FIRST QUARTER 2013 & RECENT HIGHLIGHTS

• Capital expenditures of $18.8 million on mineral properties, plant and equipment
• El Castillo operations:

• • Pad 8 construction well under way with stacking of ore and leaching
  • Argonaut is now operating all mining internally, having assumed prior contractor mining activities in March 2013
  • Over 360,000 gold ounces were added to the in-pit resources relating to sulphide mineralization

• La Colorada operations:

• • Pad construction initiated in 2012 continues to progress well and we have now begun loading and leaching
  • Crushing circuit expansion continues and is scheduled to be completed and operational in the third quarter of 2013
  • Updated resource for the Veta Madre deposit added 110,000 inferred gold ounces, with potential for further expansion

• San Antonio and Magino permitting process underway

CEO Commentary
Pete Dougherty, President and CEO of Argonaut Gold stated “2013 will see a substantial investment in both the El Castillo and La Colorada operations as we bring forward our capital expansion programs. At El Castillo, the addition of the new heap leach pads and west side crusher/overland conveyor is aimed at reducing operating costs and providing production growth; both should be fully functional in the third quarter of this year. At La Colorada, the Company continues to open the ore body and construct the new crusher; both are anticipated to provide improved production in the second half of the year. Overall operations are showing steady improvement toward our 2013 goals and objectives and we are poised to make our guidance provided earlier.”

Financial Results – First Quarter 2013
During the first quarter of 2013, revenue was $43.1 million from gold sales of 25,441 ounces, compared to $24.4 million from gold sales of 14,498 ounces in the first quarter of 2012. Cash cost per gold ounce sold in the quarter was $594, compared to $639 in the same period of the prior year (cash cost per gold ounce sold is a non-IFRS measure, see note below). 

During the first quarter of 2013, gross profit was $21.0 million, compared to $12.3 million in the first quarter of 2012. During the quarter, profit from operations was $17.2 million, compared to $9.7 million in the same period of the prior year. Net income for the period was $11.6 million, or $0.08 per basic share, versus $7.3 million, or $0.08 per basic share, in the first quarter of 2012.

Cash and cash equivalents was $168.5 million at March 31, 2013. Capital expenditures in the first quarter were $18.8 million primarily as a result of infrastructure improvements at the El Castillo and La Colorada mines.

This press release should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the quarter ended March 31, 2013 and associated management's discussion and analysis ("MD&A") which are available from the Company's website, www.argonautgold.com, in the "Investors" section under "Financial Filings", and under the Company's profile on SEDAR at www.sedar.com.

Summary of Production Results at El Castillo
As of mid-March, we assumed the day to day mining operations at El Castillo from the former mining contractor. We hope to bring further efficiencies to the mining process through this investment. Total tonnes mined in the first quarter 2013 were up 4 percent, compared to the first quarter of 2012. Of note, the 1.4 million tonnes crushed in the first quarter was a new record for El Castillo and represented a 71 percent increase in crushed tonnes, over the first quarter of 2012. The total ounces loaded to the leach pad were 36,023 in the first quarter of 2013, a 2 percent increase over the first quarter of 2012. The stripping ratio of waste to ore remained relatively consistent between periods.

The 2013 production guidance at El Castillo is expected to be between 90,000-100,000 ounces with a cash cost between $700 and $725 per gold ounce sold.

Summary of Production Results at La Colorada
Overburden removal began in the fourth quarter of 2012; we have now increased the daily mining rate to roughly 50,000 tonnes per day. During removal of the overburden we have encountered some marginally mineralized material at 0.27 g/t for the first quarter. We are on schedule to have the pit opened to ore in the third quarter. As a result, we anticipate mineralization to increase during the second half of the year.

The 2013 production guidance at La Colorada is between 30,000-40,000 ounces, back loaded to the second half of the year, with a cash cost between $450 and $475 per gold ounce sold.

Expansion Projects for 2013
The Company plans on investing a total of between $64 million to $74 million on capital expenditures and exploration initiatives in 2013. Major capital expenditures in 2013 are expected to include approximately $25 million at El Castillo, $19 million at La Colorada, $6 million at Magino, between $5 million and $11 million at San Antonio and between $2 million and $3 million for other capital expenditures. Exploration expenditures in 2013 are expected to amount to between $7 million and $10 million.

Non-IFRS Measures
The Company included the non-IFRS measure “Cash cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability 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. Please see the MD&A for full disclosure on non-IFRS measures.

Qualified Person, Technical Information and Mineral Properties Reports
The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut's Vice President of Exploration, a qualified person as defined by National Instrument 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager also supervised the drill programs and on-site sample preparation procedures at La Colorada. Bret Swanson of SRK of Denver, CO, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated Veta Madre resource has reviewed this press release as it relates to Veta Madre.

For further information on the Company’s 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 activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Baja California Sur, Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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 Inc. assumes no obligation to update the forward-looking information contained in this news release.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

TORONTO, ONTARIO--(Marketwired - April 26, 2013) - Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR), announced today that the Company has determined to amend its notice by-law amendment and its share incentive plan (the "Plan").

Following review by Institutional Shareholder Services Inc. ("ISS"), the Company has amended the By-law No. 2013-1 to remove the board discretion at Section 3.04A(ii)(b) and include the following additional provision to ensure board discretion to deal with matters which may arise:
(vii) Notwithstanding the foregoing, the board of directors may, in its sole discretion, waive any requirement in this Section 3.04A.

Also, in response to comments from ISS, Argonaut Gold has determined to amend the Plan to reduce the maximum number of common shares issuable under the Plan to a number equal to 6% of the issued and outstanding common shares of Argonaut from time to time, with the number of shares issuable as Awards (other than options) under the Plan to not exceed 1.2%.

Argonaut Gold notes that, to date, it has outstanding incentives under the Plan equal to only 2.6% of the common shares of Argonaut Gold. Argonaut Gold ranks at the top of its peer group in terms of pay for performance. The board and management are committed to maintaining this status.

Argonaut Gold appreciates the strong support of its shareholders, and reminds shareholders that it hopes for record participation in its meeting on May 7, 2013 at 11:00 am at the offices of Bennett Jones LLP at 3400, One First Canadian Place, Toronto, Ontario. As detailed in the circular sent to shareholders, proxies in connection with the meeting are due no later than 11:00 am (Eastern Daylight Time) on May 3, 2013. The amendments described above will be introduced at the meeting. Pursuant to the proxy forms, management nominees will vote in favour of the business described above, as amended.

For more information and assistance in voting your proxy, Argonaut shareholders are urged to contact Kingsdale Shareholder Services Inc. at 1-866-229-8166 or by email at contactus@kingsdaleshareholder.com.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and, the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Baja California Sur, Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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"). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Contact Information

Argonaut Gold Inc.
Jeff Pritchard
Investor Relations
(775) 284-4422
Jeffrey.Pritchard@argonautgold.com
www.argonautgold.com

Veta Madre Deposit Adds 110,000 Inferred Gold Ounces at La Colorada, with potential for additional growth

Toronto, Ontario – (April 15, 2013) Argonaut Gold Inc. (“Argonaut Gold” or the “Company”; TSX: AR), announced today that the Company had gold production of 28,907 ounces during the 1st quarter ended March 31, 2013. This included 23,125 ounces at its 100% owned El Castillo Mine (“El Castillo”) located in Durango, Mexico and 5,782 ounces of gold at its 100% owned La Colorada Mine (“La Colorada”) located in Hermosillo, Mexico. Argonaut Gold is continuing its ramp up of production at both operations and we expect production increases as the year progresses. The Company is also pleased to announce an updated resource for the Veta Madre deposit at La Colorada with good expansion potential within the surrounding geologic environment.

FIRST QUARTER 2013 HIGHLIGHTS:

El Castillo

• Production of 23,125 gold ounces, representing a 30% improvement over Q1 2012.
• 36,023 gold ounces loaded on the pad, a 2% improvement over Q1 2012.
• West Side Pad 8 construction continues to make good progress and we have now begun loading and leaching.
• Argonaut now operating all mining at El Castillo, having assumed contractor activities in March.

La Colorada

• Production of 5,782 gold ounces, an 87% improvement over Q1 2012.
• Production of 44,879 silver ounces, a 161% improvement over Q1 2012.
• 3,763 gold ounces and 70,694 silver ounces loaded on the pad.

Richard Rhoades, Chief Operating Officer of Argonaut Gold said “2013 will be an important year at El Castillo. The Company is moving forward its expansion programs this year. Nearly 30 million tonnes of pad capacity will be built on the west side pad #8. Our goal is to achieve our production targets while concurrently building for the future. In addition, capital expenditures for a west side crusher/overland conveyor, aimed at reducing costs, will be completed and fully operational in the third quarter.” Mr. Rhoades added, “The grade this quarter was due to higher than anticipated grades mined on the north side of the pit”.

Commenting on La Colorada production, Mr. Rhoades said, “Mining during the first half of the year will be of lower grade with a higher strip ratio. During the second half of the year, the tonnes processed are expected to increase, along with the overall grade”.

Veta Madre Deposit Adds 110,000 Inferred Gold Ounces at La Colorada, Surrounding mineralized envelope provides potential growth in ounces

The Company is pleased to report an updated NI 43-101 compliant mineral resource from SRK Consulting of Denver, CO (“SRK”) showing an inferred resource of 110,145 gold ounces and 701,908 silver ounces at the Veta Madre deposit, which forms part of the La Colorada mineral system. The resource contained within an optimized Whittle-Pit consists of 6.7 million tonnes of material at an average grade of 0.51 g /t of gold and 3.25 g/t silver. Economic parameters utilized in this Whittle Pit optimization are based on actual costs realized at the La Colorada operation, a cut-off grade of 0.10 grams/tonne and metallurgical test work performed by Kappes, Cassiday & Associates (“KCA”) of Reno, NV. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as mineral reserves. There is no assurance that any part of the inferred resources will ultimately be converted to mineral reserves.

Veta Madre restricted and non-restricted pit

Horizontal section for bench 295 showing the outlines for both restricted and unrestricted pits.

Mineralization at Veta Madre is oxidized material which begins at surface and runs to the current drill depths of 170 meters. Expected recoveries are estimated at 85% for gold and 15% for silver, as determined by column heap leach testing completed by KCA. The resource outlined above is constrained to our surface right concessions and only recovers parts of a much larger mineralized envelope. The Company anticipates additional resource could be added to the production profile if additional surface rights can be acquired.

La Colorada Exploration Potential

In regards to exploration potential at the property, Tom Burkhart, Vice President of Exploration said “The current resources at La Colorada are part of a large gold-silver district that historically has produced between three and five million ounces of gold. The Company is currently reviewing satellite gold targets in proximity to the mine. These mineralized zones show evidence of limited past underground production where potential remains for open-pit extraction of mineralized wall-rock. These surrounding gold occurrences offer significant potential, and may add resources to the La Colorada operation. Also offering long-term upside at La Colorada is known high-grade mineralization that underlies all of the current open pit mining operation. The Company believes there is potential for underground mining at La Colorada and will be conducting further studies to evaluate this in 2013.”

