Prospect. GEOPHYSICAL SURVEYS DOWNHOLE ELECTROMAGNETIC SURVEYS (DHEM) Downhole EM surveying was carried out in one drillhole at the Chapman (Good Luck) Prospect (GLCC005, Figure 35) two drillholes at the Thorpe (Little Fortune) Prospect (drillholes LFRC002 and LFRC005, Figure 36) and to follow-up copper mineralisation intersected in these drillholes as well as EM sources related to modelled VTEM conductor plate targets. The DHEM surveys were designed by Resource Potentials, and Gap Geophysics Pty Ltd were awarded the survey contract, with the DHEM survey successfully completed in November 2021. Artemis Resources Limited Annual Financial Report 2022 28 OPERATIONS REPORT Figure 35: Location of drillhole GL005 and LF005 at the Chapman prospect, which was DHEM surveyed. The location of the transmitter loop used for the survey is also shown, in blue. The drillhole trace is coloured according to Cu (ppm). Figure 36: Location of drillholes LF005 and LF005 at the Thorpe prospect, which were DHEM surveyed. The location of the transmitter loop used for the survey is also shown. The drillhole trace is coloured according to Cu (ppm). RESULTS Downhole electromagnetic surveying in drillholes LFRC002 and LFRC005 resolved anomalous off-hole DHEM responses which was modelled with a steep NW dip and a moderate conductance of 850 siemens. The up-dip projection of the modelled EM conductor plate coincides with elevated copper intersections in drillhole LFRC006, as well as modelled DDIP chargeability anomaly responses, and this zone has not been intersected by existing drilling. Artemis Resources Limited Annual Financial Report 2022 29 OPERATIONS REPORT A very small in-hole DHEM anomaly response was resolved in drillhole LFRC002, but no follow-up drill targeting is recommended for this this very small conductor source. DHEM data from drillhole LFRC002 also suggest that there could be an off-hole and far-field conductor source located to the northeast of the drill trace. DHEM conductor plate modelling was attempted, but not finalised due to the anomaly response only being by one receiver component, and EM conductor plate modelling could not be reliably completed. Interpretation of VTEM data and other ground-based EM surveys could be carried out to look for the source of this far-field EM anomaly. SURFACE SAMPLING A total of 339 soil samples were analysed during the reporting period. A survey comprising 75 soil samples was undertaken on tenement P47/1622, just east of the Sing Well prospect, just prior to the reporting period. Samples were collected at 50m intervals along north–south orientated traverses spaced 150m apart (Figure 37). Samples comprised 100–200g material that was collected at a depth of 15cm below the ground surface and sieved to minus 2mm. These samples were analysed early in the 2021–22 reporting year. Figure 37: Soil sampling localities on tenement P47/1622. Location of the tenement is shown in Figure 7. A soil sampling program using Ultrafine+ Fraction (UFF) methodology was completed over the Carlow Castle Main zone (52 samples), Chapman (Good Luck, 104 samples), Thorpe (Little Fortune, 35 samples) and Carlow West (69 samples). Artemis Resources Limited Annual Financial Report 2022 30 OPERATIONS REPORT A total of 264 samples have been collected, as shown in Figure 38. Samples have been collected over the Carlow Castle Main Zone as an orientation survey to compare the assay variability with the previously obtained results from the ionic leach method of ALS. RESULTS The survey undertaken on tenement P47/1622 returned one sample (GB378) with a spectacular result of 10.9ppm Au. This sample also returned 1.02ppm Ag. Samples GB372 and GB373 to the west- southwest of this sample also returned highly anomalous gold of 0.109ppm and 0.508ppm, respectively. The ultrafine soil sampling results define regional structures responsible for hosting mineralisation and appears coincident with a regional magnetic trend. The survey over the Carlow Main grid (200 x 50m grid), highlights elevated copper within an interpreted northwesterly trending structural corridor. Figure 38: Overview map showing the distribution of UFF soil sampling that cover the Carlow Castle, Chapman and Thorpe (Little Fortune) areas. MINERAL RESOURCE ESTIMATIONS The current mineral resource as released by CSA Global is shown in Table 8 below. Table 8: Carlow Main Mineral Resources by classification reported above a cut-off of 0.3g/t AuEq and within an optimised shell (as of 19th of May 2021). Work has commenced on updating the interpretation for Carlow Castle which will allow for effective geological control through definition of high-grade shoots and structures. The aim of this reinterpretation is to increase the tonnage and grade through effective drill targeting and Artemis releasing an updated robust mineral resource. The new model will enable target generation, adding additional drill targets, to allow step out drilling while adding ounces to a currently increasing resource base. Figure 39 shows the Carlow lodes currently being updated. Artemis Resources Limited Annual Financial Report 2022 31 OPERATIONS REPORT The recent drill program centred on the Carlow Main, Quod Est and Crosscut Zones was designed to test the new interpretation, with assays results reflecting the interpretation. Figure 39: Plan view of the various lodes for the Carlow system, which is currently in progress. In accordance with Listing Rule 5.23.2, Artemis confirms that it is not aware of any new information or data that materially affects the information included in the Annual Mineral Resources Statement above, and that in the case of mineral resources that all material assumptions and technical parameters underpinning the estimates in the Annual Mineral Resources Statement continue to apply and have not materially changed. Material Changes and Resource Statement Comparison The Company during this year has continued to review and report its mineral resources at least annually and provide an Annual Mineral Resources Statement. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If there are any material changes to its mineral resources over the course of the year, the Company is required to promptly report these changes. In completing the annual review for the year ended 30 June 2022, the historical resource factors for Projects were reviewed and found to be relevant and current, as at that date. Governance Arrangements and Internal Controls Artemis has ensured that the mineral resources quoted are subject to good governance arrangements and internal controls. The mineral resources reported have been generated by independent external consultants who are experienced in best practices in modelling and estimation methods. The consultants have also undertaken reviews of the quality and suitability of the underlying information used to generate the resource estimation. In addition, Artemis’ management carries out regular reviews of internal processes and external contractors that have been engaged by the Company. The Carlow Castle mineral resource was compiled in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code) 2012 Edition. Artemis Resources Limited Annual Financial Report 2022 32 OPERATIONS REPORT RADIO HILL DOWNHOLE ELECTROMAGNETIC SURVEYS Downhole electromagnetic surveying was undertaken during November–December 2021 by Gap Geophysics Australia Pty Ltd. Two historical diamond holes at Radio Hill were selected for surveying, these being 07RHDD080 and 08RHRCD103 (Figure 40). The latter was replaced by drillhole 08RHRCD108 when a pre-survey check showed that the hole 07RHDD080 was blocked at 70m downhole. A total of 1,157.12m was surveyed. Drillhole 07RHDD080 was drilled in 2007 and intersected 0.68m at 3.66% Ni from 324m. Downhole EM surveying was originally completed in 2007 in this drillhole using a high transmitter frequency of 5Hz and a low-power system compared to modern standards. The historic DHEM survey identified a small in-hole anomaly response at 325m downhole, coincident with the nickel sulphide intersection. A very subtle deeper response was also observed within the noise envelope that may be associated with a far-field conductor located east of the drillhole. Drillhole 08RHRCD108 was drilled in 2008. The drillhole did not intersect any significant nickel sulphide mineralisation and was not historically DHEM surveyed. The new DHEM survey in drillhole 07RHDD080 identified a short wavelength anomaly at 325m downhole, coincident with the known nickel sulphide mineralisation intersected in the drillhole but did not detect a far-field anomaly. The modelled conductor plate has approximate dimensions of 20m by 15m. No follow-up work is recommended based on the DHEM results in drillhole 07RHDD080. No anomalies of interest were identified in the DHEM survey data from drillhole 08RHRCD108, and no follow-up is recommended based on these DHEM survey data. The Radio Hill mine and plant remains on care and maintenance. Artemis Resources Limited Annual Financial Report 2022 33 OPERATIONS REPORT Figure 40:Downhole electromagnetic survey loops and drill hole locations that underwent the survey. WHUNDO The Whundo Project is located approximately 40 kilometres south-southwest of Karratha in the West Pilbara Region of Western Australia and is approximately 12.5 kilometres southeast of the Radio Hill nickel plant. In the March quarter, a total 3,768m was drilled at Whundo, with 25 holes completed. The drilling was focused on testing for lateral and deeper extensions to the eastern and western lobes of the Whundo deposit and including untested magnetic and conductor targets in proximity to the Whundo Mine. To assist with future drill targeting at Whundo the deeper drill holes have been prepared for Down Hole EM Surveying (DHEM). GreenTech moved to 100% ownership of Whundo during the June quarter following satisfaction of the earn-in expenditure commitments. Artemis Resources Limited Annual Financial Report 2022 34 OPERATIONS REPORT Tenements Artemis current tenement listing are shown in Table 9. Refer to Figure 7 for locations. Table 9: Tenement holdings for Artemis Resources as of June 2022 Tenement Status Holder Affiliate Name Code Size E47/3719 Granted Artemis Acnco Res Ltd Karratha - ARV JV C183/2008 Cherratta 16 Bks L47/163 Granted Artemis Acnco Res Ltd Whundo 4.83 Ha M47/7 M47/9 L47/781 L47/782 Granted Artemis Acnco Res Ltd Radio Hill - ARV JV C93/2003 Radio Hill 935.1 Ha Granted Artemis Acnco Res Ltd Whundo C93/2003 Radio Hill 4.8505 Ha Application Artemis Artemis Res. Ltd Karratha - ARV JV Application Artemis Artemis Res. Ltd Karratha - ARV JV E45/5276 Granted Artemis Artemis Res. Ltd Telfer 21.6 Ha 46.3 Ha 189 Blks E47/1746 Granted Artemis Artemis Res. Ltd Cherratta - ARV JV C183/2008 Cherratta 42 Blks E47/1797 Granted Artemis Artemis Res. Ltd Cherratta - ARV JV C183/2008 Cherratta 10 Blks E47/3361 Granted Artemis Artemis Res. Ltd Elysian/Hard Rock C122/2018 Elysian 5 Blks L47/93 Granted Artemis Artemis Res. Ltd Karratha - ARV JV 7.02 Ha L7922-1989-5 Granted Artemis Artemis Res. Ltd Radio Hill - ARV JV M47/161 Granted Artemis Artemis Res. Ltd Radio Hill - ARV JV C93/2003 Radio Hill 990.8 Ha M47/337 Granted Artemis Artemis Res. Ltd Radio Hill - ARV JV C93/2003 Radio Hill 182.8 Ha P47/1622 Granted Artemis Artemis Res. Ltd Cherratta - ARV JV C183/2008 Cherratta 96.87 Ha P47/1972 Granted Artemis Artemis Res. Ltd Cherratta - ARV JV 150.94 Ha CORPORATE AIM-LISTING On 7 February 2022 the company was admitted to the aim market of the London stock exchange and its shares commenced trading under the symbol AIM:ARV. The company maintains its primary listing on the ASX. CAPITAL RAISING On 27 January 2022, as part of its listing on the AIM market of the London Stock Exchange, the Company raised, in aggregate, gross proceeds of £5 million (~A$9.5m) through the placing of 133,333,333 Placing Shares and Subscription Shares to certain institutional and other investors at a price of 3.75 pence (~7.1 cents) per share. PROJECT SALES AND TENEMENT AGREEMENTS GreenTech Metals Limited (GreenTech) exercised its Option to acquire certain non- core projects from Artemis in December 2021 and listed on the ASX on 4 January 2022. GreenTech acquired the Elysian Project, Ruth Well Project, Nickol River Project and Weerianna Project from Artemis for a consideration of 6,750,000 shares in GreenTech or 14.84% of the ordinary shares and a $250,000 reimbursement in cash of exploration expenses. In addition, the Company entered into the following farm-in agreements. Farm-In and JV Agreement with Artemis Resources Limited subsidiary KML No 2 Pty Ltd: GreenTech can earn up to 51% interest and establish an unincorporated joint venture in the Osborne Nickel Project. Farm-In and JV Agreement with Artemis Resources Limited subsidiary Fox Radio Hill Pty Ltd: GreenTech can earn up to 100% interest in the Whundo Project. If GreenTech earn less than 100% interest in the Whundo Project, an unincorporated joint venture will be established. Artemis Resources Limited Annual Financial Report 2022 35 OPERATIONS REPORT On 22 March 2022 Artemis completed the sale of its 70% interest in the Munni Munni JV. Artemis received A$250,000 in cash and was issued 358,617,818 ordinary shares in Alien Metals PLC (LSE AIM:UFO) (A$4,650,000 worth of shares at a deemed VWAP of 0.699p per share). BOARD CHANGES The Board welcomed Dr Simon Dominy as a Director on 1 July 2021. Dr Dominy is Adjunct Professor at the Western Australian School of Mines (WASM), Curtin University, and a Visiting Associate Professor at the Camborne School of Mines (CSM), University of Exeter, UK. A mining geologist-engineer with over 25 years’ experience, Dr Dominy has since 2015 been working with a number of private and listed entities developing/operating gold projects including: MG Gold Ltd; Novo Resources Corporation (TSV: NVO); Scotgold Resources Ltd (AIM: SGZ) and OCX Gold Group. Between 2004-2014 he was an Executive Consultant/General Manager with the Snowden Group based in Australia and UK, including two years contracted out to LionGold Corporation (SGX: A78). Simon is a Fellow of the Australasian Institute of Mining and Metallurgy (“FAusIMM”) and the Australian Institute of Geoscientists (“FAIG”). Mr Guy Robertson, Company Secretary, was appointed a Director on 17 January 2022. Alastair Clayton Executive Director Competent Person Statements The information in this report that relates to Exploration Results complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed, under the supervision of or reviewed by Mr. Steven Boda. Mr Boda is an employee of Artemis Resources Limited. Mr. Boda is a Fellow of the Australasian Institute of Geoscientists, Member ID; 1374. