Mr. Dan Symons reports

ARGONAUT GOLD COMPLETES C$10,000,000 NON-BROKERED PRIVATE PLACEMENT WITH AUSENCO AND PROVIDES MAGINO PROJECT CONSTRUCTION UPDATE

Argonaut Gold Inc. has completed a private placement of 4,255,319 common shares, issued at a price of $2.35 per common share, representing an 8.3-per-cent premium to the closing price on March 30, 2021, for gross proceeds of $10-million with Ausenco Engineering Canada Inc. Argonaut Gold and Ausenco previously executed a fixed-bid engineering, procurement, construction and commission contract for the construction of the Magino processing facility and other parts of the Magino construction project (see press release dated Jan. 4, 2021) at which time a private placement was contemplated. The company intends to use the proceeds for Magino construction activities and general corporate purposes.

Pete Dougherty, president and chief executive officer of Argonaut, stated: "The private placement by Ausenco aligns our respective companies, as we work together to advance and unlock value of the Magino project. We are very pleased to have a partner with 'skin in the game' as we continue to advance Magino's construction."

Zimi Meka, CEO and managing director of Ausenco, commented: "With our intimate knowledge of the Magino project, we are excited to partner with Argonaut in building Canada's next gold mine. We are pleased to be a shareholder of Argonaut and look forward to working with Peter and his team to maximize the value of Magino for all shareholders."

Magino project construction update

Argonaut has provided a construction update at its Magino project in Ontario. The overall Magino construction project is tracking on schedule and ahead of schedule in relation to logging activities. The company has secured all long lead items and is actively preparing the site for earthworks, which are expected to commence during the second quarter 2021.

Argonaut is very pleased to report that 100 per cent of the process plant site has been cleared, which allows for earthworks to begin in this area. Earthworks in the process plant site area will be followed by concrete pouring and steel erection so that the company is in a position to enclose the process facility building prior to next winter, allowing construction to continue on the recovery plant.

Magino project activities since commencing construction include:

• Logging;
• Pioneering of roads and work sites;
• Earthworks to level the area of the process facility site for preparation of concrete pouring for the foundation;
• Installed construction offices;
• Completed the pad for a 144 person camp;
• Installation of the first 88 person camp units;
• Placed orders of long-lead-time equipment.

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. 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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