First Quarter Highlights

Pete Dougherty, President and CEO of Argonaut Gold said “The Veta Madre resource is an exciting addition which could add near term production at La Colorada. The Company aims to permit this area for production within the next year. The production is anticipated to add approximately 10-20,000 ounces annually, with minimal capital requirements. This would be built as a heap leach operation with solution pumped to the La Colorada plant.”

Mr. Dougherty added, “During the first half of 2013, production expectations are for 46,000 ounces of gold at El Castillo and 9,000 ounces of gold at La Colorada. We anticipate that production will increase in the second half of 2013, with 49,000 gold ounces at El Castillo and 27,000 gold ounces at La Colorada. We are excited by the accomplishments at both mines and look forward to how capex invested through 2013 will lead to production growth and cash cost decreases at both operations.”

Argonaut Gold Annual General Meeting:
Argonaut Gold’s annual meeting of shareholders is scheduled to take place on Tuesday, May 7, 2013 at 11:00 am ET at the office of Bennett Jones LLP , Canada rooms A & B, 3400 One First Canadian Place, Toronto, Ontario, M5X 1A4.

Argonaut Gold Q1 Financial Results Conference Call and Webcast:
The Q1 financial results call is scheduled to take place on May 14, 2013 at 8:30 am ET. Details for the call in participation are:

Q1 Conference Call Information:

Toll Free (North America): 1-877-440-9795
International: 1-416-340-8527
Webcast: www.argonautgold.com

Q1 Conference Call Replay:

Toll Free Replay Call (North America): 1-800-408-3053
International Replay Call: 1-905-694-9451
Passcode: 7979249

The conference call replay will be available from 10:30 a.m. ET on May 14, - May 21, 2013.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and, the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Baja California Sur, Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Qualified Person, Technical Information and Mineral Properties Reports

Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold's Vice President of Exploration, and a Qualified Person under NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager also supervised the drill programs and on-site sample preparation procedures at La Colorada. Bret Swanson of SRK of Denver, CO, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated Veta Madre resource has reviewed this press release as it relates to Veta Madre.

For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

TORONTO, ONTARIO--(Marketwire - March 26, 2013) - Argonaut Gold Inc. (TSX:AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce its financial and operating results for the fourth quarter and year ended December 31, 2012. All dollar amounts are expressed in United States dollars unless otherwise specified.

2012 Highlights:

CEO Commentary

Peter Dougherty, Argonaut's Chief Executive Officer stated, "2012 was another milestone year for Argonaut Gold; the Company exceeded initial top end gold production guidance of 90-95k ounces. This production was accomplished at lower cash costs per gold ounce and sold at a higher realized gold price. Our focus on continual improvement has provided stellar results for our shareholders. The culmination of the Company's performance was the acquisition of Prodigy Gold and the Magino project in Wawa, Ontario. The Company's total measured and indicated resource now exceeds more than 12 million ounces. The portfolio provides a strong base for production growth to our goal of 300-500,000 ounces per year."

Mr. Dougherty added, "2013 initiatives will include additional pad construction and final installation of equipment that aim to provide an increase in overall production for the Company at La Colorada and El Castillo. The permitting process will continue at San Antonio. A prefeasibility study will be published mid-year 2013 for Magino. Finally, the Company will maintain its commitment to exploration as a top focus for internal growth."

This press release should be read in conjunction with the Company's audited annual consolidated financial statements for the year‐ended December 31, 2012 and associated management's discussion and analysis ("MD&A") which are available from the Company's website, www.argonautgold.com, in the "Investors" section under "Financial Filings", and under the Company's profile on SEDAR at www.sedar.com.

Financial Results - Fourth Quarter 2012

During the fourth quarter of 2012, revenue was $52.3 million from gold sales of 29,502 ounces. Gross profit was $26.6 million for the quarter. Cash cost per gold ounce sold in the quarter was $587 (compared to $679 for the same period in 2011). (Cash cost per gold ounce sold is a non-IFRS measure, see note below). During the quarter, profit from operations was $23.9 million. Net income for the quarter was $19.1 million or $0.19 per basic share.

Financial Results - Year End 2012

For the year ended December 31, 2012, revenue was $187.1 million from gold sales of 109,781 ounces. Gross profit was $95.2 million for the year. Cash cost per gold ounce sold in the year was $597 (compared to $622 for the same period in 2011). For the full year, profit from operations was $85.2 million. Net income for the year was $64.9 million or $0.68 per basic share.

Summary of Production Results

Total tonnes mined increased by 23% for the fourth quarter 2012 over fourth quarter 2011 and 20% year over year. The total of ounces loaded to the pads increased primarily due to an increase in the mining fleet and additional east side crusher at the operation in 2012 over 2011. There were 39,329 ounces placed on the pad in the fourth quarter of 2012, representing a 30% increase from the fourth quarter of 2011. Year over year, there was a 28% increase in ounces of gold loaded to the pad.

Gold production of 25,805 ounces in the fourth quarter of 2012 was a 31% increase compared to the fourth quarter of 2011. Production in 2012 of 87,712 ounces was a 22% increase over 2011 production.

The strip ratio of waste to ore increased in the fourth quarter to 1.02 compared to 0.87 in the fourth quarter of 2011. The strip ratio for the year ended December 31, 2012 was 1.01 compared to 0.80 for the year ended December 31, 2011, reflecting a push to the southwest side of the pit.

⁽¹⁾ The La Colorada mine started production in the first quarter of 2012. As such, there are no comparative statistics for prior periods.

Summary of Production Results

Total tonnes moved were 2,947,525 for the fourth quarter 2012; 7,173,662 tonnes were moved during the full year 2012. There were 8,845 ounces placed on the pad in the fourth quarter of 2012. Total gold production was 20,639 ounces during the year ended December 31, 2012, coming from reprocessing run of mine ore on the pad.

Expansion Projects for 2013

The Company plans on investing a total of between $57 million to $75 million on capital expenditures and exploration initiatives in 2013. Major capital expenditures in 2013 are expected to include approximately $32 million at El Castillo, $14 million at La Colorada, $3 million at Magino, and between $3 million and $15 million at San Antonio. Exploration expenditures in 2013 are expected to amount to between $5 million and $11 million.

Non-IFRS Measures

The Company has included a non-IFRS measure for "Cash cost per gold ounce sold" in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards ("IFRS"). Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability 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. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut's Vice President of Exploration, a qualified person as defined by National Instrument 43-101. For further information on the Company's 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 activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and, the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in the Province of Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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 Inc. assumes no obligation to update the forward-looking information contained in this news release.

TORONTO, ONTARIO–(Marketwire – Feb. 25, 2013) - Argonaut Gold Inc. (TSX:AR) (“Argonaut”, “Argonaut Gold” or the “Company”) is pleased to announce Company 2013 production guidance, project initiatives and exploration objectives across the Company’s properties throughout the Americas. Production in 2013 is planned to increase to between 120,000 and 140,000 ounces of gold up from 108,000 ounces of gold in 2012. Cash cost of production is also expected to increase slightly to between $630 and $660 per ounce.

The Company is undertaking an aggressive capital expansion program in 2013 which should prepare the Company for further production expansions in 2014 and beyond. This will essentially complete capital expansion programs at both La Colorada and El Castillo until 2015, when we will finalize the remaining 15mm tons of pad capacity at El Castillo.

Exploration drilling totaling 89,000 meters has taken place at Magino, part of this drilling has revealed a new zone.

Capital Expansion Program for 2013

El Castillo 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

• $15 mm: New West side pad and ponds with 30mm ton capacity to be built in 2013
• $10 mm: Transfer of Contractor mining equipment to the Company
• $7 mm: New crushing and overland conveying system for the West pad 8

La Colorada 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

• $7mm: New crushing system capable of producing +4mm tonnes per year at <3/8″
• $5mm: Pre-stripping of pit
• $2mm: Plant and pad expansions

Pete Dougherty, Argonaut Gold’s President and CEO stated: “2012 was a significant year for the Company; we exceeded gold production guidance, added La Colorada as a second operation and completed the acquisition of Prodigy Gold. El Castillo is near a steady state of production with 2013 guidance of between 90,000 and 100,000 gold ounces at cash costs of $700 to $725 per ounce. Due to an anticipated 14% reduction in grade, we will be increasing the volume of ore tonnes processed to maintain gold ounce production levels. From a capital perspective we are looking to make improvements to our cost basis by taking over the mining from our contractor, and adding an in-pit crushing and conveying system to deliver to West pad 8.”

Mr. Dougherty added “At La Colorada, fresh ore mining has begun. The mine plan anticipates grades to increase quarter over quarter with production loaded towards the second half of the year. Installation of the new crusher and pad construction will be completed in the second quarter of this year. Full year 2013 gold production at La Colorada is expected to be between 30,000 and 40,000 ounces of gold at average cash costs for the year of $450 to $475 per ounce, net of silver credits.”

Magino Exploration Update:

Argonaut Gold is pleased to report on exploration results at its recently acquired Magino project located 40 kilometers northeast of Wawa, Ontario. In 2012 an additional 89,000 meters of drilling in 340 holes was completed to advance the project toward a proposed pre-feasibility study. The drilling consisted of in-fill drilling in the pit and condemnation drilling for site layout. In-fill drill spacing averaged of 25 meters within the constrained pit. The drilling campaign also outlined a new zone of mineralization depicted in the southeast corner of the drilling which we are calling the PD zone. (See Figure 1 and Holes PD-atm12-002-100).

(Please see our website (http://argonautgold.com for full Magino drill results).

To view the image associated with this press release, “Figure 1 Drill Map,” please visit the following link: http://argonautgold.com/_resources/news/AR2502_Figure1.jpg.

To view the image associated with this press release, “Magino Block Model Mineralization,” please visit the following link: http://argonautgold.com/_resources/news/Magino_Block_Model_Mineralization.jpg.

Conceptually Argonaut Gold anticipates that a constrained pit would look at a 1 g/t cut-off of the delineated resource.

Tom Burkhart, Argonaut Gold’s VP Exploration, noted “We are pleased with the progress of our exploration efforts at Magino. The exploration team has advanced the project and a new pre-feasibility report is expected to be issued later this year. The drilling also provided noteworthy drill intercepts in the PD Zone. Our latest drilling continues to demonstrate the robust nature of the Magino deposit and the potential to expand mineralization on the property. The optimum 25 meter drill spacing has given us increased confidence in our geologic interpretations and resource estimates. We look forward to continuing our evaluations of the property including further assessment of the new PD discovery.”

