Mr. Pete Dougherty reports

ARGONAUT GOLD ANNOUNCES MAJOR MILESTONE OF MAGINO CLOSURE PLAN FILING

Ontario has filed the closure plan for Argonaut Gold Inc.'s Magino project. Site preparation, such as tree removal and clearing, is expecting to commence imminently, with construction scheduled to begin as soon as site preparation is complete. Argonaut envisions a two-year construction period with first gold production at Magino during the first half of 2023.

Pete Dougherty, president and chief executive officer, stated: "The filing of the closure plan is a significant milestone and allows us to begin site preparation activities for construction of the Magino mine and processing facility. Magino is truly a valuable and strategic asset, given existing infrastructure, the already-known mineral endowment of the orebody and the existing exploration potential, its location within the mining-friendly jurisdiction of Ontario, Canada, and its proximity to other strong cash flowing operations such as the Island gold mine. By moving Magino forward, we are executing on our vision to transform Argonaut from a junior, relatively high-cost producer with short mine lives to an intermediate, lower-cost producer with long mine lives."

Kyle Stanfield, director of environment and community relations, commented: "We are humbled by the tremendous community support that has enabled this important project milestone to pass. We will continue to co-ordinate closely with our indigenous and municipal partners as we develop this investment into a world-class mining operation."

The Magino project has received incredible stakeholder support locally, provincially and federally, as well as strong shareholder support to see the project move forward. The Magino project initial capital estimate of between $480-million and $510-million, of which approximately 40 per cent is covered by a fixed-bid contract with Ausenco Engineering Canada Inc., is considered fully financed through Argonaut's current cash balance and anticipated cash flow from operations assuming a gold price environment at or above $1,600 (U.S.) per ounce. At Dec. 31, 2020, Argonaut had $214-million (U.S.) in cash and also has access up to $125-million (U.S.) through its existing revolving credit facility, which is fully undrawn.

The Magino feasibility study demonstrated that the Magino project is a strategic, scalable, long-life asset in the attractive mining jurisdiction of Ontario, Canada. Highlights from the Magino feasibility study include:

• A 10,000-tonne-per-day processing facility;
• Average annual gold production of 150,000 ounces over the first five years;
• A 17-year mine life;
• Cash cost of $669 (U.S.) per gold ounce sold;
• All-in sustaining cost of $711 (U.S.) per gold ounce sold.

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. The company also holds the development-stage Magino project, the advanced exploration-stage Cerro del Gallo project and several other exploration-stage projects, all of which are located in North America.

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