Argonaut Gold Provides Update on 2011 Drilling at La Colorada; Board Approves Additional $3.9 Million to Double the 2011 Drill Program at La Colorada

TORONTO, ONTARIO--(Marketwire - June 15, 2011) - Argonaut Gold Inc. (TSX:AR) ("Argonaut" or the "Company") is pleased to announce exploration results to date at its 100% owned La Colorada project ("La Colorada") located 50 km southeast of Hermosillo, Mexico.

DRILLING PROGRAM HIGHLIGHTS TWO MAIN ZONES: LA COLORADA AND GRAN CENTRAL

Favorable drill results from our 2011 drill program at La Colorada, have prompted the Company to increase the exploration budget by an additional $3.9 million. This brings the total approved budget for 2011 to $7.7 million and 52,000 meters of drilling. To date, 25,780 meters of drilling have been completed, consisting of approximately 171 holes. The Company is pleased to report that drilling continues to confirm the continuity of the La Colorada gold system as well as the identification of bonanza-grade vein intercepts reporting up to 356 g/t gold over 2 meters. The drill programs for the project are outlined below:

The primary objective of the ongoing drill program is to increase drill density, as necessary, on the La Colorada and Gran Central vein systems to convert previously identified inferred mineralization into a measured and/or indicated category. The bulk of this potential mineralization occurs down dip and along strike from past mining areas. These priority target areas represent two parallel vein systems both striking east-west and dipping steeply to the north. Combined, La Colorada and Gran Central represent a target area upwards of 300 meters wide with a known strike extension of near 700 meters. Within this large target area, drilling has shown that pockets of high-grade gold mineralization are present within the system.

The majority of drilling is oriented to cross the veins system as close as possible to determine true widths. However, the Company cannot assure that all the reported intervals represent the true widths of the mineral system.

Highlighted high-grade drill intercepts, La Colorada

The Company has not determined the extent of these bonanza grades and has not utilized them in calculating the composites.

LA COLORADA AND GRAN CENTRAL COMPOSITE DRILL RESULTS

Significant drill-hole composites for the Gran Central and La Colorada exploration areas are summarized below and do not contain the high grade intercepts. To date, the Company has completed 39 RVC drill holes on Gran Central and 43 RVC holes on La Colorada as well as 25 core holes on Gran Central and 14 core holes on La Colorada with preliminary results noted below.

Please see the Argonaut website for a complete report of drill holes for 2011 (http://www.argonautgoldinc.com/i/San_Antonio/2011_San_Antonio_Drill_Hole_Summary.pdf).

Composite highlights of Gran Central pit area

Composite highlights of La Colorada pit area

EL CRESTON:

In addition to completing significant drilling on the Gran Central and La Colorada targets, the Company has commenced preliminary drilling on the El Creston and Veta Madre resource areas. At El Creston the objective is to upgrade inferred resources related to the down dip projections of previously mined mineralization. To date, 4 holes have been completed with the results tabulated as follows:

Composite highlights of El Creston pit area

VETA MADRE:

Veta Madre, situated 1 kilometer east of El Creston, is a shallow zone of oxidized mineralization that has been partially drilled and remains open to depth and on strike. In 2011, the Company has completed 20 drill holes with preliminary results noted below (most assays are still pending).

Composite Veta Madre area drill highlights

Additional drilling is planned for 2011 at El Creston and Veta Madre.

LA COLORADA RESULTS TO DATE MERIT ADDITIONAL $3.9 MILLION IN DRILLING

The objective of the Company's initial budgeted 25,800 meter drill program was to better define and upgrade inferred material within the La Colorada and Gran Central mining areas to a measured and indicated category. Tom Burkhart, Argonaut Gold's Vice President of Exploration stated, "Our philosophy has always been that if we are successful in our drilling program, we will continue to invest additional funds as warranted. The results at La Colorada speak for themselves and we are very encouraged by the drilling. We look forward to continued success at La Colorada." Mr. Burkhart went on to add, "The greatest potential to create value is through the drill bit on properties we already own. La Colorada shows similar potential to El Castillo where in 2010 the Company completed over 35,000 meters of drilling resulting in the addition of significant resources announced by Argonaut on May 9, 2011.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/ar_fig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/ar_fig2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/ar_fig3.pdf.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/ar_fig4.pdf.

STOCKPILES AND RUN OF MINE ("ROM") PAD

The Company engaged Kappas Cassidy & Associates to perform metallurgical testing of run of mine ("ROM") material. Recent drilling by the Company includes 16 holes from ROM pads and 11 holes from four separate unprocessed stock pile areas. Metallurgical results for the ROM pad should be available in late Q3 of 2011.

NEW 43-101 SCHEDULED TO BE COMPLETE BY YEAR END 2011

All drill data will be provided to SRK Consulting in Denver, Colorado who have been contracted to complete an updated National Instrument 43-101 complaint Technical Report on La Colorada, which will include an updated resource study. This work is in progress and scheduled for completion by the end of 2011.

Qualified Person Comments/Quality Control Procedures

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. The preparation of this Press Release was supervised and approved by Thomas Burkhart, Argonaut Gold's Vice President of Exploration and a Qualified Person under National Instrument 43-101. Mr. Burkhart also reviewed the reverse circulation and core drilling programs and on-site sample preparation procedures at La Colorada.

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.

(Au AA-23 assay method code). 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.

The potential quantities and grades disclosed herein are conceptual in nature, there has been insufficient exploration to define an updated mineral resources and it is uncertain if further exploration will result in these targets being delineated as an updated mineral resource. For further information on the La Colorada project please see the NI 43-01 compliant technical report entitled "Geological Report on the La Colorada Property with a resource estimate on the La Colorada and El Creston Mineralized Zones" dated November 30, 2009 and available on www.sedar.com.

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 development stage San Antonio project and the past producing La Colorada project, both located in Mexico. Argonaut is a producing gold company created by former executive management team members of Meridian Gold Inc.

Creating the Next Quality Mid-Tier Gold Producer in the Americas.

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.