About Argonaut Gold

Argonaut Gold is a Canadian gold Company engaged in exploration, mine development and production activities. Its primary assets are the El Castillo Mine in Durango, Mexico, and the La Colorada Mine in Sonora, Mexico (both in the production stage), the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost of production per ounce of gold” and “Cash cost per gold ounce” in this press release to supplement its information which is periodically presented in accordance with International Financial Reporting Standards (“IFRS”). “Cash cost of production per ounce of gold” and “Cash cost per gold ounce” is equal to cost of sales less silver sales divided by gold ounces sold. Silver credits are included at $30 per ounce of silver. The Company believes that this measure provides investors with an improved ability 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. Please see the MD&A for full disclosure on non-IFRS measures.

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Qualified Person

All scientific and technical information for the Magino project, has been reviewed and approved by Tom Burkhart, Argonaut Gold’s Vice President of Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The core is then split down the center using a typical table fed circular rock saw normally at one-meter intervals. One half of the core is sent for assay to Activation Laboratories Ltd., 33 Iroquois Road, ON, P4N 7C5,, while the other half is returned to the core box and stored at Prodigy’s sampling facility in a secure, fenced off, area. Activation Laboratories are ISO/IEC 17025 certified and are at arm’s length to Prodigy. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2 for check assays. ALS Chemex is at arm’s length to Prodigy and is ISO 9001:2008 certified. Samples assaying > 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough estimate the true thickness of the above intercepts is approximately 76%.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on the Company’s properties discussed herein please see the reports as listed below on the Company’s website or on www.sedar.com:

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com

TORONTO, ONTARIO–(Marketwire – Jan. 17, 2013) - Argonaut Gold Inc. (“Argonaut Gold” or the “Company”) (TSX:AR), announced today that the Company achieved record gold production of 32,000 ounces during the 4^th quarter ended December 31, 2012. This included 25,805 ounces at its 100% owned El Castillo Mine (“El Castillo”) in Durango, Mexico and 6,195 ounces at its 100% owned La Colorada Mine (“La Colorada”) in Sonora, Mexico. All dollar amounts are in US dollars except as otherwise noted.

FOURTH QUARTER 2012 HIGHLIGHTS:

El Castillo

• Record production of 25,805 gold ounces (+31% improvement over Q4 2011)
• 39,329 gold ounces loaded on the pad (+30% improvement over Q4 2011)
• West Side Pad 8 construction moving forward; first cell to be loaded starting in Q2 of 2013

La Colorada

• Production of 6,195 gold ounces and 47,890 silver ounces
• 8,845 gold ounces and 815,219 silver ounces loaded on the pad
• Phase 2 pad construction is 65% complete
• Crushing circuit relocated and fully operational
  • Final crushing circuit expansion scheduled for early in Q2 of 2013
• Overburden removal commenced in the La Colorada/Gran Central pit

Financial

• Year-end cash balance was $191 million as of December 31, 2012, of which C $115 million for warrant exercises was included
• Fourth Quarter sales of 29,500 ounces of gold and 70,910 ounces of silver

Full year 2012

• Total production of 108,081 ounces of gold (+50% over 2011)
  • El Castillo 87,712 ounces (+22% over 2011)
  • La Colorada 20,369 ounces

El Castillo In Pit Sulphide Mineralization

• Over 360,000 gold ounces have been added to El Castillo’s in-pit resources. The additional sulfide mineralization is divided into two categories including non-silicified sulphides and silicified sulphides; this provides 22.6 million tonnes at a grade of 0.504 g/t. The majority of the mineralization falls in the non-silicified category which has an average grade of 0.47 g/t with recoveries ranging from 25% to over 50%. The smaller silicified zone of mineralization is mainly confined to a higher grade breccia pipe averaging 0.80 g/t. yielding recoveries of 11% to 28%.
• Results encompass approximately 5,000 meters of core drilling for 32 holes completed in multiple programs over the last three years. All metallurgical testing was completed by Kappes, Cassidy & Associates (“KCA”) in Reno, Nevada.

• Global Sulphide Resource:
  • El Castillo’s global measured and indicated (“M&I”) sulphide resource shows 1.5 million ounces of gold at an average grade of 0.296 g/t; it lies below the oxide and transitional gold resource at El Castillo. It is the Company’s current interpretation that the silicified sulphides make up a relatively low percentage of the total sulfides and is largely limited to the silicified breccia pipe.

Please visit http://argonautgold.com for a full table of metallurgical results and images related to the sulphides.

FOURTH QUARTER 2012 El CASTILLO OPERATING RESULTS

Fourth quarter 2012 operating statistics showed improvement over fourth quarter 2011 results. Ore production is now at an annualized rate of approximately 13 million tonnes.

Richard Rhoades, Chief Operating Officer of Argonaut Gold said “Year-end production at El Castillo of 87,712 gold ounces came in above increased guidance of 85,000 ounces for the year. The team at El Castillo team delivered yet another quarter of continued improvement, providing a 10% increase over the initial 2012 guidance. In addition to exceeding guidance expectations, the Company has seen dramatic improvement in crushing at the operation. The operation is now crushing at a rate of approximately 5 million tonnes per year.”

Production has approached a near steady state at El Castillo. Higher grade material during the fourth quarter of 2012 provided for production of over 25,000 ounces against to guidance of 21-22,000 ounces for the quarter. In 2013, the operation anticipates lower grades, offset by higher volumes of material, for an estimated 5-10% increase over total 2012 production.

FOURTH QUARTER 2012 LA COLORADA OPERATING RESULTS

Overburden removal continues at La Colorada in preparation for full scale mining. During the fourth quarter, the crusher was relocated with a minimal impact to the production plan. Fourth quarter production provided 6,195 ounces of gold, for a total 2012 production of 20,369 ounces. Final production exceeded expectations due to higher than anticipated recoveries from the reprocessing of material and positive grade reconciliation.

In discussing the Company’s fourth quarter and year end highlights, Mr. Pete Dougherty, President and CEO said “2012 has been a year of significant accomplishments for Argonaut Gold’s employees. The Company has delivered on operational production expectations and added an important project, Magino, for future growth and development.

The El Castillo production rate has shown continual improvement quarter over quarter. La Colorada has exceeded initial expectations while forming the foundation for the future. There is still more work to be done to elevate the Company to the status of a mid-tier producer and I am grateful for what has been accomplished so far.”

Argonaut Gold Q4 and Year End Financial Results Conference Call and Webcast:

The Q4 and year end financial results call is set to take place on March 26, 2013 at 8:30 am ET. Details for the call in participation are included below:

The conference call replay will be available from 10:30 a.m. ET on March 26, 2013 until April 2, 2013.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and, the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on the Company’s properties discussed herein please see the reports as listed below on the Company’s website or on www.sedar.com:

Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Toronto and several exploration stage projects, all of which are located in Mexico and Canada.

Creating Value Beyond Gold

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
http://www.argonautgold.com

The Argonaut Gold warrants (AR.WT) will cease trading on the TSX at the close of trading day on Monday, December 31, 2012. Computershare Trust Company N.A. acts as the transfer agent for Argonaut Gold.

If you have any questions regarding the warrants and how to exercise them, please contact Argonaut Gold’s Investor Relations representative, Nichole Cowles at 1-775-240-4172 or by e-mail at info@argonautgold.com.

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
http://www.argonautgold.com

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Toronto and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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 Inc. assumes no obligation to update the forward-looking information contained in this news release.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

Pursuant to the Arrangement, Argonaut has acquired all of the issued and outstanding common shares of Prodigy (“Prodigy Shares”) in a transaction valued at approximately $341 million. In accordance with the Arrangement, former Prodigy shareholders are entitled to receive 0.1042 of a common share of Argonaut (“Argonaut Shares”) and $0.0001 in cash per Prodigy Share. Outstanding options to acquire Prodigy Shares have been converted into options to acquire Argonaut Shares, adjusted in accordance with the same ratio. The Prodigy Shares will be de-listed from the TSX Venture Exchange as of the date hereof. We anticipate the share certificates representing the Argonaut Shares issued pursuant to the Arrangement will be sent to the former Prodigy shareholders shortly after the de‐listing.

Investor Relations Contact:
Nichole Cowles
Investor Relations Manager
Argonaut Gold Inc.
Tel: (775)284-4422 x 101

Neither the TSX nor the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed plan of arrangement (the “Arrangement”) between Argonaut and Prodigy. 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.

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 and Prodigy undertake 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.

Accordingly, as previously announced, trading of Prodigy shares will be halted before market opens on December 11, 2012, and will not resume if the transaction is completed. If the required stock exchange approvals are obtained and other remaining conditions to closing are satisfied, the plan of arrangement is anticipated to be completed on or about December 11, 2012.

Neither the TSX nor the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed plan of arrangement (the “Arrangement”) between Argonaut and Prodigy. 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. Assumptions upon which such forward-looking statements are based include that all required third party, regulatory and governmental approvals to the Arrangement will be obtained and all other conditions to completion of the Arrangement will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Argonaut or Prodigy 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 inability of Argonaut and Prodigy to obtain all required third party, regulatory and governmental approvals to the Arrangement or to satisfy all other conditions to completion of the Arrangement. Although Argonaut and Prodigy have each 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 and Prodigy undertake 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.

At their respective special shareholders’ meetings held earlier today, 99.93% of the Argonaut shares voted were voted in favour of the ordinary resolution authorizing the issuance of Argonaut common shares in connection with the plan of arrangement and 98.11% of the Prodigy shares voted were voted in favour of the special resolution approving the Arrangement.

Trading of Prodigy shares is expected to be halted, in advance of closing, prior to market open on December 11, 2012. Therefore, the last day to trade Prodigy shares is expected to be Monday, December 10, 2012.

If the required court and stock exchange approvals are obtained and other remaining conditions to closing are satisfied, the Arrangement is anticipated to complete on or about December 11, 2012.

Investor Relations Contact:

Neither the TSX nor the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed plan of arrangement (the “Arrangement”) between Argonaut and Prodigy. 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. Assumptions upon which such forward-looking statements are based include that all required third party, court, regulatory and governmental approvals to the Arrangement will be obtained and all other conditions to completion of the Arrangement will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Argonaut or Prodigy 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 inability of Argonaut and Prodigy to obtain all required third party, court, regulatory and governmental approvals to the Arrangement or to satisfy all other conditions to completion of the Arrangement. Although Argonaut and Prodigy have each 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 and Prodigy undertake 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.

The ISS report notes: “In light of the favorable market reaction, the favorable termination fee agreement, and no significant noted governance concerns, a vote FOR this resolution is warranted.”

It adds that the potential dilution associated with the transaction will be 28% on a fully diluted basis for Argonaut common shares “which does not appear to be unreasonably excessive.”

Furthermore, ISS says that Prodigy shareholders “are expected to be provided with exposure to current production and cash flow in a strong gold price environment and continuing exposure to the advancement of the Magino Property as well as Argonaut’s existing organic growth profile. In light of the significant implied premium, the favorable market reaction, the strategic rationale and no significant governance concerns, a vote FOR this resolution is warranted.”

