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PGDC.V ·

Commencment of Normal Course Issuer Bid

Corporate Actions

COMMENCMENT OF NORMAL COURSE ISSUER BID

February 19, 2020 Vancouver, B.C. Patagonia Gold Corp. (“ Patagonia ” or the “ Company ”)

(TSXV: PGDC) announces that it has received approval from the TSX Venture Exchange

(“ TSXV ”) of its Notice of Intention to Make a Normal Course Issuer Bid (the “ NCIB ”). Under

the NCIB, the Company may purchase for cancellation up to 15,897,199 common shares

(the “ Shares ”) (representing approximately 5% of its 317,943,990 issued and outstanding

common shares as of February 17, 2020) over a twelv e month period commencing on

February 21, 2020. The NCIB will expire no later than February 20, 2021.

Patagonia believes that from time to time, the mark et price of its common shares may

not reflect their underlying value and that the pur chase of its common shares may

represent an appropriate and desirable use of corporate funds. The Company intends to

fund the purchases out of available cash.

All purchases made pursuant to the NCIB will be made through the facilities of the TSXV.

The NCIB will be made in accordance with the applica ble rules and policies of the TSXV

and applicable Canadian securities laws. Under the N CIB, Shares may be repurchased in

open market transactions on the TSXV, in privately negotiated transactions or by such

other means as may be permitted by the TSXV and app licable Canadian securities laws.

The price that Patagonia will pay for Shares in open market transactions will be the market

price at the time of purchase. Any Shares that are purchased under the NCIB will be

cancelled. The actual number of Shares that may be purchased and the timing of such

purchases will be determined by the Company. Decisi ons regarding purchases will be

based on market conditions, share price, best use of available cash, and other factors.

Patagonia has appointed Canaccord Genuity Corp. to make purchases under the NCIB on

its own behalf.

About Patagonia Gold

Patagonia Gold Corp. is a mining and development com pany listed on the TSX Venture

Exchange. The Company seeks to grow shareholder val ue through exploration and

development of gold and silver projects in the Pata gonia 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, i ndirectly through its subsidiaries or

under option agreements, has mineral rights to over 350 properties in several provinces

of Argentina and Chile and is one of the largest landholders in the Province of Santa Cruz,

Argentina.

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For more information, please contact:

Dean Stuart

T: 403 617 7609

E: [email protected]

Christopher van Tienhoven, Chief Executive Officer

Patagonia Gold Corp

T: +54 11 5278 6950

E: [email protected]

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited

to, statements about the Company’s focus on growing shareholder value and the

development of the Cap Oeste underground project, the commencement of the Calcatreu

feasibility study, advancement of the Calcatreu pro ject, the commencement of the

proposed NCIB, the acquisition of Shares pursuant to the NCIB and the Company’s future

plans and intentions. 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 infor mation 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-loo king statements. These factors should

be considered carefully and readers should not plac e undue reliance on the forward-

looking statements. Although the forward-looking st atements 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 statemen ts 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 release.