Argonaut Gold Announces Pre-Feasibility Study Results for the Magino Mine Project Near Wawa, Ontario

Argonaut Gold Inc. announced results of a prefeasibility study ("PFS") for the Magino property, located 40 kilometers ("km") northeast of Wawa, Ontario.

The Magino mine PFS study takes into consideration the PFS design for an open pit mine, representing 40% of a larger defined resource. It does not include any potential expansion from the land or mineral rights acquisition pending from neighboring landowner Richmont Mines Inc. The study was completed by JDS Energy & Mining Inc., Vancouver, Canada and is based on a December 2013 mineral resource estimate. All amounts are indicated in US dollars.

The PFS found that at price level of US$1,250 per ounce and a cost per ounce of $693, Magino mine is expected to earn a net present value (NPV – with an after-tax 5% discount) US $199 million. Cash flow, likewise after-tax) is expected to generate $350 million. The anticipated Internal Rate of Return is 18% annually. The total capital cost of developing the Magino mine is US$356 with an additional US $58 million earmarked for closure and rehabilitation – for a total cost of US $414 million. The payback on investment will occur after 4.2 years of becoming fully operational.

The PFS report estimated that there are enough gold deposits at Magino mine to permit operations for 13.2 years. Based on the estimated gold available at the Magino site the PFS forecasts a starting annual production of 127,000 ounces.

"Magino is a high quality property that we are very pleased to have in our portfolio,” said Pete Dougherty, President and CEO of Argonaut Gold. “Economics for the project are strong, and are particularly robust during the first seven years, when the Company will be processing higher grade material and stockpiling lower grade material for processing later in the mine life. “

The PFS for Magino indicates there is an inferred quantity of 7,803,620 tonnes at the Webb Lake Stock portion of the mine for a production capability of 193,190 oz. of gold having a grade of 0.77 gram/tonnes of gold over the project 13.2 years of the mine life. As defined by the U.S. Geological Survey and the U.S. Department of the Interior an Inferred resource quantity is defined as having estimates that are based on an assumed continuity beyond measured and/or indicated resources, for which there is geologic evidence. Inferred resources may or may not be supported by samples or measurements.

Less reliable indicated quantity estimate that the Magino Webb Lake Stock area may have up to as much as 207,268,820 tonnes with a grade of 0.87 g/tonne of gold. Total project quantity of potential gold to be mined is 5,797,550 oz. over the projected 13.2 years of the mine

To view '2013 JDS Magino Long Section, Block Model', please visit the following link: http://media3.marketwire.com/docs/argofig11217.pdf

To view '2012 Tetratech Magino Long Section, Block Model', please visit the following link: http://media3.marketwire.com/docs/argofig21217.pdf

For further information on Argonaut Gold's Magino project please see the report as listed below on Argonaut Gold's website or on www.sedar.com

The production schedule was developed to supply 12,500 tonnes per day of ore to the mill. An important element of the production schedule is the accelerated mining rate in Years 1 to 7 to access the highest grade ore possible to feed the mill early in the project life. Low grade ore mined and stockpiled in the early years is planned to be processed later in the project life after the open pit is exhausted in year 8. The annual production schedule for the project is shown in the following table.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico and the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Baja California Sur, Mexico, the advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

The Magino Pre-feasibility Study results were reviewed by JDS under the supervision of Gordon Doerksen, P.Eng., an Independent Qualified Person. The scientific and technical information in this release has been reviewed and approved by Mr. Garth Kirkham, P.Geo., Mr. Dino Pilotto, P.Eng., both of whom are Independent Qualified Persons within the meaning of NI 43-101.

Mr. Thomas Burkhart, Argonaut's Vice President of Exploration is the Company's Qualified Person responsible for the contents of this press release and has reviewed the information in the release and confirmed that it is consistent with that provided by the independent Qualified Person responsible for the Study.

The information in this story is based on Argonaut Gold’s news release issued on Dec. 17, 2013 .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 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.

For more information:

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com