Fourth Quarter 2011 Highlights:

• Gold production of 19,700 ounces, 8% increase over Q4 2010
• Record gold ounces sold of approximately 20,500, a 42% increase over Q4 2010
• Tonnes mined increased to greater than 1.8 million tonnes per month, an 11% increase over Q4 2010
• El Castillo eastern processing facility was commissioned and fully operational during Q4
• New resource calculation, production decision and construction commencement for the La Colorada project
• Year-end cash balance of $36 million

 El Castillo Operating Statistics

*All tonnes and ounces rounded to nearest 100

2012 Production Guidance

• El Castillo Expected Production 
• 75,000 to 80,000 ounces of gold
• La Colorada Expected Production 
• 10,000 to 15,000 ounces of gold

Peter Dougherty, President and CEO of Argonaut said:

“We are pleased with the Q4 gold production of 19,700 ounces. It was a very strong ending to a great year, with record gold production (+40% year-over-year).  Argonaut also completed efforts to achieve a significant increase in our resource base, which now exceeds 6 million ounces (+320%) which will enable us to implement further production enhancements”.

Mr. Dougherty added “Through the acquisition of Pediment Gold, the Company not only advanced its exploration programs, but expanded its development pipeline.  We are happy to report that we anticipate production at the La Colorada project in Q2 of this year. Also, the permit application for expanding operations at La Colorada has been submitted. We are also well underway in our process to permit a third mine for production at San Antonio.  These accomplishments have come through the constant efforts of our dedicated teams of professionals at each location. I am proud of their accomplishments and look forward to another strong year as we begin 2012.

All of the aforementioned was rewarded in our share price performance. In a year when the price of gold increased 9%, Argonaut’s shares climbed 50%, from $4.62 per share to $6.95 per share, and our trading volume increased nearly 400%.  As we reflect back on the year, it was one like no other. We are starting to harvest the seeds we had sown earlier, with new projects emerging, and production enhancements taking effect.  We are very thankful for our shareholders who have supported us from the beginning, and our dream of building value beyond gold.”

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 development stage La Colorada project 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 Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Company’s plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company’s most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update the forward-looking information contained in this news release.  Accordingly, readers should not place undue reliance on forward-looking statements that are included herein.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel:  (775) 284-4422 x 101
Email: nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.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 development stage and past producing La Colorada project, the advanced exploration San Antonio project, and several exploration stage projects, all of which are located in Mexico.

Cautionary Language Regarding Forward-Looking Information

This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Company’s plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company’s most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update the forward-looking information contained in this news release.  Accordingly, readers should not place undue reliance on forward-looking statements that are included herein.
Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut’s Vice President of Exploration and, a “Qualified Person” as defined by NI 43-101.

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

Toronto, Ontario (January 9, 2012) – Argonaut Gold Inc. (TSX: AR) (“Argonaut Gold”, “Argonaut” or the “Company”) is pleased to announce the results from a new National Instrument 43-101 compliant (“N.I. 43-101”), Preliminary Economic Assessment (“PEA”) for the100% owned La Colorada gold-silver project, located 45 km southeast of Hermosillo, Mexico. The updated PEA was completed by SRK Consulting Inc. of Denver, CO. Argonaut acquired the La Colorada project (along with the San Antonio Gold Project) through the acquisition of Pediment Gold Corp. in February of 2011. (All dollar values in this release are expressed in $US).

La Colorada PEA Specifications (base case $1,500/oz gold and $20/oz silver):

Project Highlights

• Initial Capital Expenditure for the project is estimated at $14.5 million with a Sustaining Capital of $11.7 million.
• Pre-tax cash flow from operations estimated at $381 million over the Life of Mine (“LOM”).
• Approximately a one year payback on initial investment, primarily generated by reprocessing 2.7 million tonnes of run of mine (“ROM”) material grading 0.43 grams per tonne gold (“Au g/t”) and 10.2 grams per tonne silver (“Ag g/t”).

Financial Details

• Pre-tax Net Present Value (“NPV”) of $278 million using a 5% discount rate.
• Pre-tax Internal Rate of Return (“IRR”) of 249% calculated by Argonaut Gold.
• Average annual pre-tax cash flow of $40.8 million.

