The Lomada gold deposit, located south-southeast of the community of Perito Moreno. in the western part of the Deseado Massif, is a classic, low-sulfidation epithermal mineral system. Precious metal mineralization at Lomada is hosted in a NNE-striking, steeply ESE-dipping structure (the “Main Breccia”). -Low sulphidation, epithermal gold system hosted in a NNEstriking, steeply ESE-dipping structure (Main Breccia) - Previous mining occurred from a portion of the Main Breccia over a 600 m strike, up to 20 m width and more than 150 m in depth. Although the Patagonia has commenced extraction of minerals at the Lomada properties, the Patagonia does not have defined mineral reserves as defined under Regulation S-K and therefore mining propertie is considered to be in the exploration stage.

Lomada is located in the La Paloma property block approximately 120 kilometers to the north of the El Tranquilo property block in the Santa Cruz province of Argentina.

The Lomada mine was closed in May 2016 while production from the ongoing leaching continues, though at a reduced output. Given that the mineralized material from the Lomada open pit mine was originally placed on the heap leach pad without crushing, the Company decided to return to Lomada to reprocess this mineralized material. However, in mid-February 2019 the Company took the decision to cease operations and proceed with the closure of Lomada. During the year ended December 31, 2020, the Company was working on re-handling material of leach pad to regenerate the solution percolation and generate new channels of circulation of solution.

The Company received the final approval in November 2019 and started with the work of remediation at the end of 2019. Following receipt of a preliminary permit in October 2020, the Company restarted operations at Lomada. The mine is currently operating at a rate of 120,000 tonnes/month of total material. In the leach pad area, road construction has been completed and new mineralized material is being placed on the pad to be leached.

A 50,000 tonne trial heap leach operation used feed from surface mining onsite and tested according to specification during 2011. This trial pad has since been expanded to 135,000 tonnes and irrigation was completed during 2012. Permission was received to expand the pad further to 315,000 tonnes in conjunction with the construction of the fully permitted main heap leach pad.

Construction of the first stage of the Lomada main heap leach pad is well advanced and on target for commencement of operations in late second quarter of 2013. The total pad area has been stripped of topsoil, which is being stacked for later rehabilitation purposes. Earthworks for infrastructure, holding and containment dams are under way. The plastic membrane and irrigation pipework for the expansion area have been delivered. The textured liner for the main pad, plus associated pumps and minor steel piping, are scheduled for installation in the second quarter of 2013. The gold-laden, or “preg ........