Paragon Minerals Corporation

Paragon Minerals Corporation

January 22, 2007 13:34 ET

Paragon and Crosshair Expand High-Grade Gold Mineralization at Golden Promise Project

-Jaclyn Main Zone extended by 150 metres; assays up to 20.65 g/t gold over 1.60 metres- -Phase 1 drilling at Victoria Lake outlines Multiple Prospective VMS Environments-

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 22, 2007) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to announce that drill results from the partner-funded, Phase 2 drill program at the Golden Promise Project, located 35 kilometres west of Grand Falls-Windsor in central Newfoundland, continues to expand the high grade gold mineralization at the Jaclyn Main Zone.

Paragon is also pleased to report the results of the partner funded, Phase 1 drill program at the Victoria Lake VMS Project, situated approximately 120 kilometres southwest of Grand Falls-Windsor. This first phase of drilling has successfully outlined multiple zones of intensely altered, sulphide-bearing felsic volcanic rocks that are strongly suggestive of a volcanogenic massive sulphide (VMS) environment.

The Golden Promise Project is being explored under the terms of an option agreement between Paragon and Crosshair Exploration and Mining Ltd. ("Crosshair"), whereby Crosshair can earn a 60% interest by spending $4.0 million over four years including $750,000 firm in the first year of the agreement. Previous drilling has identified a significant gold-bearing vein system at the Jaclyn Main Zone. The current drill program is aimed at further testing the Jaclyn Main Zone and extending its strike and depth extent.

The Victoria Lake Project is under option to Crosshair Exploration and Mining Corp. ("Crosshair") (TSX VENTURE:CXX) whereby Crosshair can earn a 60% interest by spending $1.75 million over four years. Previous exploration on the property has identified a significant geological environment that is highly permissive for volcanogenic massive sulphide (VMS) base-metal deposits similar to those seen elsewhere in the Victoria Lake volcanic belt.

Golden Promise Project Drilling

Paragon and partner Crosshair have completed 1,582 metres (7 drill holes) of a planned 3000 metres drill program which is focused on expanding the gold mineralization of the Jaclyn Main Zone. To date, the Phase 2 drill program has extended the known gold mineralization an additional 150 metres to the east. The Jaclyn Main Zone is interpreted to have a moderate easterly plunge and now extends over a 625 metre strike length and to a depth of 225 metres. The Zone is open along strike and to depth. All seven drill holes completed to-date have intersected the Jaclyn Main Zone over widths of up to 6.85 metres (core length) with visible gold recognized in five of the intercepts. Significant results include:

GP06-62: 8.31 g/t gold over 1.20 metres, including 21.50 g/t gold over 0.45 metres;

GP06-63: 5.58 g/t gold over 0.40 metres and 1.16 g/t gold over 0.40 metres and 3.02 g/t gold over 0.40 metres;

GP06-65: 20.65 g/t gold over 1.60 metres, including 55.03 g/t gold over 0.60 metres;

GP06-66: 11.90 g/t gold over 1.05 metres, including 21.87 g/t gold over 0.55 metres;

GP06-68: 4.74 g/t gold over 1.45 metres, including 11.57 g/t gold over 0.55 metres.

Drill results continue to demonstrate the presence and continuation of the high-grade gold mineralization of the Jaclyn Main Zone. Drilling resumed on January 8th to complete the remaining 1,418 metres (6 holes) of the Phase 2 drill program on the Golden Promise Property.

Victoria Lake Project Drilling

A total of eleven drill holes (2,197 metres) were completed in four grid areas, three of which are underlain by highly prospective volcanic rocks similar to those hosting the nearby Boomerang Cu-Pb-Zn massive sulphide deposit being explored by Messina Minerals. Three of the grid areas tested, the Long Lake, Swamp, and Henry Waters, intersected up to 153 metre wide intervals of strongly altered and mineralized (locally up to 50% semi-massive to stringer pyrite containing minor base metal sulphides) volcanic rocks indicative of a proximal massive sulphide system. Borehole EM is being considered by Crosshair for several holes to help guide future drilling.

