Mr. Richard Young reports

ARGONAUT GOLD ANNOUNCES 2023 PRODUCTION RESULTS

Argonaut Gold Inc. has released fourth quarter and full-year 2023 production results. The company expects to provide 2024 production, operating, capital and cost per ounce guidance on Feb. 26, 2024, and plans to release its financial results for the three and 12 months ended Dec. 31, 2023, in the first half of March, 2024.

"Our Florida Canyon mine in Nevada and our Mexican mines had a solid year, surpassing the top end of production guidance on a combined basis by 9 per cent. Our newest mine, Magino, met target start date of commissioning the mill in mid-May; however, ramp-up of the mine and mill took longer than anticipated, resulting in the company missing consolidated production guidance by a small margin. Despite this setback, we are proud of the Magino team completing construction on schedule, meeting forecast costs to complete, and transitioning into operations in a challenging environment that included key components of the operation being deferred to conserve cash during construction and an overall industry shortage of skilled miners in Ontario. Mining at Magino improved significantly by the end of year and mill modifications scheduled for early in the new year are expected to enable the mill to operate at nameplate capacity consistently," stated Richard Young, president and chief executive officer of Argonaut Gold.

2023 production highlights

Fourth quarter 2023 production was 61,523 gold equivalent ounces (GEOs), an increase of 14 per cent compared with the third quarter 2023, benefiting from the commissioning of the Magino mine. Over all, 2023 consolidated annual production was 197,509 GEOs, 1 per cent less than the company's annual guidance of 200,000 to 230,000 GEOs. Cash and cash equivalents totalled $83.8-million at year-end with $218-million outstanding under the company's term loan facilities.

In summary, the company nearly achieved consolidated lower end of production guidance, with strong performances from Florida Canyon and the Mexican operations, offset by lower than expected output from Magino.

Progress at Magino:

• Daily mining rates for the month of December were largely on target, averaging 50,500 tonnes per day (tpd). There has been a steady improvement in the daily mining rate through 2023, with continuing improvement in the average quarterly daily mining rate through the year.

• Over all, the daily average mining rate increased by 25 per cent in December compared with the third quarter average.
• With additional mobile equipment scheduled to arrive in H1 2024 along with the installation of the fleet management system, management expects daily mining rates to increase into the 65,000 tpd range in 2024, in line with the current National Instrument 43-101 technical report for the Magino mine.
• In parallel with the increase in the daily mining rate through the fourth quarter, gold grades mined have also increased, resulting in the average grade milled, on a monthly basis, increasing from 0.69 gram per tonne in October, to 1.02 grams per tonne in November, to 1.07 grams per tonne in December.
• Mill throughput rates remained below nameplate in December, averaging 9,240 tpd; however, a scheduled mill shutdown in the first half of January, 2024, is expected to support the continued increase in mill average daily throughput to the nameplate of 10,000 tpd.
• The infill drill program under way to convert mineral resources to mineral reserves is proceeding well, having completed approximately 27,000 metres through the end of 2023, constituting 43 per cent of the planned program. The program is expected to be completed on time in June, 2024. The goal of the drill program is to add between 500,000 and one million ounces to mineral reserves, based on the conversion of existing mineral resources. A second phase program is expected to continue through the end of 2024.
• Mill optimization and expansion studies are well under way to determine the most cost-effective path to expand the process facilities to between a target of 17,500 and 20,000 tpd.
• An updated NI 43-101 technical report for the Magino mine including the updated mineral reserves and mineral resources and mill optimization and expansion opportunities is expected to be completed in the first quarter of 2024. A second NI 43-101 technical report including the balance of the 63,000-metre drill program and detailed mill optimization and expansion plans is expected to be completed in the third quarter of 2024.

Qualified person, technical information

The technical information contained in this press release has been prepared under the supervision of, and has been reviewed and approved by, Marc Leduc, PEng, chief operating officer and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. For further information on the Magino mine, please see the technical report titled "Magino Gold Project, Ontario, Canada, NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update," dated March 3, 2022 (effective date of Feb. 14, 2022), on the company's or on SEDAR+.

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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