FIRST QUARTER 2012 & RECENT HIGHLIGHTS

Financials

• Revenue of $24.4 million.
• Net income of $7.3 million, $0.08 per basic share.
• Cash flows from operating activities before changes in non-cash operating working capital and other items of $8.1 million.
• Cash on hand was $17.8 million at March 31, 2012.

Gold Production and Cost

• Ounces loaded to pads: 44,169 gold ounces and 861,644 silver ounces.
  • El Castillo: 35,283 ounces (up 25% from Q1 2011); La Colorada: 8,886 gold ounces and 861,644 silver ounces
• Production of 20,884 gold ounces in the first quarter of 2012.
  • El Castillo: 17,799 gold ounces
  • La Colorada: 3,085 gold ounces and 17,182 silver ounces
• Cash cost per gold ounce sold – $639.

Operational Improvements:

• Cash expenditures of $12.3 million on mineral properties, plant and equipment.
• The Company’s El Castillo mining contractor expanded the mining fleet to 18 trucks (100 tonne capacity).
• Leach pad 7A west side pad construction initiated at El Castillo and will be commissioned in the second quarter.

Exploration:

• El Castillo - Three additional drill core holes were sent for testing during the first quarter of 2012.
• La Colorada – 14,860 metres from 54 drill holes were completed during the first quarter. Three drills continue work on a planned 35,000 metre drill program.
• San Antonio - Completed 3,285 metres from 14 drill holes during the first quarter.

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the first quarter ended March 31, 2012 and associated management’s discussion and analysis (“MD&A”) which are available from the Company’s website, www.argonautgoldinc.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Financial Results – First Quarter 2012

During the first quarter of 2012, revenue was $24.4 million from gold sales of 14,498 ounces compared to $25.7 million from sales of 18,461 ounces in the first quarter of 2011. Cost of sales was $12.1 million for the quarter compared to $14.6 million for the first quarter of 2011. Cash cost per gold ounce sold was $639 compared to $590 in the same period of 2011. (Cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the first quarter of 2012, gross profit was $12.3 million compared to $11.0 million gross profit in the first quarter of 2011. During the quarter, profit from operations was $9.7 million compared to $9.1 million for 2011. Net income for the quarter was $7.3 million or $0.08 per basic share versus $5.9 million or $0.07 per basic share in 2011.

Cash on hand decreased from $34.9 million at December 31, 2011 to $17.8 million. Capital expenditures in the first quarter were $12.3 million primarily as a result of expanding operations at the El Castillo and La Colorada mines. The 2012 capital expenditures and exploration programs for Argonaut Gold includes $38-$48 million at El Castillo, La Colorada and San Antonio which includes pre-production stripping at La Colorada of approximately $6 million. Cash flow from operations before changes in non-cash operating working capital and other items was $8.1 million during the quarter, compared to $9.3 million for the first quarter of 2011. The cash flow used in operating activities in the quarter was $5.3 million after taking into account the buildup of inventory and other working capital.

CEO Commentary

Mr. Pete Dougherty, Argonaut’s President and CEO states: “The Company continues to benefit from the gold production and cash generation at El Castillo, which has enabled us to fund construction of the La Colorada mine. The developments at La Colorada since acquiring the project have been quite impressive. The mine has been put back into production less than one year after finalizing the acquisition. The startup of gold production at La Colorada will provide growth to the Company’s production profile in 2012 through reprocessing the previous run-of-mine material. Expansion of the processing facility continues with final construction taking place on the desorption and recovery plant. 2012 is an important step in growth for the La Colorada mine. While much has been accomplished, there is much more work to be done with important milestones expected to be achieved in the second and third quarters.”

El Castillo Summary of Production Results

Total tonnes mined increased by 25% for the first quarter 2012 over first quarter 2011. The total ounces loaded to the pad were 35,283 in the first quarter of 2012; this represents a 25% increase over the first quarter of 2011.

The strip ratio of waste to ore was 0.96 compared to a strip ratio of 0.88 in the first quarter of 2011.

