Expert Analysis

Christos Doulis, Stonecap Securities (2/26/13) "Argonaut Gold Inc. provided 2013 guidance. . .highlights include total 2013 production of 120–140 Koz Au at cash costs of $630–660/oz. . .the company also outlined its 2013 capex and exploration budget, which totaled $57–75M, compared to our previous estimate of $111M. . .we continue to believe that 2013 is a pivotal year for Argonaut and that the current share price represents an attractive entry point. . .we are maintaining our Outperform rating."

Ovais Habib, Scotia Capital (2/25/13) "Argonaut Gold Inc. released 2013 guidance and an exploration update for its 100%-owned Magino gold project in Ontario, Canada . . .newly provided plan and section views of the deposit reinforce our view that the company will focus on a smaller, higher-grade portion of the global resource. . .we rate Argonaut as Sector Outperform. . .2013 guidance is set at 120–140 Koz of gold with cash costs expected between $630–660/oz."

Rahul Paul, Canaccord Genuity (2/25/13) "We maintain our Buy rating on Argonaut Gold Inc. following the release of detailed 2013 guidance. . .it remains a Focus List pick based on attractive valuation in the context of one of the best, fully-funded growth profiles in the sector. . .we see substantial rerating potential on execution on the ramp-ups at El Cantillo and La Colorada, in addition to the advancement of the San Antonio and Magino projects."

Andrew Mikitchook, GMP Securities (2/25/13) "Argonaut Gold Inc. released its FY/13 guidance, which was in line with our expectations. . .infill drilling at the Magino project shows long (30–40m) continuous intercepts of above-resource grades, which should bode well for conversion of inferred ounces to Measured & Inferred, and Measured & Inferred to 2P with the prefeasibility study later in 2013. . .additionally, a new mineralized zone has been intercepted that should warrant continued exploration drilling. . .we maintain our Buy recommendation."

Michael Siperco, Macquarie Capital Markets (2/25/13) "With the stock of Argonaut Gold Inc. trading at current levels, investors are paying only for El Castillo and La Colorada plus the cash on the balance sheet. . .they are getting the development assets for free. . .between cash on hand and $371M in forecast cash flow over the next three years, the company could develop both San Antonio and Magino from internal sources only. . .with potential production of ~500 Koz/year in 2017+ without debt or dilution, we recommend investors buy Argonaut. . .and reiterate our Outperform rating."