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr. Boda consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Artemis Resources Limited Annual Financial Report 2022 36 CORPORATE GOVERNANCE STATEMENT Artemis, through its Board and executives, recognises the need to establish and maintain corporate governance policies and practices that reflect the requirements of market regulators and participants, and the expectations of members and others who deal with Artemis. These policies and practices remain under constant review as the corporate governance environment and good practices evolve. ASX Corporate Governance Principles and Recommendations The third edition of ASX Corporate Governance Council Principles and Recommendations (the “Principles”) sets out recommended corporate governance practices for entities listed on the ASX. The Company has issued a Corporate Governance Statement which discloses the Company’s corporate governance practices and the extent to which the Company has followed the recommendations set out in the Principles. The Corporate Governance Statement was approved by the Board on 30 September 2022 and is available on the Company’s website: https://artemisresources.com.au/company/corporate-governance Artemis Resources Limited Annual Financial Report 2022 37 DIRECTORS’ REPORT The Directors of Artemis Resources Limited submit herewith the financial report of Artemis Resources Limited (“Artemis” or “Company”) and its subsidiaries (referred to hereafter as the “Group”) for the year ended 30 June 2022. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: The names of the Directors who held office during or since the end of the year and until the date of this report are as follow: Mark Potter Alastair Clayton Guy Robertson Edward Mead Daniel Smith Simon Dominy Vivienne Powe Current Directors MR MARK POTTER Non-Executive Chairman Non-Executive Chairman Executive Director Executive Director (appointed 17 January 2022) Non-Executive Director Non-Executive Director Non-Executive Director (appointed 1 July 2021) Non-Executive Director (appointed 4 July 2022) Mr Mark Potter has over 16 years’ experience in natural resource investments. He currently serves as a Director and Chief Investment Officer of Metal Tiger PLC, a natural resources investment company quoted on the AIM market of the London Stock Exchange. including Mr Potter has worked on several landmark deals in the mining sector investment and the successful distressed turnaround of Western Coal Corp and its c$3.3bn sale to Walter Energy Inc. He has a MA degree in Engineering and Management from Trinity College, University of Cambridge. Mr Potter is also the Non-Executive Chairman of GreenTech Metals Limited. Interest in Securities as at the date of this report: Fully paid ordinary shares: Nil Unlisted options: 22,000,000 Directorships in last three years: Non-Executive Chairman of Thor Mining Plc. MR ALASTAIR CLAYTON Executive Director Mr. Clayton is based in London and is a qualified geologist and mining executive with extensive experience in evaluating, optimising and scale mining projects financing internationally. large Alastair has over 20 years’ experience in identifying, financing and developing mineral, energy and materials processing projects in Australia, Europe and Africa. A qualified geologist, Alastair also has a Graduate Diploma in Finance and Economics and maintains a broad network of Equity Provider and Private Equity relationships in both Europe, Africa and Australia. Mr Clayton has considerable experience with both ASX and AIM listed companies. In his previous role at Primorus Investments AIM:PRIM, Mr Clayton has been a vocal supporter of the Patersons Artemis Resources Limited Annual Financial Report 2022 38 DIRECTORS’ REPORT MR EDWARD MEAD Non-Executive Director MR DANIEL SMITH Non-Executive Director Range area and understands the significant potential the Company holds as the Artemis project surrounds Haverion. Mr Clayton was previously a Director of ASX100 listed Extract Resources and Universal Coal PLC. Interest in Securities as at the date of this report: Fully paid ordinary shares: 7,250,000 Unlisted options: 43,000,000 Directorships in last three years: Nil Mr Edward Mead is a geologist with over 25 years’ experience in gold and base metals exploration, mine development and mine production. Mr Mead has also worked in the oil and gas industry on offshore drilling platforms. Other commodities that he has significant experience with are iron ore, magnetite, coal, manganese, lithium, potash and uranium. Mr Mead has a Bachelor of Science (Geology) from Canterbury University in New Zealand and is a member of the Australian Institute of Mining and Metallurgy. Mr Mead is a director of White Cliff Minerals Limited. Mr Mead was appointed as a Director on 31 December 2014. Interest in Securities as at the date of this report: Fully paid ordinary shares: 4,483,870 Unlisted options: 3,750,000 Directorships in last three years: Nil Mr Daniel Smith holds a Bachelor of Arts, is a Fellow of the Governance Institute of Australia with a strong background in finance having previously worked in the broking industry. Mr Daniel Smith has 14 years’ primary and secondary capital markets expertise and has advised on and been involved in a number of IPOs, RTOs and capital raisings on the ASX, AIM and NSX. Mr Smith is a non-executive director of Alien Metals Limited, White Cliff Minerals Limited and Nelson Resources Limited, non-executive director and company secretary of Europa Metals Limited, QX Resources Limited and Lachlan Star Limited, and is company secretary of a number of companies on ASX and NSX. Interest in Securities as at the date of this report: Unlisted options: 4,750,000 Directorships in last three years: Nil Artemis Resources Limited Annual Financial Report 2022 39 DIRECTORS’ REPORT DR SIMON DOMINY Non-Executive Director Dr Simon Dominy is Adjunct Professor at the Western Australian School of Mines (WASM), Curtin University, and a Visiting Associate Professor at the Camborne School of Mines (CSM), University of Exeter, UK. Dr Dominy is a mining geologist-engineer with over 25 years’ experience based in mine operations, consulting and academia. He has worked on a number of gold projects in Australia particularly in WA, QLD and VIC, and across Europe, the Americas, and Africa. Since 2015 he has been working with several of private and listed entities developing/operating gold projects including: MG Gold Ltd; Novo Resources Corporation (TSV: NVO); Scotgold Resources Ltd (AIM: SGZ) and OCX Gold Group. Between 2004-2014 he was an Executive Consultant/General Manager with the Snowden Group based in Australia and UK, including two years contracted out to Lion Gold Corporation (SGX: A78). (“FAusIMM”) and Dr Dominy is a Fellow of the Australasian Institute of Mining and Metallurgy Institute of Geoscientists (“FAIG”). Over the past 20 years he has acted as a Competent/Qualified Person on numerous mineral deposits globally. the Australian VIVIENNE POWE Non-Executive Director Interest in Securities as at the date of this report: Unlisted options: 2,000,000 Directorships in last three years: Nil Mrs Powe was appointed a Director of the Company on 4 July 2022. Vivienne is a metallurgical engineer and highly experienced senior executive with a strong track record of creating shareholder value in top tier, global mining services and oil & gas companies. Mrs Powe is currently Chief Executive Officer, Investments for Perenti Group (ASX: PRN). Prior to joining Perenti, she has served in senior executive and leadership roles in private and listed organisations which have included Global Advanced Metals, BHP, Iluka Resources, Woodside Energy and Renison Goldfields Consolidated. Mrs Powe’s expertise spans operations, project development and M&A across a wide range of commodities. Mrs Powe holds a Bachelor of Engineering degree (Metallurgical Engineering, with Distinction) from the Royal Melbourne Institute of Technology, a Graduate Diploma in Applied Finance & Investment from FINSIA and a Master of Business Administration (Technology Management) from Deakin University. Interest in securities at the date of this report: Unlisted options 2,000,000 Directorships in last three years: Nil Artemis Resources Limited Annual Financial Report 2022 40 DIRECTORS’ REPORT GUY ROBERTSON Mr Robertson was appointed a director on 17 January 2022. Mr Robertson has over 30 years’ experience as a Director, CFO and Company Secretary of both public (ASX- listed) and private companies in both Australia and Hong Kong. He has had significant experience in due diligence, acquisitions, IPOs and corporate management. Mr Robertson has a Bachelor of Commerce (Hons) and is a Chartered Accountant. He is a director of Hastings Technology Metals Ltd, Metal Bank Limited, GreenTech Metals Limited and Bioxyne Limited. Interest in securities at the date of this report: Ordinary shares 4,000,002 Unlisted options 3,000,000 Directorships in last three years: Nil Company Secretary MR GUY ROBERTSON Mr Guy Robertson was appointed Company Secretary on 12 November 2009. Significant Changes in State of Affairs There were no significant changes in the state of affairs of the Company during the year. Principal Activities The principal activity of the Company during the financial year was mineral exploration. There have been no significant changes in the nature of the Company’s principal activities during the financial year. Significant Events after Balance Sheet Date Mrs Vivienne Powe was appointed a non-executive director on 4 July 2022. Other than as outlined above there are currently no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect the operations the Group, the results of those operations, or the state of affairs of the Group in the future financial years. Likely Future Developments and Expected Results The primary objective of Artemis is to explore its current tenements in Australia with a view to determining an economically viable gold resource at Paterson Central and a viable gold/copper/cobalt resource for processing at the Fox Radio Hill processing plant. Artemis Resources Limited Annual Financial Report 2022 41 DIRECTORS’ REPORT Performance in relation to Environmental Regulation The Group will comply with its obligations in relation to environmental regulation on its projects when it undertakes exploration. The Directors are not aware of any breaches of any environmental regulations during the period covered by this Report. Operating Results and Financial Review The loss of the Group after providing for income tax amounted to $7,529,345 (2021: loss of $10,483,611). The loss position for the year includes non-cash items comprising a write off of exploration costs of $4,696,301 (2021: $7,113,105), fair value loss on financial assets of $165,883 (2021: Gain of $708,289), and share based payments in the amount of $112,200 (2021: $1,401,000). The Group’s operating income decreased to $33,389 (2021: $133,815), given the reduction in Government COVID assistance, while the gain on sale of projects amounted to $1,734,962. The Group’s expenses decreased to $9,297,696 (2021: $11,297,045). The carrying value of exploration and development costs decreased to $27,323,626 (2021: $28,603,617) reflecting exploration undertaken during the year and the impairment of the carrying costs of exploration on the Company’s projects. The development expenditure has increased to $27,420,924 (2021: $23,473,919) reflecting refurbishment on the Radio Hill Plant which remains on care and maintenance and an increase in the provision for rehabilitation of $3,810,136. Dividends Paid or Recommended The Directors do not recommend the payment of a dividend and no dividend has been paid or declared to the date of this Report. Directors’ Meetings The number of Directors' meetings (including committees) held during the year and the number of meetings attended by each director were as follows: Name of Director Mark Potter Alastair Clayton Edward Mead Daniel Smith Simon