Mr. Christopher van Tienhoven reports

PATAGONIA GOLD TO REACQUIRE COSE PROPERTY FROM PAN AMERICAN SILVER

Patagonia Gold Corp. has agreed to reacquire the COSE property (COSE) from Pan American Silver Corp. (PAAS).

On Feb. 27, 2024, the company entered into an agreement pursuant to which it agreed to reacquire COSE in exchange for assuming PAAS's costs and liabilities in relation to COSE. The company sold COSE to PAAS in 2018 and PAAS closed the COSE mine in 2022, after mining the known, main COSE mineral deposit. The company is not making a monetary payment to PAAS in connection with the transaction but has agreed to assume the remaining closure costs of COSE, which are mainly related to continuing environmental monitoring.

Completion of the transaction is subject to, among other things, the satisfaction or waiver of certain conditions precedent relating to the company's assumption of existing NSR (net smelter return) royalties. The company has 30 days to satisfy such conditions precedent and the transaction will be automatically deemed closed and become effective upon PAAS's written acceptance of the company satisfying such conditions.

By reacquiring COSE, the company will consolidate its holding in the El tranquilo concession block, which holds the company's Cap Oeste project, together with several other prospects and mineral occurrences.

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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