Mr. Dan Symons reports

ARGONAUT GOLD ANNOUNCES RECORD QUARTERLY PRODUCTION OF 56,986 GOLD EQUIVALENT OUNCES AND ANNUAL PRODUCTION OF 203,483 GOLD EQUIVALENT OUNCES; PROVIDES 2021 PRODUCTION, COST AND CAPITAL GUIDANCE

Argonaut Gold Inc. had record quarterly production of 56,986 gold equivalent ounces, representing a 16-per-cent increase over the previous quarter and a 20-per-cent increase over the same period the previous year. Argonaut produced 203,483 GEOs in 2020 and had a cash balance of approximately $214-million at Dec. 31, 2020. The associated table details fourth quarter and full-year 2020 production results. All dollar amounts are expressed in U.S. dollars, unless specified.

                        FOURTH QUARTER AND FULL-YEAR 2020 GEO PRODUCTION
  
Mine                 Fourth quarter 2020      Full year 2020    2020 production guidance (1)

El Castillo                       12,568              46,182                   43,000-47,000
San Agustin                       18,622              63,866                   63,000-67,000
La Colorada                       14,502              46,371                   46,000-50,000
Florida Canyon (2)                11,294              47,064                   47,000-50,000
Consolidated (2)                  56,986             203,483                 200,000-215,000

(1) As presented in the third quarter 2020 financial and operating results press release
dated Nov. 4, 2020.
(2) Florida Canyon production during Q1 2020 and Q2 2020 was under Alio Gold Inc. prior to 
the closing of the merger between Alio Gold and Argonaut on July 1, 2020. Two thousand
twenty GEO production guidance estimated the combined full-year 2020 production from the 
El Castillo, San Agustin, La Colorada and Florida Canyon.
  

Pete Dougherty, president and chief executive officer, stated: "Two thousand twenty was a spectacular year for Argonaut, as we completed a merger, saw the conclusion of Schedule 2 amendment and executed on a financing plan for Magino's development and achieved record quarterly production in our most recent quarter. As we look to 2021, we are taking a cautious approach to guidance when considering potential productivity challenges due to COVID-19 protocols and contact tracing, as the health and safety of our work force is paramount. Our focus is to deliver cash flow from the operating mines to fuel Argonaut's growth through the construction of Magino, as we embark on the transition from a relatively high-cost junior producer with short mine life assets to an intermediate lower-cost producer with long-life assets."

2021 production and cost guidance

The company anticipates it will produce between 210,000 and 250,000 GEOs during 2021 at a cash cost of between $950 and $1,050 per gold ounce sold and an all-in sustaining cost (AISC) of between $1,250 and $1,350 per gold ounce sold.

                             2021 GEO PRODUCTION AND COST GUIDANCE
  
                                   El Castillo    San Agustin   La  Colorada    Florida Canyon      Consolidated

GEO production (000)                    40-50          65-75          55-65             50-60           210-250
Cash costs ($ per oz Au)        $1,050-$1,150    $900-$1,000      $700-$800     $1,200-$1,300       $950-$1,050
AISC ($ per oz Au)                                                                                 $1,250-1,350

2021 capital guidance

The company plans to invest between $255-million and $275-million in capital expenditures during 2021 with approximately 80 per cent being expansionary capital (primarily for the construction of the Magino gold mine) and 20 per cent being sustaining capital.

 
                                      2021 CAPITAL ESTIMATE BY PROJECT AND CATEGORY
                                                   (in millions)

             El Castillo  San Agustin  La Colorada  Florida Canyon   Magino  Cerro del Gallo  Exploration   Consolidated

Sustaining           3-4          5-7          1-2           17-18        -                -            -          26-31
Stripping            6-7            -        19-20               -        -                -            -          25-27
Total 
sustaining          9-11          5-7        20-22           17-18        -                -            -          51-58
Expansionary           -            -            -           11-12  180-190              3-4        10-11        204-217
Total               9-11          5-7        20-22           28-30  180-190              3-4        10-11        255-275

Board member retirement

Effective Dec. 31, 2020, Chris Lattanzi has retired from Argonaut's board of directors. Mr. Lattanzi has been an integral member of Argonaut's board since the inception of the company at the end of 2009.

Jim Kofman, chairman of the board, commented: "The invaluable experience that Chris garnered throughout his 60-year career as a mining engineer and brought to the Argonaut board has been tremendously appreciated. Quite simply, the amount of knowledge that Chris has shared with Argonaut's board members and management to help inform the company's decisions has been indispensable and cannot be replaced. On behalf the board, I want to wish Chris the absolute best during his well-earned retirement. It has been a pleasure learning from and working with him over the years."

Argonaut Gold fourth quarter and year-end financial results conference call and webcast

The company plans to release its fourth quarter and year end 2020 operating results, financial statements and the related management's discussion and analysis after market close on Feb. 25, 2021, and will host a conference call and webcast on Feb. 26, 2021, at 9 a.m. Eastern Standard Time to discuss the results.

Fourth quarter and year-end conference call information for Feb. 26, 2021:

Toll-free (North America):  1-888-231-8191

International:  1-647-427-7450

Fourth quarter and year-end conference call replay:

Toll-free replay call (North America):  1-855-859-2056

International replay call:   1-416-849-0833

Pass code:  8346749

The conference call replay will be available from 12 p.m. Eastern Standard Time on Feb. 26, 2021, to 11:59 p.m. EST March 4, 2021.

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 company's material properties, please see the reports as listed below on the company's website or on SEDAR.

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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