Mr. Dan Symons reports

ARGONAUT GOLD ANNOUNCES CLOSING OF C$51.8 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT, INCLUDING FULL EXERCISE OF OVER-ALLOTMENT OPTION

Argonaut Gold Inc. has completed its previously announced bought deal private placement of 3.91 million Canadian exploration expense (CEE) and 15.87 million Canadian development expense (CDE) common shares in the capital 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 $51,844,300, including proceeds from the full exercise of an overallotment option to purchase an additional 2.58 million flow-through shares. 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 led by BMO Capital Markets and including Cormark Securities Inc., Canaccord Genuity Corp., RBC Dominion Securities Inc., Scotia Capital Inc. and Echelon Wealth Partners 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 that will qualify as flow-through mining expenditures or Canadian development expenses, as applicable, as such terms are defined in the Income Tax Act (Canada) related to the company's directly or indirectly held projects in Ontario on or before (i) Dec. 31, 2023, in respect of the CEE flow-through shares; and (ii) Dec. 31, 2022, 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, 2022.

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 is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine in Durango, Mexico, the La Colorada mine in Sonora, Mexico, and the Florida Canyon mine in Nevada, United States. The company also holds the construction-stage Magino project, the advanced-exploration-stage Cerro del Gallo project and several other exploration-stage projects, all of which are located in North America.

We seek Safe Harbor.