The strongest alteration and sulphide mineralization was returned from the Long Lake target area where five drill holes, totaling 1,315 metres were completed. Drill hole LL-06-03 intersected 153 metres of strongly altered felsic volcanic rock containing up to 25% disseminated to stringer sulphide mineralization including minor base metal sulphides. Drill hole LL-06-05, located approximately 500 metres to the southwest of LL-06-03 showed a significant increase in alteration and mineralization over 122 metres with local, up to 50% semi-massive bands over narrow intervals. Anomalous base metal mineralization was encountered within the altered sections.

Four drill holes (567 metres) were completed on the Swamp Grid, located approximately 5 kilometres north of the Long Lake grid. All four drillholes intersected intensely altered and pyritic felsic volcanic rocks containing significant concentrations of disseminated to stringer zinc mineralization. The best results were from drill hole SG-06-04 where up to 1.29% zinc, 0.52% zinc, 0.59% zinc and 0.55% zinc was intersected in four 0.50 metre wide intervals within a 63 metre sequence of altered felsic volcanic package. A single drill hole (134 metres) on the Henry Waters Grid returned 1.31% zinc over a 1.0 metre interval within a broader, 52-metre thick zone of altered and sulphide-bearing felsic volcanic rocks.

This first phase of drilling on the Victoria Lake property was very successful in outlining multiple zones of strongly altered, sulphide-bearing felsic volcanic rocks that are suggestive of a significant volcanogenic massive sulphide environment The property is located in a belt of highly prospective rocks with known prospects and deposits of high grade Cu-Pb-Zn-Au-Ag mineralization. The encouraging results from this widely spaced drilling program will be followed up with additional drilling.

The Golden Promise Project work is being carried out by David Mullen, Consulting Geologist to Paragon and supervised by Qualified Person David Copeland, M.Sc., P.Geo. All drill holes were NQ size. Core samples were cut in half on site and half of each sample interval was shipped to Eastern Analytical Limited of Springdale, Newfoundland for gold analysis. Gold assays were carried out by metallic screen fire assay method and 1 A.T. fire assay at Eastern Analytical Limited. Blanks and gold standards were inserted into the sample stream once every 20 samples. Multi-element analyses and gold check assays were completed on sample pulps by ALS Chemex in North Vancouver, BC. Gold standards were prepared by CDN Resource Laboratories Ltd., of Delta, BC and certified by Licensed Assayer Duncan Sanderson. Sample batches were reanalyzed if any aberrations in the data were observed. Check assays have been received and show acceptable correlation with the Eastern Analytical results.

The Victoria Lake Project work is being carried out by Paragon Minerals personnel and supervised by Qualified Person David Copeland, M.Sc., P.Geo. Sampling procedures at Victoria Lake include cutting the core sample (BTW size - 42 mm diameter) in half on site and shipping the sealed samples to Accurassay Laboratories in Gambo, Newfoundland for prep and then shipped to Accurassay's analytical lab in Thunder Bay, Ontario for multi-acid digestion ICP, gold and selected major oxide whole rock analysis. Every batch of 20 samples contained one known base metal standard and one "blank" sample. David Copeland, Exploration Manager for Paragon, a qualified person under National Instrument 43-101, has reviewed the technical information in this press release.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. The company is focused on gold and base-metal exploration in Eastern Canada, specifically within the Province of Newfoundland and Labrador. Paragon was recently listed on the TSX Venture Exchange following completion of the Plan of Arrangement by Rubicon Minerals Corporation.


Michael Vande Guchte, President & CEO

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding future exploration programs and joint venture partner participation. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory and governmental approvals for the transactions described herein, the ability of Paragon and other relevant parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Paragon's proposed transactions and exploration and development programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

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

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