Loan Notes Conversion

RNS Number:0765S
Patagonia Gold PLC
01 March 2007


                                                                    1 March 2007



            BARRICK CONVERTS LOAN NOTES TO SHARES IN PATAGONIA GOLD


On 21 February 2007, Patagonia Gold Plc ("Patagonia Gold" or the "Company"), the
South American mining company, announced that it acquired Barrick Gold
Corporation's ("Barrick") entire exploration property portfolio in the Santa
Cruz province of Southern Argentina. Initial consideration for the acquisition
comprised a cash payment of US$800,000 and the issue by the Company of loan
notes, convertible into 30,345,160 new ordinary shares of 1p each in the Company
("New Ordinary Shares") representing 10% of the enlarged issued share capital of
Patagonia Gold.


Today Patagonia Gold is pleased to announce that on 28 February 2007 it allotted
the New Ordinary Shares to Barrick pursuant to the conversion by the noteholders
of the #2,162,092.65 of convertible loan notes (the "Loan Notes"), which were
issued by the Company on 20 February 2007. The Loan Notes converted at a price
of 7.125p per share.


Commenting on the announcement, Patagonia Gold's Chairman, Sir John Craven said:

"We are very pleased to welcome Barrick as a major shareholder in the Company.
We believe that their prompt conversion of the loan notes into shares in
Patagonia reflects their belief in our ability to develop the assets acquired by
us and we look forward to building a strong working relationship between the two
companies."


As a result of the conversion Barrick now has an interest in 30,345,160 Ordinary
Shares, representing 10 per cent of the Company's issued share capital as
enlarged by the issue of the New Ordinary Shares ("Enlarged Share Capital").

Application has been made for admission of the New Ordinary Shares to trading on
the AIM market of the London Stock  Exchange. It is expected that admission will
become effective and that dealings will commence in the New Ordinary  Shares on
5 March 2007. As of today's date Patagonia Gold has a single class of shares in
issue being ordinary shares  of 1 pence each ("Ordinary Shares") and there will
be 303,451,595 Ordinary Shares in issue, each carrying one vote per  Ordinary
Share.

The total number of voting rights in the Company's ordinary shares is therefore
303,451,595 which may be used by  shareholders as the denominator for the
calculations by which they will determine if they are required to notify their 
interest in, or a change to their interest in, Patagonia Gold under the
Financial Service Authority's Disclosure and  Transparency Rules.



For more information, please contact:

Bill Humphries / Richard Prickett            Anthony Cardew/Tim Robertson
Patagonia Gold Plc                           Tel: [phone]
Tel: + 44 (0)20 7409 7444                    Fax: [phone] 
www.patagoniagold.com                        Email:[e-mail]



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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