2012 guidance at El Castillo is for 75,000 to 80,000 ounces at a cash cost between $625 and $650 per gold ounce.

La Colorada Summary of Production Results

Non-commercial mining at La Colorada began in the first quarter of 2012. Initially, production generated at La Colorada will come from reprocessing of run-of-mine (“ROM”) material on site. 2012 guidance at La Colorada is for production of 13,000-17,000 ounces at a cash cost between $625 and $650 per ounce.

There was no inventory at La Colorada prior to the first quarter of 2012.

Looking Forward – 2012:

The Company plans on investing between $38 million and $48 million on capital expenditures and exploration initiatives in 2012.  These expenditures are expected to include the following:

• $26-34 million of capital expenditure investments
  • El Castillo – Capital expenditures are primarily for expanding West heap leach pad capacity and operational improvements including a conveying and stacking system.
  • La Colorada – Capital expenditures are primarily for new infrastructure including crushing, screening and conveying, heap leach pad construction, a gold recovery plant and refinery, and other infrastructure.  Additional expenditures are expected to include land acquisition, and permitting.
  • San Antonio – Capital expenditures are allocated for engineering and environmental studies, land and water rights purchases, permitting for the project and infrastructure improvements.
• $5-6 million for La Colorada pre-production stripping costs
• $7-8 million exploration program
• El Castillo – 1,400 metre core drilling program to collect mineralized sulphide ore for further metallurgical test work.
• La Colorada – 35,000 metre drill program to expand resource areas and test multiple exploration targets within the Company’s land position is in progress.  Planned drilling on mine dumps and stockpiles was completed during the quarter.  The main resource targets for 2012 are El Creston and Veta Madre.
• San Antonio – 10,500 metre drill program to test multiple exploration targets and complete condemnation drilling in areas of planned processing facilities is ongoing.

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost per gold ounce sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to cost of sales less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 (“NI 43-101″). For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management’s current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

TORONTO, ONTARIO–(Marketwire – May 8, 2012) - Argonaut Gold Inc. (TSX:AR) (“Argonaut” or the “Company”) is pleased to report on exploration results at its San Antonio project in Baja California Sur, Mexico and the La Colorada project in Sonora, Mexico.

2012 Exploration Update:

• La Colorada
  • 35,962 meters for 244 holes completed since the last update in October of 2011
• San Antonio
  • 20,600 meters for 130 holes completed since the last update in May of 2011
• El Castillo
  • Minimum 1,000 meter Core Drill Program is estimated to be completed in early May with mineralized sulfide intervals shipped to Kappas, Cassiday & Associates (“KCA”) in Reno for metallurgical testing.

LA COLORADA

Highlights from the La Colorada Drill Program

Note: All 2011 drillholes from the Veta Madre zone were drilled oriented to an azimuth of 160 with dips ranging from -90 to -45 to the southeast. 2012 drillholes were drilled oriented to an azimuth of 180 with dips ranging from -90 to -45 to the south. The Veta Madre zone has a general ENE strike of azimuth 070 and dips to the northwest. Its northernmost part is subvertical but its dip softens in angle to the south becoming -45 and even subhorizontal in some parts. The drill holes with a dip around -50 will be closer to the true width of the main mineralized zone at Veta Madre. Vertical holes will be the most representative of true width in its subhorizontal portion. Also, the western half of Veta Madre has a tilt towards the west, becoming increasingly deeper in that direction.

(Please see our website (www.argonautgoldinc.com) for La Colorada Drill Release results as well as select cross sections.)

La Colorada Geochem Summary 2011

La Colorada Geochem Summary 2012

Veta Madre Mineralization

Veta Madre Cross Sections

Mineralization at the El Creston zone consists of several subparallel mineralized structures that dip to the north, with the exception of the southernmost structure which is subvertical. Drilling dipping about -50 to the south will be the closest representation of true width for most veins at El Creston.

