Mr. Pete Dougherty reports

ARGONAUT GOLD REPORTS INCIDENT AT THE EL CASTILLO MINE IN DURANGO, MEXICO

Argonaut Gold Inc. regrets to advise that an employee of its Mexican subsidiary, Minexson SA de CV, was fatality injured as a result of an incident on Sunday, Sept. 25, 2016.

The company is fully co-operating with an investigation led by the Department of Labour. The El Castillo operation has not been suspended at this time and a suspension of operations is not anticipated.

Pete Dougherty, president and chief executive officer, stated: "This is a tragic event. Our prayers and condolences are with the family of the individual and the employees at El Castillo. The health and safety of our work force remains our No. 1 priority."

Argonaut's primary assets are the production-stage El Castillo mine in Durango, Mexico, and La Colorada mine in Sonora, Mexico. Advanced-exploration-stage projects include the San Antonio project in Baja California Sur, Mexico, the Magino project in Ontario, Canada. and the San Agustin project in Durango, Mexico. The company also has several exploration-stage projects, all of which are located in North America.