Artemis Announces Feasibility Study FOR Blackwater Project

3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

September 13, 2021 TSXV: ARTG

PRESS RELEASE

All amounts are in Canadian Dollars (or “C$”) unless otherwise noted

ARTEMIS ANNOUNCES FEASIBILITY STUDY FOR BLACKWATER PROJECT

• INDUSTRY LEADING AFTER-TAX NPV5% OF C$2.15 BILLION

• COMPELLING AFTER-TAX BASE CASE IRR OF 32% FOR A WORLD CLASS, LARGE SCALE,

ADVANCED DEVELOPMENT ASSET IN A TIER-ONE MINING JURISDICTION

• LEVERED AFTER-TAX IRR OF 43%

• YEARS 1-5: AVERAGE ANNUAL GOLD PRODUCTION UP 29% FROM THE 2020 PFS TO

321,000 OUNCES AT AISC OF US$578/oz, AVERAGE GRADE OF 1.62 g/t Au AND STRIP

RATIO OF 1.7:1

• YEARS 1-10: AVERAGE ANNUAL GOLD PRODUCTION OF 351,000 OUNCES AT AISC OF

US$643/oz

• LOM: AVERAGE ANNUAL GOLD PRODUCTION OF 339,000 OUNCES AT AISC OF

US$672/oz

• AFTER-TAX PAYBACK PERIOD OF 2 YEARS

• DE-RISKS CAPEX AND OPEX ESTIMATES & UPDATES FOR CURRENT PRICES

• A 9% INCREASE IN INITIAL DEVELOPMENT CAPITAL TO C$645 MILLION ACHIEVES A 9%

INCREASE IN INITIAL ANNUAL THROUGHPUT, COSTING UPDATED REFLECTS LARGER

CRUSHING CIRCUIT AND INVESTMENTS IN ESG

(Vancouver, September 13, 2021) Artemis Gold Inc. (“Artemis” or the “Company”) is pleased to announce

the results of its 2021 Feasibility Study (“ FS” or the “ Study”) for the staged development of the 100%

owned Blackwater Gold Project in central British Columbia (“Blackwater” or the “Project”).

The results of the Study supersede the 2020 Prefeasibility Study ( “2020 PFS”) dated August 26, 2020

entitled “Blackwater Gold Project British Columbia NI 43 -101 Technical Report on Pre -Feasibility Study”

filed on SEDAR by Artemis on September 18, 2020. The results of the FS reflect several positive changes

in the approach to the planned development of the Blackwater Project compared with the 2020 PFS. The

scope changes incorporated in the Study include:

• Higher initial throughput: Phase 1 throughput has been expanded 9% to 6 million tonnes per

annum (“Mtpa”) with a larger crushing circuit, providing greater operational throughput upside

potential in the early years, up from 5.5Mtpa in the 2020 PFS.

• Streamlined Phase 2 & 3 Expansions: a greatly reduced footprint of the FS Stage 1 facility, and

the installation of a higher -capacity gyratory crusher in the proposed Stage 1 development.

Importantly this allows for a streamlined and construction -ready approach to the Phase 2

Expansion throughput of 12Mtpa. The increase in up-front investment of C$53 million reduces

expansion capital to:

o C$347 million (a reduction of C$79 million from C$426 million in the 2020 PFS) for the

Phase 2 expansion to 12Mtpa

o C$374 million (a reduction of C$24 million from C$398 million in the 2020 PFS) for the

Phase 3 expansion to 20Mtpa

o Net impact is a slight increase in total life of mine (“LOM”) capital to fund the 3 Phases

of development to C$1,417 million, up from C$1,415 million in the 2020 PFS.

• Accelerated Phase 2 & Phase 3 expansions: Phase 2 expansion begins with an expansion to

9Mtpa in year 5 (up from 5.5Mtpa in year 5 in the 2020 PFS), ramping up to 12Mtpa in year 6.