If shareholders approve the arrangement, current Argonaut shareholders will hold approximately 78% of the outstanding Argonaut common shares and current Prodigy shareholders will hold approximately 22% of the outstanding Argonaut common shares.

Welcoming ISS’ recommendation, Argonaut’s chief executive, Pete Dougherty said: “These reports confirm that our agreement with Prodigy is based on the best interest of all shareholders. We look forward to creating a combined company that both Argonaut and Prodigy shareholders can be proud of.”

Brian Maher, Prodigy’s president and chief executive said: “We are very content with this recommendation. Our shareholders will receive the premium they deserve and will have the opportunity to participate in a company that has current production exposure and can both finance and develop Magino.”

Shareholders are reminded to vote their proxy FOR the arrangement before the respective proxy deadlines:

Argonaut: Voting Deadline: Tuesday, December 4, 2012 at 4:00 PM (EST)

For more information and assistance in voting your proxy, Argonaut shareholders are urged to contact Kingsdale Shareholder Services Inc. at 1-866-229-8166 or by email at contactus@kingsdaleshareholder.com.

Prodigy: Voting Deadline: Tuesday, December 4, 2012 at 1:00 PM (PST)

For more information and assistance in voting your proxy, Prodigy shareholders are urged to contact Kingsdale Shareholder Services Inc. at 1-888-518-6559 or by email at contactus@kingsdaleshareholder.com.

If you have any questions regarding the deposit of your Prodigy shares to the Arrangement, Prodigy’s shareholders can contact Kingsdale Shareholder Services Inc. at 1-888-518-6559 or by email at contactus@kingsdaleshareholder.com.

About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

About Prodigy
Prodigy is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino project contains Indicated gold resources of 6,250,990 ounces grading 0.87 g/t gold (223.5 million tonnes), and 355,190 ounces of Inferred gold resources grading 0.80 g/t gold (13.8 million tonnes) at a cut-off grade of 0.35 g/t gold. For more information please refer to the “Technical Report on the Magino Property, Wawa, Ontario dated October 4, 2012 available on SEDAR or Prodigy’s website.

Contacts:

Argonaut Gold Inc.
Nichole Cowles Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com

Prodigy Gold Incorporated
Brian J. Maher President and Chief Executive Officer
(604) 688-9006
ir@prodigygold.com
www.prodigygold.com

Bernard Simon
Vice-President, Kingsdale Communications Inc.
(416) 867-2304
bsimon@kingsdalecommunications.com

TORONTO, ONTARIO–(Marketwire – Nov. 14, 2012) - Argonaut Gold Inc. (TSX:AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the third quarter ended September 30, 2012. All dollar amounts are expressed in United States dollars unless otherwise specified.

THIRD QUARTER 2012 & RECENT HIGHLIGHTS

Financials

• Revenue of $72.9 million ($22.7 million in Q3 2011).
• Net income of $27.2 million, $0.29 per basic share.
• Cash flows from operating activities of $36.5 million.
• Cash on hand was $42.8 million at September 30, 2012.
• Repayment of $6 million debt and the Company is now debt free.

Gold Production and Cost

• Ounces loaded to pads: 53,906 gold ounces.
  • El Castillo: 41,630 ounces (↑39% from Q3 2011).
  • La Colorada: 12,276 gold ounces and 1,164,742 silver ounces.
• Production of 31,074 gold ounces in the third quarter of 2012.
  • El Castillo: 24,575 gold ounces.
  • La Colorada: 6,499 gold ounces and 41,937 silver ounces.
• Cash cost per gold ounce sold – $577 (Year to date $601).

Operational Improvements

• Capital expenditures of $8.8 million on mineral properties, plant and equipment.
• El Castillo
  • Conveying and stacking system on the East Side Pad was fully functional during the third quarter
  • West Side Pad 8 permit granted, with pad construction to be commenced in fourth quarter
  • Land agreement signed extending term for an additional 10 year period
• La Colorada
  • Explosives permit received to begin full scale mining in 2013
  • Phase 2 pad construction is one-third complete
  • Refining facility completed; now handling all materials from El Castillo and La Colorada
  • During Q3 of 2012, overburden removal commenced to prepare for fresh ore mining

Exploration

• Signed letter of intent with Bravada Gold Corp. for the Wind Mountain Project in Nevada; the project aligns with jurisdictional focus, low entry risk, reasonable acquisition cost of $30/ounce and good exploration potential on the project.

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the third quarter ended September 30, 2012 and associated management’s discussion and analysis (“MD&A”) which are available from the Company’s website, www.argonautgold.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Financial Results – Third Quarter 2012

During the third quarter of 2012, revenue was $72.9 million from gold sales of 42,534 ounces compared to $22.7 million from sales of 13,260 ounces in the third quarter of 2011. Cost of sales was $34.8 million for the quarter compared to $10.8 million for the third quarter of 2011. Cash cost per gold ounce sold was $577 compared to $628 in the same period of 2011. (Cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the third quarter of 2012, gross profit was $38.0 million compared to $11.9 million gross profit in the third quarter of 2011. During the quarter, profit from operations was $35.7 million compared to $10.4 million for 2011. Net income for the quarter was $26.2 million or $0.29 per basic share versus $6.0 million or $0.07 per basic share in 2011.

Cash on hand increased from $21.4 million at June 30, 2012 to $42.8 million. Capital expenditures in the third quarter were $8.8 million primarily as a result of expanding operations at the El Castillo and La Colorada mines. The 2012 capital expenditures and exploration programs for Argonaut Gold includes $47-$50 million at El Castillo, La Colorada and San Antonio which includes pre-production stripping at La Colorada of approximately $3-4 million. Cash flow from operations was $36.5 million during the quarter, compared to $7.7 million for the third quarter of 2011.

CEO Commentary

Mr. Pete Dougherty, Argonaut’s President and CEO states: “The Company saw both record gold production as well as record gold sales during the third quarter. The record sales during the third quarter provided a nice boost in earnings for our shareholders and allowed us to repay a $6 million short term debt note. The increase in production is the result of higher grade than that anticipated by the mine plan grade, commissioning of the west side pad and realizing the full benefits of the new stacking and conveying system at El Castillo.”

In commenting on the recent announcement regarding the acquisition of Prodigy Gold, Mr. Dougherty added: “Argonaut Gold was created with the idea of building a company that would produce between 300,000-500,000 ounces of gold annually. With the pending addition of the Magino mine in Ontario, we will have the gold resources available to achieve our vision to continue the creation of a gold mining company with a high leverage to gold resources, low capital entry point, low operational costs and a stream of projects that contain hidden value drivers. Execution of that vision will be the result of the Argonaut employees striving to obtain greater results every day, as they have previously demonstrated, since we have been in operation.”

El Castillo Summary of Production Results

Total tonnes mined in the third quarter 2012 were up 31 percent compared to the third quarter 2011. Of note, there was a 107% increase in crushed tonnes during the third quarter of 2012 over the third quarter of 2011. The total ounces loaded to the pad were 41,630 in the third quarter; a 39% increase over the third quarter of 2011.

The strip ratio of waste to ore was 1.06 compared to a strip ratio of 0.66 in the third quarter of 2011.

2012 production guidance at El Castillo has been increased to 84,000-85,000 ounces with a cash cost between $625 and $650 per gold ounce.

La Colorada Summary of Production Results

Approximately three quarters of the Phase 1 material to be reprocessed has been recrushed and restacked for leaching. Construction on pads 8, 10 & 11 has begun and approximately one-third of the pad has been completed. The crusher relocation and enhancements are scheduled for Q4 which has led to production estimates of 3-4,000 ounces of gold. Final crushing circuit expansion is scheduled for early in Q2 of 2013.

Overburden removal began in the third quarter of 2012 with approximately 1.8 million tonnes moved. 2012 production guidance at La Colorada was been increased to 17,000 -18,000 ounces with a cash cost between $625 and $650 per gold ounce.

Looking Forward – 2012:

The Company plans on investing a total of between $48 million to $50 million on capital expenditures and exploration initiatives in 2012.

• $33-34 million of capital expenditure investments
  • El Castillo - Capital expenditures are primarily for expanding West heap leach pad capacity and operational improvements including a conveying and stacking system.
  • La Colorada - Capital expenditures are primarily for new infrastructure including crushing, screening and conveying, heap leach pad construction, a gold recovery plant and refinery, and other infrastructure. Additional expenditures are expected to include land acquisition, and permitting.
  • San Antonio - Capital expenditures are allocated for engineering and environmental studies, land and water rights purchases, permitting for the project and infrastructure improvements.
• $5 million for La Colorada pre-production stripping costs
• $10-11 million exploration program
  • El Castillo - 1,400 metre core drilling program to collect mineralized sulphide ore for further metallurgical test work.
  • La Colorada - 35,000 metre drill program to expand resource areas and test multiple exploration targets within the Company’s land position is in progress. Planned drilling on mine dumps and stockpiles was completed during the quarter. The main resource targets for 2012 are El Creston and Veta Madre.
  • San Antonio - 10,500 metre drill program to test multiple exploration targets and complete condemnation drilling in areas of planned processing facilities is ongoing.

Non-IFRS Measures
The Company included the non-IFRS measure “Cash cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to cost of sales less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability 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. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports
The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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 Inc. assumes no obligation to update the forward-looking information contained in this news release.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
http://www.argonautgold.com

THIRD QUARTER 2012 HIGHLIGHTS:

El Castillo

• Record production of 24,575 gold ounces represents a 46% improvement over Q3 2011
• 41,630 gold ounces loaded on the pad (+39% improvement over Q3 2011)
• Conveying and stacking system on the East Side Pad was fully functional during the third quarter
  • In September, > 500,000 ore tonnes were crushed and placed on the East Side Pad thru the conveyor
• West Side Pad 8 permit granted, with pad construction to be commenced in fourth quarter
• Land agreement signed extending term for an additional 10 year period

La Colorada

• Production of 6,499 gold ounces and 41,937 silver ounces
• 12,276 gold ounces and 1,164,742 silver ounces loaded on the pad
• Phase 2 pad construction is one-third complete
• Refining facility completed; now handling all materials from El Castillo and La Colorada
• Crushing circuit relocation and enhancements scheduled for Q4
  • Final crushing circuit expansion scheduled for early in Q2 of 2013
• Commenced overburden removal for fresh ore mining in Q3 of 2013; 1.8M tonnes moved

Financial

• Cash balance of $43 million as of September 30, 2012, after repayment of $6 million debt
• Record 42,534 ounces of gold sold

Exploration

• Signed letter of intent with Bravada Gold Corp.
  • Wind Mountain Project in Nevada with reported indicated and inferred gold resource (see Bravada NI 43-101 dated April 11, 2011)
  • Aligns with Argonaut Gold’s jurisdictional focus
  • Low entry risk with $250,000 commitment
  • Reasonable acquisition cost of $30/ounce for full purchase
  • Good exploration potential on the project with a goal of increasing resources

Fourth Quarter Outlook

• El Castillo production estimates of 22-23,000 ounces of gold
• La Colorada production estimates of 3-4,000 ounces of gold

Full year Outlook

• El Castillo production estimates of 84-85,000 ounces of gold
• La Colorada production estimates of 17-18,000 ounces of gold
• Total production guidance estimate of 101-103,000 ounces of gold

THIRD QUARTER 2012 El CASTILLO OPERATING RESULTS

Third quarter 2012 operating statistics showed improvement over third quarter 2011 results. Ore production is now at an annualized rate of approximately 12 million tonnes. Currently both sides of the operation are receiving ore to the pads and running their respective processing plants.

