Grant of Options

28 July 2014

Patagonia Gold PLC

("Patagonia Gold" or "the Company")

Grant of Options

On 25 July 2014, the Board agreed to grant options over 7,000,000 ordinary shares of 1p each ("Options") under the Company's share option arrangements, of which 4,000,000 Options were granted to a Director, being Bill Humphries, Managing Director. The Options are exercisable (in whole or in part) at any time up to the tenth anniversary of the date of grant and are exercisable at a price of 7.875p per ordinary share, being the closing mid-market share price on 25 July 2014.

Following the grant of Options, Mr. Humphries is interested in 17,500,000 options over ordinary shares in the Company.

Enquiries:

Bill Humphries

Managing Director

Patagonia Gold Plc

Tel: +44 (0)20 7409 7444

David Bick / Mark Longson

Square 1 Consulting

+44 (0)20 7929 5599

Angela Hallett/James Spinney

Strand Hanson Limited

Tel: +44 (0)20 7409 3494

Rory Scott

Mirabaud Securities LLP

Tel: +44 (0)20 7484 3510