Argonaut Gold Ltd.

Argonaut Gold Ltd.

February 24, 2010 08:17 ET

Argonaut Gold Inc. Completes Compulsory Acquisition of Castle Gold Corporation

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2010) - Argonaut Gold Inc. (the "Offeror"), a wholly-owned subsidiary of Argonaut Gold Ltd. (TSX:AR), is pleased to announce that it has completed the compulsory acquisition process under the Canada Business Corporations Act (the "Act") and has acquired the remaining issued and outstanding common shares of Castle Gold Corporation ("Castle") (TSX VENTURE:CSG) not acquired pursuant to the Offeror's take-over bid dated November 23, 2009 to acquire all of the issued and outstanding common shares Castle (the "Offer").

As a result of the compulsory acquisition, Castle is now a wholly owned subsidiary of the Offeror and Castle shareholders, other than those who exercise dissent rights, are entitled to receive $1.29 for each Castle share formerly held by them. To effect the compulsory acquisition, the Offeror has mailed a Notice of Compulsory Acquisition ("Notice") to each of Castle's registered shareholders and has deposited with Computershare Trust Company of Canada ("Computershare"), as agent for Castle, the total consideration payable for the Castle share acquired under the compulsory acquisition. Computershare will hold such funds in trust for Castle's former shareholders and pay the acquisition price to them upon deposit of the certificates representing the Castle common shares formerly held by them. Deposits of the certificates representing Castle common shares can be effected by using the Letter of Transmittal that has been mailed to Castle's registered shareholders along with the Notice.

Castle has applied to have its common shares delisted from the TSX Venture Exchange. Trading of Castle common shares has been halted and the common shares will be delisted from the TSX Venture Exchange as of the close of market on February 23, 2010. In addition, Castle intends to apply to the relevant provincial securities regulators to cease to be a reporting issuer.

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.

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