Production Specifications

• Average LOM cash operating costs are estimated to be $620 per ounce based on silver noted as a byproduct credit.
• Total processed indicated and inferred resource includes 35.5 million tonnes containing 796,000 ounces of gold and 11.6 million ounces of silver (average grades are 0.69g/t gold and 10.2g/t silver).
• Recovered ounces from production include 438,000 ounces of gold and 3.1 million ounces of silver (For a total of 480,000 gold equivalent ounces) utilizing expected metallurgical recoveries of 55% for gold and 27% for silver.
• LOM gold production is estimated at an average of 53,000 gold equivalent ounces per year over a 9 year mine life.
• Throughput estimate of 4 million tonnes per year from an open-pit mine, with a recovery process using cyanide heap leaching, followed by carbon adsorption/stripping and electrowinning to produce dore bars.

Specifics

Peter Dougherty, President and CEO of Argonaut Gold stated:

“We are excited to present the La Colorada PEA which shows a very significant return on a minimal initial investment. It demonstrates the strong economic viability of the mine, supporting a pay back of approximately 1 year. Development of the project will be fully funded by our internal cash balance and ongoing cash flow from operations. The PEA is inclusive of drilling thru September 2011. Further drilling on the property and potential optimization of the project remain important initiatives for the company.”

Mr. Dougherty added:

“The necessary permits are in hand for us to begin production in the second quarter of 2012. The La Colorada mine has robust project economics that will potentially contribute over $300 million in cash flow for Argonaut shareholders. The Pediment acquisition is a prime example of how Argonaut can Create Value Beyond Gold.”

Project Economics and Production Schedule

The mining plan developed for the La Colorada project by SRK Consulting provides for a production profile which will involve the processing of approximately 35.5 million tonnes of total potential mineable material set out in the PEA. Over a 9 year project life a total of 480,000 gold equivalent ounces is expected to be recovered, providing an average production of approximately 53,000 gold equivalent ounces per year. The LOM average strip ratio for processed material is estimated to be approximately 3.4 to 1. A summary of the annual mine production is outlined below.

Argonaut Gold has calculated the gold equivalent ounces using a $20/ounce silver price and a $1500/ounce gold price, providing a 75:1 gold equivalent ratio. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would categorize them as mineral reserves. There is no certainty that the PEA will be realized.

La Colorada National Instrument 43-101 Technical Report Resources

The La Colorada resources disclosed as part of the updated PEA were reported in a N.I. 43-101 compliant Technical Report filed on www.sedar.com on December 8, 2011. The 1,067,000 gold ounces grading 0.64 g/t gold is contained within 50 million tonnes; this was calculated using a 0.10 g/t gold cut-off grade. The complete resource estimate table is included below:

For further information on the La Colorada project please see the N.I. 43-101 compliant technical report entitled “Technical Report on Resources La Colorada Property Sonora, Mexico dated December 8, 2011 and available on www.sedar.com and under the company’s profile as well as the company’s website, www.argonautgoldinc.com.

About Argonaut Gold Inc.

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 development stage and past producing La Colorada project, the advanced exploration San Antonio project, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Language Regarding Forward-Looking Information

This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Company’s plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company’s most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update the forward-looking information contained in this news release.  Accordingly, readers should not place undue reliance on forward-looking statements that are included herein.

The potential quantities and grades disclosed herein in connection with the drilling results at La Colorada have been presented in an updated resource prepared by SRK Consulting of Denver, CO.

Non-IFRS Measures

The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use certain other non-IFRS financial measures to evaluate the Company’s performance including its ability to generate cash flow and profits from its operations. The Company has included certain non-IFRS measures in this document. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and 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. Readers are advised to read all IFRS accounting disclosures presented in the Company’s Financial Statements for more detail.

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 programs and on-site sample preparation procedures at La Colorada. Bret Swanson of SRK of Denver, CO, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated La Colorada pea has reviewed this press release as it relates to the La Colorada 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. 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) for a suite of 30 elements.

An updated N.I. 43-101 compliant technical report will be filed within 45 days of the date of this press release.

