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Argonaut Gold Announced Record Quarterly and Annual Revenue and Cash Flow from Operating Activities; Provides Fourth Quarter and Full Year Financial and Operating Results

Full year 2020:

• Record annual revenue of $319.7 million.

• Record annual cash flow from operating activities before changes in non-cash operating working capital of $95.0 million.

• Completed at-market merger with Alio Gold Inc. ("Alio") creating a North American, diversified intermediate gold producer.

• Closed C$126.5 million bought deal equity financing to fund Magino construction.

Argonaut Gold Inc. (TSX: AR) (the "Company") announced its financial and operating results for the fourth quarter and year ended December 31, 2020. For the fourth quarter 2020, the Company reported record quarterly revenue of $100.8 million, adjusted net income of $20.8 million or adjusted earnings per basic share of $0.07 and net income of $18.0 million or earnings per basic share of $0.06, derived from the sale of 53,478 gold equivalent ounces ("GEO" or "GEOs"), which generated record quarterly cash flow before changes in working capital of $39.5 million. For the full year 2020, the Company reported record annual revenue of $319.7 million, adjusted net income of $48.3 million or adjusted earnings per basic share of $0.21 and net income of $14.2 million or earnings per basic share of $0.06, derived from the sale of 179,169 GEOs, which generated record annual cash flow from operations before working capital changes of $95.0 million. All dollar amounts are expressed in United States dollars unless otherwise specified.

CEO Commentary

Pete Dougherty, President and CEO stated: "During 2020, we put the Company in a fantastic position to execute on our transition strategy from a short mine life, high-cost junior producer to a long mine life, lower cost intermediate producer through the permitting and financing achievements for the Magino project in Ontario, Canada, leading to a construction decision, and the acquisition of the Florida Canyon mine in Nevada, USA. As we look to 2021, we are focused on continuing to execute on this strategy now that the pieces are in place to do so, as well as the exploration upside at the Magino and the Florida Canyon districts."

The Company achieved its updated GEO production, cash cost, AISC and capital guidance. The Magino project was approved for construction in October 2020 and a fixed-bid contract covering approximately 40% of the initial project capital was announced early January 2021. Fourth quarter 2020 spending on Magino construction capital was approximately $19.3 million, with the balance of the estimated 2020 spend, primarily related to the timing of procurement of long-lead time equipment, shifting from December 2020 to January 2021 given the timing of execution of the fixed-bid contract.

To review key operating and financial statistics for the three months and year ended December 31, 2020 for Argonaut Gold Click Here

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