Patagonia Gold Nears Production at Flagship Calcatreu Mine

VANCOUVER, BC – December 29, 2025 – Patagonia Gold Corp. is rapidly advancing its flagship Calcatreu project towards production, marking a significant milestone for the company and the Province of Rio Negro, Argentina. According to a recent update, construction is progressing on schedule, with the first extraction of gold and silver through leaching anticipated to begin in the first quarter of 2026. This development positions Calcatreu to become the first major precious metals mine in the province, transforming a promising exploration asset into a tangible, revenue-generating operation.

The project, located 85 kilometers south of the community of Ingeniero Jacobacci, is centered on a low-sulfidation epithermal system where gold and silver mineralization is accessible near the surface. After securing all necessary permits in late 2024, the company wasted no time, commencing construction in the first quarter of 2025 and initiating mining activities by August. The progress signals a clear path forward for a project estimated to hold substantial resources, with measured and indicated figures totaling 669,000 ounces of gold and 6.3 million ounces of silver.

From Groundbreaking to Stockpiling Ore

The journey from greenfield to a near-operational mine has been marked by a series of critical achievements over the past year. Following the start of construction, the operational tempo increased significantly. Mining activities formally began in August 2025 with the stripping of topsoil to access the ore body. This was quickly followed by the project's first blast in September, a pivotal moment that signified the start of ore extraction.

Since then, crews have been steadily mining and transporting mineralized material to a designated crushing area. This ore is being stockpiled in preparation for the next phase of the operation: processing. The company plans to begin placing this crushed ore onto the newly constructed leach pad in January 2026, setting the stage for the commencement of leaching operations. This steady, methodical progress underscores the project's disciplined execution and keeps it firmly on its timeline for initial production early next year.

Building the Backbone: Critical Infrastructure Takes Shape

A successful mining operation depends on a complex web of supporting infrastructure, and Patagonia Gold has made substantial headway in building out Calcatreu's operational backbone. A key component, the first section of the heap leach pad, has been completed. This large, engineered containment facility is where the crushed ore will be stacked and treated with a chemical solution to dissolve the precious metals. Before the ore is loaded, the pad will undergo rigorous electric leak location tests in January to ensure its integrity and prevent any environmental leakage, a standard for modern, responsible mining.

To support the leaching process, a chemical storage facility with a capacity of 120 tonnes was finished in December. The facility received its first major shipment of 80 tonnes of reagents on December 23, securing the necessary supplies for the initial phase of operations. In a move demonstrating its commitment to international best practices for safety and environmental stewardship, the company intends to certify the project under the International Cyanide Management Code. An audit by a certified professional is already scheduled for early January 2026.

Furthermore, the explosives storage magazine, capable of holding 75 tonnes of material, was completed in August. The blasting service itself has been strategically outsourced to Enaex, a leading regional supplier, allowing Patagonia to leverage specialized expertise for this critical function.

Powering the entire operation will be three 1-megawatt diesel generators, which have already been installed and tested. They are supported by a fuel storage facility with a 140,000-litre capacity, sufficient to serve both the power plant and the heavy mining fleet. On the human side, a camp with a total capacity for 192 people is nearing completion, with dining facilities and approximately half of the accommodations already commissioned and in use.

A Phased Approach to Processing

Patagonia Gold is implementing a pragmatic, two-phased strategy for its processing circuit to expedite the timeline to first revenue. The initial part of the plant, the carbon-in-column (CIC) section, is nearly finished and expected to be fully operational in January 2026. In this process, the gold-and-silver-laden solution from the leach pad will be passed through columns of activated carbon, which adsorbs the precious metals.

However, the downstream components of the plant—which include the elution circuit (to strip metals from the carbon), electrowinning (to plate the metals onto cathodes), and a furnace (to produce doré bars)—will be commissioned later. While these components, purchased from FLSmidth, are already erected on-site, the company will initially transport the loaded carbon to its existing processing facilities in the province of Santa Cruz on a tolling basis.

This interim solution allows Calcatreu to begin generating revenue without waiting for the entire on-site processing plant to be complete. The doré bars produced in Santa Cruz will then be transported back to Rio Negro for shipment to a refinery. The company anticipates the full, on-site downstream processing circuit at Calcatreu will become operational approximately six months after leaching begins, bringing the entire production cycle in-house.

Local Impact and a Regional First

The Calcatreu project is not just a corporate milestone; it represents a significant economic development for the Rio Negro province. As the first major precious metals project in the region, it is creating new opportunities and setting a precedent for resource development. The company has prioritized local hiring, with the majority of its current 135 employees recruited from the nearby town of Ingeniero Jacobacci and other communities within the province.

While most positions are filled locally, a limited number of specialized roles requiring prior experience in precious metals operations have been filled by personnel from other provinces where such expertise is more established. This approach combines local employment with the technical skill needed to launch a successful new mine.

Patagonia Gold has maintained a strong working relationship with neighboring communities and governmental authorities. Provincial officials conduct regular site visits and have expressed satisfaction with the project's progress and adherence to regulations. This collaborative spirit is crucial for ensuring the long-term success and social license of the operation.

Looking forward, the company is also focused on refining its understanding of the deposit. In the third quarter of 2025, it commissioned NCL Ingeniera y Construccion, a respected engineering firm, to update the project's mineral resource and mineral reserve estimates. This new technical report, prepared in accordance with National Instrument 43-101 standards, is expected to be released in the second quarter of 2026 and will provide the most current valuation of the mine's potential, superseding the previous report from 2018.