Patagonia Gold Consolidates Mina Angela Project

VANCOUVER, Oct. 10, 2024 - Patagonia Gold Corp. ("Patagonia" or the "Company") (TSXV: PGDC) announces that it has acquired four new mineral concessions totaling 15,494 hectares surrounding its Mina Angela project in Chubut Province, Argentina. The Company now controls over 52,000 hectares of mineral properties in the area.

Highlights:

• Consolidates the Mina Angela property block and optimizes the project potential beyond the existing Mina Angela non-contiguous tenements.
• Historic drilling on the Company's Mina Angela project acquired from Latin Metals Inc. includes one hole with reported intersections of 1.36 metres grading 40.65 g/t Au, 1,773 g/t Ag, 1.79% Pb, 0.23% Cu and 10.06% Zn at a vertical depth of 65 metres below surface and a second hole that was reported to have intersected a second vein approximately 65 metres to the west of the first with 2.02 metres averaging 6.69 g/t Au, 240 g/t Ag, 0.52% Pb, 0.04% Cu and 2.19% Zn.
• Extensions of known mineralization in the historic mine and previous drilling to be evaluated with new work to be completed by the Company.
  

On October 9, 2024 (the "Completion Date"), the Company, through one of its Argentinean subsidiaries, Huemules S.A., entered into a definitive agreement (the "Agreement") with Compañía Inversora de Minas SAU ("Ciminas") acquiring four mineral properties, termed the "Gastrenor Block", in the Chubut Province. Under the terms of the Agreement, the Company paid Ciminas US$100,000 on the Completion Date. Chubut currently prohibits open pit mining and the use of cyanide. A final payment of US$300,000 is expected to be paid by Patagonia to Ciminas on the earlier of: (A) 18 calendar months from the date on which Chubut authorizes metal mining activity in the region, subject to that law not being repealed within said period; (B) 30 calendar days after the environmental permits to carry out exploitation mining activity on the Gastrenor Block are granted to the Company; or (C) the assignment of the Gastrenor Block by the Company to a third party, unless the assignee jointly and irrevocably assumes the payment obligation as set out in the Agreement, in which case the Company will not be required to make the final payment.

Ciminas will be entitled to receive a 1% net smelter return royalty, and a third party will be entitled to a 0.25% NSR royalty, both on future production on the entire property block, encompassing both the Mina Angela project and the Gastrenor Block (Figure 1).

Figure 1. Mineral concessions held by Patagonia through its subsidiaries, Huemules S.A. and Leleque Exploración S.A. in the Mina Angela area (New mineral properties in aqua color, "Expte" is the concession registration number).

The Company acquired the Mina Angela project from Latin Metals Inc. in 2021. The project consists of 44 contiguous and non-contiguous mining claims that would make exploration and eventual mining operations very difficult. By acquiring the Gastrenor Block of mineral properties from Ciminas, the Company was able to consolidate the ground thus facilitating its development.

Christopher van Tienhoven, CEO of Patagonia, stated "We believe that, through further exploration activities, followed by drilling, the combined property has enhanced potential for the discovery of a new precious and base metal mineral deposit."

About the Mina Angela Project

The Mina Angela project is situated in the Somuncura Massif of southern Argentina and is comprised of 44 individual mining claims that are over 200 km² in size located approximately 50 km east-southeast of Patagonia's 100% owned Calcatreu gold and silver, development-stage, project. The large Navidad deposit is located 45 km further to the south-southeast of Mina Angela. There is currently a 2.25% NSR from future production solely on the Mina Angela project (1.25% to Latin Metals Inc. and 1% to Willem Futcher).

The area is in a region of highly prospective, Jurassic-aged, bimodal volcaniclastic rocks, which host gold- and silver-bearing, epithermal veins. The veins are spatially associated with rhyolite domes and dikes and the system broadens to the southwest.

Historical production took place at the Mina Angela project on selected underground veins between 1978 and 1992 and without the use of cyanide. From 1983, when accurate mining records begin, until closure in 1992, the Mina Angela project is reported to have produced 1,037,360 tonnes at an average grade of 4.0 g/t Au, 48.4 g/t Ag, 2.0% Pb, 0.4% Cu and 4.6% Zn.¹

In 1997 and 1998, Lonrho Mining South Africa carried out exploration including geological mapping, regional soil sampling and ground geophysics. The program also included 3,443 metres of diamond drilling in 16 holes drilled within a 4 by 5 kilometre-sized area. The best drill intercepts were obtained on the Sahuel vein system, where one of two core holes was reported to have intersected 1.36 metres grading 40.65 g/t Au, 1,773 g/t Ag, 1.79% Pb, 0.23% Cu and 10.06% Zn at a vertical depth of 65 metres below surface. The second core hole at Sahuel was reported to have intersected a second vein approximately 65 metres to the west of the first with 2.02 metres averaging 6.69 g/t Au, 240 g/t Ag, 0.52% Pb, 0.04% Cu and 2.19% Zn. With only 2 drill holes completed on Sahuel, the system is presently poorly delineated and remains open along strike and at depth.²

Notes:

Qualified Person's Statement

Donald J. Birak, an independent consulting geologist, Registered Member of SME, Fellow of AusIMM, and qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release; however, Mr. Birak has not done sufficient work to validate historic drill and production results cited herein and the Company does not consider them current or necessarily indicative of future results. The potential quantity and grade of such results is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain that further exploration will result in such targets being delineated as mineral resources.

About Patagonia Gold

Patagonia Gold Corp. is a South America focused, publicly traded, mining company listed on the TSX Venture Exchange. The Company seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The Company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap-Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 430 properties in several provinces of Argentina and is one of the largest landholders in the province of Santa Cruz, Argentina.

For more information, please contact:

Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp.
T: +54 11 5278 6950
E: cvantienhoven@patagoniagold.com

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to, statements with respect to, among other things: extensions of known mineralization to be evaluated with new work to be completed by the Company; the timing and applicability of the final payment of US$300,000 to Ciminas; Chubut authorizing metal mining activity in the region; the Company obtaining environmental permits to carry out exploitation mining activity on the Gastrenor Block; future NSR royalty payments; future development of, and production on, the Mina Angela project; the enhanced potential for the discovery of a new precious and base metal mineral deposit; and the anticipated growth in shareholder value. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

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 news release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4ffb668a-415a-4b1d-b275-df9c7423f85d