Argonaut Gold Announces Q2 Production of 30,310 Gold Equivalent Ounces

July 15, 2014

San Agustin Phase I drilling with 22,000 metres (230 holes) complete,
property resource expected in the third quarter

Toronto, Ontario – (July 15, 2014) Argonaut Gold Inc. (“Argonaut”, “Argonaut Gold” or the “Company”; TSX: AR), announced today that the Company had production of 30,310 gold equivalent ounces (“GEOs”) during the second quarter ended June 30, 2014 (“Q2”). This included 21,359 GEOs at its 100% owned El Castillo Mine (“El Castillo”) located in Durango, Mexico and 8,951 GEOs at its 100% owned La Colorada Mine (“La Colorada”) located near Hermosillo, Mexico.

1 GEOs are based on conversion ratio of 55:1 for silver to gold and is the referenced ratio throughout the release.

2 Recoverable ounces – see tables titled Second Quarter 2014 El Castillo Operating Statistics and Second Quarter 2014 La Colorada Operating Statistics

SECOND QUARTER 2014 HIGHLIGHTS:

El Castillo

• GEO production of 21,359 ounces consisting of 21,041 gold ounces and 17,474 silver ounces (GEOs at 55:1 conversion rate).
• 37,352 gold ounces loaded on the leach pads equating to 21,424 projected recoverable gold ounces.
• Mining:
  • The daily mining rate for the quarter increased from 87 thousand tonnes per day (“ktpd”) in the first quarter to 91 ktpd in the second quarter, an increase of 5% quarter over quarter (24% year over year). The mine plan incorporated mostly oxidized ore, increasing from 75% to 87% of total ore to the pads for the second quarter over the first quarter. This should result in improved recoveries in the coming quarter.
  • Strip ratio increased to 1.2:1 which is consistent with mine plan expectations.
• Crushing and conveying:
  • West crusher conveyor moved a record 1,468,270 tonnes to the pads.
  • East crusher conveyor moved a record 1,615,616 tonnes to the pads.
• West side pad expansion continues ahead of schedule.
  • Cell 2a was completed in May and over liner placement is nearly complete, well ahead of schedule.
  • Cell 3b the rock fill was completed in June and the cell construction will be finalized in the third quarter, which is also ahead of schedule.

La Colorada

• GEO production of 8,951 ounces, consisting of 8,420 gold ounces and 29,224 silver ounces (GEOs at 55:1 conversion rate).
• 15,651 gold ounces and 189,621 silver ounces loaded on the pad; equating to 10,425 projected recoverable GEOs to leach pad.
• We are ahead on stripping for the year. The strip ratio for the quarter of 4.49 fell in comparison to 7.22 realized during the first quarter, as ore shipments to the crusher increased.
• Record 880,000 tonnes of crushed ore was loaded to the leach pad which is an increase of 182% year over year. A new level of 10 ktpd of crushed ore to the pads has now been established. Since Q1 of this year we have achieved nearly a 40% improvement in crushing.
• An additional tertiary crusher was added to the crushing circuit and commissioned at the beginning of July in an effort to further increase crushing capacity.

Magino

• The Richmont surface and mining rights expansion agreement was finalized. A budget and exploration plan for this property will be developed.
• We have identified additional material for further heap leach column test work to be performed, and will begin this metallurgical test work in Q3.
• We continue to advance the permitting studies on the project.

San Antonio

• The Company continues to work on a dual permitting path; plans include pursuing a mutually beneficial project for all stakeholders by simultaneously pursuing the legal path to obtaining permits as well as working with local and federal agencies and officials.

San Agustín

• The Phase I drill program of 22,114 metres has been completed to date including 21,115 metres of reverse circulation (“RC”) in 217 drill holes and 999 metres of PQ core in 13 drill holes.
• Initiated Phase II drill program, completing 1,750 of 13,000 metres to date.
• Metallurgical test work continues with column tests being run by independent laboratory Kappes, Cassiday & Associates in Reno, Nevada and bulk run of mine column tests at El Castillo.
• Argonaut Gold purchased Geologix Resources claims for the Nuestra Senora del Carmen II property, and has an agreement to acquire the Consejo 1 title.
  • These concessions total 489 hectares immediately to the west and east of the current drill program for the Company.
• A cash payment of $10M was made to Silver Standard Resources Inc. (“Silver Standard”), as well as a $1.6M VAT payment to the government of Mexico on this transaction.

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