Ms. Joanna Longo reports

ARGONAUT GOLD ANNOUNCES CLOSING OF $17.25 MILLION OFFERING OF FLOW THROUGH SHARES, INCLUDING EXERCISE IN FULL OF UNDERWRITERS' OPTION

Argonaut Gold Inc. has closed its previously announced offering of 35,937,500 common shares of the company issued as flow-through shares with respect to Canadian development expenses (CDE) within the meaning of the Income Tax Act (Canada) and the regulations thereunder in force as of the date hereof at a price of 48 cents per CDE flow-through share for gross proceeds of $17.25-million, which includes the exercise in full of the underwriters' option.

The offering was completed pursuant to an underwriting agreement dated Nov. 11, 2022, entered into among the company and a syndicate of underwriters led by Cormark Securities Inc. and including BMO Nesbitt Burns Inc., Scotia Capital Inc., Desjardins Securities Inc., Echelon Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm Capital Inc., RBC Dominion Securities Inc. and Stifel Nicolaus Canada Inc.

The proceeds from the sale of the CDE flow-through shares will be used on development expenses on the Magino project as permitted under the Tax Act to qualify as CDE. The company will renounce all the CDE development expenses in favour of the subscribers of the CDE flow-through shares effective on or before May 31, 2023.

The company filed a prospectus supplement to its short-form base shelf prospectus dated June 2, 2022, in each of the provinces and territories of Canada, except for Quebec, pursuant to National Instrument 44-102 (Shelf Distributions) to qualify for distribution the CDE flow-through shares. Copies of the prospectus and documents incorporated by reference therein are available electronically on SEDAR under Argonaut's issuer profile.

About Argonaut Gold Inc.

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

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