3 Year Growth Plan

Argonaut's three year growth plan

In 2019, the Company expects to produce about 200,000 GEOs annually from its existing operations, which would reflect over 65% production growth from 2017 through 2019. This production growth is primarily driven by the ramp up of the El Castillo Complex with the addition of San Agustin and the extension of mine life at El Castillo subsequent to the San Juan concession purchase from Fresnillo Plc (see press release dated February 23, 2017) as well as higher anticipated grades at La Colorada as mining transitions to the El Creston pit.

2019 Focus & Goals

Argonaut Gold Inc. 2019 Focus and Goals

2019 Guidance

The Company anticipates it will produce between 190,000 to 200,000 GEOs1 during 2019 at a cash cost2 of between $900 to $925 per gold ounce sold and all-in sustaining costs (“AISC”)2 of between $1,125 to $1,150 per gold ounce sold.

2019 GEO Production and Cost Guidance

Placeholder Table Head Placeholder Table Head Consolidated
GEO Production   (1) In 000s 190-200
Cash costs (2)(3) $ per oz/Au 900 - 925
AISC (2)(3) $ per oz/Au 1,125 - 1,150

(1) GEO is based on a conversion ratio of 70:1 (2017 & 2018) and 75:1 (2019) for silver to gold ounces. The conversion ratios are based on three year trailing average silver to gold exchange ratio.
(2) Assumes a MXN:USD exchange rate of 20:1.
(3) Please refer to section "Non-IFRS Measures" here

The Company plans to invest $50 to $55 million in capital expenditures during 2019.

2019 Capital Estimate ($M)(1)

Actual capital spend 9 Months Ended SEPTEMBER 30, 2019 Q4 2019 Remaining Estimate Total CAPITAL Estimate
$40.6M~$9.4M - $14.4M $50M - $55M

(1) Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of 1.3:1.