Patagonia Gold Plc Announces Lomada de Leiva Update

TORONTO, Oct. 17, 2012 /CNW/ - Patagonia Gold Plc (TSX: PAT, AIM: PGD) ("Patagonia Gold" or "the Company") today announced an update on its Lomada de Leiva project ("Lomada Project"). Further to the Company's half yearly report, the Company now anticipates that final approval of the Environmental Impact Assessment ("EIA") submitted by the Company in June 2012 in connection with the development of the main heap leach at Lomada, and accordingly the final permit, will be granted by the Secretary of Mining, Santa Cruz Province in Q4 2012.

About Patagonia Gold
Patagonia Gold Plc is an advanced mining exploration company that seeks to grow shareholder value through the acquisition, exploration and development of gold and silver projects in the southern Patagonia region of Argentina. The Company is primarily focused on the development of three projects: the flagship Cap-Oeste project, which has yielded large scale exploration results, the nearby COSE project, which is expected to begin generating free cash flow in 2013, and the Lomada project, which is expected to begin gold production in the fourth quarter of 2012. Patagonia Gold, indirectly through its subsidiaries or under option agreements, has mineral rights to over 220 properties in several provinces of Argentina and Chile, being one of the largest landholders in the province of Santa Cruz. The Company is headquartered in London, with subsidiary offices in Buenos Aires and Toronto.

Patagonia Gold is listed on the Toronto Stock Exchange (TSX) under the symbol PAT and has been listed on the AIM market of the London Stock Exchange under the symbol PGD since 2003.

Cautionary Statement Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable securities legislation. Forward looking information includes, but is not limited to, statements about the commencement of underground mining operations at the COSE project, forecasts as to free-cash flow, strategic plans, mineral resources estimates, future operations, results of exploration, future works programs, capital expenditures and objectives. Forward-looking information is necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's public disclosure. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Patagonia Gold plc