Mr. Christopher van Tienhoven of Patagonia reports

PATAGONIA GOLD ENTERS INTO OPTION AGREEMENT WITH ASTRA EXPLORATION INC. FOR EXPLORATION AND DEVELOPMENT OF LA MANCHURIA PROPERTY IN ARGENTINA

Patagonia Gold Corp. has entered into a binding letter agreement dated July 8, 2024, with Astra Exploration Inc. The option agreement grants Astra an option to earn up to a 90-per-cent undivided interest in the company's La Manchuria property in return for spending at least $3-million (U.S.) on the property and making a cash payment of $5-million (U.S.), as described below.

The property is the plus-5,600-hectare-sized, gold and silver property owned by Patagonia Gold SA (PGSA), a subsidiary of the company. The property is located within the prospective and permissive Deseado massif geologic region of the Santa Cruz province of southern Argentina. As disclosed in the technical report, the property has a mineral resource of 474,000 tonnes of indicated mineral resources grading 2.59 grams per tonne (g/t) of gold and 129 grams per tonne of silver and a further 1.84 million tonnes of inferred mineral resources grading 1.3 grams per tonne of gold and 40 grams per tonne of silver.

Summary of the terms of the option agreement

Pursuant to the option agreement, Astra has an option to earn up to a 90-per-cent managing, joint venture interest in the property over six years (subject to Astra's right to extend such time frame in accordance with the agreement) upon achievement of the earn-in obligations.

A 45-day due diligence period will commence once the company obtains the written approval (i) of the option from the holder of the existing 2.5-per-cent net smelter return (NSR) royalty over the property; and (ii) from the Santa Cruz provincial authorities for the company's updated work plan for the next five years on the property, which has been agreed to by the parties.

The earn-in obligations shall vest and commence on the date Astra delivers written notice to the company and PGSA confirming that it wishes to proceed with acquiring the option.

Astra will incur at least $3-million (U.S.) in staged expenditures (of which $150,000 (U.S.) over the first 12 months are non-discretionary) on and for exploration and development of the property by the 4th anniversary of the election date, subject to Astra's right to extend such time frame.

Upon satisfying the initial earn-in obligations, Astra will have a right to exercise the option to earn an 80-per-cent interest in the property. Following such exercise, Astra and PGSA will hold 80 per cent and 20 per cent, respectively, in a joint venture company holding the property.

Under the option, Astra may also acquire an additional 10-per-cent interest in the property by making a cash payment of $5-million (U.S.) to Patagonia within two years of Astra having earned an 80-per-cent interest in the property (subject to Astra's right to extend such time frame).

The company's interest in the property (its 10-per-cent or 20-per-cent interest, depending on whether the additional earn-in obligations have been satisfied) shall be carried until publication of a technical report prepared in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects) defining an inferred mineral resource, an indicated mineral resource, or a combination of inferred mineral resource and an indicated mineral resource, of one million ounces of gold equivalent (AuEq).

If either Party's interest is diluted below 10 per cent, such interest will be converted to a 1-per-cent NSR royalty.

Christopher van Tienhoven, chief executive officer of Patagonia, stated: "We are pleased to have joined with Astra for further exploration and development of the property, our gold and silver, exploration-stage property. This will allow the company's shareholders to realize value from further exploration and development of the property and permit the company to focus on its material projects, mainly Cap Oeste and Calcatreu."

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.

We seek Safe Harbor.