ARTG.V · 2020-11-05 12:00:00

Artemis Announces Results from Blackwater Economic Impact Study:

Corporate Updates

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

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

November 5, 2020 TSXV: ARTG

PRESS RELEASE

ARTEMIS ANNOUNCES RESULTS FROM BLACKWATER ECONOMIC IMPACT STUDY:

• 457 DIRECT JOBS CREATED - LIFE OF MINE OPERATIONS

• 825 DIRECT JOBS CREATED DURING CONSTRUCTION/EXPANSION PHASES

• $13.2 BILLION IN VALUE ADDED IN B.C. - LIFE OF MINE

• $2.3 BILLION IN PROVINCIAL GOVERNMENT REVENUES – LIFE OF MINE

All amounts are in Canadian Dollars unless otherwise noted

ARTEMIS GOLD INC. (TSXV: ARTG) (“Artemis” or the “Company”) is pleased to announce the results of

an Economic Impact Study (the “ Study”) conducted on the company’s Blackwater Gold project in

Central British Columbia, Canada (“Blackwater” or the “Project”).

The Company engaged KPMG to produce the Study to be used to measure the update d economic

benefits of the staged approach to the development of the Project. The Study focuses on job creation,

fiscal revenues, and overall econ omic wealth creation for the regions within and surrounding the

Project, the Province and for Canada.

The statistics produced in the Study are based on the base case scenario of the three- phased

development of the Project as reported in the Company’s Pre-Feasibility Study (“ PFS”) dated August

26, 2020 entitled “Blackwater Gold Project British Columbia NI 43 -101 Technical Report on Pre -

Feasibility Study” over a minimum 23 year mine life. The base case assumes:

• Initial development capital of $592 million to build a 5.5 million tonne per year mine (years 1-5)

• $426 million in capital costs to expand to 12 million tonnes per year (years 6-10)

• $398 million in capital costs to expand to 20 million tonnes per year (years 11-23)

The selected B.C. regions within the Study included the Bulkley -Nechako, Fraser- Fort George and

Cariboo. With a total capital investment of $1.5 billion (initial and expansion capital), Blackwater would

be one of the largest capital investments for the region in the last ten years.

The table s below provide a summary of the economic impact on the regions, the province and on

government revenues:

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

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

Table 1: Summary of total economic impact (direct, indirect and induced) on British Columbia stemming from

construction and operating activities of the Blackwater Mining Project 1

Over the LOM, in M$ and person-years, total and annual average

British Columbia Total Annual Average2

Overall construction activities would last 5 years (2 years initial phase followed by 2 expansion phases (15-18 months each)

Operating phase would last for 23 years

Value added (in M$) 13,234 -

Construction2 810 162

(over 5 years)

Operations 12,424 540

(over 23 years)

Note: Due to rounding, the sum of items may not add up to the total.

Source: Simulations of B.C. Stat based on data from Artemis, KPMG analysis

Table 2: Value-added and jobs stemming from the construction2 and operation of the Blackwater Project in

British Columbia

Direct

Effects

Indirect

Effects

Induced

Effects Total

In millions of dollars

Total value added during construction2 485 221 104 810

Value added per year during operations 419 100 21 540

In Full Time Equivalent

Jobs per year over 5 years of construction2 825 453 222 1,499

Jobs per year during operations 457 698 211 1,366

Note: Due to rounding, the sum of items may not add up to the total.

Source: Simulations of B.C. Stat based on data from Artemis; KPMG analysis

Table 3: Value-added and jobs stemming from the construction2 and operation of the Blackwater Project for the

B.C. regions under study

Cariboo, Bulkily-Nechako and Fraser-Fort

George Reginal Districts

Direct

Effects

Indirect

Effects

Induced

Effects Total

In millions of dollars

Total value added during construction2 186 107 43 335

Value added per year during operations 419 38 7 464

In Full Time Equivalent

Jobs per year over 5 years of construction2 563 148 82 792

Jobs per year during operations 457 197 71 726

Source: Simulations of B.C. Stat based on data from Artemis; KPMG analysis

1 Total impact includes direct, indirect and induced effects.

2 For construction, we assumed that the overall project, including initial phase and the 2 expansion phases, would take 60 months or

5 years, therefore, results may vary depending on the exact length of each phase. Also includes closure costs.