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

Mr. Rhoades has over 35 years’ experience in mine development, operations and corporate management roles. In addition to diverse operational experience, he has managed responsibilities in a corporate capacity, serving as the Assistant to the Vice President of Mining and the Director of Mine Planning for Asarco. Throughout his career, Mr. Rhoades has focused on productive operations, safety, training, process optimization, efficient capital allocation and ore reporting. Mr. Rhoades holds a bachelor’s degree in mining engineering from the University of Arizona. He is also a Registered Professional Engineer (mining).

Mr. Peter Dougherty, President & Chief Executive Officer of Argonaut Gold in regards to Edgar Smith’s retirement stated: “Edgar has been instrumental in the development and growth of the Company since its inception. On behalf of Senior Management and the Board, I thank Edgar for his enormous contribution to the formation of Argonaut Gold. Edgar will continue to provide guidance in an advisory role for Argonaut’s future growth and development.”

Mr. Dougherty also noted, in reference to adding Mr. Rhoades to the Argonaut team, “We are very pleased to have Richard join Argonaut Gold. We welcome his addition to the senior management team, and appreciate the unique versatile technical expertise his experiences will contribute to Argonaut.”

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 development stage and past producing La Colorada project, the advanced exploration San Antonio project, 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 – Nov. 28, 2011) - Argonaut Gold Inc. (TSX:AR) (“Argonaut Gold”, “Argonaut” or the “Company”) announces initial results regarding possible heap leaching of El Castillo Sulphides. SRK’s November 6, 2011 technical report includes a measured and indicated (“M&I”) Sulphide resource of 1.5 million ounces at an average grade of 0.32 g/t (please see foot note #1) which underlies oxide and transitional gold mineralization at El Castillo.

It is important to note, that the Sulphide material will not be accessed for several years as we continue to mine the oxide and transition ores. However, given the large size of these resources, the company has completed preliminary metallurgical testing.

Map #1

In regards to the results generated to date, Peter Dougherty, President and CEO for Argonaut Gold said “Column tests conducted in early 2011 confirmed that the leach cycle was very rapid with over 90% of the leachable metal recovered in the first 10 days. This, coupled with low reagent consumption, supports the possibility that Sulphides can be leached.”

Mr. Dougherty added “However, within the El Castillo deposit there is significant variability to how Sulphides react to cyanide leaching. The Company is currently reviewing known variables within the deposit that could influence recoveries. These include host rock, Sulphide content and fragmentation. Additional metallurgical testing and characterization studies will need to be completed.”

Historical Metallurgical Test Work

In May 2009, Castle Gold Corp. performed preliminary metallurgical test work with SGS Mineral Services Lakefield, Ontario Canada (coarse ore cyanide bottle roll testing) on the Sulphides indicating recoveries from as high as 42.8% for one sample to as low as 8.3% (3/4 inch to 1/4 inch crush sizes for 21 days leaching). Potential for resource growth and adjustments to the future production profile at El Castillo prompted further metallurgical work on the Sulphides. (See press release May 7, 2009).

Recent Metallurgical Work

In the fall of 2010 the company completed 7 core holes within key mineralized areas of the Sulphide deposit. This material was shipped to Kappes Cassiday Associates (“KCA”) in Reno, Nevada for metallurgical testing. Their work included 96 hour bottle roll tests on Sulphide material with an average head grade of .501 g/t gold resulting in an average gold extraction of 53%.

Their column test work reported gold recoveries of between 26% and 51% with an average of 38%. The column tests ran for 60 days on -3/8 inches (9.5 mm) particle sizing in four separate columns.

These findings support the potential for leach application of the Sulphide ore. Based upon KCA’s experience with mostly clean non-reactive ores, cyanide consumption in production heaps would be only 25-33% of the laboratory column test consumptions. Additionally, it was found that extraction was quite rapid with over 75% of the leachable gold reporting to solution in the first 15 days of leaching.

Map #1

In the spring of 2011 the company completed an additional 16 core holes for further metallurgical testing of the Sulphides. (Please refer to map #2). These holes were positioned to intersect Sulphide zones that underlie the final oxide/transition pit areas. Sulphide composites were compiled from three main areas referred to as the North, Central (or main) and South zones. These composites were again sent to KCA in Reno who completed bottle roll and column tests.

