Patagonia Gold to Reacquire COSE Property From Pan American Silver

Patagonia Gold Corp.

Patagonia Gold Corp.

VANCOUVER, British Columbia, Feb. 27, 2024 (GLOBE NEWSWIRE) — Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) announces that it has agreed to reacquire the COSE property (“COSE”) from Pan American Silver Corp. (“PAAS”).

On February 27, 2024, the Company entered into an agreement (the “Agreement”) pursuant to which it agreed to reacquire COSE in exchange for assuming PAAS’s costs and liabilities in relation to COSE (the “Transaction”). 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 ongoing 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 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

Patagonia Gold Corp. 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.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to, statements with respect to, among other things, the Transaction, including satisfying the conditions precedent to closing, the advancement and development of gold and silver projects in the Patagonia region of Argentina, and the anticipated growth in shareholder value. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

CONTACT: For more information, please contact: Christopher van Tienhoven, Chief Executive Officer Patagonia Gold Corp. T: +54 11 5278 6950 E: cvantienhoven@patagoniagold.com



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