Paramount Gold and Silver Corp.
AMEX : PZG
FRANKFURT : WKN:A0HGK
TSX : PZG

Paramount Gold and Silver Corp.

January 24, 2008 13:00 ET

Paramount Gold and Silver Corp. Announces High Grade Gold and Silver Results from the First Holes in its San Miguel Vein in Mexico

CHIHUAHUA, MEXICO--(Marketwire - Jan. 24, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce assay results from its first four drill holes in the San Miguel vein of its San Miguel project, in the Guazapares Mining District, Mexico. Drill holes SM-01 TO SM-04 were drilled 40-50 meters apart and were designed to intercept the previously undrilled San Miguel structure approximately 70 meters below the surface (see map). The San Miguel structure is exposed for at least 1 kilometer and appears to be open along strike to the northwest.

The area in which these four holes were drilled (see map) was selected because of very good grades in 12 surface channel samples across the vein, which averaged 9 meters at 4.22 g/t Au Eq. This area also has several shallow old mine workings, which had high precious metal grades according to local miners. In addition, geologists quite familiar with the nearby Palmarejo deposit have said that the veins here have an appearance virtually identical to those at Palmarejo. The assay results tabulated below support that suggestion. These results are particularly exciting because the ratio of gold to silver is significantly higher than at other portions of the property.

Highlights of these assay results are (see table at www.paramountgold.com for further details and maps):



-------------------------------------------------------------------------
-------------------------------------------------------------------------
True Gold
Hole From To Interval Width Gold Silver Equiv.
Number meters meters Meters Meters Grams/ton grams/ton grams/ton
-------------------------------------------------------------------------
SM-01 42.00 72.00 30.00 19.29 0.32 113.00 2.20
------------------------------------------------------------------
Including: 4.82 0.51 296.00 5.45
------------------------------------------------------------------
72.00 86.00 14.00 9.00 2.99 149.00 5.48
------------------------------------------------------------------
Including: 2.57 7.08 373.00 13.30
------------------------------------------------------------------
-------------------------------------------------------------------------
SM-02 50.45 65.00 14.55 11.15 0.47 220.00 4.13
------------------------------------------------------------------
Including: 0.31 2.93 3160.00 55.60
------------------------------------------------------------------
-------------------------------------------------------------------------
SM-03 34.50 48.10 13.60 10.42 0.48 410.00 7.33
------------------------------------------------------------------
Including: 0.77 1.86 2610.00 45.36
------------------------------------------------------------------
48.10 48.55 0.45 0.34 Cavity
------------------------------------------------------------------
48.55 60.50 11.95 9.15 0.37 105.00 2.12
------------------------------------------------------------------
Including: 0.77 1.26 384.00 7.66
------------------------------------------------------------------
-------------------------------------------------------------------------
SM-04 30.20 36.00 5.80 4.44 0.13 595.00 10.05
------------------------------------------------------------------
52.70 56.80 4.10 3.14 0.96 545.00 10.03
------------------------------------------------------------------
Including: 0.61 1.93 1445.00 26.01
------------------------------------------------------------------
95.30 100.00 4.70 3.60 13.93 115.00 15.85
------------------------------------------------------------------
Including: 0.69 47.90 138.00 50.20
------------------------------------------------------------------
-------------------------------------------------------------------------


Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "These results from the first four drill holes in the San Miguel Vein confirm the continuity of the gold and silver mineralization from the surface down to at least 70 meters of depth. These precious metals grades and thicknesses are consistent with and may represent the discovery of a high-grade ore shoot similar to those at nearby Palmarejo. The geological characteristics of the structure strongly suggest that these first four holes are in the upper levels of the vein system and that similar mineralization may persist to a depth of 200 meters or more."

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

About Paramount

Paramount Gold is listed on the AMEX and TSX under the symbol PZG and trades on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). Paramount Gold is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold-silver belt of Mexico. Paramount has completed over 27,000 meters of core drilling, totaling 157 drill holes on the project, with results pending on 43 of these holes. In April 2007, Paramount began a 50,000 meter drill program, of which 20,000 meters have been completed to date. In 2007, Paramount completed $25 million in financing which is being utilized to develop their San Miguel and Andrea projects and other opportunities.

"Safe-Harbor" Statement: This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual rresults may differ materially.

Contact Information

  • Paramount Gold and Silver Corp.
    Larry Segerstrom
    COO
    623-703-0969
    or
    Chris Halkai
    Corporate Relations
    613-226-9881
    Toll-free: 1-866-481-2231