Mr. Steven Dean reports

ARTEMIS GOLD PROVIDES Q4 UPDATE ON BLACKWATER MINE CONSTRUCTION PROGRESS

Artemis Gold Inc. has provided an update on fourth-quarter construction progress at the Blackwater mine in central British Columbia. The project remains fully financed, within the guidance for initial capital expenditure, and on schedule for first gold pour in the second half of 2024.

At Dec. 31, 2023, overall construction was 59 per cent complete, and approximately $389-million of the guided initial capital expenditure of $730-million to $750-million had been spent. The lag between the spend and percentage of completion is as planned and consistent with a typical project S curve. By the end of Q4 2023, the company had entered into contractual commitments for $615-million (or 84 per cent of the lower end of the guided initial capital expenditure). The majority of the balance of uncommitted expenditures for the guided initial capital relates to owners cost and earthworks associated with mining prestrip and construction of the tailings storage facility (TSF) and other civil structures.

Artemis Gold chairman and chief executive officer Steven Dean commented, "We remain focused on a disciplined approach to development and remain on track for the first gold pour in H2 2024."

Construction update

Earthworks continued in priority infrastructure areas, with approximately 640 hectares logged and cleared. All access roads needed for phase 1 construction are now operable. Construction of the site water management facilities, including the water management pond, and the Davidson Creek diversion is well advanced. Work associated with the transmission line is progressing in accordance with the project schedule.

Total major hours worked up to Dec. 31, 2023, surpassed 1.1 million hours with a zero LTIFR (lost-time injury frequency rate) and an AIFR (all injury frequency rate) of 91.86.

Plant site

Process plant construction progressed well on a number of fronts, including the mill building foundation preparation, reagents building foundations, ball mill pedestals, carbon-in-leach (CIL) and detox tank erection, advancement of the primary, secondary and tertiary crushers structures, and the reclaim tunnel civil works. Hydro testing within the CIL tank area has commenced.

Construction of the run-of-mine (ROM) wall and the initial ROM dump slab earthworks has been completed. The focus has now moved to concrete formwork to allow for the installation of the primary crusher ROM slab and crusher vault. Steel structures for the secondary and tertiary crusher and screening station have been advanced, and installation of the crushing mechanical packages commenced in Q4. The erection of the mill building and installation of the ball mill also commenced in late Q4.

Heavy equipment

The construction fleet now includes 60-tonne and 100-tonne rigid frame haul trucks and 150-tonne excavators, providing more material movement capability to key areas. Assembly and commissioning of the owner's mining fleet are well advanced, including two 400-tonne hydraulic backhoe excavators. Five 240-tonne rigid frame haul trucks have been delivered to site, four of which have been substantially assembled. The remainder of the fleet to support operations will arrive predominately across the first half of 2024. Fleet assembly is expected to be completed well before the commencement of prestripping, and equipment will be made available to support earthworks, if needed.

Engineering and procurement

At the end of December, 2023, the Sedgman EPC (engineering, procurement and construction) contract work was 75 per cent complete over all, with engineering, procurement and construction substantially complete. Key mechanical equipment packages, including the primary, secondary and tertiary crushers, conveyor assemblies, dry screens and ball mill, are all on site and are in various stages of installation. The electrical machinery control centres are also in various stages of delivery and installation.

Key mining-related contracts have been executed, with detailed mobilization plans for production drilling services well advanced. In addition, equipment supply contracts have been awarded for the oxygen plant and water treatment plant. Q4 also marked the arrival on site of the first delivery of the 225-kilovolt transmission line conductor and poles.

Personnel

The company's staffing numbers surpassed 320 employees in Q4 2023, with approximately 20 per cent of the team female and over 30 per cent identifying as indigenous. Approximately 50 per cent of the development team is from the local region and over 80 per cent are British Columbia residents. The total work force at the Blackwater mine, including staff and contractors, surpassed 550 toward the end of December.

Financing

At Dec. 31, 2023, Artemis Gold had estimated remaining phase 1 capital expenditures of $341-million to $361-million. At the same date, the committed sources of financing totalled $432-million, comprising:

• Cash and cash equivalents of $157-million;
• Remaining drawdowns from the project loan facility of $235-million (including up to $25-million of capitalized interest);
• A cost overrun facility of $40-million.

In addition, the company had 26.2 million warrants outstanding, which are exercisable at $1.08 per warrant before Aug. 27, 2024, for anticipated proceeds of $28-million.

Hedging

Artemis Gold has put in place a modest hedging program to secure the returns on capital invested in the early years of operations and further derisk servicing of the company's project loan facility during the payback period. To date, the company has entered into forward sales agreements to deliver 190,000 ounces of gold between March, 2025, and December, 2027, at a weighted average sales price of $2,851 per ounce, which is more than 40 per cent higher than the gold price assumption in the September, 2021, feasibility study. During Q4 2023, the company also executed zero-cost collars associated with 30,000 ounces of gold with settlement dates from December, 2024, to February, 2025. The collars have a weighted average put price of $2,600 per ounce and a weighted average call price of $3,353 per ounce.

Expansion study

With phase 1 fully financed and 59 per cent complete at the end of December, 2023, a study to evaluate the benefits of advancing the phase 2 expansion earlier than contemplated in the September, 2021, feasibility study is progressing well. The results of this expansion study are expected to be released later in Q1 2024.

Artemis Gold president and chief operating officer Jeremy Langford commented: "The fourth quarter was highlighted by our work force eclipsing one million hours worked without an LTI -- an important achievement that reflects the hard work and commitment of our dedicated work force. As we enter Q1 2024, our short-term priorities will be to further progress the TSF infrastructure areas, advance the construction of the 225-kilovolt transmission line, and complete all essential concrete works within the process facility. In parallel with this, the teams will look to progress the structural, mechanical, platework, piping and electrical construction activities within the process plant and electrical substation areas. Operations team members are scheduled to commence preproduction planning, which will prepare the teams for initial mining operations and plant commissioning."

About Artemis Gold Inc.

Artemis Gold is a well-financed, growth-oriented gold development company with a strong financial capacity aimed at creating shareholder value through the identification, acquisition and development of gold properties in mining-friendly jurisdictions. The company's current focus is the construction of the Blackwater mine project in central British Columbia, approximately 160 kilometres southwest of Prince George and 450 km northeast of Vancouver. The project is one of the largest capital investments in the Bulkley-Nechako, Fraser-Fort George and Cariboo regions of British Columbia in the past decade. The first pour of gold and silver from the Blackwater mine is expected in the second half of 2024, and the mine is expected to be in production for a minimum of 22 years.

Qualified person

Jeremy Langford, FAUSIMM, a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

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