Mr. Christopher van Tienhoven reports

PATAGONIA GOLD PROVIDES UPDATE ON CALCATREU PROJECT

Patagonia Gold Corp. has provided an update regarding its Calcatreu project in Rio Negro province, Argentina.

On Aug. 19, 2026, following an inspection at Calcatreu, the Rio Negro Secretariat of Labour ordered the preventive, partial and temporary suspension of certain operational activities at the project.

The company is currently assessing the scope of the measure and is co-operating fully with the relevant provincial authorities to address the matters raised, with a view to resuming operations as soon as possible.

While the measure remains in effect, essential activities required for the maintenance and health and safety of the site will continue.

The company remains committed to the continued development of Calcatreu and to generating long-term value for its shareholders, employees, local communities and the province of Rio Negro.

The company will issue further statements and provide additional information as appropriate.

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 the 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 375 properties in an extensive portfolio of properties in several provinces of Argentina and is one of the largest landholders in the province of Santa Cruz, Argentina.

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