Argonaut Gold Acquires 91% of Castle Gold

TORONTO , Dec. 30 /CNW/ - Argonaut Gold Inc. ("Argonaut") is pleased to announce that as of the tender deadline at 11:59 ( Toronto time) on December 29, 2009 , 78,349,528 common shares of Castle Gold Corporation ("Castle"), including options to acquire common shares of Castle, have been validly deposited to Argonaut's offer to acquire all of the outstanding shares of Castle. Argonaut has taken up and accepted for payment all of these shares, which represent 91.25% percent of the common shares of Castle on a fully diluted basis. Argonaut will pay for these shares promptly.

Argonaut offered to acquire all of the outstanding common shares of Castle on the basis of a minimum of $1.25 for each Castle share. The final offer price was $1.29 . The aggregate cash consideration to be paid by Argonaut will be approximately $102 million , in respect of the shares tendered to date.

A formal process of acquisition of the balance of any outstanding Castle shares will occur as is customary in similar transactions either by compulsory acquisition or subsequent acquisition transaction which would be intended to be completed in the first quarter of 2010.

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.

For further information: Peter C. Dougherty, President and Chief Executive Officer, Tel: [phone], Email: [email protected]