Argonaut Gold Announces Q3 Gold Production of 26,690 Ounces

Magino expands by purchasing additional ground surrounding project

TORONTO, ONTARIO--(Marketwired - Oct 16, 2013) - Argonaut Gold Inc. ("Argonaut", "Argonaut Gold" or the "Company") (TSX:AR), announced today that the Company had gold production of 26,690 ounces during the 3^rd quarter ended September 30, 2013. This included 22,756 ounces at its 100% owned El Castillo Mine ("El Castillo") located in Durango, Mexico and 4,234 ounces of gold at its 100% owned La Colorada Mine ("La Colorada") located in Hermosillo, Mexico.

Argonaut Gold is also pleased to announce that it has entered into a surface and mining rights exchange agreement with Richmont Mines Inc. ("Richmont")(TSX:RIC). Pursuant to this agreement, Argonaut Gold will expand land access associated with its Magino Gold Project by obtaining both surface rights and mining rights up to 400 meters in depth on certain Richmont claims surrounding the project. Argonaut Gold will transfer its interest in certain claims to Richmont, to enable it to expand its exploration potential at its Island Gold Deep project. The terms of this agreement provide a $2 million payment from Argonaut to Richmont.

THIRD QUARTER 2013 HIGHLIGHTS:

El Castillo

• Production of 22,756 gold ounces.
• 39,120 gold ounces loaded on the pad.
• West Side Pad 8 construction is ongoing.
• West Side crusher and overland conveyor project was completed and is operational.
• Permits were received for the new south waste dump.

La Colorada

• Production of 4,234 gold ounces.
• Production of 31,717 silver ounces.
• 5,571 gold ounces and 76,692 silver ounces loaded on the pad.
• La Colorada pit continues to be opened.
• New crushing circuit installation was completed and is operational.

Magino

• Mineral rights and land allows expansion of pit limits and further project development.

THIRD QUARTER 2013 El CASTILLO OPERATING STATISTICS

¹ "g/t" is grams per tonne

² "oz" means troy ounce

Richard Rhoades, Chief Operating Officer of Argonaut Gold, said "Q3 gold production at El Castillo was impacted by the seasonal monsoon rainfall, while this impacted quarterly results full year production will meet our guidance. Permits were received at El Castillo for construction of the new overburden deposit areas, which will provide a shorter haulage of overburden at the south end of the pit. Also, the new west side crushing and overland conveying system was completed in August and is now fully operational. Argonaut anticipates El Castillo will continue to produce 100,000 ounces a year.

At La Colorada, we continue to open the Gran Central/La Colorada pit and are now mining ore grade material. The mining contractor is in the process of a planned expansion of the fleet which will increase tonnage. This should allow for 60,000 tonnes per day to be mined, which will lead to future production growth. By year end, La Colorada will be operating at approximately a 50-60,000 ounce run rate."

THIRD QUARTER 2013 LA COLORADA OPERATING STATISTICS

¹ "g/t" is grams per tonne

² "oz" means troy ounce

Pete Dougherty, President and CEO said, "Despite some operational challenges we remain on target to produce 100,000 ounces at El Castillo and 24,000 ounces at La Colorada, which will meet our 2013 guidance of 120,000 - 140,000 ounces of gold. The capital expansion programs at both sites should pay dividends in Q4 and set the standard for 2014 production."

In referencing the recent land acquisition agreement with Richmont, Mr. Dougherty added "It now allows for future pit expansion and provides additional exploration upside for the project. Our teams are now looking at the potential changes the land expansion may have on the project."

Argonaut Gold Q3 Financial Results Conference Call and Webcast:

The Q3 financial results call is scheduled to take place on November 12, 2013 at 8:30 am ET. Details for the call in participation are:

The conference call replay will be available from 10:30 a.m. ET on November 12, - November 19, 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 advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

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 Gold"). 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.

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: