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

Paramount Gold and Silver Corp.

August 12, 2008 13:00 ET

Paramount Gold and Silver Corp. Expands Clavo 99 to a 600 Meter Width at a Depth of 400 Meters at its San Miguel Project With Gold Grades Increasing With Depth

CHIHUAHUA, MEXICO--(Marketwire - Aug. 12, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG))(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce assay results from six additional drill holes in the San Miguel Vein. Diamond drill holes SM-48 through SM-54 were drilled to intercept the vein below and to the northwest of the recently reported excellent intercepts in holes SM-45, 46 and 47, below the northwestern margin of Clavo 99. Intercepts below the surface ranged from 200 meters (SM-48 and 49) to 350 meters (SM-53) depth.

The most interesting aspect of this group of holes is that the grades of the principal intercepts are clearly increasing with depth. As displayed on the long section (http://paramountgold.com/projects/san_miguel_maps.asp), holes SM-49 and 51 had modest intercepts shown as green dots. The deeper holes, SM-50 and 52, as well as SM-48, are higher grade as indicated by the blue dots. Below those, SM-53(and possibly SM-54 - assays pending)-was very high grade, as shown in the table below. An additional hole is currently being drilled 50 meters above, and 50 meters to the southeast (up and to the right on the section) of SM-54.

The pattern of the distribution of gold and silver grades in these holes indicates that in addition to the previously reported main Clavo 99 zone which trends downward to the southeast, there is also a high grade wing that trends downward to the northwest. SM-53 demonstrates that Clavo 99 is at least 600 meters wide along strike, at a depth of nearly 400 meters. It is open in both directions along strike and the gold grades are increasing with depth. This is best seen through the intercept in SM-53 which has a true thickness of 0.84 meters (2m downhole width) grading 19.98 g/t Au, 375 g/t Ag, or a AuEq of 27.48 g/t and a grade x thickness of 23.08. This recently discovered extension of Clavo 99 has the potential to add substantially to the San Miguel resource.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "The earlier results from SM-32 and 33 suggested that grades were increasing with depth. Holes SM-48 through 53 demonstrated that this interpretation was correct. We are very excited by the high grade gold intercept in SM-53, and the potential for extending this high grade zone along strike and to greater depths."



Highlights of these assay results are seen in the table below (visit
www.paramountgold.com for complete assay details and detailed maps of the
project).

--------------------------------------------------------------------
Inter- True Gold Gold
Hole From To val Width Gold Silver Equiv. Equiv.
--------------------------------------------------------------------
# (m) (m) (m) (m) (g/t) (g/t) (g/t)(g x m)
SM-48 127.00 128.00 1.00 0.77 0.09 286.00 5.81 4.45
-------------------------------------------------------------------
143.60 146.70 3.10 2.37 0.23 12.00 0.46 1.09
-------------------------------------------------------------------
146.70 150.00 3.30 2.53 2.56 14.00 2.83 7.16
-------------------------------------------------------------------
150.00 151.90 1.90 1.46 0.24 5.00 0.34 0.49
-------------------------------------------------------------------
SM-49 164.00 168.00 4.00 2.56 0.53 71.20 1.95 4.99
-------------------------------------------------------------------
182.00 183.00 1.00 0.64 1.26 26.20 1.79 1.15
-------------------------------------------------------------------
SM-50 214.10 215.20 1.10 0.63 4.39 22.30 4.84 3.05
-------------------------------------------------------------------
215.20 222.30 7.10 4.07 1.54 10.90 1.76 7.16
-------------------------------------------------------------------
222.30 240.90 18.60 10.67 0.52 13.30 0.79 8.39
-------------------------------------------------------------------
SM-51 177.30 179.50 2.20 0.93 0.53 86.30 2.26 2.10
-------------------------------------------------------------------
195.00 196.00 1.00 0.42 3.12 12.90 3.38 1.42
-------------------------------------------------------------------
SM-52 199.80 202.00 2.20 1.03 4.88 165.00 8.17 8.43
-------------------------------------------------------------------
204.50 212.00 7.50 3.52 0.36 8.30 0.52 1.83
-------------------------------------------------------------------
219.10 224.00 4.90 2.30 0.97 16.00 1.29 2.97
-------------------------------------------------------------------
SM-53 238.00 240.00 2.00 0.85 3.62 7.35 3.77 3.20
-------------------------------------------------------------------
246.00 247.00 1.00 0.42 1.13 1.00 1.15 0.48
-------------------------------------------------------------------
250.00 251.00 1.00 0.42 1.85 6.80 1.99 0.84
-------------------------------------------------------------------
265.00 267.00 2.00 0.84 19.98 375.00 27.48 23.08
-------------------------------------------------------------------


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).

"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 results may differ materially.

Contact Information

  • Paramount Gold and Silver Corp.
    Larry Segerstrom, C.O.O.
    Chris Halkai, Investor Relations
    613-226-9881
    866-481-2233