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Patagonia GOLD Announces Mining Developments IN Province of Chubut, Argentina

Corporate Updates

PATAGONIA GOLD ANNOUNCES

MINING DEVELOPMENTS IN PROVINCE OF CHUBUT, ARGENTINA

December 17, 2021 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)

(TSXV: PGDC) announces recent developments related to permitting mining activities in

the Province of Chubut, Argentina. On December 15, 2021, the legislature of the Province

of Chubut passed a bill to amend the provincial mining law to enable open pit mining

within a given area that comprises the Gastre and Telsen Departments. This new law

regarding mining zoning was subsequently promulgated on December 16, 2021 by the

Chubut Governor, Mariano Arcioni.

Patagonia holds approximately 473,485 hectares (“ha”) (4,735 square kilometers (“kms”))

of mining concessions in Chubut, which includes a 100% interest in the Mina Angela

property. This newly approved law regarding mining zoning is expected to enable the

Company to advance the development of 101,151 ha of its mining concessions, including

Mina Angela, while the remaining 372,334 ha of its mining concessions in Chubut are

outside the area that is subject to the new zoning law.

The Mina Angela property, which the Company acquired under an option in March 2021,

is located on the northern border of the Province of Chubut and is secured by 44

tenements totaling 2,100 ha with historic mine production of over 1.04 million tonnes of

material grading 4 grams per tonne (“g/t”) Au and 48 g/t Ag along with base metals

including lead, zinc and copper. Navidad, one of the largest silver deposits in the world

owned by Pan American Silver Corporation, is located 45 kms south of Mina Angela.

Development of mining activities at Mina Angela and within the area that is subject to the

new zoning law is also subject to governmental regulatory processes - including the

regulatory decree under the new zoning law to be passed by the provincial executive

branch, which is pending at present - and subsequent provincial permitting.

Qualified Person’s Statement

Donald J. Birak, an independent geologist, Registered Member of SME, Fellow of AusIMM

and a qualified person as defined by National Instrument 43-101, has reviewed and

approved the scientific and technical content of this news release.

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

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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 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 with respect to, among other things, the expectation that the Company will

advance the development of its mining concessions, including Mina Angela, that are

within the area that is subject to the new zoning law, and that such development remains

subject to governmental processes, including the regulatory decree to be passed by the

provincial executive branch, and provincial permitting, 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.