Argonaut Gold Inc. Drills High-Grade Intercept of 6.0 Metres at 8.31 g/t at Magino;

The Phase Two program has focused on tightening drill spacing around high-grade intercepts encountered during the Phase One program at both the Elbow Zone and Central Zone. The results in this press release are from the Elbow Zone and the Company anticipates reporting results from the Central Zone once all assays have been received (Figure 1). To date, the Company has completed 54 diamond drill holes, including six (6) wedge holes, for a total of 34,852 metres of drilling in the Phase One and Phase Two programs.

The Phase One program discovered a number of high-grade veins over a widely spaced area beneath and adjacent to the Magino gold reserve. Drill spacing in this initial phase was up to 400 metres between holes and reached vertical depths up to 1,000 metres. Phase Two of the program utilized structural modeling from oriented core and optical televiewer measurements to focus on defining gold continuity within the high-grade shoots. In general, holes were designed to offset Phase One high-grade intercepts by approximately 40 metres. Results to date show promising gold grade continuity in the upper and deep portions of the Elbow Zone.

Recent highlights include:

• MA20-040 with 20.0m at 4.58 g/t Au, including 6.0m at 8.31 g/t Au
• MA20-041A with 16.0m at 4.86 g/t Au, including 1.0m at 48.50 g/t Au
• MA20-026A with 7.0m at 7.84 g/t Au, including 2.0m at 25.88 g/t Au
• MA20-026AW5 with 3.0m at 7.01 g/t Au, including 2.0m at 10.31 g/t Au
• MA20-038 with 4.0m at 8.70 g/t Au, including 1.0m at 29.10 g/t Au
• MA20-039 with 6.0m at 5.49 g/t Au, including 1.0m at 25.20 g/t Au

Pete Dougherty, President and CEO stated: "We continue to intersect high-grade gold and more importantly, we are seeing promising high-grade continuity within the Elbow Zone where we have now tightened drill spacing averaging between 40 metres and 50 metres in two areas. We are anxiously awaiting results from Phase Two drilling in the Central Zone where, like results from the Elbow Zone, we continue to encounter visible gold."

Table 1 below highlights select drill results from the Elbow Zone from the on-going Phase Two program. A three-dimensional model of the Magino deposit and the Elbow zone in relation to the proposed pit and property boundaries is available on the Company's website at https://www.argonautgold.com/English/assets/drill-results/default.aspx

Table 1: Select Drill Results – Phase Two

All Elbow Zone drill results as well as maps and sections are available on the Company's website at https://www.argonautgold.com/English/assets/drill-results/default.aspx

A detailed structural analysis was incorporated into the vein model for the Elbow Zone, where three veins contain high-grade gold mineralization. Normal and wedge drilling was then implemented to complete close-spaced offsets, nominally 40 metres, around three high-grade zones intersected in Phase One (Figures 1 and 2).

In the upper Elbow Zone, four additional holes were completed to test continuity around MA19-016 that returned 9.63 g/t Au over 14.0 m. A total of ten (10) holes have now been completed in Phases One and Two around hole 16 (Figure 3). All have intercepted significant gold values over estimated true widths (ETW) of 4.0 m to 15.0 m (Figure 3). High-grade values show good continuity throughout the zone as illustrated by hole MA20-041A which returned 4.86 g/t Au over 16.0 m core length, including a higher-grade portion running 14.09 g/t Au over 4.0 m and MA20-039 which returned 5.49 g/t Au over 6.0 m including 13.86 g/t Au over 2.0 m. Table 1 lists other significant intercepts.

A second area of continuity drill testing focused on the deeper part of the Elbow Zone to a vertical depth over 900 m from surface (Figure 4). The deepest hole to date, MA20-026A, returned 7.84 g/t Au over 7.0 m (984.0 to 991.0 m with an ETW of 5.60 m) including a higher-grade intercept of 47.8 g/t Au over 1.0 m (985.0 to 986.0m). Four (4) wedge holes were drilled to test the continuity of gold mineralization at these depths at an average hole spacing of 40 m. All four hit mineralization including 8.67 g/t Au over 4.25 m in MA20-026AW1 and 7.01 g/t Au over 3.0 m in MA20-026W5. This mineralization remains open at depth.

