Patagonia Gold plc provided progress update for its Lomada de Leiva, Cap-Oeste/COSE and La Manchuria projects in the Santa Cruz province, Argentina. Lomada de Leiva: Preparation works for the 200,000 tonne expansion of the existing trial heap leach pad were completed in late March 2013 with loading of mineralised material, irrigation and production of gold in progress. Cap-Oeste/COSE: Drilling in the structural corridor between the Cap-Oeste and COSE deposits continues to intersect wide zones of gold-silver mineralisation with drill-hole CSE-091 intersecting 66.6m at 2.04 grammes per tonne (g/t) gold and 36.18 g/t silver. La Manchuria: Drilling has recommenced at La Manchuria with 4,000 metres of extension and exploration drilling scheduled for completion in the second quarter of 2013.

Patagonia Gold plc announced that expansion of the existing processing plant is in progress and will increase throughput to 160 cubic metres per hour of gold-laden solution flowing from the heap leach pad. Meanwhile, camp and mine facilities construction are nearing completion. Principal mining equipment, including a Liebherr R974 excavator and three Volvo A40F dump trucks, have been received on site and will commence operations in April 2013.

Patagonia Gold plc announced preliminary consolidated earnings results for the year ended December 31, 2012. For the year, finance income was $4,929,000 against $228,000 for the same period a year ago. Loss before taxes was $21,251,000 against $33,167,000 for the same period a year ago. Loss for the year was $20,775,000 against $33,167,000 for the same period a year ago. Basic and diluted loss per share was $0.03 against $0.05 for the same period a year ago. Net cash used in operating activities was $21,149,000 against $25,181,000 for the same period a year ago. Purchase of property, plant and equipment was $6,059,000 against $7,503,000 for the same period a year ago. Additions to mineral properties were $2,255,000 against $4,988,000 for the same period a year ago.