TORONTO - Argonaut Gold Inc. (TSX: AR) (the 'Company', 'Argonaut Gold' or 'Argonaut') is pleased to announce its operating and financial results for the third quarter ended September 30, 2021.

The Company reports quarterly production of 58,777 gold equivalent ounces2 ('GEO' or 'GEOs'), cash flow from operating activities before changes in non-cash operating working capital and other items of $39.6 million, net income of $15.0 million or earnings per basic share of $0.05 and adjusted net income3 of $17.4 million or adjusted earnings per basic share2 of $0.06. All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).

Pete Dougherty, President and CEO stated: 'We generated nearly $40 million in cash flow during the third quarter in spite of the usual productivity challenges we typically experience due to the rainy season in Mexico. With $107 million of cash flow1 generated through the first nine months of the year, we have already surpassed our target of generating $100 million in cash flow in 2021 and have three more months to add to that total. This generation of cash flow is key for the Company, as we continue to re-invest into the growth and diversification of the business through the construction of the Magino project in Ontario, Canada. I'm very pleased with the entire team effort in achieving this feat - particularly when you consider the third quarter 2021 saw a 7% lower realized gold price compared to the third quarter 2020, yet generated 37% more cash flow when comparing the two periods. Overall, it was a tremendous financial quarter with a 12% increase in net income and an 43% increase in adjusted net income year-over-year.'

Third Quarter 2021 and Recent Company Highlights

Corporate

Generated $39.6 million of cash flow from operating activities before changes in non-cash operating working capital and other items.

Increased net income and adjusted net income 12% and 43%, respectively, compared to the third quarter of 2020.

Acquired key mineral concessions surrounding the San Agustin mine for $5.75 million that more than quadruples the mineral tenure in the San Agustin district.

Strengthened the management team in Mexico with the appointment of Alfredo Phillips as Vice President, Corporate Affairs & Country Manager. In this role, Mr. Phillips will be responsible for leading government relations and ESG strategy and execution in Mexico.

On September 23, 2021, completed a non-brokered private placement Quebec flow-through financing for gross proceeds of C$1.8 million at a price of C$3.85 per flow-through share , representing a 30% premium to the previous day closing price of C$2.96 per share.

The proceeds will be used to fund Argonaut's portion of eligible exploration expenditures for its 50/50 joint venture with Troilus Gold Corp. on exploration properties within the Troilus district of Quebec, Canada.

Social Responsibility

Construction of water wells in communities near the El Castillo Complex.

Repair of roads and the maintenance of local sports stadiums in the communities near the La Colorada mine.

Participated in a food drive initiative at the Tri-County Fair in the community near the Florida Canyon mine.

El Castillo Complex

Third quarter production of 28,872 GEOs, an increase of 8% compared to the third quarter of 2020.

El Castillo production of 11,246 GEOs, an increase of 18% compared to the third quarter of 2020.

San Agustin production of 17,626 GEOs, an increase of 2% compared to the third quarter of 2020.

La Colorada

Third quarter production of 15,802 GEOs, an increase of 44% compared to the third quarter of 2020.

Reduction in cash cost per gold ounce sold of 24% compared to the third quarter of 2020.

Continued to discover high-grade gold mineralization below the El Creston pit, including 4.6 metres at 51.9 g/t Au and 28.5 g/t Ag.

Florida Canyon

Third quarter production of 14,103 GEOs, an increase of 25% compared to the third quarter of 2020.

Reduction in cash cost per gold ounce sold of 16% compared to the third quarter of 2020.

Magino

Construction

All internal coffer dams are completed.

Plant site construction is underway.

Construction of the Tailings Management Facility ('TMF') has commenced.

Commenced and completed some sections of concrete pouring, forms, and rebar.

Completed final section of pre-shear drilling in open pit, which allows for TMF material to be accessed and sourced.

Completed TMF access roads.

Completed detailed backfill for leach tanks.

Completed main haul road section.

Completed installation of 21 ground water monitoring wells.

Completed winterizing of crushing plant.

Continued reverse circulation (RC) ore control drilling.

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: the Magino construction capital estimate; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; estimated production and mine life of the various mineral projects of Argonaut; timing of approval for modifications to existing permits; permitting and legal processes in relation to mining permitting and approval; 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.

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. 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.

Contact:

Dan Symons

Tel: 416-915-3107

Email: dan.symons@argonautgold.com

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