Argonaut Gold Inc. Announces 66% Increase in Gold Production Year Over Year CAPEX Program Nears CompletionDelivers More Than 5,000 Ounces in October

TORONTO, ONTARIO -- (Marketwire) -- 11/04/10 -- Argonaut Gold Inc. ('Argonaut' or the 'Company')(TSX: AR), announced today that the Company produced 12,724 ounces of gold during the 3rd quarter (ending September 30, 2010) at its 100% owned El Castillo Mine ('El Castillo'), located 100 km north of the city of Durango, Mexico. The capital expansion program at El Castillo is nearing completion, including the east side processing plant, which will be operational by year end.

Argonaut's President and CEO Peter Dougherty noted, 'Gold production in Q3 marks the 3rd consecutive quarter of increased production at El Castillo. Year over year, 3rd quarter production was up 66% over 2009. 24,202 ounces were placed on the pad during the 3rd quarter representing a 20% increase over Q2 of 2010.

The Company surpassed the targeted mining rate of 1.5 million total tonnes per month during the 3rd quarter. Year to date production at El Castillo has been 33,031 ounces, a 64% increase compared to the same time period in 2009. We are on target to meet our guidance of 47,000 ounces of gold in 2010. We look forward to utilizing the full processing capacities at both plants as production at El Castillo grows towards a 75,000 ounce run rate in 2011.'

                                                             Q3    % Change
                                             Q3 2010    2009(i)   Year Over
El Castillo Operating Statistics           9/30/2010  9/30/2009        Year
                                           ---------  ---------  ----------

Total Tonnes mined                         4,749,610  2,594,800         +83%
Tonnes Ore                                 2,013,668  1,051,300         +92%
ROM Tonnes Ore                             1,675,504    782,900        +114%
(direct to leach pad)
Tonnes Crushed                               369,275    268,300         +38%

Gold Grade (g/t)                                0.37       0.42        - 12%
Gold Loaded to Pad (oz)                       24,202     14,100         +72%
Gold Produced (oz)                            12,724      7,655         +66%

(i)Note: Information obtained from Castle Gold Corporation press release
dated October 21, 2009



                                                                          %
                                       Nine Months Ended             Change
Operating Statistics        September 30, 2010  September 30, 2009    Y-O-Y
                            ------------------  ------------------  -------

Total Tonnes mined                  11,093,516           5,966,900      +86%
Tonnes Ore                           5,197,406           2,477,800     +110%
ROM Tonnes Ore                       4,237,532           1,809,000     +134%
(direct to leach pad)
Tonnes Crushed                         954,559             668,800      +43%

Gold Grade (g/t)                           .37                 .48      -23%
Gold Loaded to Pad (oz)                 60,744              37,851      +60%
Gold Produced (oz)                      33,032              20,044      +65%

Note: Information obtained from Castle Gold Corporation 3rd quarter MD&A
dated November 25, 2009

CAPEX Program Updates

In regards to the improvements made at the operation, Edgar Smith, Argonaut's Chief Operations Officer stated, 'Our work on improving the capacity and operational efficiencies at the El Castillo mine is nearing completion. The team is excited by the pace of the continuous progress achieved this year. The processing facilities at the west side of the property are complete and fully operational. Meanwhile, we are expecting to commission the east side processing facility and begin loading the pads by year end. We anticipate a 4th quarter production increase based on the October results, which will fulfill our production estimate of 47,000 ounces of gold produced in 2010.'

The following advancements in the capital projects expansion program during the quarter include:

Production Highlights for Q3

--  Surpassed 1.5 million total tonnes moved per month for a full quarter;
--  Record Gold Production of 12,724, +66% increase year over year;
--  Record ounces loaded on the pad for 3rd quarter (24,202 ounces) and
--  More than 5,000 ounces of gold produced in October.

West Side Improvements

--  Finalized pad 7 and began loading ore; and
--  Completed barren solution upgrades at the new west side carbon plant
    which has increased the flow to 1000 cubic meters/hr from 400 cubic
    meters per/hr, more than doubling the previous flow rate.

East Side Additions

--  East pad stage 1, cell 1 is complete;
--  East pad cells stage 1, cell 2 and cell 3 are scheduled for completion
    by end of December; and
--  Upon completion of the east pad processing plant by year end, El
    Castillo processing capacities will increase to 1 million ore tonnes per
    month.

Merger with Pediment Gold Corp.

The schedule below indicates important dates for the recently announced proposed business combination (the 'Business Combination') of Argonaut Gold Inc. and Pediment Gold Corp. ('Pediment'). The merger looks to combine Pediment's exploration expertise with Argonaut's development and operational experience. Upon completion of the Business Combination the company will have 2 operations targeted to produce at least 150,000 ounces in 2013, in addition to exploration projects spanning over 50,000 hectares.

    November 18th     Proxy Mailing for Pediment and Argonaut
    December 15th     Special Shareholder Meeting for Pediment and Argonaut

A special shareholder meeting will be held on December 15th for Pediment Gold Corp., immediately followed by a special shareholder meeting for Argonaut at the Fairmont hotel in Toronto, Ontario at 10:00 am.

Q3 2010 Financial Results Conference Call and Webcast:

Argonaut Gold will host a conference call on Monday, November 15th, 2010 at 9:30 am EDT to discuss the third quarter 2010 results and provide an update of the Company's operating, exploration, and development activities.

Participants may join the conference call by dialing 1(877)240-9772 or 1(416)340-8530 for calls outside of Canada and the United States. The pass code is 6778610 followed by the # key. The conference call may also be accessed via webcast by visiting the Company's website, www.argonautgoldinc.com.

A recorded playback of the conference call can be accessed after the event until November 22, 2010 by dialing 1(800)408-3053 or 1(905)694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 6778610 followed by the # key.

About Argonaut

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets being the production-stage El Castillo Project and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc. Creating the Next Quality Mid-Tier Gold Producer in the Americas.

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management's current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Ltd. assumes no obligation to update the forward-looking information contained in this news release.

Qualified Person

Preparation of this release was supervised by Thomas Burkhart, Argonaut's Vice President of Exploration, and a Qualified Person under NI 43-101. For additional information on El Castillo please refer to the 'Technical Report on the El Castillo Project in Durango, Mexico' dated July 31, 2008 and available at Argonaut's profile on sedar.com.

Contacts:

Argonaut Gold Ltd.

Nichole Cowles

Investor Relations Manager

(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com