Blackwater Project

VANCOUVER, BC - Artemis Gold Inc. has completed the acquisition of the Blackwater Gold Project in central British Columbia from New Gold Inc. pursuant to the terms of an asset purchase agreement with New Gold and BW Gold Ltd. ("BW"), a wholly-owned subsidiary of Artemis. Artemis has acquired all of New Gold's property, assets and rights related to the Project and now holds a 100% interest in the Project. The aggregate purchase price for the Project is comprised of (i) an initial payment of $140 million, which has now been paid, (ii) 7,407,407 common shares in the capital of the Company at a deemed issue price of $2.70 per Consideration Share, which have now been issued to New Gold, (iii) a cash payment of $50 million to be paid one year following Closing (the "Second Payment") and (iv) a secured gold stream participation in favor of New Gold as described below. New Gold has a first ranking security interest over the Project until the Second Payment is made, and will thereafter maintain a security interest over the Project in connection with the gold stream agreement (subject to any security to be granted over the Project in respect of future project financing).