Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

March 20, 2006 09:47 ET

Palmarejo Reports Drilling Update From La Patria Prospect in Mexico

LONGUEUIL, QUEBEC--(CCNMatthews - March 20, 2006) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to report that further encouraging assays have been received from additional reverse circulation ('RC') holes of 18 completed or in progress at the old La Patria mine in the Palmarejo/Trogan tenements in Chihuahua, Mexico. The Palmarejo project and Trogan licence area, including the La Patria prospect which is within the Trogan tenements, 6.5 kilometres south southeast of Palmarejo and 1.5 kilometres southwest of Guadalupe, is held by Company's 100%-owned Mexican subsidiary company, Planet Gold SA de CV.

Significant new results include:



- 12.2 metres @ 4.03 g/t Au and 193 g/t Ag (7.01 g/t AuEq)
LPDH_014
- 12.2 metres @ 2.13 g/t Au and 65 g/t Ag (3.13 g/t AuEq) LPDH_007


Hole LPDH_014 was drilled 40 metres northwest of LPDH_004 along section 8. This intercept is near surface and gives strike extent to the north.

Hole LPDH_007 was drilled on Section 6 to target the down dip continuity of the mineralised structure in LPDH_004 and LPDH_001. The mineralization is lower grade than in LPDH_004 but the structure is wider. When bulked with a maximum 1.53 metre internal waste included, LPDH_007 bulks out at 19.8 metres @ 2.57 g/t AuEq.

LPDH_009 crossed the La Patria structure down dip of the intercept in hole LPDH_007. The structure has pinched to less than 1.5 metres wide. Holes LPDH_011 and LPDH_013 were collared on the same pad as LPDH_009 but oriented to the southwest and west respectively. As with hole LPDH_009 both crossed a narrow zone representing the structure with nil or minimal mineralization. The likelihood of the structure swelling at depth can be expected at the same elevation as the 5 metre wide structure identified at La Podrida to the north. This will be tested shortly.

LPDH_018 (in progress) is the most northern hole targeting the series of quartz-bearing structures that make up the Maclovia prospect about 1 kilometre south of La Patria.

Drilling with an RC drill rig continues.

Details of the reported drill hole locations are available at the following address:

http://www.ccnmatthews.com/docs/PALA0320.pdf

Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/AC program consistent with National Instrument 43-101 and using best industry practice. The QA/QC program is independently supervised by Keith Blair, Msc, PGeo of Applied Geoscience of Reno, Nevada.

Elements of the program include chain of custody of samples, standard and blank samples submitted to ALS Chemex, with each batch of samples, and a check assay program on a proportion of sample pulps with a second laboratory. Results from the QA/QC program have to date been satisfactory.

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 Company'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 Company's control, including statements regarding completion of work program and studies, potential mineralization, exploration results and future plans and objectives of the Company. 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 Company's filing statement dated March 14, 2005, and particularly in the section entitled "Risk Factors".

For more information about the Company's projects, please refer to the NI 43-101 Technical Report dated October 20, 2005 available on SEDAR (www.sedar.com) or via the Company's website at (www.palmarejogold.com).

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

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

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