Mr. Christopher van Tienhoven reports

UPDATE ON CONSTRUCTION OF CALCATREU PROJECT

Patagonia Gold Corp. has provided this update on construction of the Calcatreu project in the province of Rio Negro, Argentina (please see the company's prior update news release dated Dec. 29, 2025.

Construction work resumed on Jan. 5, 2026, following a short hiatus over the holiday period. Approximately 40,000 tonnes of mineralized material, extracted from the new Veta 49 pit, have been stockpiled and 5,200 tonnes of said mineralized material are expected to be stacked on the leach pad after electric leak detection tests are performed later this month. This represents a key milestone as the project moves closer to the commencement of leaching operations.

Construction of the carbon-in-column (CIC) circuit of the plant resumed and is also expected to be finalized this month. Once leaching and processing of the stockpiled material commence, the resulting metal dore will be shipped to Asahi Refining Canada in Ontario, Canada.

The new camp for the project is being commissioned and dining facilities for 140 people were recently completed -- both of which strengthen the project's operational capacity.

NCL Ingenieria y Construccion Ltda. continues to advance a technical report prepared in accordance with National Instrument 43-101 on the project, which is expected to be released in Q2 2026 and will provide the market with an updated technical basis for the project.

Qualified person statement

Donald J. Birak, an independent consulting geologist, a registered member of SME (Society for Mining, Metallurgy and Exploration), a fellow of AusIMM (Australasian Institute of Mining and Metallurgy) and a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release. Mr. Birak's most recent site visit was in October, 2025.

About Patagonia Gold Corp.

Patagonia Gold 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 Calcatreu and development of the Cap-Oeste underground project in Santa Cruz. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 375 properties in several provinces of Argentina and is one of the largest landholders in the province of Santa Cruz, Argentina.

We seek Safe Harbor.