Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

October 28, 2005 09:21 ET

Palmarejo Gold-Silver Project Latest Drilling Results

LONGUEUIL, QUEBEC--(CCNMatthews - Oct. 28, 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 October 20, 2005 available at www.sedar.com under Palmarejo Gold Corporation and on the Corporation's web site.



Highlights

Full assay results are detailed below, however, significant results
which continue to demonstrate the strength of mineralisation at the
Palmarejo Project include:

- 41.1 metres @ 10.0 g/t Au and 854 g/t Ag (23.1 g/t AuEq)
(PMDH369 La Blanca)
- 22.8 metres @ 21.6 g/t Au and 1,295 g/t Ag (41.5 g/t AuEq)
(PMDH366 La Blanca)
- 13.7 metres @ 10.8 g/t Au and 401 g/t Ag (17.0 g/t AuEq)
(PMDH364 La Blanca)
- 15.2 metres @ 2.5 g/t Au and 353 g/t Ag (7.9 g/t AuEq)
(PMDH354D La Blanca)
- 7.6 metres @ 4.1 g/t Au and 574 g/t Ag (12.9 g/t AuEq)
(PMDH354D La Prieta)
- 4.6 metres @ 8.6 g/t Au and 1,250 g/t Ag (27.8 g/t AuEq)
(PMDH370 La Blanca)
- 4.6 metres @ 2.2 g/t Au and 820 g/t Ag (14.8 g/t AuEq)
(PMDH374 La Blanca)

Holes PMDH364 to PMDH369 are infill holes for the 076 Clavo at medium
to shallow levels.

Core hole PMDH354D is a PQ (wide diameter) core twin hole of PMDH262
(RC hole) and shows good correlation in fractured ore zones with the
reverse circulation hole samples.

PMDH370 and PMDH374 are infill holes on the Rosario Clavo area
designed to generate more tonnes in the measured resource category in
the greater Rosario/Junction area.

The next Palmarejo resource update cutoff will be PMDH375.

Details of the reported drill hole locations are as follows:
(See map at http://www.ccnmatthews.com/docs/pjo1028.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 equivalency ratio was based on a gold price of US$375 per ounce
and a silver price of US$5.77 per ounce.
- The internal voids are historic underground workings and have been
excluded from the mineralised intervals reported above.
- Results are awaited for diamond core drill holes PMDH246D, PMDH249D
and PMDH254D.
- 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.


Drilling is continuing at Palmarejo, La Finca and Guadalupe and has commenced at Cerro de Los Hilos.

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).

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

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