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

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

Table 4: Summary of total tax revenues stemming from construction and operating activities of the Blackwater

Mining Project (direct, indirect and induced)

Over the LOM, total and annual average

Government Revenues (in M$) Total Annual Average

Overall construction phase would last 5 years (2 years initial phase follow by 2 expansion phases (15-18 months each)

Operating phase would last for 23 years

Municipal government revenue 73 -

Construction 15 3.0

(over 5 years)

Operations 58

2.5

(over 23 years)

Provincial government revenue 2,290 -

Construction 105

(over 5 years)

Operations 2,185

(over 23 years)

Federal government revenue 1,513 -

Construction 110

(over 5 years)

Operations 1,403 61

(over 23 years)

Note: Due to rounding, the sum of items may not add up to the total. Does not include direct property taxes paid by the mine.

Source: Simulations of B.C. Stat based on data from Artemis, KPMG analysis

Steven Dean, Chairman and CEO commented “The results of the Economic Impact Study confirms what

the development of the Blackwater Gold Project will deliver as a new economic engine for central British

Columbia and Canada. After over seven years of the Project being diligently and respectfully advanced

through the environmental assessment process and reaching agreement with the Lhoosk’uz Dené and

Ulkatcho First Nations the environmental assessment was approved in 2019. Artemis continues to be

committed to the responsible advancement of the Blackwater Gold project. The Blackwater Project has

the potential to economically contribute at the local, provincial and federal level s for more than 25

years.”

Next Steps

The Company is focused on advancing the Project forward with the following priorities:

• Progression and achievement of final permitting required to commence construction;

• The commencement of a pre-Construction grade control drilling program;

• Negotiating and awarding of lump-sum fixed price EPC Contracts in respect of key components

of construction of the Project;

• Arrangement of requisite debt and equity financing to support development activities;

• Planning for a diamond drilling exploration program to test resource extensions where the

deposit remains open;

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

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

• Continuing engagement and consultation with other Indigenous groups who may be impacted

by the Project;

• Continuing work on a definitive Feasibility Study based on th e revised development approach

with detailed engineering of the Project;

Corporate Update – Tier Graduation – Supplemental Disclosure

On October 30, 2020, the Company announced that it has been approved for graduation from Tier 2 to

Tier 1 issuer status on the TSX Venture Exchange (the "TSXV") effective November 4, 2020.

As required disclosure under TSXV Policies and the escrow agreement between the Company and

Computershare Investor Services Inc. dated October 2, 2019 , the below table outlines the remaining

shares in escrow post graduation to Tier 1.

The remaining shares held in escrow are scheduled to be released on April 30, 2021.

ARTEMIS GOLD INC.

On behalf of the Board of Directors

“Steven Dean”

Chairman and Chief Executive Officer

+1 604 558 1107

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This news release contains certain “forward looking statements” and certain “forward- looking

information” as defined under applicable Canadian and U.S. securities laws. Forward- looking statements

and information can generally be identified by the use of forw ard-looking terminology such as “may”,

“will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, “potential” or similar

Insider

Shares in Escrow

Prior to Tier

Graduation

Shares to be Released

from Escrow within 10

Days of Bulletin

Shares in Escrow After

Tier Graduation

Steven Dean 2,333,360 1,361,126 972,234

Ryan Beedie 6,666,666 3,888,889 2,777,777

Chris Batalha 333,300 194,425 138,875

Bob Atkinson 1,000,200 583,450 416,750

David Black 333,300 194,425 138,875

Bill Armstrong 66,666 38,889 27,777

Total Insiders 10,733,492 6,261,204 4,472,288

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

Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]

www.artemisgoldinc.com

terminology. Forward-looking statements and information are not historical facts, are made as of the date

of this news release, and include, but are not limited to, statements regarding the Private Placement, the

proceeds and use of proceeds from the Private Placement and the closing of the Private Placement. These

forward-looking statements involve numerous ris ks and uncertainties and actual results may vary.

Important factors that may cause actual results to vary include without limitation, risks related to the

Private Placement, risks related to the ability of the Company to settle documentation and close the Private

Placement, and risks related to the Company’s ability to use the proceeds of the Private Placement as

anticipated. In making the forward- looking statements in this news release, the Company has applied

several material assumptions, including without limitation, the assumptions that: (1) the Private

Placement will be completed and proceeds used as expected by management; (2) the receipt of any

necessary approvals and consents; and (3) that the Company will be able to close the Private Placement

on the terms set out in this news release. The actual results or performance by the Company could differ

materially from those expressed in, or implied by, any forward- looking statements relating to those

matters. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking

statements will transpire or occur, or if any of them do so, what impact they will have on the results of

operations or financial condition of the Company. Except as required by law, the Company is under no

obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking

statement, whether written or oral, that may be made from time to time, whether as a result of new

information, future events or otherwise, except as may be required under applicable securities laws.

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