Mr. Richard Young reports

ARGONAUT GOLD ANNOUNCES C$80 MILLION BOUGHT DEAL PUBLIC OFFERING

Argonaut Gold Inc. has entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotiabank, on their own behalf and on behalf of a syndicate of underwriters, pursuant to which the co-lead underwriters have agreed to purchase for resale, on a bought deal basis, 210,527,000 common shares of the company at a price of 38 cents per offered share for gross proceeds of approximately $80-million.

The underwriters have also been granted an option, exercisable in whole or in part for a period of 30 days following the closing of the offering, to purchase an additional 13,158,000 offered shares at the offering price, for additional gross proceeds of up to approximately $5-million.

The net proceeds of the offering will be used to finance development and optimization of the company's Magino and Florida Canyon mines and for general working capital purposes.

"There is significant value to be realized at Magino and Florida Canyon and this financing provides us with the ability to unlock that value. It not only allows us to enter our next, important phase of growth as we optimize production at our two cornerstone assets, it also gives us greater financial flexibility to refinance our current debt facility to better match our growth opportunities," said Richard Young, president and chief executive officer of Argonaut Gold. "We remain on track to meet the lower end of full-year consolidated production guidance, and now with a stronger cash position, we are better positioned to achieve our vision to become a low-cost, mid-tier North American gold producer delivering value to shareholders."

The offered shares will be offered by way of a prospectus supplement to the company's short form base shelf prospectus dated June 2, 2022, to be filed in all of the provinces and territories of Canada (other than the province of Quebec) and some may be resold in the United States pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada and the United States as agreed to by the company, in each case in accordance with all applicable laws and provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.

Closing is expected on or about Dec. 12, 2023, and is subject to Toronto Stock Exchange and other necessary regulatory approvals.

About Argonaut Gold Inc.

Argonaut Gold is a Canadian-based gold producer with a portfolio of operations in North America. Focused on becoming a low-cost, mid-tier gold producer, the company's flagship asset, Magino, is expected to become Argonaut's largest and lowest-cost mine. The company is pursuing potential for redevelopment and additional growth at the Florida Canyon mine in Nevada, United States. Together, the Magino and Florida Canyon mines are the company's cornerstone assets that will drive Argonaut through this pivotal growth stage. The company also has two additional operating mines in Mexico, the La Colorada mine in Sonora and the San Agustin mine in Durango. Argonaut Gold trades on the Toronto Stock Exchange (TSX) under the ticker symbol AR.

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