El Creston Cross Section 542,625 E

El Creston Cross Section 542,700 E

Tom Burkhart, Argonaut’s VP Exploration, noted, “We are very excited about the drill program results at La Colorada. The drill program at La Colorada has been mainly focused on the Veta Madre target with four drill rigs active through the first four months of 2012. We have expanded Veta Madre, doubling the area of mineralization approximately 400 by 300 meters. The El Creston resource also remains a high priority with drilling scheduled during the second and third quarters of this year. Drilling in the El Creston mineralization continues down depth, below previous drilling, and on strike in both directions. In addition to ongoing resource delineation on Veta Madre and El Creston, the Company has identified multiple target areas within the large La Colorada mineral system that are also scheduled for continued exploration and drilling.”

SAN ANTONIO

Exploration at San Antonio continued with RC and diamond during 2011 and with RC only during 2012. RC drilling was mainly focused on extending the La Colpa area, located east of the Las Colinas zone, and also on condemnation drilling, mainly to the west of the resource zone. Diamond drilling was contracted to obtain samples for further metallurgical testing from the North Zone and La Colpa.

Note: Drill holes are designed to cross cut known structures at 90 degrees and reported thicknesses are approximately true widths, thicknesses on vertical holes are estimated thicknesses.

(Please see our website www.argonautgoldinc.com for San Antonio Drill Release results as well as select cross sections.)

San Antonio Geochem Summary 2011-2012

San Antonio Drill Map

La Colpa Cross Section

Tom Burkhart noted, “Results to date at the San Antonio drill program are promising. The drill program at San Antonio was designed to explore the extent and depth of mineralization of the newly identified La Colpa mineral zone. Mineralization at La Colpa has expanded, by approximately 250 meters north/south by 200 east/west, and remains open to the south and down dip. Our current thinking is that La Colpa represents a localized parallel zone of mineralization situated approximately 100 meters east of the main resource area. Additional drilling will be required to define the limits of La Colpa mineralization and the Company expects that La Colpa may provide a near surface addition to the San Antonio resource base.”

Notes for La Colorada drill program:

RC drilling (buggy mounted) and Becker Hammer percussion drilling (truck mounted) are contracted from Layne de México. Diamond drilling is contracted by Landdrill, Falcon Perforaciones and GDA perforaciones.

All of the drill contractors are based out of Hermosillo, Sonora except GDA which has offices in Chihuahua, Mexico. All three diamond rigs are skid mounted and drill with HQ size, except when there is the need to reduce to NQ to continue the hole. Recoveries are typically high and range from 85 to 90%.

RC and Becker hammer samples are taken at 1.5m intervals (5 feet). In both cases 50% of the total recovered sample is discarded, 25% is sent to laboratory and 25% is kept at the project in case of re-assay. This is the case for all samples except duplicates in which 50% of the sample goes to the laboratory and 50% is kept at the site.

All samples are picked up at site by Inspectorate de Mexico’s preparation lab staff from Hermosillo, Sonora. Samples are dried, crushed and split in Inspectorate’s Hermosillo facilities and then shipped to their assay laboratory in Reno, NV.

Notes for San Antonio drill program:

RC drilling (buggy mounted) for the San Antonio project was contracted from Layne de Mexico which used 3 3/4 inch dual wall pipe. Recovery for the RC rig is estimated by weight to be around 90%.

Diamond drilling was contracted by Intercore Drilling who used a skid-mounted rig with HQ and NQ sizes. HQ was preferred and NQ was only used when there was need to reduce size to continue the hole. Recoveries are typically high and range from 85 to 90%.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Argonaut”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.

Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut’s Vice President of Exploration and, a “Qualified Persons” as defined by NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager, also supervised the drill program and on-site sample preparation procedures at San Antonio. Mr. Edward J.C. Orbock of AMEC E & C Services of Reno, NV, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated San Antonio resource has reviewed this press release as it relates to the San Antonio project.

