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Patagonia Gold Second Quarter 2020 Financial Results and Filing of Restated Financial Statements and MD&A for Q3 2019

Financials

Patagonia Gold Second Quarter 2020 Financial Results

and Filing of Restated Financial Statements and MD&A for Q3 2019

October 15, 2020 Vancouver, B.C. Patagonia Gold Corp. (“Patagonia” or the “Company”)

(TSXV: PGDC) is pleased to announce its unaudited results for the fiscal period ended June

30, 2020 (“Q2 2020”). The financial statements toge ther with the management’s

discussion and analysis (“MD&A”) are available on the Company’s website and on SEDAR

at www.sedar.com.

Highlights

 Revenue of US$4.71 million and gross profit of US$0.8 million in Q2 2020.

 Total production of 2,268 gold ounces and 36,760 silver ounces in Q2 2020.

 Submitted application for preliminary environmental permit (the “Lomada Permit”)

for mining and leaching operations at Lomada de Lei va gold project and received a

Preliminary Permit on October 8, 2020.

 Completed a 76 line-km ground magnetic survey and 7 .7 line-km of pole-dipole

induced polarization-resistivity (IP/Res) at Calcatreu during Q2 2020.

 Completed a 480 line-km ground magnetic survey, cov ering 24 km 2, at La Josefina

gold/silver project during Q2 2020.

Christopher van Tienhoven, CEO commented: “Our team continues to maintain gold and

silver production at some of Patagonia’s projects generating cash flow for exploration and

development. We are continuing on our journey of be coming an intermediate mining

producer in a socially responsible manner committed to environmental sustainability and

the safety and health of our people.”

Patagonia also announces that it has filed restated condensed interim consolidated

financial statements and MD&A for the interim period ended September 30, 2019, which

are available on the Company’s profile on SEDAR at www.sedar.com. Subsequent to the

issuance of the condensed interim consolidated fina ncial statements for the three and

nine months ended September 30, 2019 on November 28 , 2019 on SEDAR at

www.sedar.com, the Company determined that there wer e errors related to the

accounting for the reverse acquisition of Hunt Mining Corp. completed on July 24, 2019,

as well as the conversion of several balances denom inated in foreign currencies. As a

result, balances reported in the Company’s condense d interim consolidated statements

of financial position and comprehensive income (loss) have been restated from amounts

previously reported. The Company also made additional presentation changes and note

disclosure improvements in the restated financial statements. Details of the changes are

fully described in Note 2 of the restated financial statements. The amended and restated

condensed interim consolidated financial statements and MD&A for the interim period

ended September 30, 2019 replace and supersede the previously filed interim financial

statements and MD&A for such period filed on November 28, 2019.

Qualified Person’s Statement

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

AusIMM, the qualified person as defined by National Instrument 43-101 has approved the

scientific and technical content of this press release.

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.

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, the Company’s future plans and intentions. Wher ever 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 st atements. 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 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 reasonabl e assumptions, the Company

cannot assure readers that actual results will be c onsistent with these forward-looking

statements. 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.