TORONTO, ONTARIO — (Marketwired) — 05/14/13 — Argonaut Gold Inc. (TSX:AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the first quarter ended March 31, 2013. All dollar amounts are expressed in United States dollars unless otherwise specified.

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                                             1st Quarter

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                                              2013          2012     Change

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Financials (000s)

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Revenue                                $    43,080   $    24,353      up 77%

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Net income                             $    11,615   $     7,260      up 60%

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Income per share – basic               $      0.08   $      0.08        N/A

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Cash flow from operating activities

 before changes in non-cash

 operating working capital and other

 items                                 $    19,351   $     8,141     up 138%

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Cash and cash equivalents              $   168,514   $    17,779     up 848%

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Gold production and cost:

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Gold ounces loaded to pads                  39,786        44,169    down 10%

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Gold ounces produced                        28,907        20,884      up 38%

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Gold ounces sold                            25,441        14,498      up 75%

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Average realized sales price           $     1,622   $     1,677     down 3%

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Cash cost per gold ounce sold          $       594   $       639     down 7%

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FIRST QUARTER 2013 & RECENT HIGHLIGHTS                                      
—  Capital expenditures of $18.8 million on mineral properties, plant and

    equipment

—  El Castillo operations:

    —  Pad 8 construction well under way with stacking of ore and leaching

    —  Argonaut is now operating all mining internally, having assumed

        prior contractor mining activities in March 2013

    —  Over 360,000 gold ounces were added to the in-pit resources relating

        to sulphide mineralization

—  La Colorada operations:

    —  Pad construction initiated in 2012 continues to progress well and we

        have now begun loading and leaching

    —  Crushing circuit expansion continues and is scheduled to be

        completed and operational in the third quarter of 2013

    —  Updated resource for the Veta Madre deposit added 110,000 inferred

        gold ounces, with potential for further expansion

—  San Antonio and Magino permitting process underway 

CEO Commentary

Pete Dougherty, President and CEO of Argonaut Gold stated “2013 will see a substantial investment in both the El Castillo and La Colorada operations as we bring forward our capital expansion programs. At El Castillo, the addition of the new heap leach pads and west side crusher/overland conveyor is aimed at reducing operating costs and providing production growth; both should be fully functional in the third quarter of this year. At La Colorada, the Company continues to open the ore body and construct the new crusher; both are anticipated to provide improved production in the second half of the year. Overall operations are showing steady improvement toward our 2013 goals and objectives and we are poised to make our guidance provided earlier.”

Financial Results – First Quarter 2013

During the first quarter of 2013, revenue was $43.1 million from gold sales of 25,441 ounces, compared to $24.4 million from gold sales of 14,498 ounces in the first quarter of 2012. Cash cost per gold ounce sold in the quarter was $594, compared to $639 in the same period of the prior year (cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the first quarter of 2013, gross profit was $21.0 million, compared to $12.3 million in the first quarter of 2012. During the quarter, profit from operations was $17.2 million, compared to $9.7 million in the same period of the prior year. Net income for the period was $11.6 million, or $0.08 per basic share, versus $7.3 million, or $0.08 per basic share, in the first quarter of 2012.

Cash and cash equivalents was $168.5 million at March 31, 2013. Capital expenditures in the first quarter were $18.8 million primarily as a result of infrastructure improvements at the El Castillo and La Colorada mines.

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the quarter ended March 31, 2013 and associated management’s discussion and analysis (“MD&A”) which are available from the Company’s website, www.argonautgold.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

El Castillo Operating Statistics

                                            Q1 2013        Q1 2012   Change

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Tonnes ore                                3,172,772      3,050,527     up 4%

