Mr. Dan Symons reports

ARGONAUT GOLD ANNOUNCES CLOSING OF C$11.5 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Argonaut Gold Inc. has closed its previously announced bought deal private placement of an aggregate of 3,002,650 common shares in the capital of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) at a price of $3.83 per flow-through share for aggregate gross proceeds of $11,500,149.50, including full exercise of the underwriters option. The flow-through shares were offered and sold through a syndicate of underwriters led by Canaccord Genuity Corp.

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 was made by way of private placement in Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws. The flow-through shares issued under the offering are subject to a hold period under applicable Canadian securities laws which will expire on Feb. 15, 2021.

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 exploration stage projects, all of which are located in North America.

We seek Safe Harbor.