Richard Rhoades, Chief Operating Officer of Argonaut Gold said “Capital expansion programs completed in the first half of 2012 provided the framework for production improvements that are now coming to fruition. The El Castillo team has delivered continual year over year production increases, with updated 2012 guidance providing an 18% increase in production over full year 2011 production.”

Capital investments at the property included the addition of a conveying and stacking system which is now fully functional. During September, the circuit provided more than 500,000 tonnes of crushed ore delivered to the pad. The strong third quarter production was positively impacted by the rainy season which brought additional water to the pads during the quarter. Permits necessary to begin construction on West Side Pad 8 have been granted and construction will begin in Q4 of 2012, ahead of schedule.”

THIRD QUARTER 2012 LA COLORADA OPERATING RESULTS

Third quarter operating statistics showed continued improvement at the mine. To date, more than 75% of the Phase I run of mine material to be reprocessed has been recrushed and stacked for leaching.

Overburden removal has begun at La Colorada in preparation for the mining of fresh ore in the first quarter of 2013. Original plans for relocating the crusher were pushed to the fourth quarter; as a result the fourth quarter production expectations are approximately 3-4,000 ounces of gold, with 2012 guidance at La Colorada revised to 17-18,000 ounces.

Richard Rhoades, Chief Operating Officer of Argonaut Gold said “La Colorada has seen record production at the mine during the third quarter. The Company awarded a mining contract for the property and began pre-stripping to prepare for fresh ore mining to commence in early 2013. The capital expansion program for La Colorada is now well underway and with significant accomplishments made at the mine contributing to the growing production profile.”

In discussing the Company’s third quarter highlights, Mr. Pete Dougherty, President and CEO said “I am extremely proud of the men and women in our organization who daily achieve exceptional results, reflected in the Company’s accomplishments. In just two and a half years the El Castillo production rate has more than tripled. The team at site has delivered upon yearly production expectations along with timely completion of construction and expansion projects necessary for future growth. This coupled with a fantastic start-up of the recently commissioned La Colorada property have now pushed annual production guidance over the 100,000 ounce mark for the Company.”

Record sales for the quarter reflect 8,200 ounces carried over from the Q2 and should contribute to record earnings which will be released November 14^th. With a fully functioning refining circuit at La Colorada we have now been able to reduce the time and finished goods build up associated with final gold sales all of which were reflective in the quarter.

At La Colorada record production has yielded way to the preparation for mining activities to advance in 2013. The project continues in its development with construction and expansion programs laying the ground work for production growth at that property. The Company anticipates that the experiences at El Castillo will lend themselves well in the growth and development of La Colorada. Furthermore, we look to the exploration team for additional drilling on the La Colorada property, with an aim to add further value to the project.”

Argonaut Gold Q3 Financial Results Conference Call and Webcast:

The Q3 financial results call is set to take place on November 14, 2012 at 8:30 am ET. Details for the call in participation are included below:

The conference call replay will be available from 10:30 a.m. ET on November 14, 2012 until November 21, 2012.

Argonaut Gold Confirms Filing of Preliminary Economic Assessment for San Antonio

Argonaut Gold is pleased to confirm the filing today, pursuant to NI 43-101, the Preliminary Economic Assessment in relation to its San Antonio Property. For further information on the San Antonio Project please see the technical report entitled “NI 43-101 Technical Report on Resources San Antonio Project” dated effective as of September 1, 2012 and available on www.sedar.com and under the Company’s profile as well as the Company’s website, www.argonautgold.com.

The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorizes as mineral reserves, and that there is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the production-stage La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Qualified Person

Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration, and a Qualified Person under NI 43-101. For additional information on El Castillo please refer to the “NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico” dated Nov. 6, 2010 and further information on La Colorada please refer to the “NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora, Mexico” dated December 30, 2011, both of which and available at Argonaut Gold’s website and profile on www.sedar.com.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com

Pursuant to the terms of the Arrangement announced today, Prodigy shareholders will receive 0.1042 of an Argonaut Gold share and C$0.00001 in cash per Prodigy share, representing C$1.08 per share based on Argonaut Gold’s 20-day volume-weighted average price (“VWAP“) and a premium of 54% based on both companies’ 20-day VWAPs as at October 12, 2012, the last trading day prior to this announcement. The transaction values Prodigy’s equity at approximately C$341 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$277 million.

Pro forma the transaction, Argonaut Gold will be owned approximately 78% by current Argonaut Gold shareholders and 22% by current Prodigy shareholders (based on fully diluted in-the-money shares outstanding). The terms of the transaction have been unanimously approved by both companies’ Boards of Directors, with the commitment of votes from all directors and officers of Prodigy, representing approximately 3.9% of Prodigy’s shares, having been secured.

Highlights of the Combined Entity:

• Current production from two mines in Mexico and a strong pipeline of two developments projects in Canada and Mexico, representing a diversified asset portfolio in two premier jurisdictions for mine development and operation
• If both development projects are advanced to production, Argonaut Gold is expected to enter the ranks of the intermediate producers and fulfill its stated goal of 300,000 – 500,000 ounces of gold production per year
• In excess of 12 million ounces of measured and indicated gold resource including 1.2 million ounces of proven and probable gold reserve (fully broken out by category and property as described below)
• Strong balance sheet with no debt
• Current and projected future cash flow generation expected to self-fund future development, mitigating future financing risk
• Strong management team and experienced Board of Directors with proven development and operating track record

Pete Dougherty, President and CEO of Argonaut Gold said, “We are very pleased to announce this transaction with Prodigy today. Magino is a highly attractive asset which has shown continued resource growth, and which we believe will provide a longer term production opportunity for Argonaut Gold shareholders. The Magino resource provides substantial flexibility for maximizing value creation using a higher grade cut-off. We believe the project can be “right-sized” for a company like Argonaut Gold to deliver the best returns to our shareholders, while providing further upside should the gold price maintain its strong performance. This transaction is both highly attractive to Prodigy shareholders as well as significantly accretive to Argonaut Gold shareholders on all key financial and operational metrics.”

Brian J. Maher, President and CEO of Prodigy said, “The transaction announcement today is the culmination of the success we have had growing and advancing the Magino project. We believe the price offered by Argonaut Gold is highly attractive for our shareholders, and that in addition to the premium our shareholders receive today, our shareholders now have the opportunity to participate in a company that has current production exposure and can both finance and develop Magino.”

Transaction Benefits for Argonaut Gold Shareholders

• Magino represents a significant scale asset in the Argonaut Gold portfolio, and has the potential to allow Argonaut Gold to achieve or exceed its stated goal of 300,000 – 500,000 ounces of gold production
• Magino is a multi-million ounce deposit which provides tremendous grade flexibility when considering development alternatives while pursuing the highest returns for Argonaut Gold shareholders
• Timeline for Magino development provides for continued growth beyond Argonaut Gold’s existing organic growth projects with anticipated start-up well timed after San Antonio is targeted to start production
• Provides geopolitical and asset diversification, and entry into another of the world’s most supportive mining jurisdictions
• Fairness opinion received from the financial advisor to Argonaut Gold indicating that the transaction is fair from a financial point of view to Argonaut Gold
• Transaction significantly accretive to all of Argonaut Gold’s per share metrics, including net asset value per share, resources per share, longer term cash flow per share, and longer term production per share
• In addition to Magino, Argonaut Gold will gain exposure to Prodigy’s portfolio of other exploration stage assets

Transaction Benefits for Prodigy Shareholders

• Significant premium of 54% to Prodigy shareholders based on both companies’ 20-day VWAPs as at October 12, 2012
• All-share transaction provides Prodigy shareholders with exposure to current production and cash flow in a strong gold price environment and continuing exposure to the advancement of Magino as well as Argonaut Gold’s existing organic growth profile
• Substantially decreases the financing risk for the project
• Leverages Argonaut Gold’s highly experienced and successful management team
• Argonaut Gold’s shares provide improved trading liquidity for Prodigy shareholders
• Fairness opinion received from Prodigy’s financial advisor indicating that the transaction is fair, from a financial point of view, to Prodigy shareholders

Arrangement Agreement Summary

The Arrangement includes, among other things, certain standard conditions including receipt of approval of the shareholders of Prodigy and Argonaut Gold by the affirmative vote of no less than 66 2/3% and 50.1% of the shares voted, respectively, and receipt of court and stock exchange approvals. Special shareholder meetings for each company to vote on the transaction are expected to be held in December, 2012 with closing expected shortly thereafter.

The Arrangement Agreement is subject to customary non-solicitation provisions, subject to Prodigy’s right to consider and accept superior proposals. In the event of a superior proposal, Argonaut Gold will have a five business day right to match the superior proposal. If the Arrangement is not completed as a result of a superior proposal or in other certain specified circumstances, a termination fee equal to C$10.25 million will be paid to Argonaut Gold. The Arrangement Agreement also provides for reciprocal expense reimbursement under certain specific circumstances. After closing of the transaction, Prodigy will have the right to appoint one Director to the Argonaut Gold Board of Directors.

The terms and conditions of the Arrangement will be disclosed in more detail in the management information circulars which will be filed and mailed to Argonaut Gold and Prodigy shareholders in November 2012.

Advisors and Legal Counsel

BMO Capital Markets is acting as financial advisor and Fraser Milner Casgrain LLP is acting as legal counsel to Argonaut Gold and its Board of Directors. BMO Capital Markets has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications in such opinion, the consideration to be received by Prodigy’s shareholders is fair, from a financial point of view, to Argonaut Gold.

National Bank Financial Inc. is acting as financial advisor and DuMoulin Black LLP is acting as legal counsel to Prodigy. National Bank Financial Inc. has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications in such opinion, the consideration to be received by Prodigy’s shareholders is fair, from a financial point of view, to Prodigy shareholders.

Conference Call Details

Argonaut Gold and Prodigy will host a conference call to investors and analysts to discuss the transaction on October 15, 2012 at 9:00 a.m. EDT (6:00 a.m. PDT).

