Patagonia Gold Clarifies Recent Disclosure by Mirasol Resources

VANCOUVER, British Columbia, Oct. 06, 2023 (GLOBE NEWSWIRE) -- Vancouver, BC. Patagonia Gold Corp. ("Patagonia" or the "Company") (TSXV: PGDC) would like to clarify recent disclosure by Mirasol Resources Ltd. ("Mirasol") regarding termination of the option agreement in relation to the Homenaje property. On October 3, 2023, Mirasol announced that this agreement had been terminated and that Patagonia had failed to complete the exploration expenditures. While this is technically accurate, Mirasol failed to disclose that the Company delivered a default notice to Mirasol on June 9, 2023, due to the occurrence of a default as result of the presence of archaeological remains in the main area. This was disclosed by the Company in its MD&A for the quarter ending June 30, 2023, which was dated August 29, 2023. The MD&A also disclosed that the work had been put on hold as of June 30, 2023, and on July 11, 2023, the Company had provided notice to Mirasol that the agreement had been terminated based on that default.

Patagonia entered into the option agreement with Mirasol in April 2021 and had spent $105,000 before work was suspended because of the discovery of indigenous graves. From the date when work was suspended until the date that Patagonia terminated the agreement, the relevant authorities advised that no mining activity of any kind was permitted. Patagonia respects this decision as it values indigenous heritage and would not have it compromised.

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

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to: statements with respect to the impact of terminating the option agreement with Mirasol and the discovery of archaeological remains; 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 release.