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Argonaut Gold Announces C$80 Million Bought Deal Public Offering

Press Release

TORONTO, Dec. 4, 2023 – Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotiabank (collectively, the “Co-LeadUnderwriters”), on their own behalf and on behalf of a syndicate of underwriters (collectively with the Co-Lead Underwriters, the “Underwriters”) pursuant to which the Co-Lead Underwriters have agreed to purchase for resale, on a “bought deal” basis, 210,527,000 common shares of the Company (the “Offered Shares”) at a price of C$0.38 per Offered Share (the “Offering Price”) for gross proceeds of approximately C$80 million (the “Offering”).

The Underwriters have also been granted an option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase an additional 13,158,000 Offered Shares at the Offering Price, for additional gross proceeds of up to approximately C$5 million.

The net proceeds of the Offering will be used to fund development and optimization of the Company’s Magino and Florida Canyon Mines and for general working capital purposes.

“There is significant value to be realized at Magino and Florida Canyon and this financing provides us with the ability to unlock that value. It not only allows us to enter our next, important phase of growth as we optimize production at our two cornerstone assets, it also gives us greater financial flexibility to refinance our current debt facility to better match our growth opportunities,” said Richard Young, President and Chief Executive Officer of Argonaut Gold. “We remain on track to meet the lower end of full-year consolidated production guidance, and now with a stronger cash position, we are better positioned to achieve our vision to become a low-cost, mid-tier North American gold producer delivering value to shareholders.”

The Offered Shares will be offered by way of a prospectus supplement to the Company’s short form base shelf prospectus dated June 2, 2022, to be filed in all of the provinces and territories of Canada (other than the province of Québec) and some may be resold in the United States pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and in such other jurisdictions outside of Canada and the United States as agreed to by the Company, in each case in accordance with all applicable laws and provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.

Closing is expected on or about December 12, 2023 and is subject to Toronto Stock Exchange and other necessary regulatory approvals.

The Offered Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.



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