Argonaut Gold became a mid tier producer in 2012 (my definition). There is a lot to like about this company. Their production is forecasted to grow from 90,000 oz this year to 240,000 in 2014 and potentially 500,000 long term. That is a solid growth trend, although it will take several years to achieve. They have $43 million in cash and no debt, and $112 million in warrants that should be exercised before the December 2012 expiration. Thus, they could end the year with more than $150 million in cash to fund organic growth. With their 12 million oz of M&I resources (after a merger with Prodigy Gold in December 2012) and two low cost long life flagship mines, they have a solid base to grow from. I like their management team and I like the fact that they have 4 solid properties to explore. If they get lucky with the drill bit, they could expand their resources and those ounces will add to their valuation.

The only problem with this stock is the upside potential is somewhat limited, although I think they will be a 3 bagger long term. Their market cap jumped from $468 million to $1.1 billion in the past year. For those who got in early, let it ride. I paid $1.22 (from an investment in Pediment Exploration in August 2009) and made my goal of a 5 bagger. Now I’m hoping for a 20 bagger by 2015. As you can see, the upside potential of mining stocks is beyond what you can get in other investments. Another lesson was the time frame for my 5 bagger: almost exactly 3 years. You have to get in early and wait (3-5 years).

Financial 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Mkt. Cap (Fully Diluted): $1130.52M $1446.06M 12/15/2012 $315.54M Total Assets: never never 12/12/2012 $0.00M Total Liabilities: never never 12/12/2012 $0.00M Current Assets: never never 12/12/2012 $0.00M Current Liabilities: never never 12/12/2012 $0.00M Total Debt: $0.00M $0.00M 12/12/2012 $0.00M Cash: $43.00M $85.00M 12/15/2012 $42.00M Cash Flow: $57.34M $53.99M never $-3.35M Cash Flow Multiple: 19.71 26.78 never 7.07 Finance within 1 year: 12/12/2012 n/a

Misc 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Share Price: $9.500 $9.640 21:12 on 12/21/2012 $0.14 Shares Oustanding: 93,000,000 124,000,000 12/15/2012 31,000,000 Shares Fully Diluted: 119,000,000 150,000,000 12/15/2012 31,000,000 Company Type: Mostly Gold Mostly Gold never n/a Production ETA: n/a n/a 12/12/2012 n/a Capital Expenditure: n/a n/a 12/12/2012 n/a Funding Option: n/a n/a 12/12/2012 n/a Tax Rate: (guess) 30.00% (default) 30.00% 12/12/2012 0.00%

GOLD 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value O U N C E S T O T A L Proven & Probable: 1.22M 1.22M 12/12/2012 0.00M Measured & Indicated: 12.00M 12.00M 12/12/2012 0.00M Inferred: 0.20M 0.20M 12/12/2012 0.00M Reserves & Resources: 12.20M 12.20M never 0.00M P L A U S I B L E Proven & Probable: 0.92M 0.92M 12/12/2012 0.00M Measured & Indicated: 7.38M 7.38M 12/12/2012 0.00M Inferred: 0.08M 0.08M 12/12/2012 0.00M Reserves & Resources: 7.46M 7.46M never 0.00M C U R R E N T Annual Production: (guess) 90,000oz. (guess) 90,000oz. 12/12/2012 0oz. Cash Cost: (actual) $600 (actual) $600 12/12/2012 $0.00 Extra Operating Cost: (actual) $200 (actual) $200 12/12/2012 $0.00 Average Grade: 0.80 g/t 0.80 g/t 12/12/2012 n/a Recovery Rate: (guess) 75.00% (guess) 75.00% 12/12/2012 0.00% F U T U R E Proven & Probable: 12.00M 12.00M 12/12/2012 0.00M Annual Production: 400,000 400,000 12/12/2012 0oz. Cash Cost: $700 $700 12/12/2012 $0 Extra Operating Cost: $250 $250 12/12/2012 $0

