Ms. Joanna Longo reports

ARGONAUT GOLD CLOSES PREVIOUSLY ANNOUNCED C$85 MILLION BOUGHT DEAL PUBLIC OFFERING

Argonaut Gold Inc. has closed its previously announced public offering of 223,685,000 common shares of the company at a price of 38 cents per offered share for gross proceeds to the company of $85,000,300, including the exercise in full of the underwriters' overallotment option. The offering was completed on a bought deal basis by a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotia Capital Inc., and including RBC Dominion Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Paradigm Capital Inc. and Laurentian Bank Securities Inc.

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.

The offered shares were offered in each of the provinces and territories of Canada, other than Quebec, pursuant to a prospectus supplement dated Dec. 6, 2023, to the company's base shelf prospectus dated June 2, 2022, in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended, and in certain other jurisdictions outside of Canada and the United States as agreed to by the company. Copies of the prospectus and documents incorporated by reference therein are available electronically under Argonaut Gold's issuer profile on SEDAR+.

MI 61-101

GMT Capital Corp., which is a control person of Argonaut, and certain directors and officers of Argonaut (collectively with GMT, the participating insiders) participated in the offering. As a result of the offering, GMT will continue to be a control person of Argonaut. The holdings of the participating insiders prior to the offering and subsequent to completion of the offering are set out herein.

Each issuance by the company of offered shares to a participating insider under the offering is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 in reliance on the exemptions set out in sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 as the fair market value of such transactions, insofar as they involve related parties, is not more than 25 per cent of the company's market capitalization. The company was not in a position to file a material change report 21 days prior to closing because the terms of the offering and insider participation were not yet established by that time, and Argonaut Gold elected to expedite closing of the offering for sound business reasons.

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 mine, 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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