Mining Developments In The Province Of Chubut, Argentina

VANCOUVER - Patagonia Gold Corp. reported recent developments related to permitting mining activities in the Province of Chubut, Argentina. The legislature of the Province of Chubut passed a bill to amend the provincial mining law to enable open pit mining within a given area that comprises the Gastre and Telsen Departments.

Patagonia holds approximately 473,485 hectares (ha) (4,735 square kilometers (kms)) of mining concessions in Chubut, which includes a 100% interest in the Mina Angela property. This newly approved law regarding mining zoning is expected to enable the Company to advance the development of 101,151 ha of its mining concessions, including Mina Angela, while the remaining 372,334 ha of its mining concessions in Chubut are outside the area that is subject to the new zoning law.

The Mina Angela property, which the Company acquired under an option in March, is located on the northern border of the Province of Chubut and is secured by 44 tenements totaling 2,100 ha with historic mine production of over 1.04 million tonnes of material grading 4 grams per tonne (“g/t”) Au and 48 g/t Ag along with base metals including lead, zinc and copper. Navidad, one of the largest silver deposits in the world owned by Pan American Silver Corporation, is located 45 kms south of Mina Angela.

Development of mining activities at Mina Angela and within the area that is subject to the new zoning law is also subject to governmental regulatory processes - including the regulatory decree under the new zoning law to be passed by the provincial executive branch, which is pending at present - and subsequent provincial permitting.