Mr. Pete Dougherty reports

ARGONAUT GOLD EXECUTES FIXED BID CONTRACT FOR MAGINO CONSTRUCTION AND EXTENDS ANA PAULA SALE CLOSING

Argonaut Gold Inc. has executed a fixed bid engineering, procurement, construction and commissioning contract with Ausenco Engineering Canada Inc., a leading engineering and construction management company, for the construction of the Magino processing facility and other parts of the Magino construction project. The EPC contract totals approximately 40 per cent of Magino's initial capital estimate of between $480-million and $510-million (approximately $360-million (U.S.) and $380-million (U.S.) at a Canadian-dollar-to-U.S.-dollar exchange ratio of 0.75, which was the approximate ratio when the construction decision was made October, 2020).

Pete Dougherty, president and chief executive officer, stated: "We are very pleased to partner with Ausenco on the Magino project construction. Ausenco is an industry leader in the field of building high-quality processing facilities in the mining industry and recently did an excellent job with the Moose River project in Nova Scotia, Canada. We are excited for Magino to be one of the first projects entering construction in the current gold price environment, as we feel first mover advantage is critical when securing a construction team of the highest quality and with a superior track record."

The Magino project has received tremendous stakeholder support locally, provincially and federally, as well as strong shareholder support to see the project move forward. Argonaut recently posted the first phase of financial assurance with the Province of Ontario and expects the Magino project closure plan will be filed by the Province of Ontario in January, 2021, which will allow for construction to commence.

Ana Paula sale agreement

Argonaut and AP Mining have amended the agreement for the previously announced sale of the Ana Paula project to AP Mining (see press release dated Sept. 11, 2020) to allow more time to meet the regulatory and government approvals required for closing. In connection with the amendment, AP Mining has agreed to pay an additional $1.0-million (U.S.) at 15 months from the closing date and to reimburse all of Argonaut's costs incurred associated with the Ana Paula project incurred between Jan. 1, 2021, and the closing of the transaction. Closing continues to be subject to financing and receipt of all necessary approvals, which is expected in the first quarter of 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 other exploration-stage projects, all of which are located in North America.

We seek Safe Harbor.