Dominy Guy Robertson Board Meetings Audit Committee Meetings Remuneration Committee Meetings Attended Held Attended Held Attended Held 10 10 9 7 9 4 10 10 10 10 10 5 2 - - 2 2 - 2 - - 2 2 - 2 - - 2 2 - 2 - - 2 2 - Held represents the number of meetings held during the time the director held office or was a member of the relevant committee. Artemis Resources Limited Annual Financial Report 2022 42 DIRECTORS’ REPORT Indemnifying Officers In accordance with the Constitution, except as may be prohibited by the Corporations Act 2001, every officer or agent of the Company shall be indemnified out of the property of the Company against any liability incurred by him or her in his or her capacity as officer or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal. The Company paid insurance premiums of $55,500 on 17 August 2022 in respect of a contract insuring the directors and officers of the Group against any liability incurred in the course of their duties to the extent permitted by the Corporations Act 2001. The insurance premiums relate to: • • Costs and expenses incurred by the relevant officers in defending legal proceedings, whether civil or criminal and whatever their outcome; and Other liabilities that may arise from their position, with the exception of conduct involving wilful breach of duty or improper use of information to gain a personal advantage. Proceedings on behalf of the Company As at publication date, no person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceeding to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2022 has been received and can be found on page 43 of the financial report. Audit and Non-Audit Services Details on the amounts paid or payable to the auditor (HLB Mann Judd) for audit and non- audit services during the year are disclosed in note 24. This Report is made in accordance with a resolution of the Directors. Mark Potter Chairman 30 September 2022 Artemis Resources Limited Annual Financial Report 2022 43 REMUNERATION REPORT REMUNERATION REPORT – AUDITED The remuneration report, which has been audited, outlines the key management personnel remuneration arrangements for the Company, in accordance with the requirements of the Corporations Act 2001 and its regulations. The remuneration report is set out under the following main headings: A. Principles used to determine the nature and amount of remuneration B. Details of remuneration C. Service agreements D. Share-based compensation E. Additional disclosures relating to key management personnel A. Principles used to determine the nature and amount of remuneration The Board’s policy for determining the nature and amount of remuneration for Board members and officers is as follows: • • • • • The remuneration policy, which sets the terms and conditions (where appropriate) for the executive directors and other senior staff members, was developed by the Remuneration Committee and ultimately approved by the Board; In determining competitive remuneration rates, the Remuneration Committee may seek independent advice on local and international trends among comparative companies and industries generally. The Remuneration Committee examines terms and conditions for employee incentive schemes, benefit plans and share plans. Independent advice may be obtained to confirm that executive remuneration is in line with market practice and is reasonable in the context of Australian executive reward practices. No remuneration consultants were retained by the Group during the year; The Company is a mineral exploration company, and therefore speculative in terms of performance. Consistent with attracting and retaining talented executives, directors and senior executives, such personnel are paid market rates associated with individuals in similar positions within the same industry. Options and performance incentives may be issued particularly as the Company moves from commercialisation to a producing entity and key performance indicators such as profit and production can be used as measurements for assessing executive performance; Given the early stage of the Company’s projects it is not meaningful to track executive compensation to financial results and shareholder wealth. It is also not possible to set meaningful specific objective performance criteria for directors as this stage; All remuneration paid to directors and officers is valued at the cost to the Company and expensed. Where appropriate, shares given to directors, executives and officers are valued as the difference between the market price of those shares and the amount paid by the director or executive. Options are valued using the Black-Scholes methodology; and Artemis Resources Limited Annual Financial Report 2022 44 REMUNERATION REPORT A. Principles used to determine the nature and amount of remuneration (continued) • The policy is to remunerate non-executive directors and officers at market rates for comparable companies for time, commitment and responsibilities. Given the evolving nature of the Group’s business, the Board, in consultation with independent advisors, determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. The maximum aggregate amount of fees that can be paid to non-executive directors is $500,000 per annum. Fees for non-executive directors and officers are not linked to the performance of the Company. However, from time to time and subject to obtaining all requisite shareholder approvals, the directors and officers will be issued with securities as part of their remuneration where it is considered appropriate to do so and as a means of aligning their interests with shareholders. B. Details of remuneration (i) Details of Directors and Key Management Personnel Current Directors Mark Potter – Non-Executive Chairman (appointed 24 February 2020) Alastair Clayton – Executive Director (appointed 29 January 2020) Edward Mead – Non-Executive Director (appointed 31 December 2014) Daniel Smith – Non-Executive Director (appointed 5 February 2019) Simon Dominy – Non-Executive Director (appointed 1 July 2021) Guy Robertson – Executive Director (appointed 17 January 2022) Vivienne Powe – Non-Executive Director (appointed 4 July 2022) Key Management Personnel Stephen Boda – General Manager Exploration Except as detailed in Notes (i) – (ii) to the Remuneration Report, no Director has received or become entitled to receive, during or since the financial period, a benefit because of a contract made by the Company or a related body corporate with a Director, a firm of which a Director is a member or an entity in which a Director has a substantial financial interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by Directors and shown in Notes (i) – (ii) to the Remuneration Report, prepared in accordance with the Corporations Regulations 2001, or the fixed salary of a full- time employee of the Company. Artemis Resources Limited Annual Financial Report 2022 45 REMUNERATION REPORT B. Details of remuneration (continued) (ii) Remuneration of Directors and Key Management Personnel The Remuneration Committee and the Board will assess the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality Board and executive team. Remuneration of the Key Management Personnel of the Group is set out below. Total Performance based FY21/22 Name Share Based Payments Bonus $ $ Post Employment Super- Contribution $ Base Salary and Fees $ $ M. Potter A. Clayton E. Mead D. Smith S. Dominy G. Robertson S. Boda - - - - - - 182,379 328,105 48,336 53,961 54,024 108,000 307,999 100,000 1,082,804 100,000 - - - - 81,600 - 7,650 89,250 182,379 - 328,105 - 48,336 - 53,961 - 135,624 - 108,000 - 24,042 439,691 24,042 1,296,096 % - - - - - - 24% 8% FY20/21 Name M. Potter A. Clayton E. Mead D. Smith B. Timler¹ A. Younger S. Boda Base Salary and Fees Share Based Payments $ 125,132 328,535 188,225 50,004 $ 948,900 452,100 - - 228,591 177,192 55,974 - - - 1,153,653 1,401,000 Post Employment Super- Contribution $ Total $ - - - - 16,562 16,833 2,679 36,074 1,074,032 780,635 188,225 50,004 245,153 194,025 58,653 2,590,727 ¹Includes termination payment of $93,191, on resignation on 24 May 2021. Performance based % 88% 58% - - - - - 54% Artemis Resources Limited Annual Financial Report 2022 46 REMUNERATION REPORT C. Service agreements Component Non-executive Chairman Executive Director¹ Non-executive directors Fixed remuneration $120,000 $350,000 $60,000 Contract duration Ongoing Ongoing Ongoing Notice by the individual/company 1 month 3 months 1 month All Board members have letters of appointment, with remuneration and terms as stated. ¹Executive Director, Alastair Clayton. Guy Robertson, Executive Director, CFO and Company Secretary receives an annual fee of $120,000. The General Manager Exploration has a contract providing for a gross salary of $308,000 plus superannuation. The contract has a three-month notice period. The General Manager Exploration received a bonus of $100,000 for the year ended 30 June 2022 for meeting performance milestones. D. Share-based compensation Options The terms of each grant of options affecting remuneration in the previous, current or future reporting periods are as follows: Date option granted Expiry date of Shares option Exercise price Number under 1 May 2020 31 July 2022 5 cents 43,500,000 1 May 2020 31 July 2023 7 cents 43,500,000 2 December 2020 2 December 2023 18 cents 5,000,000 2 December 2020 2 December 2025 25 cents 5,000,000 20 December 2021 20 December 2024 15 cents 2,000,000 Artemis Resources Limited Annual Financial Report 2022 47 REMUNERATION REPORT D. Share-based compensation (continued) Options Options granted as remuneration to Key Management Personnel in the previous and current reporting periods: Name Date of grant Expiry date Number under options Grant date value Vesting date² Mark Potter 1 May 2020 31 July 2022 5,000,0003 $65,050 31 July 2020 Alastair Clayton 1 May 2020 31 July 2022 30,000,0003 $390,300 31 July 2020 Edward Mead 1 May 2020 31 July 2022 3,750,0003 $48,787 30 April 2020 Daniel Smith 1 May 2020 31 July 2022 4,750,0003 $61,798 30 April 2020 Mark Potter 1 May 2020 31 January 2023 5,000,0004 $75,350 24 February 2021 Alastair Clayton 1 May 2020 31 January 2023 30,000,0004 $452,100 29 January 2021 Edward Mead 1 May 2020 31 January 2023 3,750,0004 $56,512 1 May 2020 Daniel Smith 1 May 2020 31 January 2023 4,750,0004 $71,583 1 May 2020 Mark Potter 1 December 2020 1 December 2023 5,000,0005 $406,150 1 December 2021 Mark Potter 1 December 2020 1 December 2025 5,000,0006 $467,400 1 December 2021 Boyd Timler 30 September 2020 30 September 2022 2,500,0007 $134,200 Boyd Timler 30 September 2020 30 September 2023 2,500,0008 $142,650 N/A N/A Simon Dominy 20 December 2021 20 December 2024 2,000,0009 $81,600 30 June 2022 The assessed fair value at grant date of options granted to the individuals is allocated equally over the period from grant date to vesting date, and the amount is included in the remuneration tables above. Fair values at the grant date are independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution the share price at grant date and expected price volatility of the underlying shares, the expected dividend yield and the risk-free interest rate for the term of the option. ²Vesting dates are between one and two years from date of appointment. 3Exercise price $0.05, value per option $0.01301 Exercise price $0.07, value per option $0.01507 5Exercise price $0.18, value per option $0.08123, value fully expensed in financial year 30 June 2021 ⁴ 6Exercise price $0.25, value per option $0.09348, value fully expensed in financial year 30 June 2021 7Exercise price $0.10, value per option $0.05368 8Exercise price $0.125, value per option $0.05706 9Exercise price $0.15, value per option $0.0408 All equity dealings with Directors have been entered into with terms and conditions no more favourable than those that the entity would have adopted if dealing at arm’s length. Artemis Resources Limited Annual Financial Report 2022 48 REMUNERATION REPORT D. Share-based compensation (continued) Performance rights On the 30 December 2021 the Company issued 6 million performance rights to employees and consultants of the Company. The hurdles for the performance rights, which have a performance end date of 31 December 2022 are as follows: 1. 3,000,000 performance rights to vest on the share price achieving a 30-day VWAP in period of $0.025 (tranche 1 rights); 2. 