Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

September 13, 2007 10:20 ET

Palmarejo Silver and Gold Corporation Announces Further Drill Results From the Guadalupe Project

LONGUEUIL, QUEBEC--(Marketwire - Sept. 13, 2007) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) (the "Company") is pleased to announce results from the continuing reverse circulation (RC) and diamond drill program at its Guadalupe project, 7.0 kilometres southeast of the Palmarejo Project, in the Temoris District, Chihuahua, Mexico.

The Guadalupe project consists of a series of northeast dipping quartz veins that have been traced for more than 2,000 metres along strike. There are three main prospects located along the Guadalupe structure known from north to south as Guadalupe Norte, Guadalupe and Las Animas. A fourth prospect, El Salto, has been identified by surface mapping as a link structure between Las Animas and Guadalupe. El Salto has only been tested by near surface drilling.

Thirty four holes have been drilled for 2,555 metres of RC and 7,072 metres of diamond core (including two core continuations of RC, and one wedge hole) since the previous drilling update on 24 July 2007. Some of the better results from recent drilling are reported below as down hole intercepts. Where there is a difference between down hole and true width intercepts these are noted in the table of full assay results recorded below.



- TGDH128D 15.00 metres @ 1.27 g/t Au and 141 g/t Ag (3.6 g/t AuEq) and
9.00 metres @ 4.35 g/t Au and 119 g/t Ag (6.3 g/t AuEq)
- TGDH133D 15.72 metres @ 2.04 g/t Au and 97 g/t Ag (3.7 g/t AuEq)
- TGDH133W 3.20 metres @ 0.95 g/t Au and 114 g/t Ag (2.9 g/t AuEq) and
9.00 metres @ 3.37 g/t Au and 159 g/t Ag (6.0 g/t AuEq) and
1.00 metres @ 8.75 g/t Au and 18 g/t Ag (9.1 g/t AuEq)
- TGDH138D 5.17 metres @ 0.58 g/t Au and 42 g/t Ag (1.3 g/t AuEq) and
12.70 metres @ 1.75 g/t Au and 66 g/t Ag (2.9 g/t AuEq)
- TGDH140D 4.00 metres @ 107.64 g/t Au and 231 g/t Ag (111.5 g/t AuEq)
- TGDH142D 22.50 metres @ 3.29 g/t Au and 193 g/t Ag (6.5 g/t AuEq) and
34.50 metres @ 1.04 g/t Au and 47 g/t Ag (1.8 g/t AuEq)
- TGDH147D 17.50 metres @ 1.22 g/t Au and 152 g/t Ag (3.8 g/t AuEq) and
12.00 metres @ 1.22 g/t Au and 78 g/t Ag (2.5 g/t AuEq) and
11.00 metres @ 3.26 g/t Au and 105 g/t Ag (5.0 g/t AuEq)
- TGDH148D 1.54 metres @ 64.23 g/t Au and 94 g/t Ag (65.8 g/t AuEq)
- TGDH151D 8.00 metres @ 2.32 g/t Au and 100 g/t Ag (4.0 g/t AuEq)
- TGDH152 12.19 metres @ 0.41 g/t Au and 50 g/t Ag (1.3 g/t AuEq)
- TGDH157D 7.24 metres @ 6.43 g/t Au and 233 g/t Ag (10.3 g/t AuEq) and
6.10 metres @ 3.09 g/t Au and 160 g/t Ag (5.8 g/t AuEq)
- TGDH162D 33.50 metres @ 1.60 g/t Au and 106 g/t Ag (3.4 g/t AuEq)


A map of the Palmarejo - Trogan Project is available at the following address: http://www.ccnmatthews.com/docs/PJOTrojan0913.pdf

Details of the drill hole locations are available at the following address: http://www.ccnmatthews.com/docs/drill_hole0913.pdf

Assay Results are available at the following address: http://www.ccnmatthews.com/docs/Assay_Results0913.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 1:60.

- Metallurgical recoveries and smelter returns are assumed to be 100%.

- QVBX equals quartz vein breccia, HYBX equals Hydrothermal breccia, CBBX equals Carbonate breccia.

- GPE equals Guadalupe and Guadalupe prospects, LA equals Las Animas

- # equals previously reported and included here for completeness.

- Bulked intercepts are calculated by weight averaging the grades between the given depths and incorporating a maximum dilution of 2 metres internal waste at less than the 1.0 g/t AuEq cut off.

- Results are awaited for drill holes TGDH150D, TGDH153D, TGDH155D, TGDH156D, TGDH158D, TGDH159D, TGDH161D, TGDH163D to TGDH186.

The attached long section highlights the intercepts reported in this drilling update: http://www.ccnmatthews.com/docs/Guadalupe0913.pdf

At Las Animas, holes TGDH128D and TGDH140D were drilled towards the centre of the prospect and intersected wide, high-grade and narrow, very high-grade mineralization respectively. Holes TGDH141 and TGDH143D, drilled near the centre of the prospect, intersected low- to medium-grade mineralization.

Holes TGDH149D and TGDH151D intersected medium to low-grade mineralization on the southern margin of Las Animas and extends the medium-grade clavo outline 80 metres to the southeast. Hole TGDH144D intersected low to medium-grade mineralization on the northern margin of Las Animas.

At Guadalupe, hole TGDH154D intersected low-grade mineralization and pierced the structure down-dip of TGDH094 (10.67 metres @ 0.61 g/t Au and 108 g/t Ag), which was abandoned within a quartz-bearing structure.

At Guadalupe Norte, holes TGDH_145D and TGDH148D were drilled deep of the GC1 clavo with the later hole intersecting a narrow very high-grade structure. Holes TGDH133D and TGDH133W intersected wide, medium to high-grade mineralization down-dip of the significant TGDH110D (10.50 metres @ 7.10 g/t Au and 294 g/t Ag).

Holes TGDH147D and TGDH157D were drilled at the GC2 clavo and both intersected wide, medium to high-grade mineralization in principal and footwall structures. Significantly hole TGDH157D was abandoned within a mineralized structure due to ground conditions. Hole TGDH138D pierced medium to low-grade mineralization in the principal and footwall structures between GC2 and GC3 clavos. Hole TGDH142D also intersected high-grade principal and footwall mineralization and extends the GC3 clavo down-dip of TGDH115D (16.50 metres @ 1.83 g/t Au and 156 g/t Ag).

Holes TGDH152 and TGDH162D were drilled 240 metres northwest of the GC3 clavo and intersected wide, medium to low-grade mineralization.

Holes TGDH146, TGDH160 and TGDH180D are not shown on the long section as they were terminated short of target depth due to heavy water inflow causing an inability to sample RC cuttings dry and difficult ground conditions.

A total of 75 RC holes for 16,556 metres and 112 diamond core (including ten diamond core continuations of RC holes, and two wedge holes) for 37,251 core metres have been drilled at Guadalupe since drilling commenced in mid-2005.

Quality Assurance

The Company has put in place a rigorous QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 ("NI 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 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 resource estimates, potential mineralization, exploration results, completion of work program and studies, 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 Annual Information Form dated October 12, 2006 and particularly in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the NI 43-101 Technical Report dated October 1, 2006 and other documents 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.

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