Phase 3 expansion begins with an expansion to 15Mtpa in year 10 (up from 12Mtpa in year 10

in the 2020 PFS), ramping up to 20Mtpa in year 11;

• An Environment, Social Governance (“ESG”) commitment in the Stage 1 development phase:

an initial investment to replace diesel and propane-powered components within the proces s

plant facility reduces the carbon footprint of the Project;

• Phase 3 throughput of 20Mtpa is supported by two mineral processing trains, reduced from

three in the 2020 PFS: results in lower overall maintenance and labour costs, with improved

economies of scale at higher throughput rates;

• Estimate accuracy increased with reduced risk: the FS costing accuracy has improved to +15%

/-10% (from +25%/ -10% in the 2020 PFS) . Engineering undertaken in connection with the

guaranteed maximum price (“GMP”) memorandum of understanding (“MOU”) on each of the

process plant and the power transmission line have de-risked these components since the 2020

PFS. The achievement of negotiated fixed-price EPC contracts for these components of capital

cost (targeted for Q4 2021/Q1 2022) will also mitigate the potential for capital cost and

schedule overruns on up to approximately 50% of the initial development capital estimate;

• Compelling economics even after reflecting current inflationary pressures, timelines and

additional management driven environmental investments: the initial development capital

has increased 9% to C $645 million, up from C $592 million, which provides a 9% increase in

Phase 1 annual throughput, with current pricing, and environmental investments. The net

result is an after- tax net present value at a 5% discount rate ( “NPV5%“) of C$2.15 billion, an

after-tax Internal rate of return ( “IRR”) of 32%, and an after-tax payback period of 2.3 years ,

essentially in line with the 2020 PFS.

Key Economic Outputs of the Study

• Base case after-tax NPV5% of C$2.15 billion reflecting current market consensus long term forecast

gold price of US$1,600/oz and 0.79 USD/CAD exchange rate (C$2,025/oz, effectively the same C$

gold price as the 2020 PFS of C$2,028/oz) increasing to C$2.76 billion at a US$1,800/oz gold price;

• Base case a fter-tax IRR of 32%, approximating the 2020 PFS after-tax IRR of 35% after

incorporating higher initial development capital and ESG investments. Levered1 after-tax IRR of

43%;

• Initial development capital cost of C$645 million to develop a 6Mtpa Phase 1 open pit mining

and processing operation (up from a 5.5Mtpa operation in the 2020 PFS);

• Exceptional after-tax payback period on initial capital cost of 2.3 years;

• Optimized mine plan increases average grade t o 1.62 g/t Au over the first five years of

production, up from 1.57 g/t Au in the 2020 PFS, combined with average throughput of 6.6Mtpa

increases average annual gold production by 29% (compared with the 2020 PFS) to 321,000

ounces of gold at an all- in sustaining cash cost ( “AISC2”) of C$732/oz generating annual free

cash flow (“FCF3”) of C$301 million.

Annual Gold production and AISC over the LOM is presented in Table 1.

Table 1: Average Annual Gold Production, AISC and FCF For the Blackwater Gold Project

Period Average Annual Gold Production AISC2 Average Annual FCF3

Years 1-5 321,000 C$732 C$301m

Years 1-10 351,000 C$814 C$289m

Years 11-17 438,000 C$824 C$335m

Years 18-22 176,000 C$1,069 C$100m

LOM 339,000 C$850 C$240m

A summary of the technical and financial metrics of the S tudy in comparison with the 2020 PFS is

provided in the Table 2.

1 Levered case assumptions and parameters are disclosed under “Economic Results”. The levered case reflects the impact of debt.

Financing of the Project is not a measure of the economic viability and technical feasibility of the Project, but a measure of the

Company’s ability to secure debt financing for the Project.

2Please refer to Non-IFRS measures notice at the end of this news release for definition of AISC.

