Patagonia Gold Announces Positive Preliminary Economic Assessment for the Calcatreu Gold-Silver Project

VANCOUVER, British Columbia, Sept. 28, 2026 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce the results of an updated independent Preliminary Economic Assessment (“PEA”) for its flagship Calcatreu Gold-Silver Project (“Calcatreu” or the “Project”), located in Río Negro Province, Argentina.

Prepared in accordance with National Instrument 43-101 (“NI 43-101”) by NCL Ingeniería y Construcción SpA (“NCL”), the PEA incorporates an updated Mineral Resource Estimate (“MRE”) and provides an independent assessment of Calcatreu’s long-term technical and economic potential. The PEA outlines an approximately 16-year mine life, an after-tax NPV (10%) of approximately US$334 million, an after-tax IRR of approximately 282% and a payback period of approximately 0.6 years, based on gold and silver prices of US$3,500/oz and US$35/oz, respectively, and estimated life-of-mine production of approximately 483,000 ounces of gold and 3.25 million ounces of silver.

Highlights

• After-tax NPV (10%) of approximately US$334 million, with an after-tax IRR of approximately 282% and a 0.6-year payback period.
• Approximately 16-year mine life, with estimated life-of-mine production of approximately 483,000 ounces of gold and 3.25 million ounces of silver.
• Initial capital requirement of approximately US$52.5 million, of which approximately US$30.7 million was incurred during 2025.
• Approximately 84% of plant feed during the first five years is sourced from Measured and Indicated mineral resources.
• The updated MRE 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 (Table 1).
• The current mine plan incorporates Veta 49, Nelson, Belén, Piche Sur and Castro Sur and remains subject to further optimization, including opportunities to smooth annual production over the mine life.
• Additional mineralized structures and exploration targets have been identified across the broader Calcatreu District, and the deposits included in the MRE remain open for expansion at depth and variably along strike.
  

Christopher van Tienhoven, Chief Executive Officer of Patagonia, commented on the PEA results:

“The PEA provides an updated independent assessment of Calcatreu following several years of technical work and investment by Patagonia Gold. The assessment outlines a long-life operation supported by an updated MRE, with approximately 84% of leach pad feed during the first five years sourced from Measured and Indicated mineral resources.” (Table 1)

“The current mine plan is based on only five deposits within the broader, 62,900 hectare-sized Calcatreu property; Veta 49, Nelson, Piche Sur, Belén and Casto Sur. In addition to advancing the current operation, we intend to continue evaluating opportunities to expand the mineral resource base through further exploration, metallurgical and other technical work across our large, land position.”

Table 1. Mineral Resource Estimate (MRE), Calcatreu Deposit, COG 0.50 g/t AuEq

Classification	Quantity	Grade		Contained Metal
	Tonnes	Au	Ag	Au	Ag
	(kt)	(g/t)	(g/t)	(koz)	(koz)
Measured
Veta 49	1,087	3.60	25.3	126	883
Nelson Sur	247	1.40	18.0	11	143
Nelson West	107	1.69	15.1	6	52
Nelson Norte	29	1.65	11.0	2	10
Piche Sur	29	1.80	24.8	2	23
Nelson Central	-	-	-	-	-
Belén	-	-	-	-	-
Castro Sur	-	-	-	-	-
Total Measured	1,499	3.03	23.1	146	1,111
Indicated
Veta 49	4,129	2.61	25.2	346	3,344
Nelson Sur	464	1.44	16.2	21	241
Nelson West	397	1.57	13.9	20	177
Nelson Norte	186	1.75	10.8	10	64
Piche Sur	91	2.24	29.1	7	85
Nelson Central	9	2.08	18.6	1	5
Belén	-	-	-	-	-
Castro Sur	-	-	-	-	-
Total Indicated	5,276	2.39	23.1	406	3,917
Measured and Indicated
Veta 49	5,216	2.82	25.2	472	4,227
Nelson Sur	711	1.42	16.8	33	385
Nelson West	504	1.60	14.1	26	229
Nelson Norte	214	1.74	10.8	12	74
Piche Sur	120	2.13	28.1	8	108
Nelson Central	9	2.08	18.6	1	5
Belén	-	-	-	-	-
Castro Sur	-	-	-	-	-
Total Measured + Indicated	6,774	2.53	23.1	552	5,028
Inferred
Veta 49	1,966	1.74	15.4	110	975
Nelson Sur	27	1.16	15.4	1	13
Nelson West	188	1.48	11.9	9	72
Nelson Norte	60	1.71	11.6	3	22
Piche Sur	20	2.37	31.0	2	20
Nelson Central	11	1.26	9.0	0	3
Belén	479	1.73	26.0	27	401
Castro Sur	3,691	1.41	14.3	167	1,702
Total Inferred	6,441	1.54	15.5	319	3,208