The findings:

The cyanide bottle roll tests reported gold recoveries between 21%-78%. KCA also completed column tests on composites representative of the three study areas. Results are noted in the following table:

Column test work showed a wide range of recovery from 11% to 48%. Recovery was rapid with 90% of the metal recovered in the first 10 days of leaching. Sulphide tests have provided mixed results and the Company will complete additional testing to further define the metallurgical variability of the Sulphide zones and their possible economic significance.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, and a qualified person as defined by NI 43-101.

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

Footnote #1

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 development stage and past producing La Colorada project, the advanced exploration San Antonio project, 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

THIRD QUARTER 2011 & RECENT HIGHLIGHTS

• Q3 2011 revenue of $22.7 million
• Q3 2011 net income of $6.0 million, $0.07 per basic share
• Cash flows from operating activities before changes in non-cash operating working capital and other items of $9.7 million
• Cash on hand was $35 million at September 30, 2011
• Gold production and cost:
  • 29,997 ounces of gold loaded to the pad (up 24% from Q3 2010)
  • Gold ounces produced in Q3 of 2011 were 16,884 ounces (up 33% from Q3 2010)
  • Cash cost per ounce sold – $628
• Q3 2011 El Castillo operating statistics:
  • Total tonnes mined — 4.8 million tonnes (up 2% from Q3 2010)
  • Record ore tonnes mined — 2.9 million tonnes (up 44% from Q3 2010)
• Operational improvements:
  • Finalized agreement with the Company’s mining
    contractor to expand from 13 to 18 trucks with 100 tonne capacity and a
    fourth 992 loader added to the mining fleet
  • West crusher relocated to east side for
    consolidated crushing circuit with design capacity of 500,000
    tonnes per month (“TPM”); operational in October
  • East side pad loading initiated and east carbon plant operational in October with the ramp up to continue thru Q4 of 2011
  • Finalized an agreement expanding surface
    rights on the western side of the property by 100 hectares, for an
    increase in overall surface rights to 1385 hectares.
• Exploration & resources:
  • La Colorada –Indicated resource increase to 1.06 mm
    oz. within an NI 43-101 compliant technical resource (up 76% Au and up
    173% Ag over previous NI 43-101)
    • Completed 36,234 metres of drilling in 245 holes total (39 pending release)
    • Three drill rigs continue on 52,000 metre drill program with a fourth drill rig scheduled to arrive in early November
  • El Castillo — Sulphide metallurgical work pending completion
  • San Antonio — Two drill rigs continue on +10,000 metre drill program
    • Completed 10,242 metres for 71 holes pending release

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the three months ended September 30, 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 — Third Quarter 2011

During the third quarter of 2011, revenue was $22.7 million from gold sales of 13,260 ounces compared to $9.8 million from sales of 7,994 ounces in the third quarter of 2010. Cost of sales and depreciation, depletion and amortization expenses were $10.8 million for the quarter. Cash cost per gold ounce for units sold (see Non-IFRS measures section note below) was $628 compared to $622 in the same period of 2010 principally because of an increase in longer ore hauls to the east pad and cyanide costs. During the third quarter of 2011, operating income from mining operations was $11.9 million compared to a $3.2 million operating income in the third quarter of 2010. Net income for the quarter was $6.0 million, or $0.07 per share.

Cash on hand increased from $32.3 million at June 30, 2011 to $35.0 million, as a result of higher gold price realized sales and early exercise of $6.8 million in broker compensation options issued in connection with the private placement of shares of the Company in late 2009. Cash flow from operations before changes in non-cash operating working capital and other items was $9.7 million during the quarter. The cash flow provided by operating activities in the quarter was $7.7 million. At September 30, 2011, approximately 6,300 gold ounces from Q3 were in finished goods inventory.

