Ms. Joanna Longo reports

ARGONAUT GOLD ANNOUNCES CLOSING OF C$17.5 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Argonaut Gold Inc. has completed its previously announced bought deal private placement of 6,613,800 Canadian exploration expense (CEE) and 18,656,800 Canadian development expense (CDE) common shares of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) for aggregate gross proceeds of approximately $17.5-million. The private placement was conducted pursuant to the terms and conditions of an underwriting agreement entered into between the company and a syndicate of underwriters co-led by Scotiabank and Cormark Securities Inc., and including BMO Nesbitt Burns Inc., Desjardins Securities Inc., Echelon Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm Capital Inc. and RBC Dominion Securities Inc.

The gross proceeds from the issue and sale of the flow-through shares will be used by the company to incur eligible Canadian exploration expenses or Canadian development expenses that qualify as accelerated Canadian development expenses, as applicable, as such terms are defined in the Income Tax Act (Canada) related to the company's Magino project on or before: (i) Dec. 31, 2024, in respect of the CEE flow-through shares; and (ii) Dec. 31, 2023, in respect of the CDE flow-through shares. All qualifying expenditures will be renounced in favour of the subscribers of the flow-through shares with an effective date not later than Dec. 31, 2023.

The private placement remains subject to final approval of the Toronto Stock Exchange (the TSX). The private placement was completed in Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws. The flow-through shares issued pursuant to the private placement are subject to a statutory hold period of four months and one day from the closing date of the private placement.

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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