VANCOUVER, British Columbia, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) announces corrections to the Cash Cost¹ and All-In Sustaining Cost¹ (“AISC”) figures, the after-tax net present value (“NPV”), internal rate of return (“IRR”), payback period, and the silver recovery assumption disclosed in its news release dated September 28, 2026 announcing the results of the independent Preliminary Economic Assessment (“PEA”) for the Calcatreu Gold-Silver Project (“Calcatreu” or the “Project”) in Río Negro Province, Argentina.

The Cash Cost and AISC figures presented in the September 28, 2026 news release inadvertently included estimated income tax. Income tax is excluded from Cash Cost and AISC under the methodology used by the Company, which is based on World Gold Council’s Guidance Note on Non-GAAP Metrics – All-In Sustaining Costs and All-In Costs. The Company also corrected the calculation of the regional development tax in the PEA model. The previous calculation inadvertently applied the respective gold and silver tax rates to total revenue, rather than applying each rate separately to the corresponding metal’s revenue.

The silver recovery assumption was incorrectly reported in the September 28, 2026 news release as 30% instead of the 45% already used in the PEA economic model. This correction relates solely to the disclosure of that assumption and does not change the modelled silver production, cost metrics or economic results.

The previously reported and revised figures for the PEA are as follows:

Figures are rounded. Cash Cost and AISC are projected life-of-mine averages, expressed per ounce of gold and net of silver by-product credits.

The exclusion of estimated income tax from Cash Cost and AISC is a presentation correction and does not affect the underlying after-tax economic analysis. The correction to the regional development tax calculation reduces the projected Cash Cost and AISC, shortens the projected after-tax payback period and increases the projected after-tax NPV and IRR through its effect on the underlying cash flows. Income tax remains included in the after-tax economic analysis.

Together, the exclusion of estimated income tax and the correction to the regional development tax calculation reduce the previously reported Cash Cost by approximately 38% and AISC by approximately 36%. The revised figures in the table above supersede the corresponding figures disclosed in the September 28, 2026 news release.

The PEA outlines an approximately 16-year mine life, a revised after-tax NPV at a 10% discount rate of approximately US$370 million, a revised after-tax IRR of approximately 315%, and a revised after-tax payback period of approximately 0.5 years, based on gold and silver prices of US$3,500/oz and US$35/oz, respectively. The mine life and metal price assumptions remain unchanged.

The economic analysis still indicates that the Project’s NPV is most sensitive to changes in the gold price and comparatively less sensitive to changes in capital costs, operating costs and the discount rate. (See Figure 1 and Table 2 below)

Figure 1: Percent change in NPV with changes in Metal Price, Capex, Opex, and Discount Rate ¹

¹ Base Case (0% change) metal prices per troy ounce were US$3,500 for gold and US$35 for silver.

Table 2: Changes in NPV with changes in Metal Price, Capex, Opex and Discount Rate ²

² Base case metal prices of US$3,500 for gold and US$35 for silver and 10% discount rate.

Christopher van Tienhoven, Chief Executive Officer of the Company, commented:

“We are providing these corrections to ensure that the cost metrics, economic results and silver recovery assumption disclosed for Calcatreu accurately reflect the PEA. The revisions exclude estimated income tax from Cash Cost and AISC and correct the regional development tax calculation, resulting in revised cost metrics, after-tax NPV, IRR and payback figures. The silver recovery correction relates solely to the previously disclosed percentage, as the economic model already used the correct assumption of 45%.”

Technical Report

The technical report being prepared in accordance with National Instrument 43-101 (“NI 43-101”), which was referenced in the September 28, 2026 news release and will be filed on the Company’s SEDAR+ profile within 45 days of such news release, will reflect the revised Cash Cost, AISC, after-tax NPV, after-tax IRR and after-tax payback period disclosed herein, together with the silver recovery assumption of 45% already incorporated in the PEA economic model.

Preliminary Economic Assessment Cautionary Statement

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized. As previously disclosed, the PEA incorporates an updated Mineral Resource Estimate (“MRE”), which contains approximately: 1.50 million tonnes of measured mineral resources grading 3.03 g/t of gold and 23.1 g/t of silver; 5.28 million tonnes of indicated mineral resources grading 2.39 g/t of gold and 23.1 g/t of silver; and 6.44 million tonnes of inferred mineral resources grading 1.54 g/t Au and 15.5 g/t Ag.

Qualified Persons

Donald J. Birak, an independent consulting geologist, Registered Member of SME and Fellow of AusIMM and Carlos Guzmán, Registered Member of the Chilean Mining Commission and Fellow of AusIMM, each a Qualified Person as defined by NI 43-101, have reviewed and approved the scientific and technical information in this news release.

For more information, please contact:

Christopher van Tienhoven
Chief Executive Officer
Patagonia Gold Corp.
T: +54 11 5278 6950
E: cvantienhoven@patagoniagold.com

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding the results and conclusions of the PEA, including the projected mine life, after-tax NPV, after-tax IRR and after-tax payback period; the sensitivity analysis and the illustrative sensitivity cases, including the effects of changes in metal prices, capital costs, operating costs and the discount rate; the underlying assumptions relating to metal prices, production, recoveries, operating and capital costs, taxes and other economic parameters; the potential development and economic performance of the Project; the anticipated timing for filing the NI 43-101 technical report and the expectation that the technical report will reflect the revised measures disclosed in this news release; the potential expansion of mineral resources through further exploration; and planned exploration, technical, permitting and development activities.

Forward-looking statements are based on management’s expectations, estimates and assumptions as at the date of this news release, including assumptions regarding the accuracy of the MRE and the geological, metallurgical, engineering, financial and economic assumptions underlying the PEA; metal prices, foreign exchange rates and metallurgical recoveries; mine plans, production schedules and processing rates; capital and operating costs; taxes, royalties and discount rates; the availability of labour, equipment, supplies, infrastructure and financing; the receipt of required permits and approvals; and the timely completion and filing of the technical report.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. These include the preliminary nature of the PEA and its reliance in part on inferred mineral resources; the uncertainty that the results of the PEA will be realized; uncertainties inherent in mineral resource estimates; fluctuations in commodity prices and foreign exchange rates; variations in recoveries, production, capital and operating costs; inflation and cost escalation; financing, permitting, environmental and regulatory risks; construction, development, operational and technical risks; political, legal, fiscal and social risks in Argentina; title, surface-rights and community-relations risks; exploration risks; and the other risks described in the Company’s public disclosure documents filed on SEDAR+.

Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, no assurance can be given that they will prove to be correct. Readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement, except as required by applicable securities laws.

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 news release.

^{1 Cash Cost and AISC are non-IFRS measures. These measures have no standardized meaning under IFRS and may not be comparable to similar measures used by other issuers. The figures presented are projected life-of-mine averages derived from the PEA economic model and therefore these prospective non-IFRS financial measures may not be reconciled to the nearest comparable measure under IFRS. These measures are expressed per ounce of gold and net of silver by-product credits, excluding estimated income tax. Additional information regarding these measures and their calculation will be included in the technical report being prepared to support the PEA.}

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/de25ec01-b757-4830-8be1-2713ef4e21f3

Figure 1:

Percent change in NPV with changes in Metal Price, Capex, Opex, and Discount Rate (1)

© 2026 Canjex Publishing Ltd. All rights reserved.