Toronto, Ontario – (January 16, 2018) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) announces gold equivalent ounce1 (“GEO” or “GEOs”) production of 34,987 during the fourth quarter ended December 31, 2017 (“Q4”) and 126,704 during the year ended December 31, 2017 (“YE”), including 2,932 pre-commercial production GEOs at San Agustin. During Q4, production was 19,653 GEOs at the El Castillo Complex (8,707 from El Castillo and 10,946 from San Agustin) located in the State of Durango, Mexico and 15,334 GEOs at the La Colorada Mine located near Hermosillo, Mexico. During 2017, the El Castillo Complex and La Colorada Mine GEO production totaled 73,418 (including 2,932 GEOs of pre-commercial production from San Agustin) and 53,286, respectively. Management expects YE consolidated cash costs2 to be slightly above the high end of the range of 2017 guidance of $725 to $775 per gold ounce sold. At YE, the Company had a cash balance of $14 million and $8 million drawn from its $30 million corporate revolver. All dollar amounts are expressed in United States dollars unless otherwise specified.