Patagonia Gold Corrects Cost Metrics and Economic Results for the Calcatreu PEA

Patagonia Gold Corp. issued a correction to its Preliminary Economic Assessment (PEA) for the Calcatreu Gold-Silver Project, originally released on September 28, 2026. The revision addresses inadvertent errors in Cash Cost, All-In Sustaining Cost (AISC), after-tax NPV, IRR, payback period, and silver recovery assumptions. Key drivers of the revision include the exclusion of estimated income tax from Cash Cost and AISC to align with World Gold Council guidance, as well as a correction to the regional development tax calculation methodology.

Revised economic metrics show an increase in After-tax NPV (10%) from $334 million to $370 million. After-tax IRR increased from 282% to 315%, while the After-tax Payback Period decreased from 0.6 years to 0.5 years. Cash Cost decreased from $2,139/oz to $1,332/oz, representing an approximate 38% reduction. AISC decreased from $2,246/oz to $1,439/oz, an approximate 36% reduction.

The silver recovery assumption was corrected from 30% to 45%; however, this change was a disclosure error only and did not alter the underlying economic model's production or cost metrics. The upcoming NI 43-101 technical report will reflect these revised figures and is due within 45 days of the September 28, 2026 release.

Patagonia Gold Corp. (PGDC) announced a correction to its technical reporting that improves headline economics but is largely a reclassification of tax treatment per World Gold Council guidance and a disclosure fix regarding silver recovery percentage. The revision does not change the underlying production plan, capital expenditure, grade, or mine life.

The revision highlights a lack of internal controls over technical reporting, which warrants caution, but the financial and operational impact is immaterial to the company's current cash-burn phase.

Patagonia Gold Corp. (TSXV: PGDC) is an Argentina-focused precious metals producer and developer. Its flagship Calcatreu Project in Rio Negro is a low-sulfidation epithermal system currently in early production as a heap-leach operation. The Cap-Oeste Project in Santa Cruz is a producing asset engaged in residual heap-leach operations, with underground development under evaluation. In Santa Cruz, the La Manchuria gold/silver property is held by Astra Exploration, which has earned an 80% interest via an option agreement. The company also manages other assets, including Lomada de Leiva and Martha, both under care and maintenance, alongside various exploration targets.