Mr. Christopher van Tienhoven reports

PATAGONIA GOLD CLARIFIES RECENT DISCLOSURE BY MIRASOL RESOURCES

Patagonia Gold Corp. has clarified recent disclosure by Mirasol Resources Ltd. regarding termination of the option agreement in relation to the Homenaje property. On Oct. 3, 2023, Mirasol announced that this agreement had been terminated and that Patagonia had failed to complete the exploration expenditures. While this is technically accurate, Mirasol failed to disclose that the company delivered a default notice to Mirasol on June 9, 2023, due to the occurrence of a default as result of the presence of archaeological remains in the main area. This was disclosed by the company in its MD&A (management's discussion and analysis) for the quarter ending June 30, 2023, which was dated Aug. 29, 2023. The MD&A also disclosed that the work had been put on hold as of June 30, 2023, and on July 11, 2023, the company had provided notice to Mirasol that the agreement had been terminated based on that default.

Patagonia entered into the option agreement with Mirasol in April, 2021, and had spent $105,000 before work was suspended because of the discovery of indigenous graves. From the date when work was suspended until the date that Patagonia terminated the agreement, the relevant authorities advised that no mining activity of any kind was permitted. Patagonia respects this decision as it values indigenous heritage and would not have it compromised.

About Patagonia Gold Corp.

Patagonia Gold 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 Chile and is one of the largest landholders in the province of Santa Cruz, Argentina.

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