Argonaut Gold Announces Mexican Federal Government Issues Degree to Temporarily Suspend All Non-Essential Businesses

Including Mining, Until April 30, 2020 Due To COVID-19

Metal Production and Sales Expected to Continue

TORONTO, April 1, 2020 - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") announces that the Mexican federal government has mandated that all non-essential businesses, including mining, temporary suspend operations until April 30 due to the COVID-19 virus. Argonaut will work towards an orderly suspension of mining, crushing and stacking activities. Given that Argonaut operates heap leach mines, the Company expects metal production and metal sales will continue during the temporary suspension of mining activities.

Argonaut is following government health protocols, has implemented additional protocols for the protection of its workforce and is closely monitoring the situation with local health authorities. To date, there are no known or suspected cases of COVID-19 infection at any of the Company's operations, projects or corporate offices.

Pete Dougherty, President & CEO stated: "It is important to recognize the seriousness of the COVID-19 pandemic and while we have not experienced a known or suspected case in the Company to date, we have been and will continue to take precautionary measures. The health and safety of our workforce, their families and the communities in which we operate is paramount and we continue to be dedicated to maintaining a safe work environment. We must continue to process pregnant solution coming from the heap leach pads for the safety of the environment. Therefore, we expect to continue metal production and sales."

The Company's expects its previously announced friendly, at-market merger with Alio Gold Inc. ("Alio") will continue (see press release dated March 30, 2020). With both companies understanding the unique and unprecedented circumstances surrounding the COVID-19 outbreak, in the Plan of Arrangement, each of Argonaut and Alio have the option to withdraw from the transaction if the other company's mining operations are suspended for 45 days.

Argonaut is withdrawing its full year guidance across all operations until further notice due to the uncertainty with respect to future developments of the COVID-19 outbreak, including the duration, severity and scope of the outbreak, the actions taken to contain or treat the outbreak and potential impacts on mining operations.


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" or "Argonaut Gold"). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the COVID-19 pandemic, the impact of the pandemic on Argonaut and the impact of government action aimed at ameliorating the pandemic on the workforce, business and operations of Argonaut and on its transaction with Alio Gold Inc.; 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, the scope, duration and impact of the COVID-19 pandemic, the scope, duration and impact of regulatory responses to the pandemic on the employees, business and operations of Argonaut and the broader market, 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.


About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the La Colorada mine in Sonora, Mexico. Advanced exploration projects include the San Antonio project in Baja California Sur, Mexico, the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.

SOURCE Argonaut Gold Inc.



Contact

Argonaut Gold Inc.: Dan Symons, Vice President, Investor Relations, Phone: 16-915-3107, Email: dan.symons@argonautgold.com