Tonnes waste                              3,013,605      2,914,397     up 3%

Tonnes mined                              6,186,377      5,964,924     up 4%

Waste/ore ratio                                0.95           0.96   down 1%

Tonnes ore direct to leach pad            1,729,396      2,183,893  down 21%

Tonnes crushed                            1,431,686        838,378    up 71%

Average grams per tonne of gold to

 leach pad                                     0.35           0.36   down 3%

Gold loaded to leach pad (oz)                36,023         35,283     up 2%

Gold produced (oz)                           23,125         17,799    up 30%

Gold ounces sold                             19,509         14,498    up 35%

Silver ounces sold                            8,687          1,410   up 516%

Cash cost per gold ounce sold          $        702   $        639    up 10%

Summary of Production Results at El Castillo

As of mid-March, we assumed the day to day mining operations at El Castillo from the former mining contractor. We hope to bring further efficiencies to the mining process through this investment. Total tonnes mined in the first quarter 2013 were up 4 percent, compared to the first quarter of 2012. Of note, the 1.4 million tonnes crushed in the first quarter was a new record for El Castillo and represented a 71 percent increase in crushed tonnes, over the first quarter of 2012. The total ounces loaded to the leach pad were 36,023 in the first quarter of 2013, a 2 percent increase over the first quarter of 2012. The stripping ratio of waste to ore remained relatively consistent between periods.

The 2013 production guidance at El Castillo is expected to be between 90,000-100,000 ounces with a cash cost between $700 and $725 per gold ounce sold.

La Colorada Operating Statistics

                                            Q1 2013      Q1 2012     Change

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Tonnes ore                                  556,637            –        N/A

Tonnes waste                              3,798,625            –        N/A

Tonnes mined                              4,355,262            –        N/A

Waste/ore ratio                                6.82            –        N/A

Tonnes moved                              4,355,262      678,310     up 542%

Tonnes ore direct to leach pad                    –            –        N/A

Tonnes crushed                              402,548      680,396    down 41%

Average grams per tonne of gold to

 leach pad                                     0.27         0.41    down 34%

Gold loaded to leach pad (oz)                 3,763        8,886    down 58%

Gold produced (oz)                            5,782        3,085      up 87%

Gold ounces sold                              5,932            –        N/A

Silver produced (oz)                         44,879       17,182     up 161%

Silver ounces sold                           54,269            –        N/A

Cash cost per gold ounce sold          $        240   $        –        N/A 

Summary of Production Results at La Colorada

Overburden removal began in the fourth quarter of 2012; we have now increased the daily mining rate to roughly 50,000 tonnes per day. During removal of the overburden we have encountered some marginally mineralized material at 0.27 g/t for the first quarter. We are on schedule to have the pit opened to ore in the third quarter. As a result, we anticipate mineralization to increase during the second half of the year.

The 2013 production guidance at La Colorada is between 30,000-40,000 ounces, back loaded to the second half of the year, with a cash cost between $450 and $475 per gold ounce sold.

Expansion Projects for 2013

The Company plans on investing a total of between $64 million to $74 million on capital expenditures and exploration initiatives in 2013. Major capital expenditures in 2013 are expected to include approximately $25 million at El Castillo, $19 million at La Colorada, $6 million at Magino, between $5 million and $11 million at San Antonio and between $2 million and $3 million for other capital expenditures. Exploration expenditures in 2013 are expected to amount to between $7 million and $10 million.

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

Qualified Person, Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, a qualified person as defined by National Instrument 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager also supervised the drill programs and on-site sample preparation procedures at La Colorada. Bret Swanson of SRK of Denver, CO, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated Veta Madre resource has reviewed this press release as it relates to Veta Madre.

For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

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El Castillo   NI 43-101 Technical Report on Resources and Reserves, Argonaut

Mine          Gold Inc., El Castillo Mine, Durango State, Mexico dated

              November 6, 2010

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La Colorada   NI 43-101 Preliminary Economic Assessment La Colorada Project,

Mine          Sonora, Mexico dated December 8, 2011

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Magino Gold   NI 43-101 Technical Report and Mineral Resource Estimate on

Project       the Magino Gold Project, Ontario, Toronto, Canada dated

              October 4, 2012

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San Antonio   NI 43-101 Technical Report and Mineral Resource Estimate on

Gold Project  the San Antonio Gold Project, Baja California Sur, Mexico

              dated October 10, 2012

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About Argonaut Gold

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 recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management’s current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.