Patagonia Gold Pours First Gold as Calcatreu Mine Enters Production

VANCOUVER, BC – April 29, 2026 – Patagonia Gold Corp. has officially joined the ranks of precious metal producers, a landmark achievement confirmed by the commencement of leaching operations at its flagship Calcatreu project in Argentina on March 31, 2026. This pivotal milestone, coupled with the release of its 2025 year-end financials, signals a fundamental transformation for the company, shifting its focus from exploration and development to revenue-generating mining operations.

The company reported revenues of US$9 million for the fiscal year ending December 31, 2025, derived from the production of 2,172 gold equivalent ounces. While these figures represent the company's existing smaller-scale operations, they now serve as a historical baseline for what is expected to be a dramatic upswing in output as Calcatreu ramps up.

A New Producer is Born in Rio Negro

The start of leaching at Calcatreu is the culmination of a year of intensive construction and strategic investment. Located in Argentina's Rio Negro province, the project is now the company's operational centerpiece. The transition was powered by a crucial US$40 million investment secured in April 2025 from Black River Mine Inc., a firm connected to major shareholder Carlos J. Miguens. This funding injection catalyzed the project's final development push.

Throughout 2025, the site was a hive of activity. Major milestones included the completion of the access road, camp facilities, and critical infrastructure such as the explosives magazine and power generation plant. Earthworks for the heap leach pad were finalized, followed by the intricate installation of the geomembrane liner. In a significant logistical move, the company refurbished and relocated a Carbon-in-Columns (CIC) plant from its past-producing Lomada de Leiva mine, readying it for service at Calcatreu.

Mining activities officially began in the latter half of 2025, with the first ceremonial blasts occurring on September 18. Since then, mineralized material from the Veta 49 deposit has been actively mined and stockpiled. By the time leaching commenced, the company had amassed over 91,300 tonnes of ore, with 73,300 tonnes already crushed and 18,800 tonnes stacked on the leach pad, ready for processing.

The Calcatreu deposit is a substantial low-sulfidation epithermal gold and silver system, with indicated mineral resources of 690,000 ounces of gold and inferred resources of 343,000 ounces. While the initial phase will involve transporting loaded carbon to facilities in Santa Cruz for toll processing, the company expects its on-site elution, electrowinning, and doré furnace circuits to be fully operational within approximately six months, which will streamline operations and reduce costs.

Financial Footing and Transformative Potential

The US$9 million in revenue and 2,172 gold equivalent ounces produced in 2025, while modest, provided a crucial financial stream during a capital-intensive year where approximately US$2 million was reinvested into its projects. These figures, generated from 1,265 ounces of gold and over 80,000 ounces of silver, underscore the company's ability to manage existing assets while executing a major development strategy.

However, the true story lies in the future. The production potential of Calcatreu dwarfs the company's 2025 output. Argentine government estimates have projected that the mine could reach an annual production of around 97,000 ounces of gold, representing a more than forty-fold increase over last year's gold equivalent production. This leap would not only generate significant revenue but could also decisively address the financial uncertainties that have previously faced the company. Financial statements from the end of 2024 had noted a working capital deficit and raised a material uncertainty about its ability to continue as a going concern—a common challenge for developers in the pre-production phase. The successful, funded launch of Calcatreu is the company's direct and powerful answer to that challenge.

Navigating the Argentine Mining Landscape

Patagonia Gold is deeply embedded in Argentina, holding mineral rights to over 375 properties and standing as one of the largest landholders in the prolific Santa Cruz province. The Calcatreu project, however, holds special significance as it is the first major metal mining project to enter the construction and production phase in the province of Rio Negro. This positions Patagonia Gold as a regional pioneer, with its progress likely to influence future investment and development in the area.

Recognizing the importance of a social license to operate, the company has emphasized its community engagement efforts, maintaining an open dialogue with local authorities and the nearby community of Ing. Jacobacci. This has reportedly fostered strong local support, bolstered by a focus on local hiring and proactive environmental communication, such as workshops on the safe handling and transport of materials like cyanide.

Operating in Argentina presents a unique mix of rich geological opportunity and complex economic and political realities. By successfully navigating the permitting process, securing substantial financing, and bringing a major project online, Patagonia Gold has demonstrated a capability to manage these dynamics effectively, setting a positive precedent for resource development in the region.

Market Focus Shifts to Execution

For investors, the narrative has now shifted from developmental promise to operational performance. The market has previously shown its enthusiasm for the Calcatreu story; news of the US$40 million financing in April 2025 caused the company’s stock (TSXV: PGDC) to surge 43% to a new high. The commencement of production is a far more tangible milestone and is expected to draw significant attention.

The investment community will now be watching for a new set of key performance indicators: the successful ramp-up of leaching operations, quarterly production figures, and all-in sustaining costs (AISC) as the mine matures. Another highly anticipated event is the release of an updated NI 43-101 technical report for Calcatreu, which is expected in the second quarter of 2026. This report will provide a fresh, comprehensive assessment of the project's economics and resource base, offering a clearer picture of its long-term value.

With the construction phase now in the rearview mirror, Patagonia Gold enters a critical new era. The focus is no longer on if they can build the mine, but on how efficiently they can run it. The coming months will be instrumental in proving the operational capabilities of the Calcatreu project and demonstrating its potential to be a cornerstone asset for the company and a significant contributor to the regional economy.