You will be able to participate in this call using the following details:

The conference call replay will be available from 12:00 p.m. ET on October 15, 2012 until October 29, 2012. The webcast archive will be available from 11:00 a.m. ET on October 15, 2012 for one year.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

The technical information contained in this document regarding Argonaut Gold has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut Gold’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on Argonaut Gold’s properties please see the reports as listed below on Argonaut Gold’s website or on www.sedar.com:

The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorizes as mineral reserves, and that there is no certainty that the preliminary economic assessment will be realized.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

About Prodigy

Prodigy is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino project contains Indicated gold resources of 6,250,990 ounces grading 0.87 g/t gold (223.5 million tonnes), and 355,190 ounces of Inferred gold resources grading 0.80 g/t gold (13.8 million tonnes) at a cut-off grade of 0.35 g/t gold. For more information please refer to the “Technical Report on the Magino Property, Wawa, Ontario dated October 4, 2012 available on SEDAR or Prodigy’s website.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

The technical information contained in this document regarding Prodigy has been prepared under supervision of, and reviewed and approved by Tom Pollock, P.Geo., Prodigy Gold’s Vice President – Exploration, who is a qualified person under the definitions established by NI 43-101.

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 each of Argonaut Gold Inc. (“Argonaut Gold”) and Prodigy Gold Incorporated (“Prodigy”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the Arrangement, development and estimated production and mine life of the various mineral projects of Argonaut Gold and Prodigy; synergies and financial impact of the Arrangement; the benefits of the development potential of the properties of Argonaut Gold and Prodigy; 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 Gold and Prodigy, 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. Assumptions upon which such forward-looking statements are based include that all required third party, court, regulatory and governmental approvals to the Arrangement will be obtained and all other conditions to completion of the transaction will be satisfied or waived, that actual results of exploration activities will be as expected, that proposed mine plans and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, that the assumptions underlying mineral resource estimates are valid, that Argonaut Gold and Prodigy will not experience unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, or adverse metallurgical or environmental events, and that supplies, equipment, personnel, permits and other approvals required to conduct planned activities will be available on reasonable terms. Many of these assumptions are based on factors and events that are not within the control of Argonaut Gold or Prodigy 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 non-completion of the Arrangement, changes in market conditions, 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 Gold and Prodigy have each 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 Gold and Prodigy undertake 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com

or Prodigy Gold Incorporated
Brian J. Maher
President and Chief Executive Officer
(604) 688-9006
ir@prodigygold.com
www.prodigygold.com

261% Increase in Net Present Value

Reduction in Operating and Capital Costs, Coupled with Improved Recoveries

Project and Financial Highlights

• Pre-tax Net Present Value (“NPV”) of $294 million using an 8% discount rate.
• After tax NPV of $206 million using an 8% discount rate.
• After tax Internal Rate of Return (“IRR”) of 66%.
• Life of mine pre-tax cash flow from operations estimated at $729 million.
• Average annual pre-tax cash flow of $48 million over 15 years (excludes pre-production years).
• Initial $84 million capital expenditure (“CAPEX”) investment is expected to be fully funded by internal cash flow and treasury. 

Production Specifications

• Total processed Measured and Indicated (“M&I”) Resource includes 60.1 million tonnes containing 1,643,000 ounces of gold with an average grade of 0.85 g/t.
• Total processed Inferred Resource includes 0.5 million tonnes containing 14,000 ounces of gold with an average grade of 0.84 g/t.
• Total production of 1,037,000 ounces of gold from M&I Resource and 8,000 ounces of gold from Inferred Resource.
• Average yearly production of 69,700 gold ounces over a 15 year mine life.
• Throughput estimate of 4 million tonnes per year from an open-pit mine, three stage crush and a recovery process using cyanide heap leaching and carbon adsorption.

The production mine plan utilizes an in-pit resource at a $1200 Au price.

New National Instrument 43-101 ("NI 43-101") Technical Report on Resources

The updated Canadian NI 43-101 mineral resource estimation from SRK for Argonaut’s San Antonio project shows an updated M&I resource of 1,735,000 gold ounces, based on 101,894 meters in 590 holes. Recent drilling added approximately 200,000 gold ounces while the redefining of the high grade Los Planes core reduced the resource by 150,000 gold ounces, for a net gain of 50,000 ounces.   The total M&I resource now exceeds 1.7 million gold ounces contained within 65 million tonnes of mineralized material at an average grade of 0.83 g/t gold.

Updated Mineral Resource Summary of the San Antonio Project as of May 8, 2012

(1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.

(2) Resources are stated at cutoff grades of 0.11 g/t Au for oxide and transition and 0.15 g/t Au for sulfide and are contained within a pit optimization shell.

(3) Pit optimization is based on an assumed gold price of US$1,500/oz, metallurgical recovery of 70% for oxide and transition and 50% for sulfide, mining cost of US$1.45/t of material moved, processing cost of US$3.09/t processed and G&A cost of US$0.63/t processed.

(4) Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. 

(5) Mineral Resource tonnage and grade are reported as diluted.

(6) Gold assays were capped prior to compositing.

The stated Mineral Resources have been prepared in accordance with the CIM classifications of Canada's NI 43-101 Standards of Disclosure for Mineral Projects. The Qualified Person, as defined by NI 43-101, for the mineral resource estimation, is Principal Resource Geologist Leah Mach of SRK, Denver, Colorado.

Peter Dougherty, President and CEO of Argonaut Gold stated:

"The San Antonio PEA is the culmination of the Company’s efforts over the past two years.  The PEA incorporates over 55,000 meters of drilling, several rounds of metallurgical testing, process enhancements and refinements.  The very robust economics for the project provide a high return on investment of 66% for our shareholders. The strong economic viability of the project is further supported by plans to finance development and construction of the mine through internal cash flow.”

Mr. Dougherty added:

 “With the increased resource and improved economics of the project, we have been able to further refine the ore body. (By reducing the influence of the higher grade core of the Los Planes (North Pit) deposit, we have increased our confidence in the deposit). While the Company is very pleased with where the project stands today, we recognize that further optimization and exploration may have the potential to add even greater value to the project.” 

Path forward:

Argonaut continues to work towards permitting the project and has engaged the community, regulators, and various agencies toward defining a project within the jurisdictional guidelines that will be acceptable to all parties.

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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, 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 presentation.

Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut's Vice President of Exploration and a “Qualified Person” as defined by NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager, supervised the drill program and on-site sample preparation procedures at San Antonio. Mr. Richard Rhoades, Argonaut’s Chief Operating Officer and a “Qualified Person” as defined by NI 43-101 provided contributions in regards to mining methods, market studies and contracts as well as the economic analysis. Leah Mach from SRK Consulting, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated San Antonio resource has reviewed this press release as it relates to the San Antonio project. Carl Defilippi from KCA, who is an “Independent Qualified Person” as defined by NI 43-101 has overseen the metallurgical and recovery methods, infrastructure, operating costs and capital costs.

For sample analysis the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards.

Samples from the San Antonio project are shipped by commercial courier from the city of La Paz to either Inspectorate or ALS Chemex preparation laboratories in Hermosillo, Sonora, which are independent of the Company. After preparation in Hermosillo, pulps are sent to assay in North Vancouver for ALS and to Sparks, NV for Inspectorate. Samples are analyzed for gold by fire assay with atomic absorption, method code Au AA-23 for ALS Chemex, and Au-1AT-AA for Inspectorate; detectability limits for assay methods in both laboratories are 0.005 to 10ppm. Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21 for ALS Chemex and Au-1AT-GV for Inspectorate). All samples are also assayed by ICP-MS (code ME-ICP41 in ALS Chemex and 30-AR-TR in Inspectorate) for a suite of 30 to 35 elements
 

For further information on the Company’s properties, please see the reports as listed below on the Company’s website or on www.sedar.com:
 

A NI 43-101 technical report will be filed within 45 days of the date of this press release.
 

For more information, contact:  
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel:  (775) 284-4422 x 101
Email: nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

Reduction in Operating and Capital Costs, Coupled with Improved Recoveries

TORONTO, ONTARIO–(Marketwire – Sept. 4, 2012) - Argonaut Gold Inc. (TSX:AR) (“Argonaut”, “Argonaut Gold” or the “Company”) is pleased to announce the results from an updated Preliminary Economic Assessment (“PEA”) for the 100% owned San Antonio gold project, located in Baja California Sur, Mexico. The updated PEA was completed by SRK Consulting Inc. (“SRK”) of Denver, CO; Kappes, Cassidy and Associates (“KCA”) of Reno, NV and Argonaut Gold’s management team.

Project and Financial Highlights

• Pre-tax Net Present Value (“NPV”) of $294 million using an 8% discount rate.
• After tax NPV of $206 million using an 8% discount rate.
• After tax Internal Rate of Return (“IRR”) of 66%.
• Life of mine pre-tax cash flow from operations estimated at $729 million.
• Average annual pre-tax cash flow of $48 million over 15 years (excludes pre-production years).
• Initial $84 million capital expenditure (“CAPEX”) investment is expected to be fully funded by internal cash flow and treasury.

Production Specifications

• Total processed Measured and Indicated (“M&I”) Resource includes 60.1 million tonnes containing 1,643,000 ounces of gold with an average grade of 0.85 g/t.
• Total processed Inferred Resource includes 0.5 million tonnes containing 14,000 ounces of gold with an average grade of 0.84 g/t.
• Total production of 1,037,000 ounces of gold from M&I Resource and 8,000 ounces of gold from Inferred Resource.
• Average yearly production of 69,700 gold ounces over a 15 year mine life.
• Throughput estimate of 4 million tonnes per year from an open-pit mine, three stage crush and a recovery process using cyanide heap leaching and carbon adsorption.

New National Instrument 43-101 (“NI 43-101″) Technical Report on Resources

The updated Canadian NI 43-101 mineral resource estimation from SRK for Argonaut’s San Antonio project shows an updated M&I resource of 1,735,000 gold ounces, based on 101,894 meters in 590 holes. Recent drilling added approximately 200,000 gold ounces while the redefining of the high grade Los Planes core reduced the resource by 150,000 gold ounces, for a net gain of 50,000 ounces. The total M&I resource now exceeds 1.7 million gold ounces contained within 65 million tonnes of mineralized material at an average grade of 0.83 g/t gold.

Updated Mineral Resource Summary of the San Antonio Project as of May 8, 2012

The stated Mineral Resources have been prepared in accordance with the CIM classifications of Canada’s NI 43-101 Standards of Disclosure for Mineral Projects. The Qualified Person, as defined by NI 43-101, for the mineral resource estimation, is Principal Resource Geologist Leah Mach of SRK, Denver, Colorado.

Peter Dougherty, President and CEO of Argonaut Gold stated:

“The San Antonio PEA is the culmination of the Company’s efforts over the past two years. The PEA incorporates over 55,000 meters of drilling, several rounds of metallurgical testing, process enhancements and refinements. The very robust economics for the project provide a high return on investment of 66% for our shareholders. The strong economic viability of the project is further supported by plans to finance development and construction of the mine through internal cash flow.”

