Fitch Ratings has assigned Artemis Gold Inc. a first-time Long-Term Issuer Default Rating (IDR) of 'B+' with a Stable Outlook.

Fitch also assigned a 'BB+' rating with a Recovery Rating of 'RR1' to the company's senior secured revolving credit facility (RCF), and a 'BB-'/'RR3' rating to its proposed senior unsecured notes.

The ratings reflect Artemis' limited scale, near-term execution risk with its Expanded Phase 2 (EP2) project and concentration risk in one mine. This is partially offset by Artemis' low-cost position in the first quartile of the global gold cost curve and low jurisdiction risk.

The Stable Outlook reflects Fitch's view that EBITDA leverage will remain below 2.0x while Artemis completes the CAD 1.4 billion EP2 project, projected to be completed by YE 2028.

Key Rating Drivers

Mining Ramp-Up: Artemis reached commercial production at the Blackwater gold mine in May 2025 with 2025 production of 192,808 ounces of gold. Fitch expects 2026 gold production to be approximately 276koz as Artemis completes Phase 1A(P1A), which increases nameplate plant capacity by 33% to 8Mtpa from 6Mtpa. Remaining projected capex for the P1A is expected to cost approximately CAD 100 million in 2026. Artemis reached final investment decision (FID) in December 2025 for EP2, which it expects to complete by YE 2028. Nameplate plant capacity should rise to 21Mtpa from 8Mtpa, adding a secondary 13Mtpa plant at the Blackwater mine.

Fitch expects EP2 construction capex of about CAD 1.4 billion, which will lift output to about 500koz per year. The April 8, 2024, technical report shows Phase 1 (6Mtpa) for the first year, Phase 2 (15Mtpa) for the next five years, and Phase 3 (25Mtpa) thereafter, with a 17-year mine life. Under the revised proposal, Artemis targets 8Mtpa in Phase 1A and 21Mtpa in Phase 2 within 3.5 years of initial commissioning. Artemis forecasts production of 275koz-425koz per year between 2026 and 2028, increasing to 500koz-525koz per year following the completion of EP2 with life-of-the mine cash costs in the low first quartile.

Low Cost, Long-life Asset: Fitch views the Blackwater mine's cost in the first quartile positively, with a solid mine life of 17 years. Fitch expects all-in sustaining costs for the Blackwater mine to remain in the first quartile of the global cost curve at least through 2030 and generally remain in the lower half thereafter.

High Capex; Negative FCF: Fitch anticipates EBITDA of about CAD740 million in 2026, while capex rises to about CAD730 million, reflecting P1A and EP2 spending. Under Fitch's gold price assumptions, we expect FCF to remain negative until Artemis completes its expansion projects by YE 2028, when EBITDA should exceed CAD470 million at mid-cycle gold prices. Fitch expects Artemis to carefully manage its capex plans while it completes EP2. However, it will have access under its RCF in a weaker gold price environment.

Gold Price Sensitivity: The rating case assumes gold prices at USD3,400/oz. in 2026, moderating to USD2,500/oz. in 2027, USD2,000/oz. in 2028 and midcycle prices of USD1,800/oz. This compares with current gold prices over USD4,600/oz. Fitch expects EBITDA to be approximately CAD620 million in 2025. Artemis has 211koz of gold hedged between October 2025 and 2028 at a weighted average of CAD 2,876/oz, which were largely entered into as a requirement under the previous project loan facilities. This reduces the company's downside risks from a steep decline in commodity prices as it completes the expansion projects.

Conservative Capital Structure: Fitch expects Artemis to maintain a manageable leverage profile during the construction of EP2. EBITDA leverage is projected to be below 2.0x in 2028, as it completes expansion Phase 1A and EP2. Fitch treats the Wheaton financing for the gold and silver stream as non-debt and assumes will be fully repaid over the life of the mine. Fitch assumes Artemis will maintain conservative leverage target over the forecast.

Peer Analysis

Fitch views Artemis' peers as miners concentrated by product and geography, with smaller scale.

Fitch expects all-in sustaining costs for the Blackwater mine to remain in the first quartile of the global cost curve at least through 2030 and generally remain in the lower half thereafter.