For sample analysis the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards. Samples from the La Colorada Project are collected at site by personnel of Inspectorate’s preparation laboratory in Hermosillo where samples are prepared and pulps sent for assay in Inspectorate’s Sparks, NV laboratory, which is independent of the Company. Samples are analyzed for gold by Fire Assay and Atomic absorption finish (PKG-AuAg assay code; 0.005 to 10ppm detection limit) plus Silver by Aqua Regia and Atomic Absorption finish (0.1 to 200 ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code Au-1AT-GV). All samples are also assayed by ICP-AES (code GENX-30 or 30-AR-TR) for a suite of 30 elements.

Samples from the San Antonio project are shipped by commercial courier from the city of La Paz to ALS Chemex’s preparation laboratory in Hermosillo, Sonora, which is independent of the Company. Samples are prepared by ALS in Hermosillo and pulps sent to their assay laboratory in North Vancouver. Samples are analyzed for gold by fire assay with atomic absorption (Au AA-23 assay method code; 0.005 to 10ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21). All samples are also assayed by ICP-MS (code ME-ICP41) for a suite of 35 elements.

For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

In reaction to comments of certain proxy advisory services firms, Argonaut Gold has renamed its Compensation and Governance Committee, the “Nominating, Compensation and Governance Committee”. Argonaut Gold confirms that all members of this committee are independent directors, and that this committee has recommended nomination of all of the nominees for election to the Board of Directors of Argonaut Gold, including Mr. Pete Dougherty, the Company’s President and Chief Executive Officer.

Further, Argonaut Gold has made the following amendments to its by-law which is being presented for approval at the Meeting: (i) increasing the quorum requirement for shareholder meetings to any two persons representing at least 25% of eligible votes, (ii) requiring all members of the audit committee to be independent directors (which conforms with the current practices of Argonaut Gold), and (iii) providing that the Chair of the Board of Directors shall not have a casting or second vote in the event of a tie vote.

The full text of the amended by-law will be available on the Company’s profile on SEDAR at www.sedar.com.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Argonaut”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

For further information on the annual meeting or Q1 conference call please contact the Investor Relations Department or visit our website, www.argonautgoldinc.com.

Clarification – Note the press release dated April 17, 2012 erroneously reported total production in the title which was inconsistent with the body of the release. The body of the press release properly reports total Q1 Gold Production of 20,884, consisting of 17,799 gold ounces at El Castillo and 3,085 gold ounces at La Colorada.

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

TORONTO, ONTARIO–(April 17, 2012) - Argonaut Gold Inc. (“Argonaut Gold” or the “Company”) (TSX:AR) announced today that the Company produced 21,084 gold ounces during the 1^st quarter of 2012 (ended March 31, 2012) at its 100% owned El Castillo Mine (“El Castillo” which is located 100 km north of the city of Durango, Mexico) and 100% owned La Colorada Mine (“La Colorada” which is located 50 kilometers southeast of Hermosillo, Mexico).

FIRST QUARTER 2012 HIGHLIGHTS:

El Castillo Operations

• Contractor mining fleet increased to 18 trucks (100 tonne capacity)
• Achieved approximately 2.0 million total tonnes mined per month.
• Leach pad 7A west side pad construction initiated.
• 35,283 gold ounces loaded on the pad.
• Gold production of 17,799 ounces.

La Colorada Operations

• Production initiated at La Colorada.
• 8,886 gold ounces loaded on the pad; 857,795 silver ounces loaded on the pad.
• Gold production loaded on carbon of 3,085 gold ounces and 17,182 silver ounces.

FIRST QUARTER 2012 El CASTILLO OPERATING RESULTS:

The first quarter operating statistics showed improvement over the Q1 2011. Ore production has increased to an annualized rate of more than 12 million tonnes. The contractor has increased the size of the mining fleet, now operating 18 trucks with 100 tonne capacity. With completion of contruction on cell 5, the east side pad capacity is now approximately 30 million tonnes. In Q1, construction began at cell 7A on the west side pads. Guidance for 2012 production is 75-80,000 ounces with a $625-$650 cash cost.

