Acquisition

RNS Number:4531T
HPD Exploration PLC
19 December 2003


                              HPD Exploration Plc
                            ("HPD" or the "Company")
     Completion of acquisition of the remaining 50% of Patagonia Gold S.A.,
    appointment of Directors, notification of significant shareholdings and
                            Directors Shareholdings

Further to the announcement on 2 December 2003, HPD today announces that
following the passing of the resolutions at the Extraordinary General Meeting of
the Company on 18 December 2003 and the admission of the consideration shares
today, the acquisition of Minera Puerto Madryn S.A. ("Minera") whose principal
asset is the remaining 50 per cent. of Patagonia Gold S.A. has been completed
("Acquisition").

The consideration for the acquisition of Minera was satisfied by the issue of
89,692,574 Ordinary Shares of 1p each in HPD representing 40 per cent. of the
enlarged issued share capital of HPD.

Two of the existing Directors of Minera, Mr. Carlos Miguens and Mr. Gonzalo
Tanoira, today join the HPD Board as Non-executive Deputy Chairman and Finance
Director respectively. Both Mr. Miguens and Mr. Tanoira were previously involved
in Brancote Holdings Plc's Esquel Gold Project in Argentina (further details are
set out below). The Company has been notified by Mr Miguens and Mr Tanoira that,
pursuant to section 324 of the Companies Act 1985 ("the Act") they are
interested in 34,378,262 and 3,717,997 ordinary shares of 1p each in the Company
respectively representing 15.3% and 1.7% of the enlarged issued share capital of
HPD.

The Board thanks Mr. Neil Herbert (Finance Director) and Mr. David Dare
(Non-executive Director), who will be retiring from the Board from today, for
their valued contributions to the successful development of HPD over the last
three years.

The Company has today received notice from two of the existing Directors,
Mr Richard Prickett and Mr William Humphries that, although the number of
ordinary shares in HPD in which they are interested remains unchanged, as a
result of the issue of the consideration shares they no longer have notifiable
interests pursuant to sections 198 to 210 of the Act.

The Company has been notified today that the following persons are interested in
ordinary shares of 1p each in the Company pursuant to sections 198 to 210 of the
Act:

Shareholder    Number of Ordinary Shares    Percentage of enlarged share capital
------------            ------------------               -----------------------
Carlos Miguens                34,378,262                                  15.3
------------            ------------------               -----------------------
Diago Miguens                 14,159,679                                   6.3
------------            ------------------               -----------------------
Maria Miguens                 15,810,949                                   7.1
------------            ------------------               -----------------------
Christina
Miguens                       14,159,679                                   6.3
------------            ------------------               -----------------------

Listed below are the current and past directorships of Gonzalo Tanoira, aged 34
and an Argentine national.

Current

S.A. San Miguel AGICIF
Inversiones Delta S.A.
MPV S.A.
Delta del Plata S.A.
Patagonia Gold S.A.
Minera Puerto Madryn S.A.
Minamalu S.A.
Leleque Exploracion S.A.
Huemules S.A.
Minera Nahuel Pan S.A.
La Salamandra S.A.
La Tienda del Encuentro S.A.
Aurora del Sur S.A.
Luz Editora S.A.
Alas de Aguila S.A.
Voyagio.com S.A.
Decolegios.com S.A.
GDS Net S.A.

Past

Minera El Desquite S.A.

Listed below are the current and past directorships of Carlos Miguens, aged 54
and an Argentine national

Current

Quilmes Industrial S.A.
Quilmes International (Bermuda)
Cerveceria Y Malteria Quilmes
Arfinsa Argentina Financiera S.A.
DDA de Inversiones S.A.
Diecisiete de Abril S.A. de Inversiones
Safac S.A.
Malteria Safac S.A.
Cerveceria Boliviana Nacional S.A.
Inversiones Cerveceras S.A.
Cerverceria Chile S.A.
Cerverceria Paraguay S.A.
Patagonia Gold S.A.
Minera Puerto Madryn S.A.
Minamalu S.A.
Leleque Exploracion S.A.
Huemules S.A.
Minera Nahuel Pan S.A.
Los Menucos S.A.
Cadiluna S.A.
Abrojo Alto S.A.
Cheyenne S.A.
MB Holdings S.A.
Mojame S.A.
MPV S.A.
Delta del Plata S.A.
Dinaluca S.A.
Agropecuaria Cantomi S.A.

Past

Minera El Desquite S.A.

There are no other matters to be disclosed pursuant to Schedule 2 paragraph (f)
of the AIM Rules in respect of the appointments.



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