Argonaut Gold Announces Second Quarter Production of 31,531 Gold Equivalent Ounces, $23 Million Increase in Cash from Mexican Operations and Updates 2020 Guidance Including Recently Acquired Florida Canyon and Free Cash Flow Sensitivity Estimate

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TORONTO, July 6, 2020 /CNW/ – Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to provide updated 2020 guidance following the temporary suspension of guidance due to uncertainties surrounding the COVID-19 pandemic, including Florida Canyon following the merger with the Alio Gold Inc. on July 1, 2020.  The Company expects to produce between 210,000 and 230,000 gold equivalent ounces1 (“GEO” or “GEOs”), which is anticipated to generate between $62 million and $87 million in free cash flow2 (“FCF”) at $1,700 gold, including the recently acquired Florida Canyon mine, during 2020.  During the second quarter, Argonaut’s existing Mexican operations generated approximately $23 million of FCF2 and, 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.

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