Mr. Curtis Turner reports

ARGONAUT GOLD EL CASTILLO UPDATE

Mining operations at Argonaut Gold Inc.'s El Castillo mine in Durango, Mexico, have been halted as the result of an illegal blockade. The company continues to operate the processing and leaching facility, and to ensure that all environmental and safety commitments are met. At this time, metal production has not been impacted.

The blockade was initiated on the morning of Oct. 21, 2015, by a group claiming to represent local landowners. The company has a legal and binding agreement in place with local landowners, which was signed and recognized by the ejido (on behalf of local landowners) and the Mexican government in 2013, and runs through 2025. The company understands that the group is seeking to renegotiate the binding agreement in a manner inconsistent with the law and inconsistent with agreements with the other ejidos in the area.

The company is attempting to work with the group representing the local landowners and the government to resolve this issue in a mutually satisfactory manner.

The company has agreements in place with multiple ejidos in the area. It reaffirms its commitment to treat all local ejidos fairly, and work with them in an open and transparent manner for the benefit of all local stakeholders, including the employees, the communities, the ejidos and the government.

We seek Safe Harbor.