3 Free cash flow is calculated as project operating cash flow minus sustaining/closure capital and taxes

Table 2 – Key Results of the FS (including the New Gold Inc. Stream, defined below)

Description Unit Feasibility

Study

2020 PFS

Phase 1 Throughput Mtpa 6.0 5.5

Phase 2 Throughput Mtpa 12.0 12.0

Phase 2 Expansion Year 5 6

Phase 3 Throughput Mtpa 20.0 20.0

Phase 3 Expansion Year 10 11

Years 1-5 Average Annual Gold Production kozs 321 248

Average Annual Throughput Mtpa 6.6 5.3

Gold Grade g/t 1.62 1.57

Operating Strip Ratio* w:o 1.74 1.68

Operating Cost C$/t milled $29.18 $28.42

Cash Cost** C$/oz $554 $562

AISC** C$/oz $732 $668

Average Annual FCF*** C$M $301 $262

Years 6-10 Average Annual Gold Production kozs 381 420

Average Annual Throughput Mtpa 12.6 12.0

Gold Grade g/t 1.01 1.17

Operating Strip Ratio* w:o 1.99 1.92

Operating Cost C$/t milled $25.09 $23.30

Cash Cost** C$/oz $752 $602

AISC** C$/oz $884 $696

Average Annual FCF*** C$M $276 $351

Years 1-10 Average Annual Gold Production kozs 351 334

Average Annual Throughput Mtpa 9.6 8.7

Gold Grade g/t 1.22 1.29

Operating Strip Ratio* w:o 1.88 1.83

Operating Cost C$/t milled $26.50 $24.87

Cash Cost** C$/oz $661 $587

AISC** C$/oz $814 $686

Average Annual FCF*** C$M $289 $351

Years 11-17 Average Annual Gold Production kozs 438 442

Average Annual Throughput Mtpa 20.0 20.0

Gold Grade g/t 0.73 0.74

Operating Strip Ratio* w:o 2.17 2.17

Operating Cost C$/t milled $17.45 $18.28

Cash Cost** C$/oz $740 $784

AISC** C$/oz $824 $872

Average Annual FCF*** C$M $335 $318

Years 18-22 Average Annual Gold Production kozs 176 168

Average Annual Throughput Mtpa 19.7 17.9

Gold Grade g/t 0.30 0.31

Operating Strip Ratio* w:o n/a 0.17

Operating Cost C$/t milled $10.36 $11.04

Cash Cost** C$/oz $876 $923

AISC** C$/oz $1,069 $1,029

Average Annual FCF*** C$M $100 $102

Life of Mine Average Annual Production kozs 339 324

Average Annual Throughput Mtpa 15.2 14.5

Gold Grade g/t 0.75 0.75

Operating Strip Ratio* w:o 2.01 2.00

Operating Cost C$/t milled $17.96 $17.65

Cash Cost** C$/oz $720 $715

AISC** C$/oz $850 $811

Average Annual FCF*** C$M $240 $246

*Operational strip ratio is calculated as total waste mined divided by ore mined

**Please refer to non-IFRS measures notice at the end of this news release for definition of AISC.

***Free cash flow is calculated as project operating cash flow minus sustaining/closure capital and taxes

~Levered case assumptions and parameters are disclosed below under “Economic Results”. The Leveraged Case reflects

the impact of debt. Financing of the Project is not a measure of the economic viability and technical feasibility of the

Project, but a measure of the Company’s ability to secure debt financing for the Project.

The estimate of life of mine sustaining capital in the FS has increased by C$194 million to C$831 million

compared with the C$637 million estimate of sus taining capital in the 2020 PFS. The increase in

sustaining capital is a reflection of more accurate cost estimates related predominantly to the

continuous expansion of the tailings storage facility (“TSF”) and water management systems as well as

the cost of the replacement mining fleet over the LOM. The increase in sustaining capital over the life

of mine is the larger factor that contributed to an increase in the AISC to C$850/oz in the FS, up from

C$811/oz in the 2020 PFS.