During Q1 of 2012, 14,498 ounces of gold were sold. At March 31, 2012, inventory at the third party desorption plant was approximately 5,500 ounces of gold.

Pete Dougherty, President and CEO of Argonaut Gold noted: “Gold production for the first quarter was in line with our 2012 guidance; cash cost guidance is anticipated to be $625-$650 per ounce at both operations. Non-commercial production of 3,085 gold ounces and 17,182 silver ounces at La Colorada began this quarter. While reprocessing material at La Colorada is anticipated to provide limited production during 2012, this cash flow will be used for continued infrastructure construction at the project. The Company is now producing from two gold mining operations, diversifying the Company’s production portfolio and providing cash for capital expenditures and funding exploration. The capital expansions planned at El Castillo and La Colorada set the stage for production growth in 2012 and beyond.”

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Argonaut”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.

Qualified Person

Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration, and a Qualified Person under NI 43-101. For additional information on El Castillo please refer to the “NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico” dated Nov. 6, 2010 and available at Argonaut Gold’s website and profile on www.sedar.com.

Contact Information
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101 
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

TORONTO, ONTARIO–(Marketwire – March 30, 2012) - Argonaut Gold Inc. (TSX:AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the fourth quarter and year ended December 31, 2011. All dollar amounts are expressed in United States dollars unless otherwise specified.

• Operational Improvements:
  • Finalised agreement with the Company’s El Castillo mining contractor to expand mining fleet from 13 to 18 one hundred tonne trucks by end of the first quarter of 2012
  • El Castillo west crusher relocated to east side for consolidated crushing circuit
  • El Castillo east side pad loading initiated and east carbon plant operational in October
  • Finalised an agreement expanding El Castillo surface rights on the western side of the property by 100 hectares, overall surface rights now at 1385 hectares
  • Constructed 30 million tonnes capacity of heap leach pad space at the east pad
  • La Colorada announced February 27, 2012 that limited production has begun via the reprocessing of material from existing leach pads
• Exploration & Resources:
  • El Castillo – Column testing of core samples to define the leaching characteristics of sulphide mineralisation is ongoing
  • La Colorada – Indicated resource increase to 1.06 mm ozs. Au and 14 mm ozs Ag within an NI 43-101 compliant technical resource(+76% Au and +173% Ag over previous NI 43-101)
    • Completed approximately 44,000 metres of drilling in 299 holes
  • San Antonio
    • Completed 17,483 metres of drilling in 116 holes

This press release should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year‐ended December 31, 2011 and associated Management’s Discussion and Analysis (“MD&A”) which are available from the Company’s website, www.argonautgoldinc.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Financial Results – Fourth Quarter 2011

During the fourth quarter of 2011, revenue was $34.6 million from gold sales of 20,468 ounces. Gross profit was $16.7 million for the quarter. Cash cost per gold ounce for units sold was $679. (Cash cost per gold ounce for units sold is a non-IFRS measure, see note below). During the quarter, profit from operations was $15.0 million. Net income for the quarter was $9.1 million, or $0.10 per basic share.

Financial Results – Year End 2011

For the year ended December 31, 2011, revenue was $104.6 million from gold sales of 66,521 ounces. Gross profit was $50.3 million for the year. Cash cost per gold ounce for units sold was $622 (compared to $728 for the same period in 2010). For the full year, profit from operations was $43.2 million. Net income for the year was $26.3 million, or $0.30 per basic share.

CEO Commentary

Mr. Pete Dougherty, Argonaut’s President and CEO states: “2011 was a milestone year for Argonaut Gold. We achieved our stated production goal of 72,000 ounces at the El Castillo mine. Our acquisition of Pediment Gold in January 2011 added two significant properties to our portfolio, La Colorada and San Antonio. Our overall gold resource has increased from 2.0 million to 6.5 million ounces through the acquisition and through additional exploration results.”