Summary of Production Results

Ore tonnes mined increased by 44% (total tonnes mined increased by 2%) for the third quarter 2011 over the third quarter of 2010. Utilizing a larger, more efficient truck fleet at El Castillo for the full quarter, the rate of mining production exceeded 1.6 million tonnes per month. The strip ratio of waste to ore declined in the third quarter of 2011 to 0.66 compared to the third quarter of 2010 of 1.36. (The new NI 43-101 compliant technical report for El Castillo
indicates the anticipated strip ratio is approximately 0.88 for the life of mine). Total ounces loaded to the pads also increased. In the third quarter of 2011, there were 29,997 ounces placed on the pad, representing a 24% increase over the 24,202 ounces placed on the pad in the third quarter of 2010. Gold production of 16,884 ounces in the third quarter of 2011 was a 33% increase compared to the third quarter of 2010.

The Company anticipates operating costs to rise in the near term from longer ore haul distances to the east pad and increased reagent costs as we begin operations at the eastern side of the property. We believe this is a short term issue as the mine expands. The Company is estimating a cash cost for ounces to be sold in 2011 to be $600 to $625 per gold ounce.

Capital & Exploration Expenditures:

The Company recently increased its capital and exploration expenditure budget for the year to $36 million. Additional commitments for development of La Colorada are being allocated for construction of heap leach pads, an absorption plant and a crushing circuit; this is anticipated to be completed during early 2012. Key operational metrics and production statistics for the third quarter of 2011 compared to the respective period in 2010 are presented below:

CEO Commentary

Pete Dougherty, Argonaut’s President and CEO states: “Argonaut continued to deliver strong production in Q3, moving towards meeting 2011 guidance of 70,000 ounces of gold produced during the year. We are very pleased with the progress made during the first nine months of 2011, expanding operations at El Castillo was a key objective in future development of the property. In October, the Company released a 76% gold increase and 173% silver increase in resources at the La Colorada project. A total of 6 drill rigs are continuing programs at both the La Colorada and San Antonio projects.” Mr. Dougherty added “Argonaut continues to see strong progress being made at all three projects.”

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 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 NI 43-101.

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 development stage and past producing La Colorada project, the advanced exploration San Antonio project, 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

Argonaut Gold Increases Measured and Indicated Resource
at La Colorada to 1.1 million Gold Ounces up 76%
14 million Silver Ounces up 173%
The Company is moving forward on the development of La Colorada Project

Toronto, Ontario – (October 24, 2011) Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) is pleased to report that the Measured and Indicated (“M&I”) gold resource at its 100% owned La Colorada Project located near Hermosillo, Mexico has increased from 605,000 M&I ounces to 1,067,000 M&I ounces.

New National Instrument 43-101 (“NI 43-101″) Technical Report on Resources
Argonaut has received an updated Canadian National Instrument 43-101 compliant Mineral Resource estimation from SRK Consulting in Denver, CO (“SRK”) for its La Colorada project. The updated resource of 1,067,000 ounces is based on previous historical drilling plus an additional 206 drill holes totaling 31,744 metres completed in 2011. The resource is contained within 50 million tonnes of mineralized material at an average grade of 0.664 g/t gold and 8.7 g/t silver. This is a 76% increase in the gold resource over a previous (pre-Argonaut) technical report that identified an M&I resource of 605,000 ounces.

Updated Mineral Resource Summary of the La Colorada Property as of June 25, 2011

The stated Indicated mineral resources have been prepared in accordance with Canada’s National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Qualified Person, as defined by National Instrument 43-101, for the mineral resource estimation, is Principle Resource Geologist, Dr. Bart Stryhas , of SRK, Denver, Colorado. The resources are contained within Whittle pit shells based on $1,500/oz Au price, $20/oz Ag price, and recoveries of Au and Ag at 60% and 30% respectively.

Impact of change in cut-off grade:

A further review of the impact of raising the cutoff grade of La Colorada and El Creston shows minimal impact to the resource. By raising the cutoff grade from 0.10 g/t to 0.30 g/t the overall average grade increases to 1.0 g/t (48%), while total ounces drop -107 k oz (-11%). This indicates the whittle pit resource as reported can be optimized to find the optimum balance of cash flow to ounces produced. This is noted in the following table.

