Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

June 15, 2005 09:29 ET

Palmarejo Gold-Silver Project: Further Impressive Drilling Results

LONGUEUIL, QUEBEC--(CCNMatthews - June 15, 2005) - Palmarejo Gold Corporation (TSX VENTURE:PJO) is pleased to announce latest drill results from the Palmarejo Gold-Silver Project in the Temoris District, Chihuahua, Mexico. For more information about the project, please refer to the NI 43-101 Technical Report dated December 10, 2004 available at www.sedar.com under Palmarejo Gold Corporation.

Highlights

Drilling results continue to demonstrate impressive intercepts in the major clavos such as:



- 16.8 metres @ 6.4 g/t AuEq (PMDH245)
- 9.2 metres @ 12.3 g/t AuEq (PMDH251)
- 8.9 metres @ 128.0 g/t AuEq (PMDH255D) This intercept was at the
bottom of the hole which had to be abandoned due to fractured
ground.
- 6.1 metres @ 9.2 g/t AuEq (PMDH256)
- 9.1 metres @ 17.0 g/t AuEq (PMDH257)
- 10.6 metres @ 9.8 g/t AuEq (PMDH260)
- 6.1 metres @ 11.0 g/t AuEq (PMDH264)
- 6.1 metres @ 9.2 g/t AuEq (PMDH265)
- 7.6 metres @ 9.2 g/t AuEq (PMDH266)
- 15.2 metres @ 7.8 g/t AuEq (PMDH267)
- 7.6 metres @ 10.2 g/t AuEq (PMDH268)
- 10.6 metres @ 7.0 g/t AuEq (PMDH269)
- 9.1 metres @ 11.4 g/t AuEq (PMDH277)
- 6.1 metres @ 8.0 g/t AuEq (PMDH278)
- 12.2 metres @ 40.4 g/t AuEq (PMDH283) This intercept was at the
bottom of the hole which had to be abandoned due to fractured metal
in the hole.


Drilling

There are currently 6 drill rigs, 3 reverse circulation ('RC') and 3 diamond core ('DD'), on site.

One RC rig has been relocated to the Guadalupe prospect, located some 7 kilometres southeast of Palmarejo. More than 1.5 kilometres of strike length has been mapped at the Guadalupe prospect which has a similar geologic setting to Palmarejo. Guadalupe has not been drilled previously and, in addition to the RC rig, an additional DD rig is due to commence drilling at Guadalupe this week.

Details of the reported drill hole locations are available on CCNMatthews' website at the following address: http://www2.ccnmatthews.com/database/fax/2000/pjoa0615.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 1:65.
- The internal voids are historic underground workings and have been
excluded from the mineralised intervals reported above.
- Results are awaited for RC drill holes PMDH293 to PMDH318, PMDH320
and PMDH322 to PMDH323.
- Results are awaited for diamond core drill holes PMDH136D and
PMDH240D.
- In addition to these reported results, a number of geotechnical
drill holes have been completed.
- QVBX equals quartz vein breccia.
- # equals previously reported and included here for completeness.


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 Corporation's majority shareholder. Mr. Phillips is a qualified person under Canadian Securities Administrators National Instrument 43-101 ("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 Corporation's control, including statements regarding completion of work program and studies, potential mineralization, exploration results and future plans and objectives of the Corporation. 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 Corporation's filing statement dated March 14, 2005, and particularly in the section entitled "Risk Factors".

Additional information is available on SEDAR (www.sedar.com) and on the Corporation's website (www.palmarejogold.com).

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