La Union High-Grade Gold Discovery Expanded At Its San Miguel Project

WINNEMUCCA, NV - Paramount Gold and Silver Corp. reported more outstanding assay results which significantly expand the size of its new high-grade gold discovery south of the La Union zone as announced last month. Core hole LU-12-035 intersected 23.8 meters grading 4.7 g/T of gold and 6.8 g/T of silver. Hole LU-12-035 lies 80 meters south of discovery core hole LU-12-027 which intersected 79 meters grading 3.70 g/T of gold and 17.34 g/T of silver.

Exploration during the past year by Paramount on its 100%-owned San Miguel Project, in Mexico, has demonstrated that a series of gold and silver occurrences previously thought to be separate deposits are actually links in a continuously mineralized corridor now known as the Guazapares Megastructure stretching over 7.5 kms from La Veronica in the north through San Antonio and La Union to Santa Clara in the south. More than 2.8 kms of this robust system have not been drilled, representing highly-prospective gaps for resource expansion that Paramount recently began drilling.

The significance of hole LU-12-035 is that it is within the 1.3 km long unexplored southern gap between La Union and Santa Clara. This drill hole extends the strike of the February high-grade discovery by more than 150 meters. Drilling on strike and at depth at La Union continues to encounter wide intersections of stock work veining with well-developed quartz veins containing the high gold concentrations. Paramount geologists have defined an "optimum elevation for gold deposition" to facilitate targeting high-grade gold concentrations on each of the San Miguel resource zones. La Union's optimum elevation is thought to be below 1,520 meters which equates to an average of 100 meters below surface. Previous drilling was mostly concentrated above this elevation, looking for open pit mining potential and encountering moderate gold grades.

These new results make the La Union-Santa Clara gap a high priority target for developing a large, high-grade zone which was overlooked by previous explorers who used shallow exploration methods. Drilling continues further into the gap between La Union and Santa Clara.

CEO Christopher Crupi said,╙The new discovery appears to be larger and more persistent than most other high-grade occurrences at San Miguel. The evidence also suggests that these gold grades are likely to persist at depth. We are now confident that the Guazapares corridor hosts the most significant mineralization in the Palmarejo district. We expect resources along this belt to grow substantially as we fill in the unexplored gaps."

The company's address is 665 Anderson Street, Winnemucca, NV 89445, (775)625-3600.