SILVER 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value O U N C E S T O T A L Proven & Probable: n/a n/a 12/12/2012 0.00M Measured & Indicated: n/a n/a 12/12/2012 0.00M Inferred: n/a n/a 12/12/2012 0.00M Reserves & Resources: n/a n/a never 0.00M P L A U S I B L E Proven & Probable: n/a n/a 12/12/2012 0.00M Measured & Indicated: n/a n/a 12/12/2012 0.00M Inferred: n/a n/a 12/12/2012 0.00M Reserves & Resources: 0.00M 0.00M never 0.00M C U R R E N T Annual Production: (guess) 0oz. (guess) 0oz. 12/12/2012 0oz. Cash Cost: (guess) $10 (guess) $10 12/12/2012 $0.00 Extra Operating Cost: (guess) $5 (guess) $5 12/12/2012 $0.00 Average Grade: n/a n/a 12/12/2012 n/a Recovery Rate: (guess) 75.00% (guess) 75.00% 12/12/2012 0.00% F U T U R E Proven & Probable: 0.00M 0.00M 12/12/2012 0.00M Annual Production: n/a n/a 12/12/2012 n/a Cash Cost: n/a n/a 12/12/2012 n/a Extra Operating Cost: n/a n/a 12/12/2012 n/a

Last Analysis Data (12/12/2012) Stage Location Name Owned Type Gold Silver Production Durando, Mexico El Castillo 100% n/a Development Hermosillo, Mexico La Colorada 100% n/a Development San Antonio, Mexico San Antonio 100% n/a Exploration Geraldton, Canada Beardmore Geraldton Regional 100% n/a Exploration Thunder Bay, Ontario, Canada Hercules 100% n/a Exploration Wawa, Ontario, Canada Magino 100% n/a Exploration Long Lac, Ontario, Canada Milestone 100% n/a Exploration Canada West-Millennium 100% n/a Exploration Canada Wildgoose 100% n/a Exploration Caborca, Mexico Caborca Copper 100% n/a Exploration Hermosillo, Mexico Cochis Gold 100% n/a Exploration Tajitos, Mexico Daniel 100% n/a Exploration Sahuaripa, Mexico El Compa 100% n/a Exploration Caborca, Mexico Glor 100% n/a Exploration Culiacan, Mexico La Fortuna 100% n/a Exploration Sonora, Mexico Llano Colorado 100% n/a Exploration Caborca, Mexico Manuel and Mel 100% n/a Exploration Magdelena Area, Mexico Nopal 100% n/a Exploration Caborca, Mexico Texson 100% n/a Exploration Douglas, Mexico Valenzuela Silver Gold 100% n/a

Current Data Stage Location Name Owned Type Gold Silver Production Durando, Mexico El Castillo 100% n/a Development Hermosillo, Mexico La Colorada 100% n/a Development San Antonio, Mexico San Antonio 100% n/a Exploration Geraldton, Canada Beardmore Geraldton Regional 100% n/a Exploration Thunder Bay, Ontario, Canada Hercules 100% n/a Exploration Wawa, Ontario, Canada Magino 100% n/a Exploration Long Lac, Ontario, Canada Milestone 100% n/a Exploration Canada West-Millennium 100% n/a Exploration Canada Wildgoose 100% n/a Exploration Caborca, Mexico Caborca Copper 100% n/a Exploration Hermosillo, Mexico Cochis Gold 100% n/a Exploration Tajitos, Mexico Daniel 100% n/a Exploration Sahuaripa, Mexico El Compa 100% n/a Exploration Caborca, Mexico Glor 100% n/a Exploration Culiacan, Mexico La Fortuna 100% n/a Exploration Sonora, Mexico Llano Colorado 100% n/a Exploration Caborca, Mexico Manuel and Mel 100% n/a Exploration Magdelena Area, Mexico Nopal 100% n/a Exploration Caborca, Mexico Texson 100% n/a Exploration Douglas, Mexico Valenzuela Silver Gold 100% n/a

Proven & Probable 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Percentage Gold: 100.00% 100.00% n/a 0.00% Percentage Silver: n/a n/a n/a 0.00% Total (Gold Eq. Oz.): 1.22M 1.22M n/a 0.00M Total (Silver Eq. Oz.): n/a n/a n/a 4.14M P L A U S I B L E Gold Eq. Oz.: 0.92M 0.92M n/a 0.00M Silver Eq. Oz.: n/a n/a n/a 3.11M Profit (Gold): $582.99M $548.91M n/a $-34.08M Profit (Silver): n/a n/a n/a $0.00M Total Profit: $582.99M $548.91M n/a $-34.08M Profit Per Share (Gold): $4.90 $3.66 n/a $-1.24 Profit Per Share (Silver): n/a n/a n/a $0.00 Total Profit Per Share: $4.90 $3.66 n/a $-1.24 Total Free Profit Per Share: $0.00 $0.00 n/a $0.00 FD Mkt. Cap / Gold Eq.: $1235.54 $1580.39 n/a $344.85 FD Mkt. Cap / Silver Eq.: $23.83 $28.60 n/a $4.78 FD Mkt. Cap / Per Metal as % Spot Gold: 72.24% 95.38% n/a 23.13%