2011 Drill Program:
Phase 1 of the La Colorada Drill Program was focused on converting previously inferred mineralization at the La Colorada and Gran Central resource areas. Initial favorable drill results prompted the Company to double the drill program scope, increasing the drill budget to $7.7 million with an estimated total of approximately 52,000 metres. The Company currently has three drill rigs operating on the property with a fourth rig scheduled to arrive shortly.

Composite highlights of the La Colorada Project

 
Drill hole map of La Colorada/Gran Central and El Creston

A summary to date of the drill results used in the resource is available on the website
(click here)
A tabulation of the 2011 resource drill holes:

La Colorada Cross Section

El Creston Cross Section

The Company previously announced results from 25,750 metres of drilling in 170 holes (as of June 15, 2011). Today Argonaut is releasing results from an additional 36 holes consisting of 5,994 metres of drilling. Drilling continues to show two main mineralized areas that form the bulk of the La Colorada/Gran Central resource areas, but significant mineralization is also being defined within the Intermediate Zone that lies between these two mineralized zones. In addition, ongoing drilling at El Creston has confirmed that strong mineralization continues to depth below previous exploration. On the nearby Veta Madre deposit an aggressive drilling program is in progress with the objective of expanding the reported resource and to defining the extent of mineralization by year’s end.

Path forward:
Given the significantly expanded resource base, the Company has embarked upon a multi staged development approach to the La Colorada project. Permits are in-hand to initiate the first stage which includes the construction of new leach pads, a crushing circuit and a processing plant within the existing footprint of the previous mining operation. Stage I will involve processing material from the existing Run of Mine (ROM) leach pad (2.7 million tons at an average grade of 0.43g/t gold).

The second and more comprehensive stage of the project involves the full scale mining of the La Colorada pit. Permit applications to conduct this work are being prepared to expand the existing mine footprint which requires additional overburden storage, the expansion of the pit limits and additional heap-leach pad construction. Currently, we believe these permits will be submitted in Q1 of 2012, and we anticipate receiving these permits in the normal course of business.

Initial Development Activities:
The Company has recently completed a land purchase of 330 hectares with negotiations for additional land acquisitions underway. Initial commitments have been made to purchase processing equipment and construct heap leach pads. The Company expects the Stage 1 budget to be less than $10 million.

Argonaut’s President and CEO Mr. Pete Dougherty stated, “We are very pleased to announce the expanded resource for the La Colorada project. The success of the drilling program to date has allowed us to take the next steps towards development of the project.” He added “Drilling will continue on the property as targets such as El Creston, Veta Madre and La Verde still hold exploration potential.”

Footnotes
Table1-1: Mineral Resource Statement, La Colorada, Effective Date June 25, 2011, Bart Stryhas PhD (Mining), of SRK, Denver, Colorado

Notes to Accompany Mineral Resources Table:

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability

2. Mineral Resources are reported as undiluted.

4. Mineral Resources are reported within a conceptual pit shell

5 The resources are contained within Whittle pit shells based on $1,500/oz Au price, $20/oz Ag price, mining cost of $1.20/t, process cost of 2.70/t and recoveries of Au and Ag at 60% and 30% respectively.

6. Totals tonnes and grade values may be rounded.

The SRK resource estimation is based on 2011 drill information from 206 drill holes totalling 31,744 metres and previous datas incorporated within the Giroux & Hendrick resource estimate. The average drillhole spacing within Indicated resource areas is approximately 50m. Argonaut plans to file a report under National Instrument 43-101 in connection with this disclosure.

About Argonaut
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 advanced exploration stage San Antonio project, the past producing and advanced exploration stage La Colorada project, 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.

The potential quantities and grades disclosed herein in connection with the drilling results at La Colorada have been presented in an updated resource prepared by SRK Consulting in Denver, CO.

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 programs and on-site sample preparation procedures at La Colorada. Dr. Bart Stryas of SRK of Denver, CO, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the updated La Colorada resource has reviewed this press release as it relates to the La Colorada 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. 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) for a suite of 30 elements.

For further information on the La Colorada project please visit the Company’s website.

For more information, contact:
Argonaut Gold Inc.

Nichole Cowles

Investor Relations Manager

Tel: (775) 284-4422 x 101

Email: nichole.cowles@argonautgoldinc.com

www.argonautgoldinc.com