3,000,000 performance rights to vest on Carlow Castle mineral resource reaching 1.0m oz Au equivalent (tranche 2 rights). The performance rights were valued by 22 Corporate, Tranche 1 were valued using a Monte Carlo Simulation Methodology (MCSM) and Tranche 2 using the Black-Scholes model. The following assumptions were used in the valuation: Underlying share price Exercise price Term (years) Risk-free rate Dividend yield Volatility 30-day VWAP hurdle Performance Period End Date Fair value per right Number of rights Tranche 1 $0.081 $nil 1 0.279% Nil 90.0% $0.25 31/12/2022 $0.0204 3,000,000 Tranche 2 $0.081 $nil 1 0.279% Nil 90.0% n/a 31/12/2022 $0.0810 3,000,000 E. Additional disclosures relating to key management personnel Shares held by Directors and Key Management Personnel FY21/22 Name M. Potter A. Clayton E. Mead D. Smith S. Dominy G. Robertson¹ S. Boda Balance at the beginning of the year Received as remuneration Purchased/Net Change Other - 2,000,000 4,483,870 - - - - 4,983,870 - - - - - - - - - 5,250,000 - - - 4,000,002 - 9,250,002 Balance at resignation/ the end of year - 7,250,000 4,483,870 - - 4,000,002 - 15,733,872 ¹Shares held at date of appointment 17 January 2022 Artemis Resources Limited Annual Financial Report 2022 49 REMUNERATION REPORT E. Additional disclosures relating to key management personnel (continued) Options and performance rights held by Directors and Key Management Personnel FY21/22 Name Options M. Potter A. Clayton E. Mead D. Smith S. Dominy G. Robertson S.Boda FY21/22 Name Performance Rights S.Boda Balance at appointment/ the beginning of the year 20,000,000 60,000,000 7,500,000 9,500,000 - - - 97,000,000 Received as remuneration Net Change Other - - - - 2,000,000 - - 2,000,000 Balance at resignation/ the end of year 20,000,000 60,000,000 7,500,000 9,500,000 2,000,000 - - 99,000,000 - - - - - - - - Balance at appointment/ the beginning of the year Received as remuneration Net Change Other Balance at resignation/ the end of year - - 1,500,000 1,500,000 - - 1,500,000 1,500,000 There are no other performance rights held by management personnel. No performance rights were issued during the prior year. Other transactions with key management personnel Doraleda Pty Ltd1 Integrated CFO Solutions Pty Ltd2 Minerva Corporate Pty Ltd3 Kiran Capital Advisors Limited4 30 June 2022 $ 48,336 108,000 97,711 - 254,047 1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest. 2 Company secretary fees $98,000 and director fees $10,000 paid to Integrated CFO Solutions Pty Ltd, a company in which Mr Guy Robertson has an interest. 3 Director fees $53,961 (2021: $50,004) and accounting fees $43,750 (2021: $83,996) paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith has an interest. 4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest. END OF AUDITED REMUNERATION REPORT Artemis Resources Limited Annual Financial Report 2022 50 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the consolidated financial report of Artemis Resources Limited for the year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) any applicable code of professional conduct in relation to the audit. Perth, Western Australia 30 September 2022 B G McVeigh Partner 51 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 Revenue Cost of sales Fair value (loss)/gain on financial assets Gain on disposal of exploration projects Personnel costs Occupancy costs Legal fees Consultancy costs Notes 3 9 13 Compliance and regulatory expenses 4 (1,482,494) Directors’ fees Travel Marketing expenses Borrowing costs Other expenses Project and exploration expenditure write off Share-based payments Foreign exchange loss LOSS BEFORE INCOME TAX Income tax expense/benefit LOSS FOR THE YEAR Other comprehensive income, net of tax TOTAL COMPREHENSIVE LOSS FOR THE YEAR LOSS FOR THE YEAR ATTRIBUTABLE TO: Owners of the parent entity TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO: Owners of the parent entity Consolidated 30 June 2022 $ 30 June 2021 $ 33,389 133,815 - (165,883) 1,734,962 (313,386) (94,142) (31,638) (626,247) (616,804) (53,842) (38,617) 708,289 9,946 (56,375) (33,540) (546,610) (471,802) (140,710) (920,675) (9,440) 13 25 5 (103,295) (232,106) - (28,461) (461,931) (342,811) (4,696,301) (7,113,105) (112,200) (1,401,000) (539,533) (409) (7,529,345) (10,483,611) - (7,529,345) - - (10,483,611) - (7,529,345) (10,483,611) (7,529,345) (10,483,611) (7,529,345) (10,483,611) Basic loss per share - cents Diluted loss per share - cents 23 23 (0.58) (0.58) (0.93) (0.93) The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes Artemis Resources Limited Annual Financial Report 2022 52 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 CURRENT ASSETS Cash and cash equivalents Other receivables Assets held for sale Other financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Intangible assets Right-of-use assets Exploration and evaluation expenditure Development expenditure TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Current lease liabilities Employee benefits obligation TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Lease liabilities Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Share capital Reserves Accumulated losses TOTAL EQUITY Consolidated 30 June 2022 $ 6,106,222 282,701 - 6,283,560 12,672,483 95,741 3,523 153,980 27,323,626 27,420,924 54,997,794 67,670,277 30 June 2021 $ 9,082,554 309,546 1,600,000 533,542 11,525,642 90,507 33,732 - 26,603,617 23,473,919 50,201,775 61,727,417 2,931,542 44,140 39,473 3,015,155 2,643,864 - 2,170 2,646,034 109,311 5,223,259 5,332,570 8,347,725 59,322,552 - 1,413,123 1,413,123 4,059,157 57,668,260 114,927,239 2,725,913 (58,330,600) 59,322,552 105,855,802 3,376,640 (51,564,182) 57,668,260 Notes 6 7 8 9 10 11 12 13 14 15 12 16 12 17 18 19 The consolidated statement of financial position should be read in conjunction with the accompanying notes. Artemis Resources Limited Annual Financial Report 2022 53 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 Consolidated Issued Capital Reserves Accumulated Losses Total Equity Balance at 1 July 2021 Loss for the year Total comprehensive loss for the year Issue of shares Cost of share issue Lapse of options Share-based payments Balance at 30 June 2022 $ $ $ $ 105,855,802 3,376,640 (51,564,182) 57,668,260 - - 9,508,026 (436,589) - - - - - - (7,529,345) (7,529,345) (7,529,345) (7,529,345) - - 9,508,026 (436,589) (762,927) 762,927 - 112,200 - 112,200 114,927,239 2,725,913 (58,330,600) 59,322,552 Consolidated Issued Capital Reserves Accumulated Losses Total Equity $ $ $ $ 92,294,878 3,257,318 (42,105,810) 53,446,386 Balance at 1 July 2020 Loss for the year Total comprehensive loss for the year Issue of shares Cost of share issue Lapse of options - - 14,359,343 (1,054,858) - - - - (10,483,611) (10,483,611) - - - (1,025,239) 1,025,239 Conversion of options 256,439 (256,439) Share-based payments Balance at 30 June 2021 - 1,401,000 105,855,802 3,376,640 (51,564,182) 57,668,260 (10,483,61 1) (10,483,61 1) 14,359,343 (1,054,858) - - 1,401,000 - - The consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Artemis Resources Limited Annual Financial Report 2022 54 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Receipts from government assistance NET CASH USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments Payments for purchase of plant and equipment Payments for exploration and evaluation Payment for development expenditure Payments for purchase of investments Proceeds on sale of project NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Cost of share issue Exercise of options Repayment of short-term loan Repayment of lease liabilities NET CASH PROVIDED BY FINANCING ACTIVITIES Consolidated 30 June 2022 $ 30 June 2021 $ 19,989 (3,893,173) 1,216 7,146 (3,864,822) 308,598 (62,021) (7,950,756) (136,869) (224,499) 500,000 (7,565,547) 9,443,279 (436,589) - - (13,120) 8,993,570 26 27 27 35,000 (2,082,967) 7,404 105,970 (1,934,593) 7,406,323 (9,750,122) (59,765) (508,942) 369,000 (2,543,506) 12,599,475 (608,828) 1,313,838 (116,671) (40,824) 13,146,990 Net (decrease)/increase in cash held Cash at the beginning of the period Effects of exchange rate changes on the balance of cash held in foreign currencies (2,436,799) 9,082,554 8,668,891 412,138 (539,533) 1,525 CASH AT THE END OF THE YEAR 6 6,106,222 9,082,554 The consolidated statement of cash flows is to be read in conjunction with the accompanying notes. Artemis Resources Limited Annual Financial Report 2022 55 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial report is a general-purpose financial report prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Standards Board, International Financial Reporting Standards as issued by the International Accounting Standards Board and the requirements of the Corporations Act 2001. The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated. The consolidated financial statements have been prepared on the basis of historical costs, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise stated. The financial statements are presented in Australian dollars which is Artemis Resources Limited’s functional and presentation currency. These financial statements were authorised for issue on 30 September 2022. Basis of Consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: • has power over the investee; • is exposed, or has rights, to variable returns from its involvement in with the investee; and • has the ability to its power to affect its returns. The Company reassess whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements listed above. When the Company has less than a majority of the voting rights if an investee, it has the power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights are sufficient to give it power, including: • the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; Artemis Resources Limited Annual Financial Report 2022 56 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • potential voting rights held by the Company, other vote holders or other parties; rights arising from other contractual arrangements; and • any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholder meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in subsidiaries. Any difference between the amount paid by which the non-controlling interests are adjusted, and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between: • • The aggregate of the fair value of the consideration received and the fair value of any retained interest; and The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by the applicable AASBs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under AASB 139, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. Business Combinations Business combinations occur where an acquirer obtains control over one or more businesses. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired, and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions). When measuring the consideration transferred in the business combination, any asset or included. liability resulting from a contingent consideration arrangement Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent is also Artemis Resources Limited Annual Financial Report 2022 57 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date. All transaction costs incurred in relation to the business combination are expensed to the consolidated statement of comprehensive income. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase. Right-of-use assets The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. Artemis Resources Limited Annual Financial Report 2022 58 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Adoption of New a Revised Accounting Standards or Interpretations In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and therefore, no material change is necessary to Group accounting policies. Any new, revised or amending Accounting Standards or Interpretations that are yet to be mandatory have not been early adopted. The Directors have also reviewed all the new and revised Standards and Interpretations in issue not yet adopted for the year ended 30 June 2022. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted by the Company. Going Concern For the year ended 30 June 2022, the Group recorded a loss of $7,529,345 (2021: Loss of $10,483,611) and had net cash outflows from operating activities of $3,864,822 (2021: $1,934,593) and has a net working capital surplus of $9,657,329 as at 30 June 2021 (2021: $8,879,608). The Directors believe that it is reasonably foreseeable that the Company and Group will continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following factors: • • • • The Group has cash at bank of $6,106,222 and net assets of $59,322,552 as at 30 June 2022; The Company has raised $9,508,026 in new capital during the year and Directors are of the view that should the Company require additional capital it has the ability to raise further capital to enable the Group to meet scheduled exploration expenditure requirements and future plans on the development assets; The ability of the Group to scale back certain parts of their activities that are non- essential so as to conserve cash; and The Group retains the ability, if required, to wholly or in part dispose of interests in mineral exploration and development assets, and liquid investments. These factors indicate a material uncertainty which may cast significant doubt as to whether the Company and Group will continue as a going concern and therefore whether they will realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report. Artemis Resources Limited Annual Financial Report 2022 59 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income taxes The income tax expense (benefit) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to the statement of profit or loss and other comprehensive income is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses. Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. Artemis Resources Limited Annual Financial Report 2022 60 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Exploration and evaluation costs Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied: the rights to tenure of the area of interest are current; and • • at least one of the following conditions is also met:  the exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; or  exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years. Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site. Artemis Resources Limited Annual Financial Report 2022 61 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financial Instruments Recognition and initial measurement Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Classification and subsequent measurement All financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, all the financial assets, are classified as amortised cost. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of other receivables which is presented within other expenses. Financial assets at fair value through profit or loss (i) Financial assets designated at fair value through profit or loss (‘FVTPL’) are carried at fair value and any subsequent gains or losses are recognised in the statement of Profit or Loss and Other Comprehensive Income. (ii) Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL): • • they are held within a business model whose objective is to hold the financial assets to collect its contractual cash flows the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, and most other receivables fall into this category of financial instruments. Other receivables The Group makes use of a simplified approach in accounting for other receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix. The Group assess impairment of other receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due. Artemis Resources Limited Annual Financial Report 2022 62 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Classification and measurement of financial liabilities The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than derivative financial instruments that are designated and effective as hedging instruments). All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income. Plant and equipment Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment are measured on the cost basis. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Derecognition and disposal An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows: Plant and Equipment – ranging from 2 to 20 years The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. Impairment The carrying values of plant and equipment are reviewed for impairment at each balance in date, with circumstances indicate that the carrying value may be impaired. recoverable amount being estimated when events or changes Artemis Resources Limited Annual Financial Report 2022 63 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to approximate fair value. An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. For plant and equipment, impairment losses are recognised in the statement of profit or loss and other comprehensive income in the cost of sales line item. Intangible assets Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method is reviewed at the end of each annual reporting period, with any changes in these accounting estimates being accounted for on a prospective basis. Impairment of intangible assets other than goodwill The Group assesses at each balance date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. Development expenditure Development expenditures represent the accumulation of all exploration, evaluation and other expenditure incurred in respect of areas of interest in which mining is in the process of commencing. When the commencement of production, such expenditure is carried forward as part of the mine property only when substantial future economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of production. further development expenditure incurred after is Artemis Resources Limited Annual Financial Report 2022 64 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restoration and rehabilitation A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of development activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of abandoning sites, removing facilities and restoring the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each balance date. The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision for restoration and rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset. Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position. Trade and other payables Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. Trade and other payables are presented as current liabilities unless payment is not due within 12 months. Employee leave benefits Wages, salaries, annual leave and sick leave Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave expected to be settled within 12 months of the balance date are recognised in other payables in respect of employees’ services up to the balance date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. Artemis Resources Limited Annual Financial Report 2022 65 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave not expected to be settled within 12 months of the balance date are recognised in non-current other payables in respect of employees’ services up to the balance date. They are measured as the present value of the estimated future outflows to be made by the Group. Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value or management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense. Revenue recognition Interest revenue is recognised using the effective interest method. It includes the amortisation of any discount or premium. Borrowing costs Borrowing costs are recognised as an expense in the period in which they are incurred except borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period to get ready for its intended use or sale. In this case the borrowing costs are capitalised as part of the cost of such a qualifying asset. The amount of borrowing costs relating to funds borrowed generally and used for the acquisition of qualifying assets has been determined by applying a capitalisation rate to the expenditures on those assets. The capitalisation rate comprises the weighted average of borrowing costs incurred during the period. Equity settled compensation Share-based payments to employees are measured at the fair value of the instruments issued and amortised over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using the Black-Scholes pricing model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest. Artemis Resources Limited Annual Financial Report 2022 66 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the consolidated statement of financial position are shown inclusive of GST. Cash flows are presented in the consolidated statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Parent entity disclosures The financial information for the parent entity, Artemis Resources Limited, has been prepared on the same basis as the consolidated financial statements. Assets and Liabilities Held for Sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales for such asset (or disposal groups) and the sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a complete sale within one year from the date of classification. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in it former subsidiary, after the sale. Leases The group’s leasing activities and how these are accounted for: The group leases various offices with varying lengths from 1 to 3 years, some with extension options. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets. Leased assets may not be used as security for borrowing purposes. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed payments, less any lease incentives receivable. Artemis Resources Limited Annual Financial Report 2022 67 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leases (continued) Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right- of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group: • where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; • uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group; which does not have recent third-party financing; and • makes adjustments specific to the lease, e.g. term, country, currency and security. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability; • • any lease payments made at or before the commencement date less any lease incentives received; • any initial direct costs; and • restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases are recognised on a straight-line basis as an expense in profit or loss (unless capitalised as a component of Plant Construction in Progress). Short-term leases are leases with a lease term of 12 months or less. Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of Artemis Resources Limited Annual Financial Report 2022 68 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of estimates and judgements (continued) assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Exploration and evaluation, and development expenditure carried forward The Group capitalises expenditure relating to exploration and evaluation, and development, where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been determined, the Directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. The recoverability of the carrying amount of mine development expenditure carried forward has been reviewed by the Directors. In conducting the review, the recoverable amount has been assessed by reference to the higher of “fair value less costs to sell” and “value in use”. In determining value in use, future cash flows are based on: • Estimates of ore reserves and mineral resources for which there is a high degree of confidence of economic extraction; • Estimated production and sales levels; • Estimate future commodity prices; • Future costs of production; • Future capital expenditure; and/or • Future exchange rates. Variations to expected future cash flows, and timing thereof, could result in significant changes to the impairment test results, which in turn could impact future financial results. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a Black-Scholes model, using the assumptions detailed in Note 25. Fair value of financial instruments Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Provision for restoration and rehabilitation The provision for restoration and rehabilitation has been estimated based on quotes provided by third parties. The provision represents the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date. Artemis Resources Limited Annual Financial Report 2022 69 NOTES TO THE FINANCIAL STATEMENTS 2. SEGMENT INFORMATION AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segment and to assess its performance. The Group’s operating segments have been determined with reference to the monthly management accounts used by the Chief Operating Decision Maker to make decisions regarding the Group’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the Chief Operating Decision Maker. a. Description of segments The Board has determined that the Group has two reportable segments, being mineral exploration activities and development expenditure. The Board monitors the Group based on actual versus budgeted expenditure incurred by area of interest. The internal reporting framework is the most relevant to assist the Board with making decisions regard the Group and its ongoing exploration activities. Artemis Resources Limited Annual Financial Report 2022 70 NOTES TO THE FINANCIAL STATEMENTS 2. SEGMENT INFORMATION (CONTINUED) b. Segment information provided to the Board: Exploration Activities Development Activities Unallocated Total West Pilbara East Pilbara Other Projects Radio Hill Corporate $ $ $ $ $ $ 30 June 2022 Segment revenue Fair value loss on financial assets Segment expenses Project and exploration expenditure write off Reportable segment loss - - - (4,696,301) (4,696,301) - - - - - - - - - - - - - - - Reportable segment assets Reportable segment liabilities 20,328,519 - 4,915,951 - 2,079,156 - 27,420,924 5,223,259 Additions to non-current assets 5,285,613 2,248,774 1,046,962 3 947 005 30 June 2021 Segment revenue Fair value gain on financial assets Segment expenses Project and exploration expenditure write off Borrowing costs Reportable segment loss Reportable segment assets Reportable segment liabilities Additions to non-current assets - - - (7,113,105) - (7,113,105) 21,287,631 - 7,193,791 - - - - - - - - - - - - - - - - - - 2,596,883 - 2,247,146 2,719,103 - 597,630 23,473,919 1,413,123 59,765 33,389 33,389 (165,883) (2,700,550) - (2,833,044) 12,925,727 3,124,466 215,988 (165,883) (2,700,550) (4,696,301) (7,529,345) 67,670,277 8,347,725 12,744,342 133,815 133,815 708,289 (4,184,149) - (28,461) (3,370,506) 11,649,881 2,646,034 15,263 708,289 (4,184,149) (7,113,105) (28,461) (10,483,611) 61,727,417 4,059,157 10,113,595 Artemis Resources Limited Annual Financial Report 2022 71 NOTES TO THE FINANCIAL STATEMENTS 3. REVENUE Other revenue Government assistance – cash flow boost Other sundry income Interest received Consolidated 30 June 2022 $ 30 June 2021 $ - 32,173 1,216 33,389 74,093 52,318 7,404 133,815 4. COMPLIANCE AND REGULATORY EXPENSES Consolidated 30 June 2021 $ 30 June 2022 $ AIM listing expenses¹ Other regulatory costs 1,239,575 242,919 1,482,494 - 140,710 140,710 ¹The Company dual listed on the London AIM exchange on 7 February 2022. 