Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Finalizes EPC Contract for a 475 MW Power Project in North Carolina

Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) announced
today that its wholly owned subsidiary, Gemma Power Systems (GPS), has
entered into an Engineering, Procurement and Construction (EPC) services
contract with NTE Carolinas II, LLC, an affiliate of NTE Energy, to
construct a 475 MW state-of-the-art natural gas-fired power plant in
Rockingham County, North Carolina.

The NTE Reidsville Energy Center is similar to two previous projects
being constructed by GPS for NTE; the Kings Mountain Energy Center, in
Kings Mountain, NC and the Middletown Energy Center in Middletown, OH.
Both projects are scheduled to be completed in 2018.

“We’re pleased to have reached agreement to design and build another
state-of-the-art energy project for NTE to serve the citizens of North
Carolina,” said William F. Griffin, Jr., Chief Executive Officer of
Gemma Power Systems. “NTE has done a fantastic job in the development of
these power plant projects and we look forward to continuing our
successful relationship,” Griffin said.

Rainer Bosselmann, Chairman and CEO of Argan, Inc., stated, “With a
number of our major projects scheduled to be completed this year, we are
pleased that our ongoing Gemma Power sales efforts are beginning to
rebuild our backlog. We are cautiously optimistic that there will be
several more projects to add to our backlog this year in addition to
this approximately $250 million Reidsville project.”

The Reidsville project will employ approximately 300 craft workers at
the peak of construction and provide approximately 25 to 30 permanent
jobs for the area. The Reidsville project features an advanced class
Mitsubishi Hitachi Power Systems Americas M501GAC combustion turbine
generator, a Vogt Power International supplementary-fired heat recovery
steam generator and a Toshiba America Energy Systems steam turbine
generator.

About Argan, Inc.

Argan’s primary business is providing a full range of services to the
power industry including the engineering, procurement and construction
of natural gas-fired power plants, along with related commissioning,
operations management, maintenance, project development and consulting
services, through its Gemma Power Systems and Atlantic Projects Company
operations. Argan also owns SMC Infrastructure Solutions, which provides
telecommunications infrastructure services, and The Roberts Company,
which is a fully integrated fabrication, construction and industrial
plant services company.

Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities
laws and are subject to risks and uncertainties including, but not
limited to the Company’s successful addition of new contracts to
backlog, the Company’s receipt of corresponding notices to proceed with
contract activities and the Company’s ability to successfully complete
the projects that it obtains. Actual results and the timing of certain
events could differ materially from those projected in or contemplated
by the forward-looking statements due to a number of factors detailed
from time to time in Argan’s filings with the SEC. In addition,
reference is hereby made to cautionary statements with respect to risk
factors set forth in the Company’s most recent reports on Forms 10-K and
10-Q, and other SEC filings.

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