Mr. Dan Symons reports

ARGONAUT GOLD ANNOUNCES C$10 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Argonaut Gold Inc. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. in connection with a bought-deal private placement financing of an aggregate of 2,611,000 common shares of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)).

The flow-through shares will be issued at a price of $3.83 for aggregate gross proceeds of $10,000,130. In addition, the company will grant the underwriters an option to sell an additional 391,650 flow-through shares, at the issue price for additional gross proceeds of $1,500,019.50 exercisable 48 hours prior to the closing date.

The gross proceeds from the issue and sale of the flow-through shares will be used by the company to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the company's projects in Ontario on or before Dec. 31, 2021. All qualifying expenditures will be renounced in favour of the subscribers of the flow-through shares effective Dec. 31, 2020.

The offering is expected to close on or about Oct. 14, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities. The flow-through shares to be issued under the offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering.

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, the La Colorada mine in Sonora, Mexico, and the Florida Canyon mine in Nevada, United States. Advanced exploration projects include the Magino project in Ontario, Canada, the Cerro del Gallo project in Guanajuato, Mexico, and the Ana Paula project in Guerrero, Mexico. The company holds several other exploration-stage projects, all of which are located in North America.

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