Mr. Dougherty added:

“With the increased resource and improved economics of the project, we have been able to further refine the ore body. (By reducing the influence of the higher grade core of the Los Planes (North Pit) deposit, we have increased our confidence in the deposit). While the Company is very pleased with where the project stands today, we recognize that further optimization and exploration may have the potential to add even greater value to the project.”

Path forward:

Argonaut continues to work towards permitting the project and has engaged the community, regulators, and various agencies toward defining a project within the jurisdictional guidelines that will be acceptable to all parties.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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, 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 presentation.

Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut’s Vice President of Exploration and a “Qualified Person” as defined by NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager, supervised the drill program and on-site sample preparation procedures at San Antonio. Mr. Richard Rhoades, Argonaut’s Chief Operating Officer and a “Qualified Person” as defined by NI 43-101 provided contributions in regards to mining methods, market studies and contracts as well as the economic analysis. Leah Mach from SRK Consulting, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated San Antonio resource has reviewed this press release as it relates to the San Antonio project. Carl Defilippi from KCA, who is an “Independent Qualified Person” as defined by NI 43-101 has overseen the metallurgical and recovery methods, infrastructure, operating costs and capital costs.

For sample analysis the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards.

Samples from the San Antonio project are shipped by commercial courier from the city of La Paz to either Inspectorate or ALS Chemex preparation laboratories in Hermosillo, Sonora, which are independent of the Company. After preparation in Hermosillo, pulps are sent to assay in North Vancouver for ALS and to Sparks, NV for Inspectorate. Samples are analyzed for gold by fire assay with atomic absorption, method code Au AA-23 for ALS Chemex, and Au-1AT-AA for Inspectorate; detectability limits for assay methods in both laboratories are 0.005 to 10ppm. Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21 for ALS Chemex and Au-1AT-GV for Inspectorate). All samples are also assayed by ICP-MS (code ME-ICP41 in ALS Chemex and 30-AR-TR in Inspectorate) for a suite of 30 to 35 elements.

For further information on the Company’s properties, please see the reports as listed below on the Company’s website or on www.sedar.com:

A NI 43-101 technical report will be filed within 45 days of the date of this press release.

Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com

The conference call replay will be available from 10:30 a.m. ET on November 14, 2012 until November 14, 2012.

Documents Pertaining to the Conference Call will be available online immediately prior to the call:

Financial Filings
- Management’s Discussion & Analysis
- Interim Financials

Q3 Financial Conference Call Presentation

About Argonaut

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

On October 15, 2012 Argonaut Gold announced a merger with Prodigy Gold that is pending a December 2012 completion. The Magino 2011 Preliminary Economic Assessment shows a Net Present Value of $939 million and a 36% pre-tax internal rate of return. It projects gold production of 250,000 ounces over an 11 year mine life and cash costs of $461/ounce.

Creating Value Beyond Gold
For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

The conference call replay will be available from 10:30 a.m. ET on August 15, 2011 until August 22, 2011.

About Argonaut

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold
For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
http://www.argonautgold.com

TORONTO, ONTARIO–(Marketwire – July 18, 2012) - Argonaut Gold Inc. (“Argonaut Gold” or the “Company”) (TSX:AR) announced today that the Company produced 24,123 gold ounces during the 2^nd quarter ended June 30, 2012 at its 100% owned El Castillo Mine (“El Castillo”) which is located 100 km north of the city of Durango, Mexico and its 100% owned La Colorada Mine (“La Colorada”) which is located 50 kilometers southeast of Hermosillo, Mexico. Operational progress at El Castillo and La Colorada continue to ramp-up production.

SECOND QUARTER 2012 HIGHLIGHTS:

El Castillo

• Quarterly production of 19,533 gold ounces represents a 10% improvement over Q1 2012.
• 35,220 gold ounces loaded on the pad.
• Leach pad 7A west side pad construction completed.
• Conveying and stacking system on the east side pad expected to be commissioned this month.
• Local community support programs implemented to assist with on-going drought conditions.

La Colorada

• Production of 4,590 gold ounces and 25,796 silver ounces.
• 10,173 gold ounces and 1,120,716 silver ounces loaded on the pad.
• New crusher purchased for production of overliner for pad construction.
• Desorption and refinery circuit fully commissioned.
• New warehouse for reagent storage completed.
• Final permits for mining expansion expected in third quarter.
• Approximately half of Phase 1 run of mine material has been reprocessed.
• New pad construction started on pads 8, 10 and 11.

Exploration

• El Castillo sulphide samples obtained for continued metallurgical test work, with results expected in September.
• More than 35,000 meters of drilling released at La Colorada.
• More than 20,000 meters of drilling released at San Antonio.
• Drilling continues at La Colorada and San Antonio.

Financial

• Cash balance of $21 million as of June 30, 2012.
• Majority of the 2012 capital program completed in the first half.
• 23,247 ounces of gold sold.

SECOND QUARTER 2012 El CASTILLO OPERATING RESULTS:

Second quarter operating statistics showed improvement over 2011 second quarter results. Ore production from the first half of the year is currently at an annualized rate of approximately 11 million tonnes. On the west side of the property, construction was completed on cell 7A.

Third quarter production is expected to improve over the second quarter with the production of approximately 20-21,000 ounces of gold. Production at El Castillo is expected to move towards a 20-23,000 ounce production rate in the fourth quarter of this year. Full year guidance is 75,000-80,000 ounces of gold.

Richard Rhoades, Chief Operating Officer of Argonaut Gold said: “The 10% improvement in gold production at El Castillo was a significant milestone at the mine. Two additional accomplishments for the quarter were the completion of leach pad 7A and the implementation of a stacking-conveying system that is to be commissioned later this month. Initially, day shifts will be utilized for training on the new conveying system, with the goal to implement a 24 hour conveying operation by Q3. The impact of adding the conveying system to the operation should be evident in the fourth quarter production numbers as we anticipate an increase in the material moved.”

SECOND QUARTER 2012 LA COLORADA OPERATING RESULTS:

The second quarter operating statistics showed production from the reprocessing of existing run of mine leach pad material at La Colorada. To date, approximately half of the Phase I run of mine material to be reprocessed has been recrushed and stacked for leaching.

Construction has begun on pads 8, 10 & 11 and one half of the capacity is expected to be completed in the third quarter. In addition, during the third quarter the crusher will be down for approximately one month as it is relocated to a more permanent location, near the new pads currently under construction.

The next steps at La Colorada will involve reprocessing loose material in the pit, followed by full scale mining by Q1 of next year. Due to the crusher relocation, the third quarter production expectations are approximately 3,000 ounces of gold, while 2012 guidance at La Colorada remains at 13-17,000 ounces.

The desorption and recovery circuit has been commissioned, and carbon from El Castillo and La Colorada is being processed.

Discussing the Company’s recent completion of the ADR plant at the La Colorada site Mr. Pete Dougherty, President and CEO said “the Company is now processing carbon from El Castillo and La Colorada on site. This important accomplishment has reduced the sales cycle time from approximately 6 weeks to 1 week. The long term goal is for the ADR circuit to handle the stripping and refining for the Company’s primary Mexican operations. We are pleased with the improvement in our sales time as a result of implementing the ADR plant.

I’m proud of the team’s accomplishments so far this year. By continually improving our processes in our daily operations we look to continue production growth, finishing the year strong.”

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the production stage La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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.

Qualified Person

Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration, and a Qualified Person under NI 43-101. For additional information on El Castillo please refer to the “NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico” dated Nov. 6, 2010 and further information on La Colorada please refer to the “NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora, Mexico” dated December 30, 2011, both of which and available at Argonaut Gold’s website and profile on www.sedar.com.

For Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com

FIRST QUARTER 2012 & RECENT HIGHLIGHTS

Financials

• Revenue of $24.4 million.
• Net income of $7.3 million, $0.08 per basic share.
• Cash flows from operating activities before changes in non-cash operating working capital and other items of $8.1 million.
• Cash on hand was $17.8 million at March 31, 2012.

Gold Production and Cost

• Ounces loaded to pads: 44,169 gold ounces and 861,644 silver ounces.
  • El Castillo: 35,283 ounces (up 25% from Q1 2011); La Colorada: 8,886 gold ounces and 861,644 silver ounces
• Production of 20,884 gold ounces in the first quarter of 2012.
  • El Castillo: 17,799 gold ounces
  • La Colorada: 3,085 gold ounces and 17,182 silver ounces
• Cash cost per gold ounce sold – $639.

Operational Improvements:

• Cash expenditures of $12.3 million on mineral properties, plant and equipment.
• The Company’s El Castillo mining contractor expanded the mining fleet to 18 trucks (100 tonne capacity).
• Leach pad 7A west side pad construction initiated at El Castillo and will be commissioned in the second quarter.

Exploration:

• El Castillo - Three additional drill core holes were sent for testing during the first quarter of 2012.
• La Colorada – 14,860 metres from 54 drill holes were completed during the first quarter. Three drills continue work on a planned 35,000 metre drill program.
• San Antonio - Completed 3,285 metres from 14 drill holes during the first quarter.

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the first quarter ended March 31, 2012 and associated management’s discussion and analysis (“MD&A”) which are available from the Company’s website, http://www.argonautgold.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Financial Results – First Quarter 2012

During the first quarter of 2012, revenue was $24.4 million from gold sales of 14,498 ounces compared to $25.7 million from sales of 18,461 ounces in the first quarter of 2011. Cost of sales was $12.1 million for the quarter compared to $14.6 million for the first quarter of 2011. Cash cost per gold ounce sold was $639 compared to $590 in the same period of 2011. (Cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the first quarter of 2012, gross profit was $12.3 million compared to $11.0 million gross profit in the first quarter of 2011. During the quarter, profit from operations was $9.7 million compared to $9.1 million for 2011. Net income for the quarter was $7.3 million or $0.08 per basic share versus $5.9 million or $0.07 per basic share in 2011.

Cash on hand decreased from $34.9 million at December 31, 2011 to $17.8 million. Capital expenditures in the first quarter were $12.3 million primarily as a result of expanding operations at the El Castillo and La Colorada mines. The 2012 capital expenditures and exploration programs for Argonaut Gold includes $38-$48 million at El Castillo, La Colorada and San Antonio which includes pre-production stripping at La Colorada of approximately $6 million. Cash flow from operations before changes in non-cash operating working capital and other items was $8.1 million during the quarter, compared to $9.3 million for the first quarter of 2011. The cash flow used in operating activities in the quarter was $5.3 million after taking into account the buildup of inventory and other working capital.

CEO Commentary

Mr. Pete Dougherty, Argonaut’s President and CEO states: “The Company continues to benefit from the gold production and cash generation at El Castillo, which has enabled us to fund construction of the La Colorada mine. The developments at La Colorada since acquiring the project have been quite impressive. The mine has been put back into production less than one year after finalizing the acquisition. The startup of gold production at La Colorada will provide growth to the Company’s production profile in 2012 through reprocessing the previous run-of-mine material. Expansion of the processing facility continues with final construction taking place on the desorption and recovery plant. 2012 is an important step in growth for the La Colorada mine. While much has been accomplished, there is much more work to be done with important milestones expected to be achieved in the second and third quarters.”

