Exercise of Options

8 March 2011

Patagonia Gold Plc

('Patagonia Gold' or the 'Company')

Exercise of Options

The Company announces that, following the exercise of share options, application has been made for the admission of 300,000 ordinary shares of 1p each in the Company ("New Ordinary Shares") to trading on AIM. The New Ordinary Shares will rank pari passu with existing ordinary shares and it is expected that admission will occur at 8.00 a.m. on Monday 14 March 2011.

Following admission of the new shares, the total number of voting rights in the Company's ordinary shares will be 676,377,783.

Enquiries:

Richard Prickett / Nigel Everest

Patagonia Gold Plc

Tel: +44 (0)20 7409 7444

Simon Raggett / Angela Peace/ Rory Chichester

Strand Hanson Limited

Tel: +44(0)20 7409 3494