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Argonaut Gold announces San Agustín resource of 845,000 gold ounces and 28.3 million silver ounces (1,280,000 gold equivalent ounces)

August 22, 2014

Toronto, Ontario – (August 22, 2014) Argonaut Gold Inc. (“Argonaut”, “Argonaut Gold” or the “Company”; TSX: AR), announced today that the Company has a resource estimate resulting from the first phase of a multiple phase drill program at its 100% owned San Agustin project located 10 kilometres from Argonaut's El Castillo Mine (“El Castillo”) located in Durango, Mexico.

The San Agustin pit constrained indicated resource now stands at 845,000 gold ounces and 28,263,000 silver ounces contained in 82.2 million tonnes of material at a grade of 0.32 grams per tonne ("g/t") gold and 10.7 g/t silver, for a total of 1,280,000 gold equivalent ounces. The constrained pit resource has an additional inferred resource category of mineralization of 103,000 gold equivalent ounces including 65,000 contained gold ounces and 2,459,000 contained silver ounces within 7 million tonnes of material at a grade of 0.29 g/t gold and 11.0 g/t silver. The resource only includes oxide material and minimal transition material. The gold equivalent ounces are calculated utilizing a 65:1 gold price to silver price ratio and does not incorporate the recovery differential between gold and silver.

Material Type Class Tonnes of Material (000s) Gold Equivalent Grade (g/t)1,2,3 Gold Grade
(g/t)		 Silver Grade
(g/t)		 Gold Ounces Contained (000s) Silver Ounces Contained (000s)
Oxide Indicated 79,373 0.37 0.32 10.6 817 27,050
Transition Indicated 2,837 0.37 0.31 13.3 28 1,213
Total Indicated 82,210 0.37 0.32 10.7 845 28,263
Oxide Inferred 6,800 0.34 0.29 10.6 63 2,317
Transition Inferred 164 0.35 0.23 26.9 1 142
Total Inferred 6,964 0.34 0.29 11.0 65 2,459
1 g/t is grams per tonne
2 New resource based on a 0.18 g/t gold equivalent cut-off grade
3 The gold equivalent grade for the conceptual pit uses a 65:1 gold equivalent ounce ratio along with the metal recovery ratios achieved in the preliminary metallurgical test work
*Please see footnote Table 1 for the full Global Block Model Inventory table
Notes to Accompany Mineral Resource Table:
  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. Inferred mineral resources have a high degree of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.
  3. Mineral resources are reported as undiluted.
  4. Mineral resources are reported within a conceptual pit shell.
  5. The resources are contained within a Lerchs-Grossmann pit shell based on $1,300/oz gold price, $20/oz silver price, mining cost of $1.00 per tonne ("/t") of material mined, process and general and administrative expense cost of $4.22/t with gold recoveries of 68% and silver recoveries of 21%.
  6. Tonnes, grade values, and contained metal quantities may differ due to rounding.
  7. Gold equivalent grade for conceptual pit used gold and silver price and recovery ratios.
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