Mr. Pete Dougherty reports

ARGONAUT GOLD PROVIDES OPERATIONS AND ALIO MERGER UPDATE

Mining has been deemed an essential business in Mexico, and the Mexican federal government has now outlined June 1, 2020, as the restart date for mining operations. Therefore, Argonaut Gold Inc. is preparing to restart operations on June 1, 2020.

Pete Dougherty, president and chief executive officer, stated: "We have implemented strict protocols for all employees in our phased approach to bringing them back to work in an effort to protect both our work force and the communities near our mines. We recognize that while mining has now been deemed an essential business, the Mexico federal government yesterday outlined June 1, 2020, as the date by which mining operations should recommence."

Argonaut and Alio Gold Inc. have agreed to waive the clause in the arrangement agreement that would allow either company the option to terminate the transaction if an operation ceases normal course business for more than 45 days.

Mark Backens, president and chief executive officer of Alio, commented: "We must continue to protect the health and safety of our workers and our communities. Both Argonaut and Alio are committed to the merger of our companies as we recognize the long-term benefit to all stakeholders outweighs the near-term impact of mine closures."

Mr. Dougherty added: "In discussions with Alio, we both agree the health and safety of our work force and our communities is paramount, and the strong rationale for the merger of our companies remains valid in spite of any near-term disruptions to operations. Therefore, we both agreed to waive the 45-day optout clause to provide stakeholders with clarity and remove uncertainty around the merger. We expect the transaction to close in June."

About Argonaut Gold Inc.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo complex in Durango, Mexico, and the La Colorada mine in Sonora, Mexico. Advanced exploration projects include the Cerro del Gallo project in Guanajuato, Mexico, and the Magino project in Ontario, Canada. The company continues to hold the San Antonio advanced exploration project in Baja California Sur, Mexico, and several other exploration-stage projects, all of which are located in North America.

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