The Gold Report

Argonaut Gold Inc. TICKER: AR:TSX Visit Company Website 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 San Antonio project and the past-producing La Colorada project, both located in Mexico. Argonaut is a gold producer created by former executive management team members of Meridian Gold Inc. and is creating the next quality mid-tier gold producer in the Americas.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Rick Trotman, MLV & Co (2/13/12) "We believe that Argonaut has set the stage to become one of the top five largest gold producers in Mexico. Argonaut's operational base currently includes one producing mine, a second mine under construction, and an advanced development project that is being steadily progressed towards a construction decision. Our forecasts suggest that Argonaut could nearly triple gold production by 2016, as the addition of two new mines helps push annual output towards 300 Koz."

Christos Doulis, Stonecap Securities (1/18/12) "Argonaut Gold Inc. reported production for Q411 and FY11. . .the company made a quarterly production record. . .Argonaut delivered an impressive 2011, growing production by ~40% relative to 2010. We believe management guidance for 2012 production at El Castillo is very conservative, particularly as the company has successfully commissioned a new processing plant at the mine. . .we would not be surprised to see revised guidance once engineering work from SRK has been completed."

Rahul Paul, Canaccord Genuity (1/17/12) "We reiterate our Buy rating on Argonaut Gold Inc. following the announcement of better than expected Q411 production results; Argonaut remains a Canaccord Genuity Focus List pick based on expected rerating potential as the company completes the ramp-up at El Castillo and advances the La Colorada and San Antonio projects. . .in our view, Argonaut offers one of the most attractive growth profiles in the sector, with an estimated 225% production growth and 300% cash flow per share growth between 2011 and 2015 (estimated) from a fully funded project pipeline."

Christos Doulis, Stonecap Securities (1/10/12) "Argonaut Gold Inc. reported a preliminary economic assessment for its 100%-owned La Colorada project. Highlights include: pre-tax net present value of $278M using a 5% discount rate; initial capital expenditure of $14.5M; average annual production of 53 Koz Au eq with cash costs of $620/oz; life-of-mine production of nine years and estimated recoveries of 55% gold and 27% silver. . .we continue to recommend the company as a growth-oriented gold story with a strong management group."

Jordan Roy-Byrne, The Daily Gold Premium (1/10/12) "Argonaut Gold Inc.'s preliminary economic assessment (PEA) for La Colorada, which could begin production in Q212, was absolutely fantastic: This is a very low-cost project which will be funded easily and paid back in one year. I honestly cannot remember a PEA that looked as great. Argonaut remains our top pick."

• Corporate Fact Sheet (9/2/11)
• Corporate Presentation (9/2/11)

(2/16/11) Argonaut Named a "Top Pick" on Market Call Tonight

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