Argonaut Gold Announces First Quarter 2016 Production of 32,154 Gold Equivalent Ounces

Toronto, Ontario - (April 14, 2016) Argonaut Gold Inc. (TSX: AR) ("Argonaut", "Argonaut Gold" or the "Company") is pleased to announce production of 32,154 gold equivalent ounces ("GEO" or "GEOs") during the first quarter ended March 31, 2016. All dollars in this news release are expressed in U.S. dollars, unless otherwise noted.

1. GEOs are based on conversion ratio of 65:1 for silver to gold for 2016 and 55:1 for 2015. This is the referenced ratio throughout this release

2. Recoverable ounces - El Castillo expected gold recovery rates: ROM oxide 50%, crushed oxide 70%, ROM transition 40%, crushed transition 60%, crushed sulphides argillic 30% and crushed sulphides silicic 17%; La Colorada expected recovery rates: gold 60% and silver 30%

   
   

   Q1 2016 Production	Guidance	Actual
   El Castillo GEO produced (000s)	17.5 - 19	17.5
   La Colorada GEO produced (000s)	12 - 13	14.7
   Total Q1 2016 GEO produced (000s)	29.5 - 32	32.2

   
   

   Pete Dougherty, President and CEO, stated: "First quarter 2016 GEO production was in line with guidance at El Castillo, exceeded guidance at La Colorada and showed a 6% improvement over the fourth quarter of 2015 yielding 32,154 GEOs, primarily as a result of increased crusher throughput at La Colorada. As we look toward the second quarter of 2016, we anticipate further advancement in crusher throughput. Moreover, we continue to advance our development projects and capital programs including being on schedule with leach pad construction at La Colorada."

   FIRST QUARTER 2016 AND RECENT HIGHLIGHTS:

   
   

   Corporate Highlights

   • Cash balance grew to $46.6 million.

   • Further strengthened board and management with two new board members and a new Vice President, Investor Relations.

   • Received Environmental Socially Responsible Company award at all Mexican operations.

     
     

     El Castillo

   • Production of 17,500 GEOs.

   • During the quarter, 23,259 contained gold ounces loaded on the leach pads.

   • Over 75,900 tonnes per day mined and 2.8 million ore tonnes placed on the heap leach pads during the quarter.

     
     

     La Colorada

   • Production of 13,894 gold ounces and 49,370 silver ounces, for 14,654 GEOs.

   • During the quarter, 21,519 contained gold ounces and 404,552 contained silver ounces loaded on the leach pads.

   • Over 50,100 tonnes per day mined and 1.2 million tonnes of mineralized material placed on the heap leach pads during the quarter.

   • Completed leach pad #5 (2.1 million tonne capacity).

   • Northeast leach pad advancing well with anticipated completion Q3 2016.

     
     

     Project Updates

   • Re-costed San Agustin project at initial capital of $43 million - a capital savings of approximately $24 million compared with the initial capital estimate in the 2015 Preliminary Economic Assessment primarily due to utilizing synergies with El Castillo.

   • Completed and filed an updated preliminary feasibility study and NI 43-101 Technical Report for Magino, resulting in a robust project with an after-tax NPV at a 5% discount rate of $415 million and IRR of 22.9% at $1,200 per ounce gold.

FIRST QUARTER 2016 El CASTILLO OPERATING STATISTICS

3 Months Ended March 31

4 GEOs are based on a conversion ratio of 65:1 for silver to gold for 2016 and 55:1 for 2015

FIRST QUARTER 2016 LA COLORADA OPERATING STATISTICS

3 Months Ended March 31

3 Produced ounces are calculated as ounces loaded to carbon 4 GEOs are based on a conversion ratio of 55:1 for silver to gold for 2016 and 55:1 for 2015

Richard Rhoades, Chief Operating Officer, commented: "At El Castillo, we performed in line with guidance of 17,500 GEOs. As previously announced, we anticipate the grade to improve during the second half of the year as we begin mining the north end of the phase 6 pit area. From a throughput perspective, we averaged over 30,000 tonnes per day to the leach pads compared with approximately 26,000 tonnes per day during the fourth quarter of 2015 - a 15% improvement that we anticipate will continue to further increase during the second quarter of this year.

At La Colorada, we continued to show strong performance with production exceeding guidance of 12,000 to 13,000 GEOs. The crushing circuit averaged 13,300 tonnes per day compared with the budget of 11,000 tonnes per day. We completed the phase 5 leach pad ahead of schedule and are progressing as planned on the new Northeast leach pad, which we anticipate will be completed during the third quarter of this year."

Full Year 2016 Guidance Reiterated

• Gold production of 130,000-140,000 GEOs (at a 65:1 conversion of silver to gold ounces).

  • El Castillo - 75,000-80,000 GEOs at cash costs of $750-$800 per gold ounce sold (Refer to Non-IFRS Measures section).

  • La Colorada - 55,000-60,000 GEOs at cash costs of $725-$775 per gold ounce sold (Refer to Non-IFRS Measures section).

• Cash cost per gold ounce sold of $750-$800 (Refer to Non-IFRS Measures section).

• Capital spending of $23 million including:

  • El Castillo - $4 million.

  • La Colorada - $14 million including expansion capital for Northeast leach pad and conveyor system.

  • San Antonio - $1 million for land and holding costs.

  • San Agustin - $1 million for land and permitting (excludes construction capital).

  • Magino - $1 million for land and holding costs.

  • Exploration and other - $2 million

Argonaut Gold Q1 2016 Financial Results Conference Call and Webcast - May 3, 2016:

The Q1 financial results call is scheduled to take place on May 3, 2016 at 8:30 AM (EDT). Details for the call-in participation are:

Q1 2016 Conference Call Information for May 3, 2016:

Toll Free (North America): 1-877-291-4570

International: 1-647-788-4919

Webcast: www.argonautgold.com

Q1 2016 Conference Call Replay:

Toll Free Replay Call (North America): 1-416-621-4642