Phase Two drilling is nearing completion within the Elbow Zone, with a series of offset holes in progress around MA19-020 (10.59 g/t Au over 4.95 m) establishing a third continuity test zone. This zone is about 650 m deep and lies approximately halfway between the continuity tests noted above around MA19-016 (Figure 3) and MA20-026A (Figure 4), thus giving three sequentially deeper continuity drill tests starting from the bottom of the proposed Magino ultimate pit to a vertical depth of over 1000 m.

Brian Arkell, Vice President Exploration stated: "I'm very encouraged with the grade and continuity from an underground mining standpoint. We've drilled a diamond pattern at approximately 30 to 50 metre spacing around MA19-016 from the Phase One program, which returned 14.0 metres at 9.63 g/t Au, and have consistently hit the zone with high-grade mineralization in each of the surrounding holes. Approximately 450 metres below this, our second infill pattern around hole MA20-26 showed similar results with good grade and continuity. We are finalizing a third pattern on the Elbow Zone and have shifted one drill to the Central Zone offsetting Phase One intercept MA19-012, which returned 18.1 metres of 8.31 g/t Au. We are looking forward to receiving and publishing these results, as initial results indicate the Central Zone will demonstrate similar continuity based on what we see visually in the drill core."

Qualified Person Comments / Quality Control Procedures

The preparation of this press release was supervised and approved by Brian Arkell, Argonaut Gold's Vice President Exploration and a Qualified Person under NI 43-101. Mr. Arkell also reviewed the diamond drilling, sampling and on-site sample preparation procedures at Magino.

For sample analysis, the Company utilizes a system of Quality Assurance/Quality Control (QA/QC) that includes insertion and verification of standards, blanks and duplicates consistent with industry standards.

The Company has implemented a QA/QC program to ensure sampling and analysis of all exploration work is conducted in accordance with the CIM Exploration Best Practices Guidelines. The entire drill hole is sampled and tagged by geologic personnel. Cores are then photographed and sawn in half by experienced geotechnicians, placed in numbered plastic bags, and gathered in rice bags which are sealed with tamper-proof security tags under the supervision of the project geologists. The other half of the core is retained for future assay verification and/or metallurgical testing. Other QA/QC procedures include the insertion of coarse blanks and Canadian Reference Standards for every tenth sample in the sample stream. Samples are bagged, sealed with numbered security tags and shipped to the Activation Laboratories facility, Thunder Bay, Ontario, for sample preparation and assaying. The laboratory has its own QA/QC protocols, running standards, blanks and duplicate samples in each batch stream. Gold analysis is conducted by lead collection, fire assay with a gravimetric finish on a 50-gram sample. Metallic screen fire assaying is now completed using a 1.0 kg sample and two 50 gm fire assays of the pass (-100 mesh) pulverized material on all samples containing visible gold. Check assays are conducted at a secondary ISO certified laboratory.

Please see below under the heading "Cautionary note regarding forward-looking statements" for further details regarding risks.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Argonaut Gold Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements and forward-looking information include, but are not limited to statements with respect to permitting and legal processes in relation to mining permitting and approvals; estimated production and mine life of the various mineral projects of Argonaut; the ability to obtain permits for operations; synergies; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, and silver; the estimation of mineral reserves and resources; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in ore grade or recovery rates, changes in market conditions, risks relating to the availability and timeliness of permitting and governmental approvals; risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Argonaut's most recent Annual Information Form and in the most recent Management's Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Argonaut believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this document.

For further information on the Magino project, please see the report as listed below on the Company's website or on www.sedar.com:

About Argonaut Gold

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, USA. Advanced exploration projects include the Magino project in Ontario, Canada, the Cerro del Gallo project in Guanajuato, Mexico and the Ana Paula project in Guerrero, Mexico. The Company continues to hold the San Antonio advanced exploration project in Baja California Sur, Mexico and several other exploration stage projects, all of which are located in North America.

For more information, contact:

Argonaut Gold Inc.
Dan Symons
Vice President, Investor Relations
PHone: 416-915-3107
Email: dan.symons@argonautgold.com

SOURCE Argonaut Gold Inc.