5. INCOME TAXES (a) Income tax expense Current tax Deferred tax Income tax expense Consolidated 30 June 2022 $ 30 June 2021 $ - - - - - - (b) Income tax recognised in the statement of profit or loss and other comprehensive income Loss before tax Tax at 30% (2021: 30%) Tax effect on non-assessable income Tax effect of non-deductible expenses Exploration expenditure Timing differences not brought to account Income tax expense Consolidated 30 June 2022 $ (7,529,345) (2,258,804) - 83,425 1,408,891 766,488 - 30 June 2021 $ (10,483,611) (3,145,083) (212,487) 420,300 2,133,932 803,338 - Artemis Resources Limited Annual Financial Report 2022 72 NOTES TO THE FINANCIAL STATEMENTS Income Taxes (continued) (c) Deferred tax balances Deferred tax assets comprise: Tax losses carried forward Prior year adjustment Employee benefits obligation Provisions Deferred tax liabilities comprise: Capitalised exploration costs Net deferred tax asset unrecognised (d) Analysis of deferred tax assets Consolidated 30 June 2022 $ 30 June 2021 $ 15,886,778 - 11,842 1,566,977 17,465,597 8,197,088 8,197,088 9,268,509 10,706,790 1,592,017 651 423,937 12,723,395 8,491,085 8,491,085 4,232,310 Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to account at 30 June 2022 because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if: • the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss and exploration expenditure to be realised; • the Group continues to comply with conditions for deductibility imposed by law; and • no changes in tax legislation adversely affect the company in realising the benefit from the deductions for the loss and exploration expenditure. The applicable tax rate is the national tax rate in Australia for companies, which is 25% at the reporting date. 6. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash on hand and account balances with banks and investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents included in the consolidated statement of cash flows comprise the following amounts: Consolidated 30 June 2022 $ 30 June 2021 $ Cash and cash equivalents 6,106,222 9,082,554 7. OTHER RECEIVABLES Other receivables GST receivables Prepayments Consolidated 30 June 2022 $ 30 June 2021 $ 93,694 10,982 178,025 282,701 12,580 156,057 140,909 309,546 The value of trade and other receivables considered by the Directors to be past due or impaired is nil (2021: Nil). Artemis Resources Limited Annual Financial Report 2022 73 NOTES TO THE FINANCIAL STATEMENTS 8. ASSETS HELD FOR SALE Consolidated 30 June 2022 $ 30 June 2021 $ Assets held for sale - 1,600,000 In the 2021 financial year the Company entered into a binding option agreement with GreenTech Metals Limited (GreenTech) to sell GreenTech non-core tenements with a carrying value of $1.6 million in cash and shares in GreenTech. The transaction was completed in the current financial year. 9. OTHER FINANCIAL ASSETS Current Fair Value Through Profit or Loss Shares in listed equity securities (Level 1) Movement in other financial assets Opening balance Additions - cash Additions - non-cash1 Disposals Fair value (loss)/gain Closing balance Consolidated 30 June 2022 $ 30 June 2021 $ 6,283,560 533,542 Consolidated 30 June 2022 30 June 2021 $ 533,542 224,499 6,000,000 (308,598) (165,883) 6,283,560 $ 6,586,551 508,942 136,083 (7,406,323) 708,289 533,542 ¹ The Company sold Artemis’ 70% joint venture interest in the Munni Munni platinum group metals project to Alien Metals Limited (LON:UFO) (Alien) a company incorporated in the United Kingdom and listed on the London Stock Exchange (LSE), for 358,617,818 shares in UFO at GBP0.08 per share for an amount of $4,650,000. The sale realised a profit of $2,263,931. During the financial year the Company sold non-core tenements to GreenTech Metals Limited (ASX:GRE) for 6,750,000 shares in GRE at $0.20 for an amount of $1,350,000 and a recovery of exploration expenditure in the amount of $250,000. During the 2021 financial year, the Group sold tenements with a carrying value of $494,977 for proceeds of $369,000 in cash and 37,357,190 shares in Alien. Artemis Resources Limited Annual Financial Report 2022 74 NOTES TO THE FINANCIAL STATEMENTS 10. PLANT AND EQUIPMENT Consolidated 30 June 2022 $ 30 June 2021 $ Computer equipment - at cost Less: Accumulated depreciation Total computer equipment at net book value Furniture and fittings - at cost Less: Accumulated depreciation Total furniture and equipment at net book value Motor vehicles – at cost Less: Accumulated depreciation Total motor vehicles at net book value 81,814 (54,705) 27,109 115,319 (88,815) 26,504 52,855 (10,727) 42,128 60,347 (23,591) 36,756 114,085 (62,534) 51,551 2,950 (750) 2,200 Total plant and equipment 95,741 90,507 Reconciliation of movement during the year Reconciliations of the carrying amounts for each class of plant and equipment are set out below: Computer equipment: Carrying amount at the beginning of the year - Addition - Depreciation Carrying amount at the end of the year Furniture and fittings Carrying amount at the beginning of the year - Addition - Disposal - Depreciation Carrying amount at the end of the year Motor vehicles Carrying amount at the beginning of the year - Additions - Amortisation Carrying amount at the end of the year Consolidated 30 June 2022 $ 30 June 2021 $ 36,756 8,532 (18,179) 27,109 51,551 2,820 (1,585) (26,282) 26,504 2,200 50,655 (10,727) 42,128 43,659 4,376 (11,279) 36,756 71,844 10,887 - (31,180) 51,551 2,200 - - 2,200 Artemis Resources Limited Annual Financial Report 2022 75 NOTES TO THE FINANCIAL STATEMENTS 11. INTANGIBLE ASSETS Consolidated 30 June 2022 $ 30 June 2021 $ Computer Software - at cost Less: Accumulated amortisation Total computer software at net book value 151,262 (147,739) 3,523 151,262 (117,530) 33,732 Reconciliation of movement during the year: Computer Software: Carrying amount at the beginning of the year - Disposal - Amortisation Carrying amount at the end of the year 12. LEASES Consolidated 30 June 2022 $ 30 June 2021 $ 33,732 - (30,209) 3,523 71,676 (103) (37,841) 33,732 Amounts recognised in the balance sheet: Consolidated 30 June 2022 $ 30 June 2021 $ Right-of-use assets Offices Total right-of-use assets Lease liabilities Current Non-current Total right-of-use liabilities Movement in right-of-use assets Right-of-use assets opening balance Add: New leases Less: Amortisation Right-of-use assets closing balance 153,980 153,980 44,140 109,311 153,451 - - - - - Consolidated 30 June 2022 $ 30 June 2021 $ - 166,571 (12,591) 153,980 35,442 - (35,442) - Artemis Resources Limited Annual Financial Report 2022 76 NOTES TO THE FINANCIAL STATEMENTS 12. LEASES (CONTINUED) Movement in lease liabilities Lease liability recognised at start of year New lease Add: Interest Expense Less: Principal repayment Closing balance Consolidated 30 June 2022 30 June 2021 $ - 166,571 2,999 (16,119) 153,451 $ 40,824 - 805 (41,629) - a) Amounts recognised in the statement of profit or loss: Depreciation charge of right-of-use assets Offices Total right-of-use assets Interest expense (included in finance cost) Expenses relating to short-term leases (included in administrative expenses) 30 June 2022 30 June 2021 $ $ 12,591 12,591 2,999 69,716 35,442 35,442 805 33,540 The total cash outflow for leases during the year ended 30 June 2022 was $13,120 (2021: $40,824). Artemis Resources Limited Annual Financial Report 2022 77 NOTES TO THE FINANCIAL STATEMENTS 13. EXPLORATION AND EVALUATION EXPENDITURE Consolidated 30 June 2022 $ 30 June 2021 $ Exploration and evaluation expenditure 27,323,626 26,603,617 Exploration and Evaluation Phase Costs Costs capitalised on areas of interest have been reviewed for impairment factors, such as resource prices, ability to meet expenditure going forward and potential resource downgrades. The Group has ownership or title to the areas of interest in respect of which it has capitalised expenditure and has reasonable expectations that its activities are ongoing. Reconciliation of movement during the year: Opening balance Expenditure capitalised in current period Carrying value of projects sold1 Exploration expenditure written off, other2 Transfer to assets held for sale Closing balance Consolidated 30 June 2022 $ 26,603,617 8,581,349 (3,165,038) (4,696,301) - 27,323,626 30 June 2021 $ 25,773,132 10,038,567 (494,977) (7,113,105) (1,600,000) 26,603,617 ¹ The Company sold its 70% joint venture interest in the Munni Munni platinum group metals project to Alien Metals Limited (LON:UFO) (Alien) a company incorporated in the United Kingdom and listed on the London Stock Exchange (LSE), for 358,617,818 shares in UFO at GBP0.08 per share for an amount of $4,650,000 and $250,000 in cash. The sale realised a profit of $2,263,931. In addition, during the financial year the Company sold non-core tenements to GreenTech Metals Limited (ASX:GRE) for 6,750,000 shares in GRE at $0.20 for an amount of $1,350,000, and recovery of expenditure in the amount of $250,000. $1,600,000 of Exploration Expenditure in relation to these assets was classified as held for sale at 30 June 2021. The sale resulted in a loss of $528,969. During the 2021 financial year, the Group sold tenements with a carrying value of $494,977 for proceeds of $369,000 in cash and 37,357,190 shares in Alien. 2The Group has rationalised the tenement/project portfolio during the year and has impaired the carrying value of those tenements/projects disposed of and impaired the carrying value of projects in excess of that deemed recoverable by the Directors. Exploration expenditure has been carried forward as that expenditure is expected to be recouped through successful development and exploration of the areas of interest. Artemis Resources Limited Annual Financial Report 2022 78 NOTES TO THE FINANCIAL STATEMENTS 14. DEVELOPMENT EXPENDITURE Development expenditure Reconciliation of movement during the year: Opening balance Additions Increase in rehabilitation provision (Note 17) Closing balance Impairment assessment Consolidated 30 June 2022 $ 27,420,924 30 June 2021 $ 23,473,919 Consolidated 30 June 2022 $ 23,473,919 136,869 3,810,136 27,420,924 30 June 2021 $ 23,414,154 59,765 - 23,473,919 There were no indicators of impairment for the year ended 30 June 2022. 15. TRADE AND OTHER PAYABLES Consolidated 30 June 2022 $ 30 June 2021 $ Trade and other payables 2,931,542 2,643,864 16. EMPLOYEE BENEFITS OBLIGATIONS Opening balance Provision for the year Benefits used or paid Closing balance Consolidated 30 June 2022 $ 2,170 57,994 (20,691) 39,473 30 June 2021 $ 10,133 - (7,963) 2,170 Artemis Resources Limited Annual Financial Report 2022 79 NOTES TO THE FINANCIAL STATEMENTS 17. PROVISIONS Provision for restoration and rehabilitation Reconciliation of movement for the year Opening balance Increase in rehabilitation provision Closing balance Consolidated 30 June 2022 $ 5,223,259 30 June 2021 $ 1,413,123 1,413,123 3,810,136 5,223,259 1,413,123 - 1,413,123 During the year the Group revised its provision for restoration and rehabilitation to account for changes in inflation and discount rates. This resulted in an increase in the provision. The increase has been capitalised in the development asset. 18. SHARE CAPITAL Consolidated Consolidated 30 June 2022 No. of Shares No. of Shares 30 June 2021 30 June 2022 30 June 2021 $ $ Issued and Paid-up Capital Ordinary shares, fully paid 1,388,330,984 Reconciliation of movement during the year: 1,254,997,561 114,927,239 105,855,802 2022 Shares 2022 $ 2021 Shares 2021 $ 1,254,997,651 105,855,802 1,033,819,481 92,294,878 133,333,333 9,508,026 79,992,856 5,599,475 - - - - - 116,666,667 7,000,000 - - (436,589) 17,922,980 6,595,667 - 1,313,838 446,030 (1,054,858) - 1,388,330,984 - 114,927,239 - 1,254,997,651 256,439 105,855,802 Opening balance Shares issued to investors for Placement Shares issued to investors for Placement Shares issued on exercise of options Shares issued to advisors Share issue costs Transfer of share based payments on conversion of options Closing balance Term of Issue: Ordinary Shares Ordinary shares participate in dividends and are entitled to one vote per share at shareholders meetings. In the event of winding up the Company, ordinary shareholders rank after creditors and are entitled to any proceeds of liquidation in proportion to the number of shares held. Artemis Resources Limited Annual Financial Report 2022 80 NOTES TO THE FINANCIAL STATEMENTS 19. RESERVES Consolidated Consolidated 30 June 2022 No. of options/rights 30 June 2021 30 June 2022 30 June 2021 No. of options/rights $ $ Share based payments Options Performance rights 138,729,195 6,000,000 145,300,624 - 2,695,313 30,600 2,725,913 3,376,640 - 3,276,640 No options were exercised during the year. The unlisted options issued during the year or the prior year were valued using the Black- Scholes model. The options outstanding as at 30 June 2022 were determined on the date of grant using the following assumptions: Grant date Exercise price ($) Expected volatility (%) Risk-free interest rate (%) Expected life (years) Series 6 22/07/2019 0.08 100 0.935 3 Share price at this date ($) 0.029 Fair value per option ($) Number of options 0.0121 10,000,000 Series 7 01/05/2020 0.04 100 0.63 3 0.031 0.0181 1,000,000 Class A Director Class B Director 1/05/2020 0.05 89 0.64 2.4 1/05/2020 0.07 103 0.63 2.9 0.032 0.032 0.01301 43,500,000 0.0151 43,500,000 Class G Director Class E Director Class F Director Class A Broker Class B Broker Grant date 20/12/2021 2/12/2020 2/12/2020 01/05/2020 01/05/2020 Exercise price ($) Expected volatility (%) Risk-free interest rate (%) Expected life (years) Share price at this date ($) Fair value per option ($) Number of options 0.15 95 0.391 3 0.086 0.0408 2,000,000 0.18 93 0.142 3 0.15 0.08123 5,000,000 0.25 93 0.142 5 0.15 0.07053 5,000,000 0.05 89 0.64 2.2 0.031 0.0117 7,500,000 0.07 103 0.63 3.2 0.031 0.0154 7,500,000 On the 30 December 2021 the Company issued 6 million performance rights to employees and consultants of the Company. The hurdles for the performance rights, which have a performance end date of 31 December 2022 are as follows: 1. 