News Releases

DRILLING UPDATE CAP-OESTE GOLD-SILVER PROJECT LOMADA PROGRESS REPORT SANTA CRUZ PROVINCE, ARGENTINA

Highlights:
- The 2010/11 infill and extension drilling campaign on the Cap-Oeste gold and silver deposit is now complete. Incoming results continue to be extremely encouraging, with bonanza gold and high silver grades intersected in a newly discovered zone, including 8.91 metres at 70.79 grams per tonne (g/t) gold and 518 g/t silver in drill-hole CO-285.
- Drilling is continuing on the Cap-Oeste deposit, which remains open along strike in both directions and down plunge. Drilling is also being carried out on La Pampa, COSE east and other prospects along the six kilometre strike extension of the Cap- Oeste Project.

DRILLING UPDATE MONTE LEON GOLD-SILVER PROSPECT SANTA CRUZ PROVINCE, ARGENTINA

Highlights:
- Drilling at Monte Leon has intersected wide near surface zones of potentially bulk mineable gold and silver mineralization over a strike length of 1 kilometre, including 74 metres at 1.07 grams per tonne (g/t) gold and 102g/t silver in drill-hole MLN-003.
- The zones intersected correlate to the wide low grade intersections reported from trenching indicating good vertical continuity. Geological interpretation indicates the wide zones may become more focused at depth. The mineralization remains open along strike to the north and south and down plunge.
- An Induced Polarization (IP) geophysical survey has been initiated to provide IP coverage in the area from the Cap-Oeste project to Monte Leon, a distance of 10 kilometres, and from Monte Leon to the Marciana prospect, a further 7 kilometre to the south east, giving a total IP coverage of 24 kilometres within the known Cap- Oeste. Corridor.
- A substantial follow-up drill program will commence in Q3 to infill the current drilled area and to test for extensions both along strike and down plunge.

DRILLING UPDATE CAP-OESTE GOLD-SILVER PROJECT SANTA CRUZ PROVINCE, ARGENTINA

Highlights:
- The 2010/11 infill and extension drilling campaign on the Cap-Oeste gold and silver deposit is now 95% complete and on target for finalising by the end of June. An NI 43- 101 compliant resource update will then be completed, scheduled for reporting in Q3.
- Drilling on the E shoot located 150 metres south along strike from the Main shoot and within the Cap-Oeste deposit, continues to intersect high grade gold and silver, including 13.30 metres @ 8.58 grams per tonne (g/t) gold and 508 g/t silver in drill- hole CO-213. E shoot, together with the Main, B and C shoots, remains open at depth.
- Drilling will continue throughout the Austral winter months, aimed at extending the above shoots down plunge and further test the La Pampa, Tango and other prospects along the six kilometre strike extension of the Cap-Oeste Project.

PROGRESS REPORT LOMADA GOLD PROJECT SANTA CRUZ PROVINCE, ARGENTINA

- Patagonia Gold Plc (PGD) is pleased to announce the successful commissioning of the the Lomada trial heap leach pad and processing facility with gold now being accumulated onto activated carbon. The project has been completed within time and budget.
- Expansion of the trial heap leach pad from the current 50,000 tonnes x 6 metres high to 180,000 tonnes x 12 metres high has commenced with earthworks and liner placement completed. Ore loading and irrigation of the expansion is planned to commence Q3 2011.