Argonaut Gold Inc. (TSX: AR) is pleased to announce record quarterly production of 56,986 gold equivalent ounces¹, representing a 16% increase over the previous quarter and a 20% increase over the same period the previous year.  Argonaut produced 203,483 GEOs in 2020 and had a cash balance of approximately $214 million at December 31, 2020.  The table below details fourth quarter and full year 2020 production results.  All dollar amounts are expressed in United States dollars, unless specified.

Fourth Quarter and Full Year 2020 GEO Production

Pete Dougherty, President and CEO stated: “2020 was a spectacular year for Argonaut, as we completed a merger, saw the conclusion of Schedule 2 amendment and executed on a financing plan for Magino’s development and achieved record quarterly production in our most recent quarter.  As we look to 2021, we are taking a cautious approach to guidance when considering potential productivity challenges due to COVID-19 protocols and contact tracing, as the health and safety of our workforce is paramount.  Our focus is to deliver cash flow from the operating mines to fuel Argonaut’s growth through the construction of Magino, as we embark on the transition from a relatively high-cost junior producer with short mine life assets to an intermediate lower-cost producer with long life assets.”

2021 Production and Cost Guidance

The Company anticipates it will produce between 210,000 and 250,000 GEOs during 2021 at a cash cost of between $950 and $1,050 per gold ounce sold and an all-in sustaining cost (“AISC”) of between $1,250 and $1,350 per gold ounce sold (see “Non-IFRS Measures” section).

2021 GEO Production and Cost Guidance

2021 Capital Guidance

The Company plans to invest between $255 million and $275 million in capital expenditures during 2021 with approximately 80% being expansionary capital (primarily for the construction of the Magino Gold mine) and 20% being sustaining capital.

2021 Capital Estimate by Project and Category($M)¹

Board Member Retirement

Effective December 31, 2020, Chris Lattanzi has retired from Argonaut’s board of directors.  Mr. Lattanzi has been an integral member of Argonaut’s board since the inception of the Company at the end of 2009.

Jim Kofman, Chairman of the board, commented: “The invaluable experience that Chris garnered throughout his 60 year career as a mining engineer and brought to the Argonaut board has been tremendously appreciated.  Quite simply, the amount of knowledge that Chris has shared with Argonaut’s board members and management to help inform the Company’s decisions has been indispensable and cannot be replaced.  On behalf the board, I want to wish Chris the absolute best during his well-earned retirement.  It has been a pleasure learning from and working with him over the years.”

Non-IFRS Measures

The Company has included certain non-IFRS measures including “Cash cost per gold ounce sold” and “All-in sustaining cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards.  Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold.  All-in sustaining cost per gold ounce sold is equal to production costs less silver sales plus general and administrative, exploration, accretion and other expenses and sustaining capital expenditures divided by gold ounces sold.  The Company believes that these measures provide investors with an alternative view to evaluate the performance of the Company.  Non-IFRS measures do not have any standardized meaning prescribed under IFRS.  Therefore they may not be comparable to similar measures employed by other companies.  The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Qualified Person, Technical Information and Mineral Properties Reports

Technical information included in this release was supervised and approved by Brian Arkell, Argonaut’s Vice President, Exploration and a Qualified Person under National Instrument 43-101.  For further information on the Company’s material properties, please see the reports 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.  The Company also holds the development 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.