Mr. Christopher van Tienhoven reports

PATAGONIA GOLD CORP. GRANTS INCENTIVE STOCK OPTIONS

Patagonia Gold Corp. has granted an aggregate of eight million incentive stock options under the company's stock option plan to the directors of the company, 3.5 million incentive stock options to certain officers of the company and 3.8 million incentive stock options to members of senior management of the company as part of a long-term incentive plan.

All of the options are exercisable for a period of five years at a price of 3.5 cents. The options vest as to one-third on each of the first, second and third anniversary of the date of the option grant.

The stock option plan allows for the issuance of up to 10 per cent of the issued and outstanding shares of the company in the form of options. As of the date hereof, a total of 465,051,490 shares of the company are issued and outstanding, and the option grant represents approximately 3.3 per cent of the issued and outstanding shares.

About Patagonia Gold Corp.

Patagonia is a South America-focused, publicly traded mining company listed on the TSX Venture Exchange. The company seeks to increase 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 415 properties in several provinces of Argentina and is one of the largest landholders in the province of Santa Cruz, Argentina.

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