March 1, 2024

MANAGEMENT DISCUSSION AND ANALYSIS
For the three and six months ended June 30, 2022 and 2021
ARTEMIS GOLD INC.
Dated August 11, 2022
ARTEMIS GOLD INC.
Management’s Discussion and Analysis of Financial Condition and Results of Operations For the three and six months ended June 30, 2022
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ARTEMIS GOLD INC.
Management’s Discussion and Analysis of Financial Condition and Results of Operations For the three and six months ended June 30, 2022
On May 2, 2022, the Company announced it had made an award for the EPC scope of works for the engineering, procurement, construction and commissioning of the processing plant and associated infrastructure at the Company’s Blackwater project in the amount of approximately $312 million, consistent with the prescribed budget for the process plant and selected infrastructure scope of works in the Feasibility Study.
The EPC contract is expected to be executed during Q3 2022, supported by performance security including bank letters of credit which will underwrite the financial performance and obligations of the contractor under the contract.
While the parties finalize the definitive EPC contract, in order to maintain the project schedule, the Company executed the ISA, the scope of which includes but is not limited to, the following activities:
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ARTEMIS GOLD INC.
Management’s Discussion and Analysis of Financial Condition and Results of Operations For the three and six months ended June 30, 2022
The final EPC contract terms will provide for potential cost adjustments of certain components of construction representing approximately less than 15% of the total contract amount, including the potential for cost adjustments from further quantity definition. Standard adjustments, including, currency exchange rates for certain equipment purchases also apply, and further optimization of the processing plant with final engineering will occur.
Artemis is also considering awarding additional construction packages under an EPC agreement type structure to further enhance the risk management of the total capital expenditure for Blackwater.
When combined with the EPC for the Power Transmission Line announced on August 18, 2021, the percentage of the estimated total capex for Blackwater under EPC is on track to target ~60% of the initial Stage 1 development capital in a lump sum EPC type arrangement.
Following the execution of the ISA, Sedgman commenced with detailed engineering, as well as procurement of long-lead construction equipment in order to not only secure pricing, but also to maintain the Project schedule. The packages for which purchase orders have already been issued include the crushing and grinding equipment, the ADR plant, agitators, gravity concentrators, leach reactors, pumps, samplers and screens.
The Company similarly entered into an early engineering and procurement agreement to allow BC Hydro to perform certain engineering design, procurement and other services related to the Power Transmission line.
The cost of procurement of these packages form part of the initial capital of the Project.
During the quarter, the Company executed the Mining Equipment Supply Agreements with Finning for the supply of a primary and ancillary mining fleet. Under the Mining Equipment Supply Agreements, the Company has secured equipment pricing for the primary fleet until December 31, 2024, subject to minor index and foreign exchange adjustments. Finning has further agreed to delivery dates for the primary and ancillary fleet in order to support mine development for Blackwater. The Mining Equipment Supply Agreements secure the supply of equipment, as well as the supply of parts and labour, the latter of which will support the equipment availability guarantees provided by Finning.
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ARTEMIS GOLD INC.
Management’s Discussion and Analysis of Financial Condition and Results of Operations For the three and six months ended June 30, 2022
Concurrent with execution of the Mining Equipment Supply Agreements, the Company also executed a binding agreement with Caterpillar which provides the Company an option to place orders for Caterpillar’s future zero- emissions haul trucks for shipments beginning as early as 2029. In addition, the Company obtains access to Caterpillar’s early deployment program to help develop the Company’s roadmap for the prospective transition from diesel operations to electric hauling.
On July 27, 2022, the Company executed the Master Lease Agreement with Cat Financial. The Facility with Cat Financial provides for up to $140 million in equipment financing, with amounts associated with the primary fleet repayable over a six-year period and on terms consistent with the assumptions contained within the Feasibility Study. Utilization of the Facility remains subject to various conditions precedent.
Next Steps
Over the next 12 months, the Company will be focused on the following activities:
6. DISCUSSION OF OPERATIONS
The following information has been derived from the unaudited Interim Financial Statements for the three and six months ended June 30, 2022 (“Q2 2022” and “YTD 2022“, respectively) and the three and six months ended June 30, 2021 (“Q2 2021” and “YTD 2021“, respectively) and should be read in conjunction with the Company’s Interim Financial Statements, which are available on www.sedar.com.
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Artemis Gold Inc. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 04:48:03 UTC.

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