The base case economics are calculated on an unlevered basis, based on a market consensus long term

gold price of US$1,60 0/oz, a silver price of US$21. 33/oz and a foreign exchange rate of CAD$1 =

USD$0.79. The economics include the effect of the Blackwater gold stream (the “Stream”), which was

issued to finance part of the acquisition cost of Blackwater by Artemis from New Gold Inc. (“New Gold”)

(refer to news release dated August 24, 2020). Under the terms of the Stream, New Gold will purchase

8.0% of the refined gold produced from the Project. Once 279,908 ounces of refined gold have been

delivered to New Gold, the gold stream will reduce to 4.0%. New Gold will make payments for the gold

purchased equal to 35% of the US dollar gold price quoted by the London Bullion Market Association

two days prior to delivery.

Description (continued) Unit Feasibility

Study

2020 PFS

Gold Recovery % 93% 93%

Recovered Ounces (Au) k oz 7,453 7,450

Silver Recovery % 65% 65%

Recovered Ounces (Ag) k oz 40,398 40,374

Cost Metrics

Initial Capital Cost C$M $645 $592

Deferred Capital Cost C$M $52 $0

Phase 2 Expansion Capital Cost C$M $347 $426

Phase 3 Expansion Capital Cost C$M $374 $398

Sustaining Capital Cost C$M $831 $637

Closure Capital Cost (net of salvage value) C$M $133 $75

LOM Operating Costs C$/t milled $17.96 $18

LOM Cash Costs C$/oz $720 $715

LOM AISC C$/oz $850 $811

Economic Results

After-Tax NPV(5%) C$M $2,151 $2,247

After-Tax IRR % 32.1% 35.0%

Levered After-Tax IRR~ % 42.8% 49.7%

Payback on Initial Capital Years 2.3 2.2

Gold Price US$/oz $1,600 $1,541

Silver Price US$/oz $21.33 $19.60

US$/CAD$ Exchange rate $0.79 $0.76

The figures and tables below show the sensitivity of after -tax NPV and IRR to changes in the US dollar

gold price and the CAD/USD exchange rate.

Figure 1 – Sensitivity of Base Case After-Tax NPV5% (C$ Billions) to Changes in US$ Gold Price Holding the

USD/CAD Exchange Rate Fixed at 0.79 (base case highlighted)

Table 3 – Sensitivity on Base Case After-Tax NPV5% (C$ Millions) to Changes in US$ Gold Price

and USD/CAD Exchange Rate (base case highlighted)

C$0.92

C$1.23

C$1.54

C$1.84

C$2.15

C$2.46

C$2.76

C$3.07

C$3.38

$1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000

NPV - C$ Billions

Gold Prices (US$/oz)

Base

Case

Spot Gold

US/CAD $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000

0.65 $1,785 $2,158 $2,530 $2,902 $3,275 $3,647 $4,019 $4,391 $4,763

0.70 $1,437 $1,784 $2,130 $2,476 $2,822 $3,168 $3,514 $3,859 $4,204

0.75 $1,133 $1,459 $1,783 $2,107 $2,429 $2,752 $3,075 $3,398 $3,720

0.79 $915 $1,228 $1,537 $1,844 $2,151 $2,458 $2,764 $3,070 $3,377

0.85 $626 $918 $1,209 $1,496 $1,782 $2,067 $2,352 $2,637 $2,922

0.90 $412 $691 $966 $1,241 $1,512 $1,782 $2,051 $2,320 $2,589

0.95 $218 $485 $749 $1,009 $1,269 $1,526 $1,781 $2,037 $2,291

US $ Gold Price

Figure 2 – Sensitivity of Base Case After-Tax IRR to Changes in US$ Gold Price Holding the USD/CAD

Exchange Rate Fixed at 0.79 (base case highlighted)

Table 4 – Sensitivity on Base Case After-Tax IRR to Changes in US$ Gold Price and USD/CAD Exchange

Rate (base case highlighted)

Figure 3 – Blackwater Gold Production and AISC Profile

18.2%

22.0%

25.6%

28.9%

32.1%

35.1%

38.0%

40.9%

43.7%

$1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000

Gold Prices (US$/oz)

