Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

October 10, 2007 09:33 ET

Palmarejo Silver and Gold Announces Further Drill Results From the Guadalupe Project

LONGUEUIL, QUEBEC--(Marketwire - Oct. 10, 2007) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) (the "Company") is pleased to announce results from the continuing reverse circulation (RC) and diamond drill program at its Guadalupe project, 7.0 kilometres southeast of the Palmarejo Project, in the Temoris District, Chihuahua, Mexico.

The Guadalupe project consists of a series of northeast dipping quartz veins that have been traced for more than 2,000 metres along strike. There are three main prospects located along the Guadalupe structure known from north to south as Guadalupe Norte, Guadalupe and Las Animas. A fourth prospect, El Salto, has been identified by surface mapping as a link structure between Las Animas and Guadalupe. El Salto has only been tested by near surface drilling.

Twenty three holes have been drilled for 2,042 metres of RC and 3,370 metres of diamond core (including three core continuations of RC, and one wedge hole), since the previous drilling update on 13 September 2007. Some of the better results from recent drilling are reported below as down hole intercepts. Where there is a difference between down hole and true width intercepts these are noted in the table of full assay results recorded below.



- TGDH150D 17.50 metres @ 0.91 g/t Au and 52 g/t Ag (1.8 g/t AuEq)
- TGDH156D 31.00 metres @ 3.59 g/t Au and 251 g/t Ag (7.8 g/t AuEq)
- TGDH159D 11.00 metres @ 2.07 g/t Au and 37 g/t Ag (2.7 g/t AuEq)
- TGDH161D 9.00 metres @ 0.87 g/t Au and 133 g/t Ag (3.1 g/t AuEq)
- TGDH163D 14.70 metres @ 0.99 g/t Au and 49 g/t Ag (1.8 g/t AuEq)
- TGDH164D 4.10 metres @ 1.72 g/t Au and 157 g/t Ag (4.3 g/t AuEq)
- TGDH165D 4.20 metres @ 11.63 g/t Au and 71 g/t Ag (12.8 g/t AuEq) and
1.60 metres @ 47.52 g/t Au and 402 g/t Ag (54.2 g/t AuEq)
- TGDH166D 7.00 metres @ 1.63 g/t Au and 184 g/t Ag (4.7 g/t AuEq) and
40.50 metres @ 1.39 g/t Au and 66 g/t Ag (2.5 g/t AuEq)
- TGDH184 6.09 metres @ 0.26 g/t Au and 481 g/t Ag (8.3 g/t AuEq)


Details of the drill hole locations are available at the following address: http://www.ccnmatthews.com/docs/10-10-07-drill%20hole%20details.pdf

Assay Results are available at the following address: http://www.ccnmatthews.com/docs/10-10-07-assay%20results.pdf

Notes:

- Assays have been calculated using a 1.0 g/t AuEq cut off, no top cut and a gold to silver price ratio of 1:60.

- Metallurgical recoveries and smelter returns are assumed to be 100%.

- QVBX equals quartz vein breccia, HYBX equals Hydrothermal breccia, CBBX equals Carbonate breccia.

- GPE equals Guadalupe and Guadalupe prospects, LA equals Las Animas

- # equals previously reported and included here for completeness.

- Bulked intercepts are calculated by weight averaging the grades between the given depths and incorporating a maximum dilution of 2 metres internal waste at less than the 1.0 g/t AuEq cut off.

- Results are awaited for drill holes TGDH153D, TGDH155D, TGDH158D, TGDH163D, TGHD174D, TGDH175D, TGHD178D to TGDH183 and TGDH185D to TGDH197.

The attached long section highlights the intercepts reported in this drilling update: http://www.ccnmatthews.com/docs/Longitudinal_10102007.pdf

Guadalupe results explained

At Las Animas, holes TGDH172D and TGDH176D were collared on the northern margin of the prospect and intersected narrow Ag-rich mineralization at high elevations along the structure.

At Guadalupe, hole TGDH184 intersected a Ag-rich, medium-grade mineralization at high elevations and proximal to shallow underground workings.

Holes TGDH161D and TGDH165D from deep GC1 at Guadalupe intersected medium- to high-grade mineralization hosted in the principal structure. Hole TGDH165D also intersected medium-grade mineralization hosted in a hanging wall structure. Both holes were collared approximately 170 metres southeast along strike of TGDH148D (1.54 metres @ 64.23 g/t Au and 94 g/t Ag).

At Guadalupe Norte, holes TGDH164D, TGDH164W and TGDH170D from GC2 were abandoned at the upper contact of quartz-carbonate veins due to natural cavities in the structure. All three holes intersected low- to medium-grade mineralization in the upper contact of the structure.

Hole TGDH159D from GC3 at Guadalupe Norte intersected medium- to low-grade mineralization hosted in principal and footwall structures. The hole twinned TGDH090 which was abandoned above of the footwall structure. Hole TGDH159D pierced both structures at higher elevations than TGDH115D (16.50 metres @ 1.83 g/t Au and 156 g/t Ag) and TGDH142D (22.50 metres @ 3.29 g/t Au and 193 g/t Ag).

Holes TGDH150D and TGDH163D located northwest of GC3 at Guadalupe Norte intersected wide, low- to medium-mineralization at high elevations along the structure. These holes were collared approximately 155 metres northwest along strike of TGDH115D and TGDH142D.

Holes TGDH156D and TGDH166D intersected medium-grade Ag-Au mineralization over significant intervals from the most northwest section at Guadalupe Norte. Hole TGDH166D pierced the principal structure 115 metres down-dip of TGDH156D. Hole TGDH155 was also collared from the same pad and intersected narrow, low-grade mineralization at high elevations along the structure. The hole was completed with a diamond core to explore for footwall structures (results are pending). All three holes were collared from the same pad which was located 80 metres northwest along strike of TGDH162D (33.50 metres @ 1.60 g/t Au and 106 g/t Ag).

Holes TGDH167 to TGHD169, TGDH171, TGDH173 and TGDH177 were collared from the Guadalupe footwall block and targeted partially exposed quartz-rich structures. All holes dominantly intersected shallow dipping, narrow, low- to medium-grade Ag-rich structures.

A total of 87 RC holes for 18,598 metres and 121 diamond core (including thirteen diamond core continuations of RC holes, and three wedge holes) for 40,620 core metres have been drilled at Guadalupe since drilling commenced in mid 2005.

Quality Assurance

The Company has put in place a rigorous QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and using best industry practice. The QA/QC program is independently supervised by Keith Blair, Msc, PGeo of Applied Geoscience of Reno, Nevada.

Elements of the program include chain of custody of samples, standard and blank samples submitted to ALS Chemex, with each batch of samples, and a check assay program on a proportion of sample pulps with a second laboratory. Results from the QA/QC program have to date been satisfactory.

Qualified Person

The technical information contained in this release was compiled in accordance with the Listing Rules of the Australian Stock Exchange Limited, by a competent person who is a corporate member of the Australasian Institute of Mining and Metallurgy and who has consented to the inclusion of such technical information in the form in which it appears in this release. The competent person is Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL, the Company's majority shareholder. Mr. Phillips is a qualified person under NI 43-101.

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including statements regarding resource estimates, potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed throughout the Company's Annual Information Form dated October 12, 2006 and particularly in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the NI 43-101 Technical Report dated September 17, 2007 and other documents available on SEDAR (www.sedar.com) or via the Company's website at (www.palmarejogold.com).

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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