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

Paramount Gold and Silver Corp.

May 20, 2008 03:30 ET

Paramount Gold and Silver Corp. Intersects Mineralization at 300m Expanding 'Clavo 99' at Depth at its San Miguel Project

CHIHUAHUA, MEXICO--(Marketwire - May 20, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) has received the assay results from 3 additional drill holes in the San Miguel Vein. Drill hole SM-36 intersected the main structure 100 meters below hole SM-35, near the center of the 'Clavo 99' zone. SM-37 was drilled very close to and parallel to SM-36. SM-37 cut the main vein approximately 10 meters above SM-36. SM-38 intersected the main vein 50 meters below and 80 meters southeast of SM-35. As the table of intercepts below indicates, all were well mineralized. Drilling continues at 'Clavo 99'.

Holes SM-36, 37 and 38 demonstrate that 'Clavo 99' persists for more than 300 meters below the surface and is at least 450 meters wide at this depth. It remains open to the southeast and at depth. A second core drill was added recently to define the limits of the mineralization along strike.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Drill holes SM-36, 37 and SM-38 extend the excellent mineralization seen in holes SM-34 and SM-35 down dip and to the southeast. Clavo 99 now has been shown to have a depth extent greater than 300 meters, a width of at least 450 meters and to remain open. As noted before, gold values are increasing relative to silver."

The principal intercept in SM-36 was 0.64 meters (true width) grading 8.24 g/t Au and 431 g/t Ag, or 16.56 g/t gold-equivalent (Au Eq.). This was within an intercept of 3.15 meters (true width) grading 3.04 g/t Au and 154 g/t Ag, or 6.1 g/t Au Eq. In SM-37, the principal intercept was 1.67 meters grading 2.46 g/t Au and 86 g/t Ag or 4.18g/t Au Eq. This was within an intercept of 4.18 meters grading 1.36 g/t Au and 53 g/t Ag, or 2.42 g/t Au Eq. In hole SM-38 the principal intercept was 3.8 meters grading 1.34 g/t Au and 436 g/t Ag, or 10.06 g/t Au Eq.

Highlights of these assay results are seen in the table below (visit www.paramountgold.com for further assay details, map of project showing the location of the San Miguel Zone, map of the southern part of the Zone itself, and a longitudinal section of the vein structure):



--------------------------------------------------------------------------
Hole From To Interval True Gold Silver Gold Gold
Width Equiv. Equiv.
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Number (Meters)(Meters) (Meters)(Meters) (grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
--------------------------------------------------------------------------
SM-36 195.00 199.00 4.00 2.57 0.70 182.00 4.34 11.15
--------------------------------------------------------------------------
210.00 214.9 4.90 3.15 3.04 154.00 6.10 19.2
--------------------------------------------------------------------------
incl 210.00 212.80 2.80 1.80 1.47 67.00 2.81 5.06
--------------------------------------------------------------------------
212.80 213.80 1.00 0.64 8.24 431.00 16.56 10.60
--------------------------------------------------------------------------
213.80 214.90 1.10 0.71 2.59 118.00 4.95 3.54
--------------------------------------------------------------------------
SM-37 209.20 215.7 6.5 4.18 1.36 53.00 2.42 10.12
--------------------------------------------------------------------------
incl 209.00 212.40 3.20 2.06 0.61 33.00 1.27 2.61
--------------------------------------------------------------------------
212.40 215.00 2.60 1.67 2.46 86.00 4.18 8.98
--------------------------------------------------------------------------
SM-38 193.50 201.10 7.60 3.80 1.34 436.00 10.06 38.23
--------------------------------------------------------------------------
221.00 222.00 1.00 0.50 4.98 21.00 5.31 2.66
--------------------------------------------------------------------------
225.00 240.00 15.00 7.50 0.53 29.00 1.10 8.25
--------------------------------------------------------------------------
294.00 294.80 0.80 0.40 1.59 20.00 1.99 0.80
--------------------------------------------------------------------------


Quality Control

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).

About Paramount

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 operator of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (OTC:TRGD.PK) (30%) who is required to contribute 30% of exploration costs to maintain their interest. Paramount recently signed an LOI announcing a Strategic Alliance with Mexoro Minerals (OTC:MXOM.OB).

"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
    COO
    613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Halkai
    Corporate Relations
    866-481-2233
    613-226-9881