3,000,000 performance rights to vest on the share price achieving a 30-day VWAP in period of $0.025 (tranche 1 rights); 2. 3,000,000 performance rights to vest on Carlow Castle mineral resource reaching 1.0m oz Au equivalent (tranche 2 rights). Artemis Resources Limited Annual Financial Report 2022 81 NOTES TO THE FINANCIAL STATEMENTS 19. RESERVES (CONTINUED) The performance rights were valued by 22 Corporate, Tranche 1 were valued using a Monte Carlo Simulation Methodology (MCSM) and Tranche 2 using the Black-Scholes model. The following assumptions were used in the valuation: Underlying share price Exercise price Term (years) Risk-free rate Dividend yield Volatility 30-day VWAP hurdle Performance Period End Date Fair value per right Number of rights Tranche 1 $0.081 $nil 1 0.279% Nil 90.0% $0.25 31/12/2022 $0.0204 3,000,000 Tranche 2 $0.081 $nil 1 0.279% Nil 90.0% n/a 31/12/2022 $0.0810 3,000,000 On this basis the tranche 1 rights have been valued at $0.0204 per right and tranche 2 rights have been valued at $0.081 per right. The total value of the tranche 1 performance rights of $61,200 will be expensed over the performance period. No vesting expense has been recorded for tranche 2 rights as at balance date it is seen as unlikely that these rights will vest. For the year ended 30 June 2022, the Group has recognised $112,200 (2021: $1,401,000) of share-based payment expense in the income statement in relation to share options and performance rights issued. 20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Board of Directors takes responsibility for managing financial risk exposures of the Group. The Board monitors the Group’s financial risk management policies and exposures and approves financial transactions. It also reviews the effectiveness of internal controls relating to commodity price risk, counterparty credit risk, currency risk, liquidity risk and interest rate risk. The Board meets approximately bi-monthly at which these matters are reviewed. The Board’s overall risk management strategy seeks to assist the Group in meeting its financial targets, while minimising potential adverse effects on financial performance. Its review includes the use of hedging derivative instruments, credit risk policies and future cash flow requirements. The Company’s principal financial instruments comprise cash, short term deposits and securities in Australian or International listed companies. The main purpose of the financial instruments is to earn the maximum amount of interest at a low risk to the company. The Company also has other financial instruments such as trade debtors and creditors which arise directly from its operations. The main risks arising from the Company’s financial instruments are interest rate risk, credit risk, foreign exchange risk, commodity risk and liquidity risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below: Artemis Resources Limited Annual Financial Report 2022 82 NOTES TO THE FINANCIAL STATEMENTS 20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) (i) Interest Rate Risk The Company’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate for each class of financial assets and financial liabilities. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the following financial assets and liabilities: FY2022 Carrying Amount Effect on profit before tax Effect on pre-tax equity +1% -1% +1% -1% Financial Assets Cash and cash equivalents1 Trade and other receivables2 Other financial assets5 6,106,222 61,062 (61,062) 61,062 (61,062) 282,701 - - - - 6,283,560 12,672,483 - 61,062 - (61,062) - 61,062 - (61,062) Financial liabilities Trade and other payables3 Financial Liabilities4 2,931,542 153,451 2,084,993 Total increase/(decrease) - - - 61,062 - - - (61,062) - - - 61,062 - - - (61,062) FY2021 Carrying Amount Effect on profit before tax Effect on pre-tax equity +1% -1% +1% -1% 9,082,554 90,826 (90,826) 90,826 (90,826) Financial Assets Cash and cash equivalents1 Trade and other receivables2 Other financial assets5 Financial liabilities Trade and other payables3 309,546 533,542 9,925,642 2,643,864 2,643,864 Total increase/(decrease) - - - - - 90,826 - (90,826) - 90,826 - (90,826) - - - - - 90,826 - (90,826) - 90,826 - (90,826) Artemis Resources Limited Annual Financial Report 2022 83 NOTES TO THE FINANCIAL STATEMENTS 20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) 1 Cash and cash equivalents are denominated in both AUD and GBP. No funds were held in foreign currencies in 2021. The weighted average interest rate for the year ended 30 June 2022 was 0.00% (2021: 0.03%). No other financial assets or liabilities are interest bearing. 2 Trade and other receivables are denominated in AUD and are not interest bearing. 3 Trade and other payables at balance date are denominated mainly in AUD and are not interest bearing. 4 Financial liabilities are lease liabilities and are not interest bearing. 5 Other financial assets are designated in AUD and are non-interest bearing. (ii) Credit Risk Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the Company’s maximum exposure to credit risk. (iii) Foreign Exchange Risk The Company had the following British Pound denominated assets and liabilities at year end. Cash Cash and cash equivalents Consolidated 30 June 2022 30 June 2021 2,593,744 - The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate, with other variables held constant. Net impact of strengthening/(weakening) of AUD on GBP assets/liabilities outlined above Change in GBP rate Effect on profit before tax Effect on pre- tax equity FY2022 FY2021 +5% -5% +5% -5% 129,687 (129,687) - - 129,687 (129,687) - - The following tables demonstrate the sensitivity to a reasonably possible change in CAD exchange rate, with other variables held constant. Artemis Resources Limited Annual Financial Report 2022 84 NOTES TO THE FINANCIAL STATEMENTS 20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) (iv) Market Risk The Company’s listed investments are affected by market price volatility. The following table shows the effect of market price changes. Change in year end price +5% -5% +5% -5% Effect on profit before tax $ Effect on pre- tax equity $ 314,178 (314,178) 26,677 (26,677) 314,178 (314,178 26,677 (26,677) FY2022 FY2021 (v) Liquidity Risk The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, convertible notes and finance leases. Cash flows from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management’s expectations that banking facilities will roll forward. The following tables below reflect an undiscounted contractual maturity analysis for financial liabilities. FY2022 Within 1 year 1 to 5 years Over 5 years Total Financial liabilities due for payment Trade and other payables Lease liabilities Total contractual outflows 2,931,542 44,140 2,975,682 - 109,311 109,311 Cash and cash equivalents Trade and other receivables Other financial assets Total anticipated inflows Net inflow on financial instruments 6,106,222 282,701 6,283,560 12,672,483 9,696,801 - - - - - - - - - - - - - 2,931,542 153,451 3,084,993 6,106,222 282,701 6,283,560 12,672,483 9,587,490 FY2021 Within 1 year 1 to 5 years Over 5 years Total Financial liabilities due for payment Trade and other payables Financial liabilities Total contractual outflows Cash and cash equivalents Trade and other receivables Other financial assets Total anticipated inflows Net inflow on financial instruments 2,643,864 - 2,643,864 9,082,554 309,546 533,542 9,925,642 7,281,778 - - - - - - - - - - - - - - - - 2,643,864 - 2,643,864 9,082,554 309,546 533,542 9,925,642 7,281,778 Artemis Resources Limited Annual Financial Report 2022 85 NOTES TO THE FINANCIAL STATEMENTS 20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) Management and the Board monitor the Group’s liquidity reserve on the basis of expected cash flow. The information that is prepared by senior management and reviewed by the Board includes: (i) Annual cash flow budgets; (ii) Monthly rolling cash flow forecasts. (vi) Net Fair Value The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective net fair values, determined in accordance with the accounting policies disclosed in Note 1. 21. COMMITMENTS FOR EXPENDITURE The Group currently has commitments for expenditure at 30 June 2022 on its Australian exploration tenements as follows: Not later than 12 months Between 12 months and 5 years Greater than 5 years Consolidated 30 June 2022 $ 30 June 2021 $ 656,820 2,776,060 400,900 3,833,780 1,196,013 2,317,722 1,181,899 4,695,634 The Company evaluates its tenements and exploration program on an annual basis and may elect not to renew tenement licences if it deems appropriate. Artemis Resources Limited Annual Financial Report 2022 86 NOTES TO THE FINANCIAL STATEMENTS 22. RELATED PARTY DISCLOSURES (a) Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Group’s Key Management Personnel for the year ended 30 June 2022. Key Management Personnel for the year ended 30 June 2022 comprised the Directors and the General Manager Exploration. (b) The total remuneration paid to Key Management Personnel of the Company and the Group during the year are as follows: Short term employee benefits Share based payment Superannuation Consolidated 30 June 2022 $ 30 June 2021 $ 1,182,804 89,250 24,042 1,296,096 1,153,653 1,401,000 36,074 2,590,727 (c) Remuneration options and performance rights: As at 30 June 2022, the outstanding options and performance rights that were granted to key Management Personnel in previous and current reporting periods comprised of 99,000,000 options and 1,500,000 performance rights. (d) Share and option holdings: All equity dealings with directors have been entered into with terms and conditions no more favourable than those that the entity would have adopted if dealing at arm’s length. (e) Related party transactions Doraleda Pty Ltd1 Integrated CFO Solutions2 Minerva Corporate Pty Ltd3 Kiran Capital Advisors Limited4 Consolidated 30 June 2022 $ 30 June 2021 $ 48,336 108,000 97,711 - 254,047 188,225 - 134,000 16,666 338,891 1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest. 2 Company secretary fees $98,000 and director fees $10,000 paid to Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest. 3 Director fees $53,961 (2021: $50,004) and accounting fees $43,750 (2021: $83,996) paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith has an interest. 4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest. Artemis Resources Limited Annual Financial Report 2022 87 NOTES TO THE FINANCIAL STATEMENTS 23. EARNINGS PER SHARE The calculation of basic earnings and diluted earnings per share at 30 June 2022 was based on the loss attributable to shareholders of the parent company of $7,529,345 (2021: Loss $10,483,611): Basic loss per share Diluted loss per share Weighted average number of ordinary shares: Used in calculating basic earnings per ordinary share Dilutive potential ordinary shares Used in calculating diluted earnings per share 24. AUDITOR’S REMUNERATION Auditor of parent entity Audit fees – HLB Mann Judd Taxation services 25. SHARE-BASED PAYMENTS Consolidated 30 June 2022 $ (0.58) (0.58) 30 June 2021 $ (0.93) (0.93) No of Shares No of Shares 1,307,235,094 1,131,789,115 - - 1,307,235,094 1,131,789,115 Consolidated 30 June 2022 $ 30 June 2021 $ 58,464 19,750 78,214 47,027 5,000 52,027 Goods or services received or acquired in a share-based payment transaction are recognised as an increase in equity if the goods or services were received in an equity- settled share-based payment transaction or as a liability if the goods and services were acquired in a cash settled share-based payment transaction. For equity-settled share-based transactions, goods or services received are measured directly at the fair value of the goods or services received provided this can be estimated reliably. If a reliable estimate cannot be made the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument granted. Transactions with employees and others providing similar services are measured by reference to the fair value at grant date of the equity instrument granted. Options issued to Key Management Personnel during the year are outlined in the remuneration report. Artemis Resources Limited Annual Financial Report 2022 88 NOTES TO THE FINANCIAL STATEMENTS 25. SHARE-BASED PAYMENTS (CONTINUED) The following share-based payment arrangements were in place during the prior and current financial year: Instruments Date granted Expiry date Exercis e price No. of instruments 2021 No. of instruments 2020 Fair value at grant date Options Options Options Options Options Options Options Options Options Options 30 November 2018 21 November 2021 24 May 2019 22 July 2019 1 May 2020 1 May 2020 31 July 2022 31 July 2022 1 May 2023 31 July 2022 1 May 2020 31 January 2023 1 May 2020 1 May 2020 31 July 2022 31 July 2023 2 December 2020 2 December 2023 2 December 2020 2 December 2025 Options¹ 30 September 