An anonymous director reports

ARGONAUT GOLD ANNOUNCES C$15 MILLION BOUGHT DEAL PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Argonaut Gold Inc. has entered into an agreement with a syndicate of underwriters led by Scotiabank and Cormark Securities Inc., pursuant to which the underwriters have agreed to buy on a bought deal private placement basis, subject to a right to substitute purchasers, for aggregate gross proceeds of approximately $15-million, as follows: (i) 6,613,800 common shares of the company to be issued as flow-through shares with respect to Canadian exploration expenses at a price of 75.6 cents per CEE flow-through share for gross proceeds of $5,000,033; and (ii) 14,925,500 common shares of the company to be issued as flow-through shares with respect to Canadian development expenses at a price of 67 cents per CDE flow-through share for gross proceeds of $10,000,085.

The proceeds of the offering will be used to incur qualifying expenditures (as defined below) at the company's Magino project.

The company, pursuant to the provisions in the Income Tax Act (Canada), shall use the proceeds of the offering to incur Canadian development expenses and Canadian exploration expenses, after the closing date and in respect of the Canadian development expenses, prior to Dec. 31, 2023, and in respect of the Canadian exploration expenses prior to Dec. 31, 2024, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of flow-through shares. The company shall renounce the qualifying expenditures so incurred to the purchasers of the flow-through shares effective on or before Dec. 31, 2023.

The offering is expected to close on or about May 24, 2023, and is subject to Argonaut receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

About Argonaut Gold Inc.

Argonaut Gold is a Canadian gold company with a portfolio of operations and multistage assets in North America. Focused on becoming a low-cost mid-tier gold producer, the company is in the final stages of construction at its Magino project, located in Ontario, Canada. Magino is expected to achieve commercial production in the third quarter of 2023 and become Argonaut's largest and lowest cost mine. The commissioning of Magino will be the first step in transforming the company as it enters a pivotal growth stage.

The company also has three operating mines including the Florida Canyon mine in Nevada, United States, where it is pursuing additional growth, La Colorada mine in Sonora, Mexico, and San Agustin mine in Durango, Mexico.

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