Ms. Judy Baker reports

CORRECTION FROM SOURCE: ARGO GOLD CLOSES FIRST TRANCHE OF FINANCING

Argo Gold Inc. has closed the first tranche of its previously announced non-brokered private placement of 3.65 million shares at a price of 10 cents per share for gross proceeds of $365,000. All securities issued under the offering are subject to a four-month-and-one-day statutory hold period.

Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired two million shares for a total consideration of $200,000. Prior to the private placement, Mr. Sprott beneficially owned or controlled 11.2 million shares of the company representing approximately 17.0 per cent on a non-diluted basis. Following the completion of the private placement, Mr. Sprott beneficially owns and controls 13.2 million common shares of the company representing approximately 19.0 per cent of the issued and outstanding common shares of the company.

The shares were acquired by Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Argo Gold including on the open market or through private acquisitions or sell securities of Argo Gold including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of Mr. Sprott's early warning report will appear on Argo Gold's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay St., suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J2).

About Argo Gold Inc.

Argo Gold is a Canadian mineral exploration and development company.

We seek Safe Harbor.