1

Argonaut Gold Announces 2013 Production Guidance of 120-140,000 Ounces

89,000 Meter Magino Exploration Drill Program Completed, New Zone Revealed

Toronto, Ontario (February 25, 2013) Argonaut Gold Inc. (TSX: AR) ("Argonaut", “Argonaut

Gold” or the "Company") is pleased to announce Company 2013 production guidance, project

initiatives and exploration objectives across the Company’s properties throughout the

Americas. Production in 2013 is planned to increase to between 120,000 and 140,000 ounces

of gold up from 108,000 ounces of gold in 2012. Cash cost of production is also expected to

increase slightly to between $630 and $660 per ounce.

The Company is undertaking an aggressive capital expansion program in 2013 which should

prepare the Company for further production expansions in 2014 and beyond. This will

essentially complete capital expansion programs at both La Colorada and El Castillo until 2015,

when we will finalize the remaining 15mm tons of pad capacity at El Castillo.

Exploration drilling totaling 89,000 meters has taken place at Magino, part of this drilling has

revealed a new zone.

Capital Expansion Program for 2013

El Castillo $32 million

La Colorada(1)

$14 million

Magino $3 million

San Antonio (2) $3-15 million

Exploration (3)

$5-11 million

TOTAL $57-75 million

Notes: (1)

Including $5 million in pre-stripping costs (2) Subject to permitting process timeline (3)

Subject to exploration results

El Castillo 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

o $15 mm: New West side pad and ponds with 30mm ton capacity to be built in 2013

o $10 mm: Transfer of Contractor mining equipment to the Company

o $7 mm: New crushing and overland conveying system for the West pad 8

La Colorada 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

o $7mm: New crushing system capable of producing +4mm tonnes per year at <3/8”

o $5mm: Pre-stripping of pit

o $2mm: Plant and pad expansions

2

Pete Dougherty, Argonaut Gold’s President and CEO stated: “2012 was a significant year for the

Company; we exceeded gold production guidance, added La Colorada as a second operation

and completed the acquisition of Prodigy Gold. El Castillo is near a steady state of production

with 2013 guidance of between 90,000 and 100,000 gold ounces at cash costs of $700 to $725

per ounce. Due to an anticipated 14% reduction in grade, we will be increasing the volume of

ore tonnes processed to maintain gold ounce production levels. From a capital perspective we

are looking to make improvements to our cost basis by taking over the mining from our

contractor, and adding an in-pit crushing and conveying system to deliver to West pad 8.”

Mr. Dougherty added “At La Colorada, fresh ore mining has begun. The mine plan anticipates

grades to increase quarter over quarter with production loaded towards the second half of the

year. Installation of the new crusher and pad construction will be completed in the second

quarter of this year. Full year 2013 gold production at La Colorada is expected to be between

30,000 and 40,000 ounces of gold at average cash costs for the year of $450 to $475 per ounce,

net of silver credits.”

Magino Exploration Update:

Argonaut Gold is pleased to report on exploration results at its recently acquired Magino

project located 40 kilometers northeast of Wawa, Ontario. In 2012 an additional 89,000 meters

of drilling in 340 holes was completed to advance the project toward a proposed pre-feasibility

study. The drilling consisted of in-fill drilling in the pit and condemnation drilling for site layout.

In-fill drill spacing averaged of 25 meters within the constrained pit. The drilling campaign also

outlined a new zone of mineralization depicted in the southeast corner of the drilling which we

are calling the PD zone. (See Figure 1 and Holes PD-atm12-002-100).

Prior Resource Drilling Additional Drilling

Meters 220,000 89,000

Holes 1,210 340

Drill Spacing (meters) 40 25 in constrained pit

(Note: Prior Resource drilling cut-off was 6-8-2012, the additional 89,000 meters

completed since 6-8-2012).

MAGINO DRILLING SUMMARY SINCE OCTOBER 2012 RESOURCE REPORT BY AREA

Program Meters # Holes

Deep Holes 4,963 5

Condemnation 31,723 127

Pit Definition 17,643 121

Infill 33,599 75

Metallurgical 1,403 12

TOTAL 89,330 340

3

Highlights from the Magino Drill Program

Drill Hole From (meters) To (meters) Length (meters) Gold Grade

PD-MA12-002 9.00 50.00 41.00 1.45

PD-MA12-004 13.00 52.00 39.00 1.35

PD-MA12-023 93.00 131.00 38.00 2.06

PD-MA12-027 54.00 96.20 42.20 1.13

PD-MA12-042 39.00 66.00 27.00 2.31

PD-MA12-044 105.00 133.00 28.00 3.41

PD-MA12-060 6.50 29.00 22.50 1.30

PD-MA12-080 22.00 36.00 14.00 1.41

PD-MA12-100 75.00 86.00 11.00 1.81

MA12-364 74.00 162.00 88.00 0.75

MA12-378 175.00 319.00 144.00 0.45

including 231.00 265.00 34.00 1.19

MA12-380 84.00 108.00 24.00 0.87

MA12-384 180.00 642.00 462.00 0.59

including 180.00 336.00 156.00 0.99

MA12-389 157.00 374.00 217.00 0.85

including 329.00 374.00 45.00 2.16

MA12-392 54.00 75.00 21.00 0.89

MA12-414 191.00 235.90 44.90 1.38

Note: All drillholes were drilled oriented to an azimuth of 165 with dips ranging from

