November 2012 presentation - Argonaut Gold Inc.

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Argonaut – Production Funding Growth Production Growth 500 +500k ozs. 400 Magino 300 200 100 0 $700 $600 101-103k ozs. 150-180k ozs. 220- 250k ozs. 2012 Expansion New Mine - San Antonio Sources of Funding (US$mm) New Mine - Magino $564 San Antonio La Colorada El Castillo Argonaut expects to have sufficient cash to fund the development of Magino, avoiding shareholder dilution $500 $419 $145 $400 $300 $200 $162 $204 $42 $290 $85 $130 $130 $100 $114 -- $47 Argonaut End of Year Cash + Dilutive Instruments Prodigy End of Year Cash Argonaut 2013E FCF Argonaut 2014E FCF Source: Equity Research. Note: Free cash flow estimates based on average broker estimates for operating cash flow and capital expenditures between 2012 and 2015 at broker estimated gold prices Argonaut 2015E FCF 10 TSX:AR TSX:AR.WT ArgonautGold.com November 2012 10
Prodigy - Magino’s Flexibility Dec 2011 Prodigy’s flagship asset is the Magino gold project (40 km northwest of Wawa, Ontario) On December 22, 2011, Prodigy released an updated Preliminary Economic Assessment (“PEA”): • Pre-tax NPV of C$939 mm and pre-tax IRR of 36% • LOM average gold production of 249k oz per year over 11 year mine life at cash costs of US$461/oz • LOM production of 2.6 million ounces at 1.15 g/t • Total development capital expenditures of C$404 mm with LOM sustaining capital expenditures of C$145 mm • 20,000 tpd mill achieving 95% recoveries Resource Flexibility • Tremendous grade flexibility without the loss of significant ounces • Mine development that balances returns with scale • Multiple development scenarios have been evaluated by Argonaut management in assessing the merits of this transaction • Pre-feasibility study (2013 target) which will explore the development of Magino, focusing on a higher grade, lower scaled operation balancing returns for the project • Project funding through Argonaut cash flow PEA Cutoff Grade Indicated Resource Magino Project Mineral Resource Estimate Source: Prodigy SEDAR Company Filings as described on the slide “About Prodigy” Note: The December 2011 PEA is shown here for comparative purposes only, readers should note that the current technical report states as the new resource estimate is significantly different from the existing one, the mine plan and process disclosure in the PEA is no longer current (US$1,200/oz gold price and 0.93 USD:CAD exchange ratio) Inferred Resource Tonnes Grade Ounces Tonnes Grade Ounces (g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz) 0.35 67,555 1.00 2,176 54,242 0.99 1,721 Current Indicated Resource Inferred Resource Cutoff Grade Tonnes Grade Ounces Tonnes Grade Ounces (g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz) 0.35 223,480 0.87 6,251 13,809 0.80 355 0.40 199,897 0.92 5,913 11,920 0.87 333 0.50 159,681 1.04 5,339 9,021 1.00 290 0.60 128,135 1.16 4,779 7,006 1.13 255 0.70 102,970 1.29 4,271 5,430 1.27 222 1.00 55,306 1.69 3,005 2,795 1.71 154 The December 2011 PEA is shown here for comparative purposes only, readers should note that the current technical report states as the new resource estimate is significantly different from the existing one, the mine plan and process disclosure in the PEA is no longer current; Prodigy is currently working on prefeasibility study which will supersede previous technical reports 11 TSX:AR TSX:AR.WT ArgonautGold.com November 2012 11
Page 1 and 2: TSX:AR TSX:AR.WT ArgonautGold.com N
Page 3 and 4: Creating Value Beyond Gold Generati
Page 5 and 6: Argonaut Mexican Assets 2 producin
Page 7 and 8: Argonaut Q3 Results Highlights Rec
Page 9: Building the Next Intermediate Gold
Page 13 and 14: Future Value Drivers Gold Productio
Page 15 and 16: The Difference Value Beyond Gold
Page 17 and 18: Indexed Performance Argonaut Positi
Page 19 and 20: Pro Forma Capitalization and Balanc
Page 21: For Additional Information www.argo

November 2012 presentation - Argonaut Gold Inc.

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