Argonaut Gold Provides Update on San Agustin Project; Potential 50% Resource Increase

Drilling Increases Mineralized Footprint with Potential 50%
Increase over Existing Resource. Environmental Permit has been submitted.

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Toronto, Ontario – (July 6, 2015) Argonaut Gold Inc. (“Argonaut”, “Argonaut Gold” or the “Company”; TSX: AR), is pleased to provide a drilling update for its 100% owned San Agustin project. The project is located just 10 kilometres southwest from the Company’s El Castillo Mine (“El Castillo”) in Durango, Mexico. The Company completed a Preliminary Economic Assessment (“PEA”) on the project in February, 2015. The San Agustin PEA resulted in a pit-constrained indicated resource of 845,000 gold ounces and 28 million silver ounces contained in 82.2 million tonnes of material at a grade of 0.32 grams per tonne ("g/t") gold and 10.7 g/t silver, for a total of 1,280,000 gold equivalent ounces. The gold equivalent ounces are calculated utilizing a 65:1 gold price to silver price ratio and does not incorporate the recovery differential between gold and silver.

The Company continues to better define the overall economic potential of the project. In addition to detailed sampling and geologic mapping, the Company is utilizing induced polarization (IP) and magnetic studies to prioritize target areas. Thirty one wide spaced RC holes (5,277 meters) were completed with most drilling positioned to test the northwest extension of the mineralized footprint. This expansion drilling was accomplished subsequent to the PEA and is not contained therein. The work completed thus far indicates potential to expand mineralization over an additional 1,000 metres, with the potential for a 50% increase in the existing resource area. Additional work will also be done on the Consejo 1 claim, acquired in 2014, which sits adjacent to the existing claims and shows potential for structurally controlled high-grade mineralization. The company has undertaken additional step-out drilling during the second quarter of 2015.

CEO Commentary
Pete Dougherty, President and CEO of Argonaut Gold said “The San Agustin project is a very exciting project for Argonaut. Due the close proximity to our El Castillo operation, this is a natural future extension of the El Castillo mine. The work completed to date, indicates the ability to further expand the known resource area. The proximity of San Agustin to El Castillo and the current exploration work indicating that the resource may be much larger than currently reported with a potential of improved economics. ”

San Agustin Expansion Drilling
Drilling completed thus far along the northwest extension supports the potential to significantly expand shallow oxide gold mineralization upwards of 1,000 metres northwest of the current resource. Results from this wide-spaced drilling include: DH-242, 0.27 g/t Au over 24.4 m, DH 251, 0.25 g/t Au over 32.0 m and DH-269 0.38 g/t Au over 16.8 m. Going forward the Company expects to complete additional in-fill and step-out drilling in these known areas of mineralization.

Full drill results are available on the Company's website at www.argonautgold.com.