Mr. Steven Dean reports

ARTEMIS GOLD PROVIDES UPDATE ON PROGRESS AT BLACKWATER MINE

Artemis Gold Inc. has provided an update on progress at the Blackwater mine.

At Sept. 30, 2024, overall construction of the Blackwater mine was over 95 per cent complete. The project is fully financed, and first gold pour is targeted for late fourth quarter 2024.

The 135-kilometre-long 225-kilovolt transmission line between the Blackwater mine and BC Hydro's Glenannan substation is complete and was successfully energized with renewable grid power on Oct. 8, 2024.

Construction of the tailings storage facility will be complete by the end of October, 2024, in advance of commencement of ore commissioning of the plant. The initial mining fleet has been commissioned, and prestripping of the mine, as well as the construction of haul roads, is well advanced, with first ore expected to be received to the run-of-mine (ROM) pad over the course of the next month. In addition, Blackwater's operations camp is complete and has housed operational staff since late Q3 2024.

In order to accelerate the commissioning of the process facility to align with the other major construction milestones already achieved, the company has taken responsibility for plant commissioning from the EPC (engineering, procurement, and construction) contractor and will commence owner commissioning and remaining construction activity effective immediately.

During the past 17 months, the Blackwater mine has experienced two separate wildfire events which halted construction at site for a total of approximately one and a half months during the most productive months of the build. This resulted in additional fixed overhead drag on the project, and the benefit of operating cash flows has been deferred by the period of productive construction days lost. Management also invested in certain schedule acceleration initiatives to offset the delays, which have added to the cost of construction.

Management has been working diligently on cost savings throughout its construction budget to minimize the impact of the cost drivers described herein.

The company is, however, updating its initial capital guidance to first gold pour from (previously) $730-million to $750-million to (updated) $780-million to $800-million (an increase of approximately 7 per cent).

Initial capital guidance excludes other corporate cost variances, including the impact of delayed first revenue on working capital, higher market interest rates on loan facilities and other non-capital items, all of which are included in the company's fully funded assessment.

The company has executed an agreement with National Bank of Canada to provide additional standby debt financing of up to $65-million, plus up to $10-million in capitalized interest and fees, on a subordinated and unsecured basis. This financing is in addition to the company's existing project loan facility (PLF) of $360-million plus capitalized interest of up to $25-million, as well as a cost overrun facility (COF) of $40-million that was drawn in early October, 2024. The standby facility is repayable within 12 months, most likely from a new corporate debt refinancing in 2025, but otherwise has the same commercial terms as the COF announced on March 1, 2023.

While the company does not believe the full amount of the additional standby facility will be required, the facility provides additional flexibility for any further contingencies, including the contingencies and cash reserves required by the company's lenders under the PLF.

Steven Dean, chairman and chief executive officer of Artemis Gold, stated: "I am proud of the fact the project team has managed to limit the impact of the wildfires, two force majeure events beyond management's control, to only a 7-per-cent increase in initial capital guidance. This is testament to the team's financial discipline and deep project development experience. The additional standby funding provided by one of the company's existing-relationship lenders provides us the financial flexibility to absorb the financial impact of these events, while managing project schedule targeting first gold pour in late Q4 2024 and ramp-up of operations beyond".

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 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 central British Columbia in over a decade. The first pour of gold and silver at Blackwater is targeted for late Q4 2024.

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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