3 Year Growth Plan

Argonaut's three year growth plan

By 2019, the Company expects to produce over 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.

strategy-growth

2018 Focus & Goals

strategy-2018goals

2018 Guidance

The Company anticipates it will produce between 165,000 to 180,000 GEOs during 2018 at a cash cost2 of between $700 to $800 per gold ounce sold and all-in sustaining costs (“AISC”)2 of between $850 to $950 per gold ounce sold.

2018 GEO Production and Cost Guidance

Placeholder Table Head Placeholder Table Head Consolidated
GEO Production In 000s 165-180
Cash costs (1)(2) $ per oz/Au 700-800
AISC (1)(2) $ per oz/Au 850-950

(1) Assumes a MXN:USD exchange rate of 18:1.
(2) Please refer to section "Non-IFRS Measures" here

The Company plans to invest $37 to $40 million in capital expenditures during 2018

2018 Capital Estimate ($M)(1)

Actual capital spend 9 Months Ended September 30, 2018 Q4 2018 Remaining Estimate Total Estimate
29.9 7.1 - 10.1 37 - 40

(1) Assumes exchanges rates of MXN:USD of 18.1 and CAD:USD of 1.3:1.