In discussing the outlook for 2012, Mr. Dougherty added; “Initiatives planned for 2012 provide the framework for increasing future production. At El Castillo, we will be adding to the mining fleet and adding a conveying and stacking system to enhance production. We have announced La Colorada is in limited production, reprocessing existing leach pad material. Once construction of the gold processing plant and refinery are completed and the Phase II permits are received, we will start to ramp up gold production further at La Colorada. The new processing plant at La Colorada will have a designed capacity to handle gold production from all three of the Company’s Mexican projects.”

Forecasted gold production for 2012 is 75-80,000 ounces at El Castillo and an additional 13-17,000 ounces from La Colorada. In 2012, the Company has announced exploration drill programs totaling 32,500 metres for El Castillo, La Colorada, San Antonio and La Fortuna. “The lowest cost ounces we will ever find are the ones that lie within the properties we already own”, Mr. Dougherty added. ”We remain committed to exploration as we look to grow the Company”

Summary of Production Results:

Total tonnes mined increased by 14% for the fourth quarter 2011 over fourth quarter 2010 and 44% year over year. The total of ounces loaded to the pads decreased slightly in the fourth quarter of 2011 due to mining of lower grade material. There were 30,162 ounces placed on the pad in the fourth quarter of 2011, representing a 3% decrease from the fourth quarter of 2010. Year over year, there was a 28% increase in ounces of gold loaded to the pad.

Gold production of 19,698 ounces in the fourth quarter of 2011 was an 8% increase compared to the fourth quarter of 2010. Production in 2011 of 72,049 ounces was a 40% increase over 2010 full year production.

The strip ratio of waste to ore dropped in the fourth quarter to 0.87 compared to the fourth quarter of 2010 of 0.91. The strip ratio for the year ended December 31, 2011 was 0.80 compared to 2010 of 1.06.

Looking Forward – 2012:

El Castillo Objectives $8-10 million capex program

• New conveying, stacking system to be implemented on the east side during third quarter.
• Heap leach pad construction for the west side.
• 2012 production of 75,000 – 80,000 ounces at cash cost between $625 and $650 per ounce. (Q1 production of 17-18 k ozs @ $625-$650/oz estimate).
• 1,000 metre core drill program to provide sampling of sulphides for further metallurgical test work to assess recoveries.

La Colorada Objectives $15-20 million capex program

• Completion of desorption plant and refinery in the second quarter.
• Permit response anticipated on phase 2 expansion in the second quarter.
• 2012 production of 13,500- 17,000 ounces at a cash cost between $625 and $650 per ounce. (Q1 production of 2-3 k ozs at $625-$650/oz estimate).
• 20,000 metre drill program at La Colorada targeted the Eastern side of the property.

San Antonio Objectives $3-4 million capex program

• 10,500 metres drill program.
• $3-$4 million in development costs based on permitting timeline.

La Fortuna Objectives

• 1,000 metre drill program at La Fortuna to follow up on drill targets.

Non-IFRS Measures

The Company included the non-IFRS measure “Cash cost per gold ounce for units sold” in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce for units sold is equal to cost of sales less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company. Non-IFRS measures do not have any standardised meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by NI 43-101. For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of  Argonaut Gold Inc. (“Argonaut”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.

Contact Information

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com

Toll Free (North America): 1-866-226-1792 International: 1-416-340-2216

Webcast: www.argonautgoldinc.com

Q4 and Year End Conference Call Replay:

Toll Free Replay Call (North America): 1-800-408-3053 Replay Call: 1-905-694-9451

The Conference Call Presentation will be available immediately before the call and Financial Filings are available online

Q4 and Year End Conference Call Information:

Toll Free (North America): 1-866-226-1792
International: 1-416-340-2216 

Webcast: www.argonautgoldinc.com

Q4 and Year End Conference Call Replay:

Toll Free Replay Call (North America): 1-800-408-3053
Replay Call: 1-905-694-9451

Passcode: 1634095

The conference call replay will be available from 12:30 p.m. ET on March 30, 2012 until April 6, 2012.

About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com