2020 Lapsed Options¹ 30 September 2020 Lapsed 0.21 8,571,429 8,571,429 0.0800 0.08 0.08 0.04 0.05 0.07 0.05 0.05 0.18 0.25 0.10 0.125 13,729,195 13,729,195 10,000,000 20,000,000 1,000,000 4,000,000 43,500,000 43,500,000 43,500,000 43,500,000 7,500,000 7,500,000 7,500,000 7,500,000 5,000,000 5,000,000 5,000,000 5,000,000 0.0165 0.0121 0.0181 0.0130 0.0151 0.0130 0.0151 0.0812 0.0935 - - 2,500,000 0.0537 2,500,000 0.0571 Options 20 December 2021 20 December 2023 0.15 2,000,000 - 0.0408 ¹Options lapsed on resignation of Boyd Timler in the prior year Movement in share-based arrangements on issue (a) Options Balance at beginning of year Options granted during the year Options exercised Options forfeited/lapsed during the year Balance at end of year Number of instruments 30 June 2022 30 June 2021 145,300,624 2,000,000 - (8,571,429) 138,729,195 158,663,462 15,000,000 (17,922,980) (10,439,858) 145,300,624 Options exercisable at end of year 138,729,195 145,300,624 Artemis Resources Limited Annual Financial Report 2022 89 NOTES TO THE FINANCIAL STATEMENTS 25. SHARE BASED PAYMENT (CONTINUED) Expenses arising from share-based payment transactions Total expenses arising from share-based payment transactions recognised during the year: Options – directors Performance rights – employees and consultants Consolidated 30 June 2022 $ 81,600 30,600 30 June 2021 $ 1,401,000 - 112,200 1,401,000 26. RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO LOSS AFTER INCOME TAX Loss after income tax Depreciation and amortisation Exploration and project expenditure written off Share based payments Profit on sale of exploration assets Fair value loss/(gain) on financial assets Unrealised foreign exchange gain Changes in current assets and liabilities during the financial period: Decrease/(increase) in receivables Increase in trade and other payables Net cash outflow from operating activities Consolidated 30 June 2022 $ (7,529,345) 97,988 4,696,301 112,200 (1,734,962) 165,883 - 30 June 2021 $ (10,483,611) 115,742 7,113,105 1,401,000 (9,946) (708,289) 409 26,844 300,269 (3,864,822) (139,407) 776,404 (1,934,593) Artemis Resources Limited Annual Financial Report 2022 90 NOTES TO THE FINANCIAL STATEMENTS 27. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES FY2022 Opening balance Non-cash new lease Cash repayment Closing balance FY2021 Opening balance Cash repayment Closing balance Lease liability $ - 166,571 (13,120) 153,451 Lease liability $ 40,824 (40,824) - Short term loan $ 116,671 (116,671) - Artemis Resources Limited Annual Financial Report 2022 91 NOTES TO THE FINANCIAL STATEMENTS 28. PARENT ENTITY DISCLOSURE (a) Financial position Total current assets Total Non-Current Assets Total Assets Total current liabilities Total non-current liabilities Total Liabilities Net Assets Equity Share capital Reserves Accumulated Losses Loss for the year Other comprehensive income Total comprehensive loss (b) Commitments Exploration commitments Not later than 12 months Between 12 months and 5 years 30 June 2022 $ 30 June 2021 $ 12,371,950 2,558,801 14,930,751 2,632,467 109,311 2,474,778 9,745,340 3,264,949 13,010,289 2,263,539 - 2,263,539 12,188,973 10,746,750 114,927,239 2,725,913 (105,464,179) 12,188,973 (6,978,488) (6,978,488) 105,855,802 3,376,639 (98,485,691) 10,746,750 (11,559,292) - (11,559,292) - - - - - - Artemis Resources Limited Annual Financial Report 2022 92 NOTES TO THE FINANCIAL STATEMENTS 29. SUBSIDIARIES Country of Incorporation Ownership % 30 June 2022 30 June 2021 Parent Entity: Artemis Resources Limited Subsidiaries: Fox Radio Hill Pty Limited Karratha Metals Limited KML No 2 Pty Limited Armada Mining Pty Limited Shearzone Mining Pty Limited¹ Western Metals Pty Limited1 Elysian Resources Pty Limited Hard Rock Resources Pty Limited Artemis Graphite Pty Ltd Artemis Management Services Pty Ltd Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia - 100 100 100 100 - - 100 100 100 100 - 100 100 100 100 100 80 100 100 100 100 1 Shearzone Mining Pty Ltd, held a 34% interest in tenements M47/232 and M47/93. Exploration expenditure of $115,091 was written off in the prior year. The Group had no carrying value in this entity at the date of disposal. Western Metals Pty Ltd, held an 80% interest is M47/223. Exploration expenditure of $522,047 was written off in the prior year. The Group had no carrying value in this entity at the date of sale to GreenTech Metals Limited (Note 13). Consolidated The parent entity with the Group is Artemis Resources Limited which is the ultimate parent entity in Australia. Transactions with subsidiaries Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. 30. FINANCIAL INSTRUMENTS The Directors consider that the carrying amounts of current receivables and current payables (except for Note 16. Financial liabilities) are a reasonable approximation of their fair values. 31. CONTINGENT LIABILITIES AND CONTINGENT ASSETS There are no contingent liabilities or contingent assets since the last annual reporting period. 32.EVENTS SUBSEQUENT TO 30 JUNE 2022 Mrs Vivienne Powe was appointed as a non-executive director on 4 July 2022. Other than as outlined above, there are currently no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect the operations the Group, the results of those operations, or the state of affairs of the Group in the future financial years. Artemis Resources Limited Annual Financial Report 2022 93 DIRECTORS DECLARATION 1. In the opinion of the Directors of Artemis Resources Limited: a. the accompanying financial statements and notes are in accordance with the Corporations Act 2001 including: i. giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for the year then ended; and ii. complying with Australian Accounting Standards, the Corporations Regulations 2001, professional reporting requirements and other mandatory requirements. b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. c. the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. 2. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2022. This declaration is signed in accordance with a resolution of the Board of Directors. Alastair Clayton Executive Director 30 September 2022 Artemis Resources Limited Annual Financial Report 2022 94 INDEPENDENT AUDITOR’S REPORT To the Members of Artemis Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Artemis Resources Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive income the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw attention to Note 1 in the financial report, which indicates that a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. 95 Key Audit Matter How our audit addressed the key audit matter Carrying value of Development Expenditure Refer to Note 14 The Group has development expenditure of $27,420,924 in relation to construction of the Radio Hill Gold Recovery Circuit Processing Facility for the Carlow Castle Project, this represents a significant asset to the Group. We considered it necessary to assess whether facts and circumstances existed to suggest that the carrying amount of the development expenditure asset may exceed its recoverable amount. Development expenditure was determined to be a key audit matter as it is important to the users’ understanding of the financial statements as a whole and was an area which involved the most audit effort and communication with those charged with governance. Our procedures included but were not limited to the following: - We obtained an understanding of the key associated with management’s review of the carrying value; processes - We considered Directors’ assessment of potential indicators of impairment; the - We conducted our own assessment of potential indicators of impairment; - We enquired with management, reviewed ASX announcements and reviewed minutes of Directors’ meetings; and - We assessed the appropriateness of the disclosures included in the financial report. Capitalised Exploration and Evaluation Expenditure Refer to Note 13 In accordance with AASB 6 Exploration for and the Group Evaluation of Mineral Resources, capitalises exploration and evaluation expenditure and as at 30 June 2022 had a deferred exploration and evaluation expenditure balance of $27,323,626. the users’ understanding of Exploration and evaluation expenditure was determined to be a key audit matter as it is important to financial statements as a whole and was an area which involved the most audit effort and communication with those charged with governance. the Our procedures included but were not limited to: - Obtained an understanding of the key processes with management’s review of the carrying value of exploration and evaluation expenditure; associated - Considered the Directors’ assessment of potential indicators of impairment in addition to making our own assessment; - Obtained evidence that the Group has current rights to tenure of its areas of interest; - Considered the nature and extent of planned ongoing activities; - Substantiated a sample of expenditure supporting to by documentation; and agreeing - Examined the disclosures made in the annual report. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. 96 In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: − Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. − Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. − Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. − Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. − Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. 97 We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included the directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Artemis Resources Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. HLB Mann Judd Chartered Accountants Perth, Western Australia 30 September 2022 B G McVeigh Partner 98 ADDITIONAL INFORMATION Australian Securities Exchange Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report. The information was prepared based on share registry processed up to 16 September 2022. Distribution of shareholders The distribution of shareholdings as at 16 September 2022 was: Holdings Range Report Artemis Resources Limited Security Class: As at Date: ARV - ORDINARY FULLY PAID SHARES 16-Sep-2022 Holding Ranges above 0 up to and including 1,000 above 1,000 up to and including 5,000 above 5,000 up to and including 10,000 above 10,000 up to and including 100,000 above 100,000 Totals Holders 218 642 640 1,769 753 4,022 Total Units 54,658 2,032,689 5,159,795 69,783,943 1,311,299,899 1,388,330,984 % Issued Share Capital 0.00% 0.15% 0.37% 5.03% 94.45% 100.00% Substantial shareholders The names of the substantial shareholders in the Company, the number of equity securities to which each substantial holder’s associates have a relevant interest, as disclosed in substantial holding notices given to the Company are: Holders Name No of shares % of Issued Capital Jupiter Investment Management Limited 91,744,955 7.31% Artemis Resources Limited Annual Financial Report 2022 99 ADDITIONAL INFORMATION Australian Securities Exchange Top twenty (20) largest holders ordinary share ARV - ORDINARY FULLY PAID SHARES Security class: As at date: 16-Sep-2022 Display top: 20 Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Holder Name CITICORP NOMINEES PTY LIMITED COMPUTERSHARE CLEARING PTY LTD HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMS PTY LTD BENNELONG RESOURCE CAPITAL PTY LTD BATTLE MOUNTAIN PTY LIMITED BNP PARIBAS NOMINEES PTY LTD CYGNUS 1 NOMINEES PTY LTD SORRENTO RESOURCES PTY LTD GUN CAPITAL MANAGEMENT PTY LTD DEUTSCHE BALATON AKTIENGESELLSCHAFT MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED INKESE PTY LTD BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM MR MARK ANTHONY LEE NATIONAL NOMINEES LIMITED MR RONALD WERNER NEUGEBAUER & MISS TESS CAITLIN NEUGEBAUER BRIAR PLACE PTY LIMITED MR KARL LUDWIG ANTHONY HAMANN & MRS LISA JANE HAMANN MR NEIL THACKER MACLACHLAN Total Holding 276,557,968 147,985,391 % IC 19.92% 10.66% 94,620,558 62,879,955 56,316,758 52,042,397 32,617,101 32,195,807 16,100,000 13,400,000 12,500,000 12,376,032 12,000,000 11,307,520 10,559,797 10,234,025 10,000,000 9,700,000 8,220,318 7,500,000 889,113,627 6.82% 4.53% 4.06% 3.75% 2.35% 2.32% 1.16% 0.97% 0.90% 0.89% 0.86% 0.81% 0.76% 0.74% 0.72% 0.70% 0.59% 0.54% 64.04% 100.00% Total issued capital - selected security class(es) 1,388,330,984 Artemis Resources Limited Annual Financial Report 2022 100 ADDITIONAL INFORMATION Australian Securities Exchange Unquoted securities ASX security code and description 43,500,000 1,000,000 7,500,000 5,000,000 5,000,000 2,000,000 25,000,000 Total number of +securities on issue .Class B Unlisted Director Options exercisable at 7 cents a share and expiry date 31 July 2023 Unlisted options exercisable at 4 cents per share before 1 May 2023. Class B Unlisted Advisor Options exercisable at 7 cents a share and expiry date 31 July 2023 Class E Director Options exercisable at 18 cents a share and expiry date 1 December 2023 Class F Director Options exercisable at 25 cents a share and expiry date 1 December 2025 Class G Options exercisable at 15 cents and expiry 20 December 2024 Director options exercisable at 5 cents with expiry 31 July 2025. The Company had 1,568 unmarketable parcels as at 16 September 2022. Artemis Resources Limited Annual Financial Report 2022 101

Continue reading text version or see original annual report in PDF format above