Mr. Pete Dougherty reports

ARGONAUT GOLD ANNOUNCES 43% INCREASE IN MINERAL RESERVES TO 6.8 MILLION CONTAINED GOLD OUNCES AND 26% INCREASE IN MEASURED AND INDICATED MINERAL RESOURCES TO 13.1 MILLION CONTAINED GOLD OUNCES YEAR-OVER-YEAR

Argonaut Gold Inc. has increased its mineral reserves by 43 per cent and its measured and indicated mineral resources by 26 per cent from Dec. 31, 2019, to Dec. 31, 2020. The majority of the increase to mineral reserves and mineral resources are in relation to the acquisition of Alio Gold Inc. (see press release dated July 1, 2020). Both the San Agustin mine and the La Colorada mine increased their respective mineral reserves net of depletion, while the Florida Canyon mine essentially replaced the mineral reserves that were depleted. Mineral reserves and mineral resources were not updated at the company's non-producing projects.

An attached table shows the gold and silver mineral resources and mineral reserves at Dec. 31, 2020. Mineral resources are not mineral reserves. Mineral resources hold intrinsic economic interest, which has been identified and estimated through exploration and sampling and within which mineral reserves may subsequently be defined. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. Measured and indicated mineral resources listed in the table are inclusive of mineral reserves.

Qualified persons

Estimates of mineral reserves and mineral resources for Argonaut's operating mineral properties have been prepared under the general supervision of Brian Arkell, Argonaut's vice-president of exploration and a qualified person for the purposes of National Instrument 43-101.

Mineral reserve and mineral resource reconciliation for Argonaut's operating mines is shown in an attached table.

Pete Dougherty, president and chief executive officer, commented: "The replacement of depleted mineral reserves is a key part of our business strategy. Our strategy is to harvest cash from these operations, replace depleted mineral reserves to extend mine lives and focus on executing on our growth projects to transition Argonaut from a high-cost junior producer with relatively short mine lives to a lower-cost intermediate producer with much longer mine lives."

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 construction-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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