Notes:

1. Metal prices used were US3,500 and US$35 per gold and silver ounce, respectively;
2. All mineral resources are pit constrained;
3. Effective date of the mineral resource estimate (“MRE”) is January 14, 2026;
4. “g/t“ is grams per tonne (metric);
5. The cutoff grade, in g/t, for the mineral resource estimation was 0.5 g/t gold equivalent (“AuEq”) determined with the following formula, AuEq g/t = Au grade g/t + (Ag grade g/t / (Au price/Ag price);
6. Tonnes and contained troy ounces are rounded to the nearest tonne and ounce. Gold and silver grades are rounded to 2 and 1 decimal points, respectively; and
7. The MRE and PEA 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, and there is no certainty that the preliminary economic assessment will be realized.
   

Metal prices used in the MRE and PEA were based on trailing 3-year averages for gold and silver.  Spot prices as of the date of this press release were US$4,284.20 and US$64.16 per troy ounce of gold and silver, respectively.

LOM Project Economics

The PEA envisions conventional open-pit mining operations, using crushing, heap leaching and carbon-in-column (“CIC”) processing to produce gold-silver doré. (Table 2)

Table 2. PEA Results

Parameter	Value
Mine Life (LOM Years)	~16
Initial capex (US$ M)	$52.5
Sustaining capex (US$ M)	$47
After-tax NPV (@10%)	$334
After-tax IRR (%)	282
Payback (Years)	0.6
LOM Gold Recovered (K ounces)	483
LOM Silver Recovered (M ounces)	3.25
Heap Leach Recoveries (%)
Gold	63
Silver	30
Cash Cost (US$/troy ounce)	$2,139
AISC (US$/troy ounce)	$2,246

Approximately 84% of plant feed during the first five years is sourced from measured and indicated mineral resources. Of the approximately US$52.5 million initial capital estimate, approximately US$30.7 million was incurred during 2025. The PEA also estimates additional sustaining capital of approximately US$47 million over the LOM.

The economic analysis 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. (Figure 1 and Table 3)

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 3. 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.

Figure 2.  Calcatreu site map showing the Veta 49, Nelson, Belén and Castro Sur pit outlines, waste dumps and leach pad

Exploration and Growth Potential

The production schedule evaluated in the PEA incorporates four deposits — Veta 49, Nelson, Belén and Castro Sur — within the broader Calcatreu district.

The District hosts additional mineralized structures and exploration targets outside the deposits currently incorporated into the LOM. The PEA identifies potential resource growth from additional exploration near the current deposits and across the broader district as an opportunity.

Accordingly, continued exploration success may provide opportunities to expand the mineral resource base and potentially extend and/or optimize the mine plan beyond that currently contemplated in the PEA.

Preliminary Economic Assessment Cautionary Statement

The PEA is preliminary in nature and is partly based on 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, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Technical Report

The technical report prepared in accordance with NI 43-101 supporting the PEA and updated MRE referenced in this news release will be filed under Patagonia’s profile on SEDAR+ within 45 days of the date of this news release.

Qualified Persons

Donald J. Birak, an independent consulting geologist, Registered Member of SME and Fellow of AusIMM; Carlos Guzmán, Registered Member of the Chilean Mining Commission and Fellow of AusIMM; Luis Oviedo, Registered Member of the Chilean Mining Commission; and the other applicable Qualified Person(s) identified in the final Technical Report, each a Qualified Person as defined by NI 43-101, have reviewed and approved the scientific and technical information in this news release for which they are responsible.

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; the potential development and economic performance of the Project; the proposed mine plan, production schedule, mining and processing methods and anticipated recoveries; projected mine life, production, operating costs, capital expenditures, NPV, IRR and payback period; opportunities to optimize or extend the mine plan; the potential expansion of mineral resources through further exploration; planned exploration, technical, permitting and development activities; and the timing for filing the supporting technical report. Forward-looking statements are generally identified by words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “should” and “will”, and similar expressions.

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 Company’s ability to conduct exploration and technical work as planned.

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.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/b15d0355-3a63-4da9-b316-467617752572

https://www.globenewswire.com/NewsRoom/AttachmentNg/408e9938-3e72-4b97-90ff-9d30d6278a49

https://www.globenewswire.com/NewsRoom/AttachmentNg/a0926501-4e5a-4d2d-acea-fc47ed1cbd4c