Argonaut Gold Drills High-Grade Intercept of 6.0 Metres at 8.31 g/t at Magino; Phase Two Magino Drill Program Shows Promising Continuity Between High-Grade Intercepts in the Elbow Zone, including 20.0 Metres at 4.58 g/t Gold

TORONTO, July 28, 2020

The Phase Two program has focused on tightening drill spacing around high-grade intercepts encountered during the Phase One program at both the Elbow Zone and Central Zone.  The results in this press release are from the Elbow Zone and the Company anticipates reporting results from the Central Zone once all assays have been received (Figure 1).  To date, the Company has completed 54 diamond drill holes, including six (6) wedge holes, for a total of 34,852 metres of drilling in the Phase One and Phase Two programs.

The Phase One program discovered a number of high-grade veins over a widely spaced area beneath and adjacent to the Magino gold reserve.  Drill spacing in this initial phase was up to 400 metres between holes and reached vertical depths up to 1,000 metres. Phase Two of the program utilized structural modeling from oriented core and optical televiewer measurements to focus on defining gold continuity within the high-grade shoots.  In general, holes were designed to offset Phase One high-grade intercepts by approximately 40 metres.  Results to date show promising gold grade continuity in the upper and deep portions of the Elbow Zone.

Recent highlights include:

• MA20-040 with 20.0m at 4.58 g/t Au, including 6.0m at 8.31 g/t Au
• MA20-041A with 16.0m at 4.86 g/t Au, including 1.0m at 48.50 g/t Au
• MA20-026A with 7.0m at 7.84 g/t Au, including 2.0m at 25.88 g/t Au
• MA20-026AW5 with 3.0m at 7.01 g/t Au, including 2.0m at 10.31 g/t Au
• MA20-038 with 4.0m at 8.70 g/t Au, including 1.0m at 29.10 g/t Au
• MA20-039 with 6.0m at 5.49 g/t Au, including 1.0m at 25.20 g/t Au

Pete Dougherty, President and CEO stated: "We continue to intersect high-grade gold and more importantly, we are seeing promising high-grade continuity within the Elbow Zone where we have now tightened drill spacing averaging between 40 metres and 50 metres in two areas.  We are anxiously awaiting results from Phase Two drilling in the Central Zone where, like results from the Elbow Zone, we continue to encounter visible gold."

Table 1 below highlights select drill results from the Elbow Zone from the on-going Phase Two program.  A three-dimensional model of the Magino deposit and the Elbow zone in relation to the proposed pit and property boundaries is available on the Company's website at https://www.argonautgold.com/English/assets/drill-results/default.aspx

Table 1: Select Drill Results – Phase Two