El Castillo Summary of Production Results

Total tonnes mined increased by 25% for the first quarter 2012 over first quarter 2011. The total ounces loaded to the pad were 35,283 in the first quarter of 2012; this represents a 25% increase over the first quarter of 2011.

The strip ratio of waste to ore was 0.96 compared to a strip ratio of 0.88 in the first quarter of 2011.

2012 guidance at El Castillo is for 75,000 to 80,000 ounces at a cash cost between $625 and $650 per gold ounce.

La Colorada Summary of Production Results

Non-commercial mining at La Colorada began in the first quarter of 2012. Initially, production generated at La Colorada will come from reprocessing of run-of-mine (“ROM”) material on site. 2012 guidance at La Colorada is for production of 13,000-17,000 ounces at a cash cost between $625 and $650 per ounce.

There was no inventory at La Colorada prior to the first quarter of 2012.

Looking Forward – 2012:

The Company plans on investing between $38 million and $48 million on capital expenditures and exploration initiatives in 2012. These expenditures are expected to include the following:

• $26-34 million of capital expenditure investments
  • El Castillo – Capital expenditures are primarily for expanding West heap leach pad capacity and operational improvements including a conveying and stacking system.
  • La Colorada – Capital expenditures are primarily for new infrastructure including crushing, screening and conveying, heap leach pad construction, a gold recovery plant and refinery, and other infrastructure. Additional expenditures are expected to include land acquisition, and permitting.
  • San Antonio – Capital expenditures are allocated for engineering and environmental studies, land and water rights purchases, permitting for the project and infrastructure improvements.
• $5-6 million for La Colorada pre-production stripping costs
• $7-8 million exploration program
  • El Castillo – 1,400 metre core drilling program to collect mineralized sulphide ore for further metallurgical test work.
  • La Colorada – 35,000 metre drill program to expand resource areas and test multiple exploration targets within the Company’s land position is in progress. Planned drilling on mine dumps and stockpiles was completed during the quarter. The main resource targets for 2012 are El Creston and Veta Madre.
  • San Antonio – 10,500 metre drill program to test multiple exploration targets and complete condemnation drilling in areas of planned processing facilities is ongoing.

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to cost of sales less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability 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. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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 Inc. assumes no obligation to update the forward-looking information contained in this news release.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com

TORONTO, ONTARIO–(Marketwire – May 8, 2012) - Argonaut Gold Inc. (TSX:AR) (“Argonaut” or the “Company”) is pleased to report on exploration results at its San Antonio project in Baja California Sur, Mexico and the La Colorada project in Sonora, Mexico.

2012 Exploration Update:

• La Colorada
  • 35,962 meters for 244 holes completed since the last update in October of 2011
• San Antonio
  • 20,600 meters for 130 holes completed since the last update in May of 2011
• El Castillo
  • Minimum 1,000 meter Core Drill Program is estimated to be completed in early May with mineralized sulfide intervals shipped to Kappas, Cassiday & Associates (“KCA”) in Reno for metallurgical testing.

LA COLORADA

Highlights from the La Colorada Drill Program

Note: All 2011 drillholes from the Veta Madre zone were drilled oriented to an azimuth of 160 with dips ranging from -90 to -45 to the southeast. 2012 drillholes were drilled oriented to an azimuth of 180 with dips ranging from -90 to -45 to the south. The Veta Madre zone has a general ENE strike of azimuth 070 and dips to the northwest. Its northernmost part is subvertical but its dip softens in angle to the south becoming -45 and even subhorizontal in some parts. The drill holes with a dip around -50 will be closer to the true width of the main mineralized zone at Veta Madre. Vertical holes will be the most representative of true width in its subhorizontal portion. Also, the western half of Veta Madre has a tilt towards the west, becoming increasingly deeper in that direction.

(Please see our website (http://www.argonautgold.com) for La Colorada Drill Release results as well as select cross sections.)

La Colorada Geochem Summary 2011

La Colorada Geochem Summary 2012

Veta Madre Mineralization

Veta Madre Cross Sections

Mineralization at the El Creston zone consists of several subparallel mineralized structures that dip to the north, with the exception of the southernmost structure which is subvertical. Drilling dipping about -50 to the south will be the closest representation of true width for most veins at El Creston.

El Creston Cross Section 542,625 E

El Creston Cross Section 542,700 E

Tom Burkhart, Argonaut’s VP Exploration, noted, “We are very excited about the drill program results at La Colorada. The drill program at La Colorada has been mainly focused on the Veta Madre target with four drill rigs active through the first four months of 2012. We have expanded Veta Madre, doubling the area of mineralization approximately 400 by 300 meters. The El Creston resource also remains a high priority with drilling scheduled during the second and third quarters of this year. Drilling in the El Creston mineralization continues down depth, below previous drilling, and on strike in both directions. In addition to ongoing resource delineation on Veta Madre and El Creston, the Company has identified multiple target areas within the large La Colorada mineral system that are also scheduled for continued exploration and drilling.”

SAN ANTONIO

Exploration at San Antonio continued with RC and diamond during 2011 and with RC only during 2012. RC drilling was mainly focused on extending the La Colpa area, located east of the Las Colinas zone, and also on condemnation drilling, mainly to the west of the resource zone. Diamond drilling was contracted to obtain samples for further metallurgical testing from the North Zone and La Colpa.

Table 1 Gold assays from drilling at San Antonio. Gold intervals calculated using a 0.2gpt Au cutoff grade and no high grade capping. No more than three consecutive barren or low-grade samples were considered.

Note: Drill holes are designed to cross cut known structures at 90 degrees and reported thicknesses are approximately true widths, thicknesses on vertical holes are estimated thicknesses.

(Please see our website http://www.argonautgold.com for San Antonio Drill Release results as well as select cross sections.)

San Antonio Geochem Summary 2011-2012

San Antonio Drill Map

La Colpa Cross Section

Tom Burkhart noted, “Results to date at the San Antonio drill program are promising. The drill program at San Antonio was designed to explore the extent and depth of mineralization of the newly identified La Colpa mineral zone. Mineralization at La Colpa has expanded, by approximately 250 meters north/south by 200 east/west, and remains open to the south and down dip. Our current thinking is that La Colpa represents a localized parallel zone of mineralization situated approximately 100 meters east of the main resource area. Additional drilling will be required to define the limits of La Colpa mineralization and the Company expects that La Colpa may provide a near surface addition to the San Antonio resource base.”

Notes for La Colorada drill program:

RC drilling (buggy mounted) and Becker Hammer percussion drilling (truck mounted) are contracted from Layne de México. Diamond drilling is contracted by Landdrill, Falcon Perforaciones and GDA perforaciones.

All of the drill contractors are based out of Hermosillo, Sonora except GDA which has offices in Chihuahua, Mexico. All three diamond rigs are skid mounted and drill with HQ size, except when there is the need to reduce to NQ to continue the hole. Recoveries are typically high and range from 85 to 90%.

RC and Becker hammer samples are taken at 1.5m intervals (5 feet). In both cases 50% of the total recovered sample is discarded, 25% is sent to laboratory and 25% is kept at the project in case of re-assay. This is the case for all samples except duplicates in which 50% of the sample goes to the laboratory and 50% is kept at the site.

All samples are picked up at site by Inspectorate de Mexico’s preparation lab staff from Hermosillo, Sonora. Samples are dried, crushed and split in Inspectorate’s Hermosillo facilities and then shipped to their assay laboratory in Reno, NV.

Notes for San Antonio drill program:

RC drilling (buggy mounted) for the San Antonio project was contracted from Layne de Mexico which used 3 3/4 inch dual wall pipe. Recovery for the RC rig is estimated by weight to be around 90%.

Diamond drilling was contracted by Intercore Drilling who used a skid-mounted rig with HQ and NQ sizes. HQ was preferred and NQ was only used when there was need to reduce size to continue the hole. Recoveries are typically high and range from 85 to 90%.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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, 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 presentation.

Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut’s Vice President of Exploration and, a “Qualified Persons” as defined by NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager, also supervised the drill program and on-site sample preparation procedures at San Antonio. Mr. Edward J.C. Orbock of AMEC E & C Services of Reno, NV, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated San Antonio resource has reviewed this press release as it relates to the San Antonio project.

For sample analysis the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards. Samples from the La Colorada Project are collected at site by personnel of Inspectorate’s preparation laboratory in Hermosillo where samples are prepared and pulps sent for assay in Inspectorate’s Sparks, NV laboratory, which is independent of the Company. Samples are analyzed for gold by Fire Assay and Atomic absorption finish (PKG-AuAg assay code; 0.005 to 10ppm detection limit) plus Silver by Aqua Regia and Atomic Absorption finish (0.1 to 200 ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code Au-1AT-GV). All samples are also assayed by ICP-AES (code GENX-30 or 30-AR-TR) for a suite of 30 elements.

Samples from the San Antonio project are shipped by commercial courier from the city of La Paz to ALS Chemex’s preparation laboratory in Hermosillo, Sonora, which is independent of the Company. Samples are prepared by ALS in Hermosillo and pulps sent to their assay laboratory in North Vancouver. Samples are analyzed for gold by fire assay with atomic absorption (Au AA-23 assay method code; 0.005 to 10ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21). All samples are also assayed by ICP-MS (code ME-ICP41) for a suite of 35 elements.

For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com

In reaction to comments of certain proxy advisory services firms, Argonaut Gold has renamed its Compensation and Governance Committee, the “Nominating, Compensation and Governance Committee”. Argonaut Gold confirms that all members of this committee are independent directors, and that this committee has recommended nomination of all of the nominees for election to the Board of Directors of Argonaut Gold, including Mr. Pete Dougherty, the Company’s President and Chief Executive Officer.

Further, Argonaut Gold has made the following amendments to its by-law which is being presented for approval at the Meeting: (i) increasing the quorum requirement for shareholder meetings to any two persons representing at least 25% of eligible votes, (ii) requiring all members of the audit committee to be independent directors (which conforms with the current practices of Argonaut Gold), and (iii) providing that the Chair of the Board of Directors shall not have a casting or second vote in the event of a tie vote.

The full text of the amended by-law will be available on the Company’s profile on SEDAR at www.sedar.com.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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”). Forward-looking statements and forward-looking information include, but are not limited to, 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, 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, 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 presentation.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com

For further information on the annual meeting or Q1 conference call please contact the Investor Relations Department or visit our website, http://www.argonautgold.com.

Clarification – Note the press release dated April 17, 2012 erroneously reported total production in the title which was inconsistent with the body of the release. The body of the press release properly reports total Q1 Gold Production of 20,884, consisting of 17,799 gold ounces at El Castillo and 3,085 gold ounces at La Colorada.

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
http://www.argonautgold.com