Argonaut Exploration Inc.
TSX VENTURE : AGA

November 29, 2012 11:29 ET

Argonaut Exploration Inc. Drills Victor Vein Gold at Terrace, British Columbia

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2012) - Argonaut Exploration Inc. (TSX VENTURE:AGA) ("Argonaut" or "the Company") is pleased to release the drill results from the 2012 Victor vein exploration program (Table 1).

TABLE 1. 2012 VICTOR VEIN DRILL RESULTS
Drill HoleDrill Pad Azimuth degrees / Dip degrees Interval (m)Width (m)Au (g/t)Ag (g/t)Cu%
CV12-011 250/-45 44.25 - 45.45 1.2 11.5 29.8 0.74
Including 44.75 - 45.16 0.41 31.23 38.7 0.51
Including 45.04 - 45.16 0.12 87.9 122.0 1.52
CV12-021 260/-45 46.63 - 47.10 0.47 2.63 1.7 0.11
Including 46.92 - 47.10 0.18 5.25 2.5 0.14
CV12-031 270/-55 53.34 - 53.67 0.33 1.72 1.1 0.02
CV12-041 280/-65 59.53 -60.25 0.72 trace (tr)tr 0.31
CV12-051 -90 62.13 - 62.75 0.62(i)3.6 3.2 0.09
Including 62.13 - 62.45 0.32 6.17 3.1 0.09
CV12-062 250/-45 not apparent n/a n/a n/a n/a
CV12-072 240/-45 43.9 - 45.91 2.01 tr tr tr
CV12-082 275/-45 62.48 - 62.72 0.24 3.70 3.1 tr
(i) Not a True Width

Drill holes CV12-01, CV12-02, CV12-03 and CV12-04 were located to test at depth the south half of the Victor vein. CV12-05 was drilled to test the vein at the maximum depth possible from the Pad 1 location. Drill holes CV12-06, CV12-07 and CV12-08 were drilled from Pad 2 to test at depth the Victor vein's north half (Table 2). The drill core was NQ in size and the total meterage drilled in the 2012 program was 725.4 m. The drill pads were located to the east of the vein's generalized north - south strike and the holes were drilled west in a fanning direction to intercept the east dipping vein at anticipated high angles.

Drill hole CV12-01 with the widest and highest grade gold intercept was located beyond the known surface outcrop of the Victor vein to the south. This intercept has no vein expression on surface but continues the vein's extension at depth. Prior fieldwork had concluded that the Victor vein had disappeared and been terminated to the south by faulting. The 2012 drill results contradict the earlier conclusions and support the veins southern continuity and mineralization. The drill results including the gold content and vein widths present in drill holes CV12-01, CV12-02 and CV12-05 indicate that the potential exists to locate a high grade Victor vein deposit in the south with additional drilling.

Argonaut President Ray Cook states; "The 2012 Victor vein drill program confirms that significant gold and silver values sampled from surface continue to depth in the vein systems present on the Company's Terrace properties."

TABLE 2. 2012 DRILL PAD LOCATIONS
Drill Pad Elevation (m) Easting Northing
1 1253 539860 6046120
2 1205 539848 6046177

The cored vein is composed of several quartz layers varying in width from 1 centimeter (cm) to 15 cm of massive to coarse crystalline quartz. The coarse quartz tends to be on the footwall side of the vein and as is evident in CV12-01 contains coarse amphibole and chalcopyrite mineralization. The drilled vein in the remaining mineralized holes most frequently contained, oxidized sulphides, mainly pyrite, that stained the vein rusty brown and, in places, green from the copper carbonate malachite.

The gold mineralization below surface roughly correlates spatially with the surface vein gold values and widths sampled in 2011 (Table 3). The current surface samples and drill results support a generalized Victor vein gold - sulphide trend at the south end of the vein. The gold trend appears open to the south and to depth based on the results of 2012 drill holes CV12-01, CV12-02, CV12-03, CV12-05 and the 2011 surface channel samples. The northernmost drill hole CV12-08 also indicates the presence of gold mineralization both on surface at the portal of the vein adit and to depth.

The northern half of the Victor vein has complex structural controls and offset that is not evident in the south half of the vein. All but one hole CV12-06, due to a shear zone, intersected the vein which varies from 0.2 to 2.0 m true width. The approximated subsurface depths to the drill intercepted vein ranged from 25 to 40 m for the angle holes and 62.5 m for vertical hole CV12- 05. The nearest Victor vein surface outcrop to vertical hole CV12-05 is 50 m west which approximates an intercepted 75 m Victor vein length. The gold mineralization has the potential, based on the drill results, to continue to depth.

TABLE 3. 2011 SURFACE VICTOR VEIN CHANNEL SAMPLES
Sample Number Description Location Elevation (m) Width (m) Au (g/t) Ag (g/t)
G0750909 chip/channel North Portal, vein adit 1152 0.7 0.92 1.2
G0750910 chip/channel 4.5 m south of north portal 1152 0.55 46.4 6.3
G0750911 chip/channel 23 m south of portal 1165 0.3 0.38 0.75
G0750912 chip/channel 40 m south of portal 1180 0.5 0.31 trace
G0750913 chip/channel 56 m south of portal 1196 0.3 6.38 1.6
G0750914 chip/channel 86 m south of portal 1215 0.7 0.02 trace
G0750915 chip/channel 100 m south of portal 1224 0.55 1.24 1.1
G0750916 chip/channel 113 m South of portal 1229 0.4 34.1 24.0
G0750917 chip/channel 110 m South of portal 1229 0.3 72.4 33.9

The Victor vein is located on the 100% owned Terrace Property 2.1 kilometres south of the Columario mine workings, on the north flank of Kleanza Mountain, at an elevation ranging from 1,152 to 1,229 m. The Victor and associated veins were historically described as the potential extension of the Columario mine vein system. The vein is exposed intermittently over a strike length of 115 m with an average width of approximately 0.5 m. The host rock is lower Jurassic Hazelton volcanic andesite and lapilli tuff, the same as that exposed with diorite at the Columario mine. The vein quartz weathered resistantly and is easily explored in the higher sub-alpine setting. In 2011, nine surface channel samples were collected across the vein width along 113 m of the 115 m exposed Victor vein strike length. The surface samples returned significant gold results with the best result being 72.4 g/t gold and 10.2 g/t silver across a 0.3 m vein width (Table 3).

About Argonaut Exploration Inc.

Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of gold, silver and copper bearing mineral properties. For more information on the Corporation visit its website at www.argonautexploration.com.

Dr. Mathias Westphal P. Geo., White North West Consulting, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in the News Release. Analytical results are provided by ALS Canada Ltd of Vancouver, British Columbia. All core and rock samples were digested by a four acid leach followed by a 33 element ICP analysis. High ends were assayed. Gold was determined separately using a 30 gram sample split treated by fire assay with an ICP- AES finish. Gold results greater than 1 gram were re-analyzed using a 30 gram sample split and treated by fire assay with a gravimetric finish.

Forward-Looking Statements

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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