Argonaut Gold Announces Achievement of Pivotal Permitting Milestone with Approval of Schedule 2 Process from Canadian Federal Government

TORONTO, June 11, 2020 - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce the conclusion of Schedule 2 amendment, a key project authorization, by the Canadian federal government in connection with the Magino project. The completion of the amendment to Schedule 2 of the Metal and Diamond Mining Effluent Regulations is a significant permitting milestone for the Magino project. This regulatory process has been completed following extensive consultations with Indigenous communities and the public. All dollar amounts are expressed in US dollars unless otherwise stated.

Pete Dougherty, President & CEO stated: "Magino is truly a valuable and strategic asset given existing project infrastructure, the already-known mineral endowment of the orebody and the existing exploration potential, its location within the mining-friendly jurisdiction of Ontario, Canada and its proximity to other strong cash flowing operations such as the Island Gold mine. From a permitting perspective, the completion of the Schedule 2 process significantly de-risks the Magino project and makes it much more attractive to potential joint-venture partners and project financing lenders. We thank the local communities for their continued support for the project. Argonaut believes that the Magino project can be an important local employer in Northern Ontario."

Argonaut anticipates having project approvals and development financing options organized to enable the Company to make a decision on the advancement of the Magino project during the second half of 2020.

The Company has continued its deep drilling exploration program uninterrupted and is encouraged with the results to date. As the backlog in the assay laboratories is worked through following their temporary closure due to COVID-19, Argonaut expects to provide continuous exploration results from this program throughout the year.

Pete Dougherty continued: "Our feasibility study parameters outline strong economics at $1,250 gold and a 0.78 Canadian dollar to US dollar exchange rate and extremely robust economics at current spot gold prices and exchange rates. In addition, we are excited by the ongoing deep drilling exploration program, where we are consistently hitting high-grade intercepts, which are not included in our current mineral reserve or mineral resource estimates."

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 ("NI 43-101"). For further information on the Magino project, please see the report as listed below on the Company's website or on www.sedar.com:

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 proposed transaction and 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 COVID-19 pandemic, the impact of the pandemic on Argonaut and the impact of government action aimed at ameliorating the pandemic on the workforce, business and operations of Argonaut and on its transaction with Alio Gold Inc.; statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies 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; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; 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" 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 changes in market conditions, the scope, duration and impact of the COVID-19 pandemic, the scope, duration and impact of regulatory responses to the pandemic on the employees, business and operations of Argonaut and the broader market, variations in ore grade or recovery rates, 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. 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 and the La Colorada mine in Sonora, Mexico. Advanced exploration projects include the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. 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.