Mr. Dan Symons reports

ARGONAUT GOLD ANNOUNCES CLOSING OF C$40 MILLION BOUGHT DEAL FINANCING

Argonaut Gold Inc. has closed its previously announced bought deal public offering of 16.7 million common shares of the company at a price of $2.40 per common share for aggregate gross proceeds of $40.08-million. The common shares were offered and sold through a syndicate of underwriters led by BMO Capital Markets.

Under the terms of the offering, the company has also granted the underwriters an option, exercisable in whole or in part for a period of 30 days following the closing date of the offering, to purchase up to an additional 2,505,000 common shares at a price of $2.40 per common share for market stabilization purposes and to cover overallotments, if any.

The common shares issued under the offering were offered by way of a short form prospectus dated March 7, 2017, in each of the provinces and territories of Canada, except Quebec. Copies of the final short form prospectus and documents incorporated by reference therein are available electronically under Argonaut's issuer profile on SEDAR.

The net proceeds of the offering will be used to finance the purchase of a mining concession in San Juan del Rio Durango, consisting of 420 hectares covering known projections of the El Castillo mineralization, and for general corporate purposes.

About Argonaut Gold Inc.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo mine and the construction-stage San Agustin project in Durango, Mexico, and the production-stage La Colorada mine in Sonora, Mexico. Advanced exploration-stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The company also has several exploration-stage projects, all of which are located in North America.

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