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PGDC.V ·

Patagonia GOLD Corp. Grants Stock Options

Share Capital & Compensation

PATAGONIA GOLD CORP. GRANTS STOCK OPTIONS

August 14, 2020 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)

(TSXV: PGDC) is pleased to announce that it has granted an aggregate of 9,600,000 stock

options (each, an “Option”) under the Company’s sto ck option plan (the “Stock Option

Plan”), including 2,500,000 Options to the directors of the Company, 3,500,000 Options

to certain officers of the Company, and 3,600,000 O ptions to members of senior

management (the “Option Grant”).

All of the Options are exercisable for a period of five years at a price of $0.16. The Options

vest as to one-third on each of the first, second a nd third anniversary on of the date of

the Option Grant.

The Stock Option Plan allows for the issuance of up to 10% of the issued and outstanding

shares of the Company in the form of Options. As of the date hereof, a total of

317,943,990 shares of the Company are issued and out standing and the Option Grant

represents approximately 3.0% of the issued and outstanding shares.

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 360 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 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 press release contains certain forward-looking statements, including, but not limited

to, statements relating to the vesting of Options, statements about the Company’s focus

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on growing shareholder value and the development of the Cap Oeste underground project,

advancement of the Calcatreu project and the Compan y’s future plans and intentions.

Wherever possible, words such as “may”, “will”, “sh ould”, “could”, “expect”, “plan”,

“intend”, “anticipate”, “believe”, “estimate”, “pre dict” or “potential” or the negative or

other variations of these words, or similar words o r 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-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.