Argonaut Gold Inc T.AR

Magino advancement key points

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1. The completion of the Schedule 2 process significantly de-risks the Magino project and makes it much more attractive to POTENTIAL JOINT-VENTURE PARTNERS and PROJECT FINANCING LENDERS.

2. Argonaut anticipates having project approvals AND DEVELOPMENT FINANCING OPTIONS organized to enable the Company to make a decision on the advancement of the Magino project DURING THE SECOND HALF OF 2020.

3. The Company has continued its deep drilling exploration program uninterrupted and is ENCOURAGED WITH THE RESULTS TO THE DATE. As the BACKLOG in the assay laboratories is worked through following their temporary closure due to COVID-19, Argonaut expects to provide continuous exploration results throughout the year.

4. GROSS PROCEEDS of approximately C$110 million (the “Offering”). The Company has granted the Underwriters an option to purchase up to an additional 15%. Argonaut intends to use the net proceeds of the Offering for the advancement of the Company’s MAGINO project and for GENERAL corporate purposes.

5. The Company ended June 30, 2020 with approximately $65 million in cash and $7 million drawn on its corporate revolving credit facility.  All amounts are US dollars unless otherwise stated.

6. NEW TOTAL CASH: $65-$7+$81($110 CAD)+$12(15%) = $151M

7. We offer significant FCF2 leverage to the gold price, a strong balance sheet and a superior pipeline of growth assets in Magino, Cerro del Gallo and Ana Paula with SOME KEY DECISION POINTS WITHIN THE NEXT 3 TO 18 MONTHS.

8. Next: joint venture? (other options: senior notes, stream deal, etc)