http://www.argonautgold.com/news_events/news/news_release/index.php?&content_id=299

Toronto, Ontario – (July 28, 2016) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) announces that the federal court of appeals has issued a favourable ruling regarding its Federal lawsuit arising from the denial of the Environmental Impact Assessment (Manifiesto de Impacto or MIA) for its San Antonio project in Baja California Sur, Mexico.

On August 2, 2012, the Company was denied its Environmental Impact Assessment for its San Antonio project due in part to a local zoning issue.  The Company filed a Federal lawsuit stating that the local zoning plan was not validly constituted and therefore should not have been an obstacle to the permitting of the project.

The Company has received a copy of the federal appeals court ruling in its finding that the current Urban Development Plan for the Municipality of La Paz (“zoning plan”) was not properly established and therefore should not have been used as a criteria in the review of the MIA for the San Antonio project. Furthermore, the ruling instructed the Mexican Environmental Authority (SEMARNAT) to annul the denial of the MIA and issue a new decision without taking into consideration the zoning plan within three business days of notification of the ruling.  The Company continues to review the full text of this ruling with its advisors and consider the next steps that will be undertaken by both the Company and SEMARNAT.  The Company cautions that there is no assurance that permits will be issued imminently and that permitting continues to be subject to regulatory processes of uncertain duration.