Patagonia Gold Regulatory News (PGD)

Patagonia Gold PLC

("Patagonia Gold" or "the Company")

Grant of Options

On 31 January 2012 the Company's Remuneration Committee agreed to grant options over 4,000,000 ordinary shares of 1p each ("Ordinary Share") to certain Directors under the Company's share option arrangements.

The following grants of options to Directors were made:

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 42.5p per Ordinary Share.

Enquiries:

Bill Humphries/ Phil Yee/ Nigel Everest

Patagonia Gold Plc

Tel: +44(0)20 7409 7444

Angela Peace

Strand Hanson Limited

Tel: +44(0)20 7409 3494