The company's size and scale are smaller than 'B+' rated gold peers Eldorado Gold and IAMGOLD Corporation, while Fitch expects production to be on par with Aris Mining Corporation (B+/Stable) and EBITDA to be similar to Ero Copper Corp. (B+/Stable) as expansion projects ramp-up.

Leverage headroom is generally high for copper and gold peers.

Fitch's Key Rating-Case Assumptions

Gold sales of approximately 275,000/oz. in 2026, 340,000/oz. in 2027, and 420,000/oz. in 2028;

Fitch price assumptions published Dec. 4, 2025 as follows:

Gold: USD3,400/oz. in 2026, USD2,500/oz in 2027, USD2,000/oz in 2028 and USD1,800 thereafter;

Silver: USD25/oz in 2028 and USD22/oz in 2029;

Capex at CAD730 million in 2026, which is expected to increase in 2027 in line with Phase 1A and Phase 2 expansion plans before moderating in 2028 and 2029;

Negative FCF funded with drawing on the RCF;

CAD450 million senior unsecured notes issued in early 2026.

Corporate Rating Tool Inputs and Scores

Fitch scored the issuer as follows, using our Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP):

Business and financial profile factors (assessment, relative importance): Management (bb+, Moderate), Sector Characteristics (bbb, Lower), Market and Competitive Positioning (b-, Higher), Diversification and Asset Quality (b, Higher), Company Operational Characteristics (a, Moderate), Profitability (bbb+, Lower), Financial Structure (a, Lower), and Financial Flexibility (bb-, Moderate).

The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2025, 20% for the forecast year 2026, 30% for the forecast year 2027 and 30% for the forecast year 2028.

The Governance assessment of 'Good' results in no adjustment.

The Operating Environment assessment of 'a+' results in no adjustment.

The SCP is 'b+'.

To derive the IDR: 'b+'

Recovery Analysis

The recovery analysis assumes Artemis Gold Inc. would be reorganized as a going concern in bankruptcy rather than liquidated. Fitch assumed a 10% administrative claim.

The going concern EBITDA estimate of CAD450 million reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which we base the enterprise valuation. The going concern EBITDA assumption reflects the industry's move from top of the cycle gold prices to a sustainably lower weak gold price environment, which would stress the capital structure. The going-concern EBITDA estimate reflects our view of a sustainable, post-reorganization EBITDA upon which the enterprise valuation (EV) is based.

Fitch typically uses EV multiples in the 4.0x-6.0x range for mining companies, given the cyclical nature of commodity prices. Artemis' 5.0x multiple, at the midpoint of the range, reflects its relatively small size and reflects its low cost and low country risk.

The CAD700 million revolver is assumed to be fully drawn upon default. The first-lien revolver loan is senior to the proposed CAD450 million senior unsecured note.

The allocation of value in the liability waterfall results in recovery corresponding to 'RR1' for the first-lien RCF. The proposed unsecured note recover at 'RR3', resulting in a 'BB-' rating.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

Deviation from a conservative financial policy without a clear path toward deleveraging during periods of heavy investment spending;

Expectations for EBITDA leverage sustained above 3.3x.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

Visibility into the completion of Expanded Phase 2;

Visibility into maintaining operating mine life greater than 10 years;

EBITDA leverage sustained below 2.3x.

Liquidity and Debt Structure

In 3Q25, Artemis had liquidity of CAD317 million, which consisted of CAD242 million availability under its $700 RCF and CAD75 million cash on the balance sheet. Proforma the proposed CAD450 million note issuance, availability under the revolver is expected to increase to CAD684 million.

In 3Q25, Artemis refinanced the CAD449 million term project debt into an CAD700 million RCF, which matures in 2029. The proposed five-year note issuance is expected to mature in 2031.

Issuer Profile

Artemis Gold Inc. owns and operates the single Blackwater Gold mine in central British Columbia, Canada. The company achieved first gold and silver from the Blackwater mine in January 2025 and reached commercial production on May 1, 2025.

Date of Relevant Committee

22-Jan-2026

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS

Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.

Climate Vulnerability Signals

The YTD Sept. 30, 2025 Climate.VS for Artemis Gold for 2035 is 36, suggesting low exposure to climate-related risks in that year consistent with other gold producers. For further information on how Fitch perceives climate-related risks in the metals & mining sector see Metals & Mining -Long-Term Climate Vulnerability Signals.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

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