Great to see that everything is proceeding in a positive manner and that more growth is underway for 2013. Appears majority of development for expansions being completed during Q2 which should make for an interesting fall when Q3 can start to demonstrate the impact of those improvements.

2013 looks to be off to a good start. Under promise and over deliver continues to be common enough regardless the project. Project 85 to 95,000oz and deliver 108,081 (14-27% higher)

A recap of guidance through the last year to today.

January 17, 2012

“The Company is also providing production guidance range for 2012 of 85,000 to 95,000 ounces of gold.”

• El Castillo Expected Production

• • 75,000 to 80,000 ounces of gold

• La Colorada Expected Production

• • 10,000 to 15,000 ounces of gold

http://argonautgold.com/argonaut-gold-news/argonaut-gold-announces-record-gold-production-of-19700-ounces-at-el-castillo-in-q4-record-annual-gold-production-of-72000-ounces-for-2011-up-40-from-2010/

October 15, 2012

Argonaut Gold Announces Record Q3 Gold Production of 31,074 Ounces and Increases 2012 Production Guidance to 101-103,000 ounces from 88-97,000 ounces

• El Castillo production estimates of 84-85,000 ounces of gold
• La Colorada production estimates of 17-18,000 ounces of gold
• Total production guidance estimate of 101-103,000 ounces of gold

http://argonautgold.com/argonaut-gold-news/1993/

January 17, 2013

Argonaut Gold Exceeds 2012 Guidance with Gold Production of 108,081 Ounces

Full year 2012

• Total production of 108,081 ounces of gold (+50% over 2011)

• • El Castillo 87,712 ounces (+22% over 2011)
  • La Colorada 20,369 ounces

http://argonautgold.com/argonaut-gold-news/2397/

2013 and onward here’s an estimate while waiting for official guidance.

El Castillo - “Higher grade material during the fourth quarter of 2012 provided for production of over 25,000 ounces against to guidance of 21-22,000 ounces for the quarter. In 2013, the operation anticipates lower grades, offset by higher volumes of material, for an estimated 5-10% increase over total 2012 production.”

http://argonautgold.com/argonaut-gold-news/2397/

2012 @ 87,712oz with 5% increase = 92,097oz or 10% increase = 96,483oz as 2013 targets. Production target through continued expansion 105-120 k oz

La Colorada - does not present a similar projection target for 2013 so Q4 2012 as a base to project forward. This mine has outperformed expectations and will continue to grow through 2013. Production target through continued expansion 50-60k oz

Q4 12 gold production at 6,195oz and silver at 47,890oz

2013 above x4 = gold @ 24,780oz & silver @ 191,560oz

2013 production estimate = gold 116,877oz (up 8%) to 121,263 (up 12%) Silver 191,560 (up 64%)

Potential revenue with Gold at $1600 and silver at $25 is close to $200 million +/-

Cash cost per gold oz YTD q3 2012 was $601

2013 cash cost per oz if able to maintain below $700... cash flows from operations should exceed $100 million.

2013 looking like it could be another great year in the books.

Hopefully a new presentation is posted before the vancouver show this weekend.

jwits