Measured & Indicated 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Percentage Gold: 100.00% 100.00% n/a 0.00% Percentage Silver: n/a n/a n/a 0.00% Total (Gold Eq. Oz.): 12.00M 12.00M n/a 0.00M Total (Silver Eq. Oz.): n/a n/a n/a 40.75M P L A U S I B L E Gold Eq. Oz.: 7.38M 7.38M n/a 0.00M Silver Eq. Oz.: n/a n/a n/a 25.07M Profit (Gold): $4704.06M $4429.06M n/a $-274.99M Profit (Silver): n/a n/a n/a $0.00M Total Profit: $4704.06M $4429.06M n/a $-274.99M Profit Per Share (Gold): $39.53 $29.53 n/a $-10.00 Profit Per Share (Silver): n/a n/a n/a $0.00 Total Profit Per Share: $39.53 $29.53 n/a $-10.00 Total Free Profit Per Share: $30.16 $19.96 n/a $-10.20 FD Mkt. Cap / Gold Eq.: $153.12 $195.86 n/a $42.74 FD Mkt. Cap / Silver Eq.: $2.95 $3.54 n/a $0.59 FD Mkt. Cap / Per Metal as % Spot Gold: 8.95% 11.82% n/a 2.87%

Reserves & Resources	12/12/2012 Last Analysis Data	Current Data	Change
Item	Value	Value	Updated	Value
Percentage Gold:	100.00%	100.00%	n/a	0.00%
Percentage Silver:	n/a	n/a	n/a	0.00%
Total (Gold Eq. Oz.):	12.20M	12.20M	n/a	0.00M
Total (Silver Eq. Oz.):	n/a	n/a	n/a	41.43M
P L A U S I B L E	Gold Eq. Oz.:	7.46M	7.46M	n/a	0.00M
Silver Eq. Oz.:	n/a	n/a	n/a	25.33M
Profit (Gold):	$4751.84M	$4474.05M	n/a	$-277.79M
Profit (Silver):	n/a	n/a	n/a	$0.00M
Total Profit:	$4751.84M	$4474.05M	n/a	$-277.79M
Profit Per Share (Gold):	$39.93	$29.83	n/a	$-10.10
Profit Per Share (Silver):	n/a	n/a	n/a	$0.00
Total Profit Per Share:	$39.93	$29.83	n/a	$-10.10
Total Free Profit Per Share:	$30.56	$20.26	n/a	$-10.30
FD Mkt. Cap / Gold Eq.:	$151.58	$193.89	n/a	$42.31
FD Mkt. Cap / Silver Eq.:	$2.92	$3.51	n/a	$0.59
FD Mkt. Cap / Per Metal as % Spot Gold:	8.86%	11.70%	n/a	2.84%

Totals 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Current R & R Valuation: $1913.21M $1853.69M never $-59.53M F U T U R E FD Mkt. Cap: $4,500M $4,500M n/a $0M FD Mkt. Cap Growth: 298% 211% n/a -87% Current FD Mkt. Cap / Gold Eq. Reserves: 94.21 120.50 n/a 26.29 Current FD Mkt. Cap / Silver Eq. Reserves: 3.77 4.82 n/a 1.05 Current FD Mkt. Cap / Gold Eq. Production: 2826.30 3615.14 n/a 788.85 Current FD Mkt. Cap / Silver Eq. Production: 113.05 144.61 n/a 31.55 Gold P & P Reserves: 12.00M 12.00M 12/12/2012 0.00M Silver P & P Reserves: 0.00M 0.00M 12/12/2012 0.00M

Cash Flow 12/12/2012 Last Analysis Data Current Data Change Item Value Value Updated Value Current: $57.34M $53.99M never $-3.35M Current Multiple: 19.71 26.78 never 7.07 F U T U R E @ current prices: $212.86M $197.96M never $-14.90M Multiple @ current prices: 5.31 7.30 never 1.99 @ future prices: $372.00M $372.00M never $0.00M Multiple @ future prices: 3.04 3.89 never 0.85