Mr. Christopher van Tienhoven reports

UPDATE ON CONSTRUCTION OF CALCATREU PROJECT

Patagonia Gold Corp. has provided an update on the construction of the Calcatreu project, the company's flagship project in the province of Rio Negro, Argentina.

The project is located in the southern portion of the Rio Negro province, 85 kilometres south of the community of Ingeniero Jacobacci. The project is centred on a low-sulphidation, epithermal gold and silver system with mineralization outcropping at the surface.

Upon receipt of all permits in Q4 2024, construction of the project commenced in Q1 2025 and is advancing toward first leaching, which the company expects to commence during Q1 2026. Mining activities commenced in August, 2025, with the removal of topsoil, and the first blast was made in September, 2025. Mineralized material is being stockpiled in the crushing area and processing will soon start with a view to placing the material on the leach pad during January, 2026. The total measured and indicated mineral resources are estimated at 9.84 million tonnes at an average grade of 2.11 grams per tonne gold and 19.8 grams per tonne silver, yielding 669,000 ounces of gold and 6.3 million ounces of silver.

The explosives storage magazine was completed in August, 2025, and has capacity to store 75 tonnes of explosives. The blasting service has been outsourced to Enaex, a leading and well recognized supplier in the region.

The first section of the leach pad, necessary to commence leaching, has been completed and during January, 2026, electric leak location tests will be performed. Thereafter, loading of mineralized material will commence with the material previously mined and stockpiled to date.

The chemical storage facility, with capacity to hold 120 tonnes of product, was completed in December, 2025. On Dec. 23, 2025, 80 tonnes arrived on site and are being stored on the project premises. The company intends to certify the project with the Cyanide Code and a visit by one of its auditors is planned for early January, 2026.

The carbon-in-column section of the plant is nearing completion and is expected to be finished during the month of January, 2026. While the elution, electrowinning and furnace components purchased from FL Smith have arrived and were erected at the project, the company will temporarily transport loaded carbon to its facilities in Santa Cruz on a tolling basis. The dore will then be transported to Rio Negro, where it will be shipped to the refinery. It is expected that the downstream components of the plant will be operational at the project approximately six months after commencing operations.

In terms of infrastructure, a camp with a total capacity for 192 people is nearing completion, with approximately half of the facilities already commissioned together with the food facilities. Electrical power will be sourced from three one-megawatt diesel generators that have already been installed and tested together with fuel storage capacity for 140,000 litres that will both serve the power plant and mining fleet.

Calcatreu currently has 135 employees, the majority of whom have been recruited from the neighbouring town, Ingeniero Jacobacci, or within the province of Rio Negro. A limited number of specialized positions are being filled by personnel from other provinces, where prior precious metals operating experience is available, as Calcatreu represents the first precious metals project to be developed in Rio Negro.

The company continues to work with the neighbouring communities and local and provincial authorities and keeps them informed as to the development of the project. The corresponding provincial authorities visit the project on a regular basis and are happy with the progress being made.

In Q3 2025, the company engaged NCL Ingeniera y Construccion to update the project's mineral resource and mineral reserve estimates in a new technical report, to be prepared in accordance with National Instrument 43-101, which report is intended to supersede the technical report (as defined below) and which the company hopes to release during Q2 2026.

Qualified person statement

Donald J. Birak, an independent consulting geologist, a registered member of SME (Society for Mining, Metallurgy and Exploration), a fellow of AusIMM (Australasian Institute of Mining and Metallurgy) and a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release. Mr. Birak's most recent visit to the project was in October, 2025.

Additional information about the project and the mineral resources referred to in this news release are available in the technical report prepared in accordance with NI 43-101, entitled "NI 43-101 Technical Report, Mineral Resource Estimate, Calcatreu Gold-Silver Project, Rio Negro Province, Argentina," dated effective Dec. 31, 2018, which is available under the company's profile on SEDAR+.

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 375 properties in several provinces of Argentina and is one of the largest landholders in the province of Santa Cruz, Argentina.

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