Update: Lomada de Leiva

PATAGONIA GOLD PLC

Trading Symbol PGD.L

Update: Lomada de Leiva

Patagonia Gold, ("the Company") (AIM: PGD, TSX: PAT), announces an update on its Lomada de Leiva project ("Lomada Project"). Further to the Company's half yearly report, the Company now anticipates that final approval of the Environmental Impact Assessment ("EIA") submitted by the Company in June 2012 in connection with the development of the main heap leach at Lomada, and accordingly the final permit, will be granted by the Secretary of Mining, Santa Cruz Province in Q4 2012.

Contact Information

Bill Humphries, CEO

Patagonia Gold Plc

Tel: +44 (0)20 7409 7444

Philip Yee, CFO

Patagonia Gold Plc

Tel: +1 (416) 572 2007

Colin Languedoc

Barnes Communications Inc.

Tel: +1 (416) 367-5000

Simon Raggett / Angela Hallett

Strand Hanson Ltd

Tel: +44 (0)20 7409 3494

Rory Scott

Mirabaud Securities LLP

Tel: +44 (0)20 7484 3510

David Bick / Mark Longson

Square 1 Consulting

+44 (0)20 7929 5599