Mr. Christopher van Tienhoven reports

PATAGONIA GOLD ENTERS INTO OPTION AGREEMENT WITH NEWMONT CORPORATION

Patagonia Gold Corp. has entered into a binding letter agreement dated April 1, 2025, with Oroplata SA, an Argentine subsidiary of Newmont Corp. The option agreement grants Newmont an option to acquire a 100-per-cent undivided interest in the company's Tornado and Huracan gold and silver properties, including a separate exploration permit named El Diablo, in return for making aggregate cash payments of $1.5-million (U.S.), as described below.

Summary of the terms of the option agreement:

• The term of the option is six years.
• Option period: The price to be paid by Newmont for the granting of the right to explore the properties and to purchase the option is as follows:
  • $50,000 (U.S.) payable to the company within five days from the execution of the option agreement;
  • $50,000 (U.S.) payable on the day that is 12 months after closing;
  • $100,000 (U.S.) payable on the day that is 24 months after closing;
  • $100,000 (U.S.) payable on the day that is 36 months after closing;
  • $100,000 (U.S.) payable on the day that is 48 months after closing;
  • $100,000 (U.S.) payable on the day that is 60 months after closing.
• Exercise of the option: Newmont can exercise the option and acquire the properties at any time within the term of the option by:
  • Paying $1-million (U.S.) to the company;
  • Paying any outstanding amount of the option price;
  • Granting a net smelter return royalty to the company, derived from all future production from the properties, based on the following applicable percentage of NSR: (i) 1 per cent if the gold price is less than $1,499 (U.S.); (ii) 1.5 per cent if the gold price is between $1,500 (U.S.) and $2,999 (U.S.); and (iii) 2 per cent if the gold price is above $3,000 (U.S.).
• Newmont shall have the option to terminate the option agreement at any time after giving the company not fewer than 60 days written notice of termination.

About the properties

The company obtained the properties, other than El Diablo permit, in 2019, through an application submitted to the provincial mining department, and they are 100 per cent owned by the company and have no royalty obligations other than the provincial royalties. Limited exploration work has been carried out on the properties.

The properties are approximately 11,900 hectares in size and are owned by Minera Minamalu SA, a subsidiary of the company. The properties are located within the prospective Deseado massif geologic region of the Santa Cruz province in southern Argentina, situated approximately 60 kilometres to the south-southeast of the community of Perito Moreno in the northwest portion of the province, and are located between the multimillion-ounce producing San Jose/Huevos Verdes and Cerro Negro mines operated by Hochschild Mining PLC/ McEwen Mining Inc. and Newmont, respectively.

The company completed 3,102 metres of diamond drilling in nine core holes in Tornado and Huracan, which returned anomalous mineralization with values up to 0.59 gram per tonne gold over 8.8 drill metres (see results issued in a May 18 and a May 27, 2022, press release at the Patagonia website and under the company's SEDAR+ profile).

Christopher van Tienhoven, chief executive officer of Patagonia, stated: "Newmont is the right candidate to take on the properties to explore and develop their potential. Patagonia is focused on the development of its Calcatreu property in Rio Negro and looking at alternatives for the development of Cap Oeste underground in Santa Cruz. The company continues to streamline its large property portfolio and evaluating further joint venture engagements and potential disposal of non-strategic properties."

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.

About Patagonia Gold Corp.

Patagonia is a South America-focused, publicly traded mining company listed on the TSX Venture Exchange. The company seeks to increase 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 415 properties in several provinces of Argentina, and is one of the largest landholders in the province of Santa Cruz, Argentina.

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