Mr. Larry Radford reports

ARGONAUT GOLD ANNOUNCES SECOND QUARTER PRODUCTION OF 59,192 GOLD EQUIVALENT OUNCES AND CASH FLOW(1) OF $23.3 MILLION

Argonaut Gold Inc. has released its operating and financial results for the second quarter ended June 30, 2022. For the second quarter 2022, the company reports production of 59,192 gold equivalent ounces, revenue of $111.4-million, cash flow from operating activities before changes in non-cash operating working capital and other items of $23.3-million, net income of $18.4-million or earnings per basic share of six cents, and adjusted net income of $7.3-million or adjusted earnings per basic share of two cents. All dollar amounts are expressed in U.S. dollars unless otherwise specified.

Larry Radford, president and chief executive officer, stated: "We were slightly ahead of our operational budget in terms of GEO production during the second quarter, which yielded over 59,000 GEOs, albeit at a slightly higher cost than budgeted due to inflationary pressures on input costs. We recently put a financing package together that we believe fully finances the Magino construction project. We are also tracking well against our most recent Magino capital estimate to completion of $920-million (Canadian). With the financing behind us and what I believe to be the right team now in place, I feel Argonaut is in a much better position to execute on our business plan."

Second quarter 2022 results

Key operating and financial statistics for the second quarter ended June 30, 2022, are outlined in the attached key operating and financial statistics table.

Guidance and outlook

Argonaut maintains its 2022 GEO production guidance and, primarily due to inflationary pressures on key consumable costs, is adjusting its cost guidance higher as outlined in the attached production and cost guidance table.

Following the Magino construction, equity raise and committed credit facilities, Argonaut is providing 2022 capital guidance. Through June 30, 2022, Argonaut had invested approximately $207-million in capital expenditures or approximately 46 per cent of its estimated 2022 capital spend.

Management changes

Argonaut advises that Dan Symons, vice-president, corporate development and investor relations, has resigned from his position to pursue other opportunities. A search for a replacement is in progress.

Mr. Radford commented, "With more than six years of service, we want to thank Dan for his contributions to the growth of Argonaut Gold."

Argonaut Gold second quarter 2022 operational and financial results conference call and webcast

The company will host a conference call and webcast to discuss its second quarter ended June 30, 2022, operating and financial results at 9 a.m. EDT on Aug. 11, 2022.

Q2 2022 conference call information

Toll-free (North America):  1-888-664-6392

International:  1-416-764-8659

Conference ID:  90653330

Webcast:  at the Argonaut website

Q2 2022 conference call replay

Toll-free replay call (North America):  1-888-390-0541

International replay call:  1-416-764-8677

Replay entry code:  653330 followed by the number sign

The conference call replay will be available from 12 p.m. EDT on Aug. 11, 2022, until 11:59 p.m. EDT on Aug. 18, 2022.

This press release should be read in conjunction with the company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2022, and associated management's discussion and analysis for the same period, which are available from the company's website in the investors section under financial filings, and under the company's profile on SEDAR.

About Argonaut Gold Inc.

Argonaut is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are El Castillo mine and San Agustin mine, which together form El Castillo complex in Durango, Mexico, 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.

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