Mr. Christopher van Tienhoven reports

PATAGONIA GOLD CORRECTS COST METRICS AND ECONOMIC RESULTS FOR THE CALCATREU PEA

Patagonia Gold Corp. has made corrections to the cash cost and all-in sustaining cost (AISC) figures, the after-tax net present value (NPV), internal rate of return (IRR), payback period and the silver recovery assumption disclosed in its news release dated Sept. 28, 2026, announcing the results of the independent preliminary economic assessment (PEA) for the Calcatreu gold-silver project in Rio Negro province, Argentina.

The cash cost and AISC figures presented in the Sept. 28, 2026, news release inadvertently included estimated income tax. Income tax is excluded from cash cost and AISC under the methodology used by the company, which is based on World Gold Council's Guidance Note on Non-GAAP Metrics -- All-In Sustaining Costs and All-In Costs. The company also corrected the calculation of the regional development tax in the PEA model. The previous calculation inadvertently applied the respective gold and silver tax rates to total revenue, rather than applying each rate separately to the corresponding metal's revenue.

The silver recovery assumption was incorrectly reported in the Sept. 28, 2026, news release as 30 per cent instead of the 45 per cent already used in the PEA economic model. This correction relates solely to the disclosure of that assumption and does not change the modelled silver production, cost metrics or economic results.

The previously reported and revised figures for the PEA are as shown in the attached table.

The exclusion of estimated income tax from cash cost and AISC is a presentation correction and does not affect the underlying after-tax economic analysis. The correction to the regional development tax calculation reduces the projected cash cost and AISC, shortens the projected after-tax payback period, and increases the projected after-tax NPV and IRR through its effect on the underlying cash flows. Income tax remains included in the after-tax economic analysis.

Together, the exclusion of estimated income tax and the correction to the regional development tax calculation reduce the previously reported cash cost by approximately 38 per cent and AISC by approximately 36 per cent. The revised figures in the table above supersede the corresponding figures disclosed in the Sept. 28, 2026, news release.

The PEA outlines an approximately 16-year mine life, a revised after-tax NPV at a 10-per-cent discount rate of approximately $370-million (U.S.), a revised after-tax IRR of approximately 315 per cent and a revised after-tax payback period of approximately 0.5 year, based on gold and silver prices of $3,500 (U.S.)/oz and $35 (U.S.)/oz, respectively. The mine life and metal price assumptions remain unchanged.

The economic analysis still indicates that the project's NPV is most sensitive to changes in the gold price and comparatively less sensitive to changes in capital costs, operating costs and the discount rate.

Christopher van Tienhoven, chief executive officer of the company, commented: "We are providing these corrections to ensure that the cost metrics, economic results and silver recovery assumption disclosed for Calcatreu accurately reflect the PEA. The revisions exclude estimated income tax from cash cost and AISC and correct the regional development tax calculation, resulting in revised cost metrics, after-tax NPV, IRR and payback figures. The silver recovery correction relates solely to the previously disclosed percentage, as the economic model already used the correct assumption of 45 per cent."

Technical report

The technical report being prepared in accordance with National Instrument 43-101, which was referenced in the Sept. 28, 2026, news release and will be filed on the company's SEDAR+ profile within 45 days of such news release, will reflect the revised cash cost, AISC, after-tax NPV, after-tax IRR and after-tax payback period disclosed herein, together with the silver recovery assumption of 45 per cent already incorporated in the PEA economic model.

Preliminary economic assessment cautionary statement

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized. As previously disclosed, the PEA incorporates an updated mineral resource estimate (MRE), which contains approximately: 1.50 million tonnes of measured mineral resources grading 3.03 g/t of gold and 23.1 g/t of silver; 5.28 million tonnes of indicated mineral resources grading 2.39 g/t of gold and 23.1 g/t of silver; and 6.44 million tonnes of inferred mineral resources grading 1.54 g/t Au and 15.5 g/t Ag.

Qualified persons

Donald J. Birak, an independent consulting geologist, registered member of SME and fellow of AusIMM, and Carlos Guzman, registered member of the Chilean Mining Commission and fellow of AusIMM, each a qualified person as defined by National Instrument 43-101, have reviewed and approved the scientific and technical information in this news release.

We seek Safe Harbor.