Update on Construction of Calcatreu Project

Core Viewpoint - Patagonia Gold Corp. is advancing the construction of its flagship Calcatreu project in Rio Negro, Argentina, with expectations to commence leaching in Q1 2026 [1][3]. Project Overview - The Calcatreu project is located 85 km south of Ingeniero Jacobacci and features a low sulfidation, epithermal gold and silver system with surface mineralization [2]. - The total measured and indicated mineral resources are estimated at 9.84 million tonnes with an average grade of 2.11 g/t Au and 19.8 g/t Ag, yielding approximately 669 thousand ounces of gold and 6.3 million ounces of silver [3]. Construction Progress - Construction began in Q1 2025 after receiving all necessary permits in Q4 2024, with mining activities starting in August 2025 [3]. - The explosives storage magazine was completed in August 2025, capable of storing 75 tonnes of explosives, and blasting services have been outsourced to Enaex [4]. - The first section of the leach pad has been completed, with electric leak location tests scheduled for January 2026 [4]. Chemical and Infrastructure Developments - A chemical storage facility with a capacity of 120 tonnes was completed in December 2025, with 80 tonnes of product already on site [5]. - The carbon in column section of the plant is nearing completion, expected to finish in January 2026, with plans to transport loaded carbon to Santa Cruz temporarily [6]. - Infrastructure includes a camp for 192 people, with half of the facilities commissioned and power sourced from three 1MW diesel generators [7]. Workforce and Community Engagement - The project currently employs 135 individuals, primarily recruited from Ingeniero Jacobacci and the surrounding region [8]. - The company maintains communication with local communities and authorities, who are satisfied with the project's progress [9]. Future Plans - The company has engaged NCL Ingeniera y Construccion to update the mineral resource and reserve estimates, with a new technical report expected in Q2 2026 [10].