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

Paramount Gold and Silver Corp.

July 16, 2008 09:00 ET

Paramount Gold and Silver Corp. Expands San Antonio Zone to More Than 300 Meters of Depth at its San Miguel Project

CHIHUAHUA, MEXICO--(Marketwire - July 16, 2008) - Paramount Gold and Silver Corp. (AMEX:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) announces assay results from 2 holes (SA-54 and SA-55) in the San Antonio zone.

Drill hole SA-55 intercepted three, well mineralized intervals; one near the surface, a second at 110 meters down the hole, and a third at 450 meters down the hole (300 meters vertical depth). The deepest intercept contained 2.55 meters true thickness, grading 3.36 g/t Au and 585 g/t Ag or 15.05 g/t Au equivalent. This hole indicates that the gold to silver ratio is increasing with depth.

The near-surface drilling program at San Antonio completed in the fall of 2007 included 53 core holes which tested the target from the surface to a depth of approximately 100 meters. That program produced an estimated resource of 10,018,600 tons grading 106 g/t Ag equivalent, or a total of 34,304,000 ounces of Ag equivalent, according to the recent NI 43-101 report. The goal of the current drill program is to increase the resource 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.



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Hole From To Interval True Gold Silver Gold. Gold
Width Equiv Equiv.
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Number (m) (m) (m) (m) (grams/ (grams/ (grams/(grams x
ton) ton) ton) meters)
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SA-55 3.2 7.0 3.8 2.69 0.00 73 1.47 3.95
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7.0 10.0 3.0 2.12 0.01 439 8.79 18.63
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110.3 112.9 2.6 1.84 0.00 212 4.23 7.78

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447.4 451.0 3.6 2.55 3.36 585 15.05 38.31
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Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "The results of these first two deeper holes at San Antonio are very encouraging. They confirm that the San Antonio veins persist to a depth of at least 360 meters. Most important is the increase of gold grades with depth. This suggests that with more drilling we may be able to develop a high grade vein system at San Antonio in which gold provides the majority of the value, perhaps similar to the San Miguel vein."

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).

Paramount Gold is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold-silver belt of Mexico. Paramount Gold and Silver Corp. is the manager of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (TRGD.PK) (30%). Paramount recently signed a Strategic Alliance with Mexoro Minerals Ltd. (MXOM.OB). Paramount has signed an agreement with Garibaldi Resources Inc. (TSX.V: GGI) to form a joint venture agreement, and acquire an interest in 17,208 hectares of property.

"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
    866-481-2233
    613-226-9881