Closing of Debt Conversion

VANCOUVER, Oct. 30, 2020 - Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce the closing of the debt conversion transaction (the “Debt Conversion”) previously announced on October 20, 2020. Pursuant to the Debt Conversion, the Company converted an aggregate of US$10 million of outstanding debt owed by the Company to Tim Hunt and his related parties and issued 44,040,277 common shares (“Shares”) to a related party of Mr. Hunt (the “Acquiror”) at price of approximately $0.30 per Share.

Early Warning Disclosure

As a result of the Debt Conversion, the Acquiror acquired beneficial ownership and control and direction over a total of 44,040,277 Shares, which represents 12.17% of the outstanding Shares on an undiluted basis. Prior to the completion of the Debt Conversion, Mr. Hunt and his related parties (which includes the Acquiror) owned, directly and indirectly, 53,653,625 Shares, representing 16.88% of the then outstanding Shares. Accordingly, the Debt Conversion represents an increase in his ownership from 16.88% to 27% of the outstanding Shares on an undiluted basis. Mr. Hunt also holds 1,000,000 options of the Company exercisable into 1,000,000 Shares and which, when aggregated with the Shares he holds, would represent a total of 27.2% of the Shares on a partially diluted basis. The acquisition of Shares in connection with the Debt Conversion was in the ordinary course of business and for investment purposes. Mr. Hunt and/or the Acquiror may increase or decrease their beneficial ownership of Shares or other securities of the Company in accordance with applicable securities legislation. A copy of the Early Warning Report in relation to the Debt Conversion can be obtained from the Company (please contact Matias Argarate at +54 11 5278 6950) or on the SEDAR profile of the Company at www.sedar.com.

About Patagonia Gold

Patagonia Gold Corp. is a mining and development 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. 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 365 properties in several provinces of Argentina and Chile and is one of the largest landholders in the province of Santa Cruz, Argentina.

For more information, please contact:

Dean Stuart
T: 403 617 7609
E: dean@boardmarker.net

Christopher van Tienhoven
Chief Executive Officer

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 release.