Base

Case

Spot Gold

US/CAD $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000

0.65 28.1% 32.0% 35.7% 39.2% 42.6% 45.9% 49.2% 52.3% 55.3%

0.70 24.3% 28.2% 31.8% 35.2% 38.5% 41.7% 44.8% 47.8% 50.8%

0.75 20.9% 24.7% 28.2% 31.6% 34.8% 37.9% 40.9% 43.8% 46.7%

0.79 18.2% 22.0% 25.6% 28.9% 32.1% 35.1% 38.0% 40.9% 43.7%

0.85 14.5% 18.3% 21.8% 25.2% 28.3% 31.3% 34.1% 36.9% 39.6%

0.90 11.6% 15.4% 18.9% 22.3% 25.4% 28.3% 31.1% 33.8% 36.5%

0.95 8.6% 12.6% 16.2% 19.5% 22.6% 25.5% 28.3% 31.0% 33.6%

US $ Gold Price

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Years 1-5 Years 6-10 Years 11-17 Years 18-22

AISC

US$/oz of Gold

Avg. Annual Gold Production

Ounces of Gold

Gold Production AISC

FCF (C$M): $1,506 $1,380 $2,348 $501

Exp. Capex (C$M): $347 $374

Steven Dean, Chairman and CEO of Artemis commented: “Since the release of the 2020 PFS, Artemis

has been focused on optimizing and de -risking the Blackwater project, which has culminated in the

compelling economics outlined in the FS. Expanded Phase 1 throughput and an acceleration of the Phase

2 expansion supports a 29% increase in gold production over the first five years of operations and a 5%

increase in gold production over the first 10 years. By installing a larger capacity crushing circuit with a

primary gyratory crusher up front, the Phase 2 expansion has been streamlined with the addition of

major items such as an upgradable conveyor, an additional ball mill and additional tanks, which

supports the ultimate expansion to 20Mtpa i n two mineral processing trains, down from three in the

2020 PFS, improving economies of scale. The FS has a more constrained cost estimate accuracy, better

mitigates Project risk, reflects current costs, and reflects an inve stment in electrification of the process

plant in phase 1 to reduce the Project’s carbon footprint.”

“After applying this approach to the development of the Blackwater Project, the initial development capital

has increased to C$645 million, a 9% increase in line with the 9% increase in the initial throughput rate.

The FS base case economics demonstrate a payback period of two years, an after-tax IRR of 32% and an

NPV5% of C$2.15 billion based on a US$1,600/oz gold price, increasing to C$2.8 billion at a US$1,800/oz

gold price. We look forward to continuing to work with our partners, including the Lhoosk’uz Dené Nation,

Ulkatcho First Nation, the Carrier Sekani First Nations and Nazko First Nation and with the support of the

BC and Federal Governments, to further advance the Blackwater Project. With the FS now completed,

Blackwater continues to target a start of construction in Q2 2022, which puts the Project on track to

develop into a new tier 1 gold operation in Q1 2024.”

The Study

The Study was led by Ausenco Engineering Canada Inc. (“Ausenco”), together with the support of Knight

Piésold Ltd. (“KP”), Moose Mountain Technical Services (“MMTS”), Allnorth Consultants Ltd. (“Allnorth”),

Lorax Environmental Services Ltd. (“Lorax”), ERM Consultants Canada Ltd. (“ERM”) and JAT MetConsult

Ltd., all of which are independent of the Company.

The Company presented two cases as part of the FS: a base case which is unlevered, and an alternate

levered case which assumes C$360 million (plus up to C$25 million of capitalized interest) is funded

through project debt.

The Company set out to meet or exceed the economics of the Blackwater Project and improve the

accuracy and financeability of the Project against the 2020 PFS. Artemis’ methodology and approach

to development of the Project includes the following:

• Phase 1: increasing throughput to 6.0Mtpa, up from 5.5Mtpa in the 2020 PFS, increasing gold

production while maintaining an average grade of 1.62 g/t Au over the first five years of

operations;

• Phase 2: acceleration of the Phase 2 expansion to 12Mtpa ramping up to 9Mtpa in year five

with full Phase 2 throughput expansion achieved in year six;