An anonymous director reports

ARGONAUT GOLD ANNOUNCES CLOSING OF US$57.5 MILLION BOUGHT DEAL FINANCING OF 4.625% SENIOR UNSECURED CONVERTIBLE DEBENTURES

Argonaut Gold Inc. has closed its previously announced bought deal offering of $57.5-million (U.S.) of 4.625 per cent senior unsecured convertible debentures of the company (including the full exercise of the underwriters' overallotment option) at a price of $1,000 (U.S.) per debenture. The debentures were offered and sold through BMO Capital Markets and Scotiabank and are now listed on the Toronto Stock Exchange under the trading symbol AR.DB.U.

The debentures will mature on Nov. 30, 2025, and will bear interest at an annual rate of 4.625 per cent payable semi-annually in arrears on May 31 and Nov. 30 of each year, commencing May 31, 2021. At the holder's option, the debentures may be converted to common shares of the company at any time prior to the close of business on the earlier of the last business day immediately preceding the maturity date and the date fixed for redemption at a conversion rate of 350.1155 per $1,000 (U.S.) principal amount of debenture (equal to a conversion price of approximately $2.86 (U.S.) per common share), subject to adjustment in certain circumstances in accordance with the debenture indenture entered into between Computershare Trust Company of Canada, as debenture trustee, and the company.

The debentures issued under the offering were offered by way of a short form prospectus dated Oct. 27, 2020, in each of the provinces of Canada, except Quebec. Copies of the final short form prospectus, the debenture indenture and documents incorporated by reference therein are available electronically under Argonaut Gold's issuer profile on SEDAR.

The net proceeds of the offering will be used to for the advancement of the company's Magino project and for general corporate purposes.

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, and the Cerro del Gallo project in Guanajuato, Mexico. The company holds several other exploration stage projects, all of which are located in North America.

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