Argonaut Gold Inc. (TSX: AR) is pleased to announce that it has completed its previously announced “bought deal” private placement of 6,613,800 Canadian Exploration Expense and 18,656,800 Canadian Development Expense common shares of the Company that will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) for aggregate gross proceeds of approximately C$17.5 million. The Private Placement was conducted pursuant to the terms and conditions of an underwriting agreement entered into between the Company and a syndicate of underwriters co-led by Scotiabank and Cormark Securities Inc., and including BMO Nesbitt Burns Inc., Desjardins Securities Inc., Echelon Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm Capital Inc. and RBC Dominion Securities Inc.

The gross proceeds from the issue and sale of the Flow-Through Shares will be used by the Company to incur eligible “Canadian exploration expenses” or “Canadian development expenses” that qualify as “accelerated Canadian development expenses”, as applicable, as such terms are defined in the Income Tax Act (Canada) related to the Company’s Magino Project on or before: (i) December 31, 2024 in respect of the CEE Flow-Through Shares; and (ii) December 31, 2023 in respect of the CDE Flow-Through Shares. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares with an effective date not later than December 31, 2023.

The Private Placement remains subject to final approval of the Toronto Stock Exchange. The Private Placement was completed in Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws. The Flow-Through Shares issued pursuant to the Private Placement are subject to a statutory hold period of four months and one day from the closing date of the Private Placement.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Argonaut Gold

Argonaut Gold is a Canadian gold company with a portfolio of operations and multi-stage assets in North America. Focused on becoming a low-cost mid-tier gold producer, the Company is in the final stages of construction at its Magino Project, located in Ontario, Canada. Magino is expected to achieve commercial production in the third quarter of 2023 and become Argonaut’s largest and lowest cost mine. The commissioning of Magino will be the first step in transforming the Company as it enters a pivotal growth stage.

The Company also has three operating mines including the Florida Canyon mine in Nevada, USA, where it is pursuing additional growth, La Colorada mine in Sonora, Mexico and San Agustin mine in Durango, Mexico.