-45 to -60 to the South-east. The Webb Lake Stock zone has a general ENE strike of

azimuth 075 and dips to the North. Its Majority part is sub vertical but its dip softens

in angle to the south-west becoming -30 and even sub horizontal in some parts. The

drill holes with a dip around -50 will be closer to the true width of the main

mineralized zone at less than 400m depth. Vertical holes will be the most

representative of true width in its sub horizontal portion. Also, the western half of

Webb Lake Stock has a tilt (plunge) towards the west, becoming increasingly deeper

in that direction.

(Please see our website (www.argonautgold.com) for full Magino drill results).

4

Figure 1 Drill Map

5

Magino Block Model Mineralization

Conceptually Argonaut Gold anticipates that a constrained pit would look at a 1 g/t cut-off of

the delineated resource.

Tom Burkhart, Argonaut Gold’s VP Exploration, noted “We are pleased with the progress of our

exploration efforts at Magino. The exploration team has advanced the project and a new pre-

feasibility report is expected to be issued later this year. The drilling also provided noteworthy

drill intercepts in the PD Zone. Our latest drilling continues to demonstrate the robust nature

of the Magino deposit and the potential to expand mineralization on the property. The

optimum 25 meter drill spacing has given us increased confidence in our geologic

interpretations and resource estimates. We look forward to continuing our evaluations of the

property including further assessment of the new PD discovery.”

About Argonaut Gold

Argonaut Gold is a Canadian gold Company engaged in exploration, mine development and

production activities. Its primary assets are the El Castillo Mine in Durango, Mexico, and the La

Colorada Mine in Sonora, Mexico (both in the production stage), the advanced exploration

stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino

project in Ontario, Canada and several exploration stage projects, all of which are located in

North America.

Creating Value Beyond Gold

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost of production per ounce of gold" and

"Cash cost per gold ounce” in this press release to supplement its information which is

periodically presented in accordance with International Financial Reporting Standards (“IFRS”).

"Cash cost of production per ounce of gold" and "Cash cost per gold ounce" is equal to cost of

sales less silver sales divided by gold ounces sold. Silver credits are included at $30 per ounce of

silver. The Company believes that this measure provides investors with an improved ability to

evaluate the performance of the Company. Non-IFRS measures do not have any standardized

6

meaning prescribed under IFRS. Therefore they may not be comparable to similar measures

employed by other companies. The data is intended to provide additional information and

should not be considered in isolation or as a substitute for measures of performance prepared

in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

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”). 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.

7

Qualified Person

All scientific and technical information for the Magino project, has been reviewed and approved by Tom

Burkhart, Argonaut Gold’s Vice President of Exploration, who is a qualified person under the definitions

established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill

rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The

core is then split down the center using a typical table fed circular rock saw normally at one-meter

intervals. One half of the core is sent for assay to Activation Laboratories Ltd., 33 Iroquois Road, ON, P4N

7C5, , while the other half is returned to the core box and stored at Prodigy’s sampling facility in a

secure, fenced off, area. Activation Laboratories are ISO/IEC 17025 certified and are at arm's length to

Prodigy. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples

in addition to sending 10% of the samples to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2 for

check assays. ALS Chemex is at arm's length to Prodigy and is ISO 9001:2008 certified. Samples assaying

> 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40

gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as

much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough

estimate the true thickness of the above intercepts is approximately 76%.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of,

and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut's Vice President of

Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101”). For

further information on the Company’s properties discussed herein please see the reports as

listed below on the Company’s website or on www.sedar.com:

El Castillo

Mine

NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El

Castillo Mine, Durango State, Mexico dated November 6, 2010

La Colorada

Mine

NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora,

Mexico dated December 8, 2011

La Fortuna

Property

NI 43-101 La Fortuna, Durango, Mexico, Technical Report dated October 21,

2008

Hercules Technical Review and Mineral Resource Estimate of the Hercules Property

dated May 26, 2010

Magino Gold

Project

NI 43-101 Technical Report and Mineral Resource Estimate on the Magino

Gold Project, Ontario, Toronto, Canada dated October 4, 2012

San Antonio

Gold Project

NI 43-101 Technical Report and Mineral Resource Estimate on the San

Antonio Gold Project, Baja California Sur, Mexico dated October 10, 2012

For more information, contact:

Argonaut Gold Inc.

Nichole Cowles

Investor Relations Manager

Tel: (775) 284-4422 x 101

Email: nichole.cowles@argonautgold.com

www.argonautgold.com