Ms. Judy Baker reports

ARGO UPDATE ON LLOYD OIL

Drilling has begun at Argo Gold Inc.'s Lloyd oil well proximal to Lloydminster, Alta. The Lloyd oil well is a multilateral horizontal oil well targeting 3,000 metres in the Sparky oil formation.

Argo's interest in Lloyd is pursuant to Argo's second participation agreement with Croverro Energy, whereby Argo is paying the operator 25 per cent of the cost to drill, complete, and fully equip or abandon the well to earn an 18.75-per-cent interest in the well. Estimated costs are $450,000 and Argo's 18.75-per-cent share of oil production is estimated to be 30 barrels of oil per day.

Argo also announces that Judy Baker, chief executive officer of the company, is loaning Argo $310,000 to finance a portion of drilling at the Lloyd oil well. The secured loan has a term of 10 months and bears an interest rate of 10 per cent per annum. The loan is a related party transaction pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The loan transaction is exempt from the MI 61-101 valuation and minority approval requirements for related party transactions pursuant to the exemptions contained sections 5.5(a) and 5.7(a) of MI 61-101, respectively, as neither the subject matter of, nor the consideration for, the loan, exceeds 25 per cent of Argo's market capitalization.

Argo is currently completing a non-brokered private placement of up to 12 million common shares at a price of 10 cents per share, for gross proceeds of up to $1.2-million. The proceeds of the financing will be used for participation in the Sparky oil wells at Lloyd and Lindbergh, and for general corporate purposes. Finder's fees may be payable to qualified individuals pursuant to which the finder may receive a finder's fee equal to 8 per cent of the gross proceeds of the financing attributable to such finder.

About Argo Gold Inc.

Argo Gold is a Canadian mineral exploration and development company.

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