PGDC Patagonia Gold Corp

Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) announces that it has entered into a new exploration and exploitation agreement with the Provincial State-owned mining company, Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz”) for certain properties in the Santa Cruz Province, Argentina, pursuant to which it has granted a net smelter returns royalty. The new agreement complements the corporate reorganization whereby the Company’s subsidiaries, Patagonia Gold SA (“PGSA”) and Cerro Cazador SA, merged and continued as one legal entity, previously announced in January 2020. The new agreement is expected to facilitate the development of an exploration program for the La Josefina and La Valenciana gold and silver projects. In addition, the agreement includes the option on a new property (the “Abril Project”) located adjacent to the Martha mine and plant, which is underexplored.

Highlights of this optimization include:

• Executed a new exploration agreement with an exploitation option with Fomicruz for the following three projects: the La Josefina project, the La Valenciana project and the Abril Project (the “Projects”).
• Executed a net smelter returns royalty agreement, pursuant to which Fomicruz is granted a 2% royalty on the mining properties that it has already contributed to PGSA and on the Abril Project, with the exception of the La Josefina project and the La Valenciana project, where Fomicruz is granted a 5% royalty.
• US$5,000,000 commitment to developing an exploration program for the Projects during a 2-year period beginning once the environmental permits for the exploration development of the Projects are obtained.
• Fomicruz reduced its interest in PGSA from 10% to 5% in accordance with the restructuring announced in January 2020.

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

For more information, please contact:Dean StuartT: 403 617 7609E: dean@boardmarker.net

Christopher van Tienhoven, Chief Executive OfficerPatagonia Gold CorpT: +54 11 5278 6950E: cvantienhoven@patagoniagold.com

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to, statements with respect to, among other things, the expectation that the new exploration agreement will facilitate the development of an exploration program for the La Josefina and La Valenciana gold and silver projects, the US$5,000,000 commitment to developing an exploration program for the Projects, 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.