Mr. Pete Dougherty reports

ARGONAUT GOLD ANNOUNCES ACHIEVEMENT OF PIVOTAL PERMITTING MILESTONE WITH APPROVAL OF SCHEDULE 2 PROCESS FROM CANADIAN FEDERAL GOVERNMENT

Argonaut Gold Inc. has provided an update on the conclusion of a Schedule 2 amendment, a key project authorization, by the Canadian federal government in connection with the Magino project. The completion of the amendment to Schedule 2 of the metal and diamond mining effluent regulations is a significant permitting milestone for the Magino project. This regulatory process has been completed following extensive consultations with indigenous communities and the public. All dollar amounts are expressed in U.S. dollars unless otherwise stated.

Pete Dougherty, president and chief executive officer, stated: "Magino is truly a valuable and strategic asset given existing project infrastructure, the already-known mineral endowment of the orebody and the existing exploration potential, its location within the mining-friendly jurisdiction of Ontario, Canada, and its proximity to other strong cash flowing operations such as the Island gold mine. From a permitting perspective, the completion of the Schedule 2 process significantly derisks the Magino project and makes it much more attractive to potential joint venture partners and project financing lenders. We thank the local communities for their continued support for the project. Argonaut believes that the Magino project can be an important local employer in Northern Ontario."

Argonaut anticipates having project approvals and development financing options organized to enable the company to make a decision on the advancement of the Magino project during the second half of 2020.

The company has continued its deep drilling exploration program uninterrupted and is encouraged with the results to date. As the backlog in the assay laboratories is worked through following their temporary closure due to COVID-19, Argonaut expects to provide continuous exploration results from this program throughout the year.

Mr. Dougherty continued: "Our feasibility study parameters outline strong economics at $1,250 gold and a 0.78 Canadian dollar to U.S. dollar exchange rate and extremely robust economics at current spot gold prices and exchange rates. In addition, we are excited by the ongoing deep drilling exploration program, where we are consistently hitting high-grade intercepts, which are not included in our current mineral reserve or mineral resource estimates."

Qualified person, technical information and mineral properties reports

Technical information included in this release was supervised and approved by Brian Arkell, Argonaut's vice-president, exploration, and a qualified person under National Instrument 43-101. For further information on the Magino project, please see the report as listed below on the company's website or on SEDAR.

About Argonaut Gold Inc.

Argonaut is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and the San Agustin mine, which together form the El Castillo complex, in Durango, Mexico, as well as 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 exploration-stage projects, all of which are located in North America.

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