Paramount Gold Plans To Advance Sleeper Project 

WINNEMUCCA, NV - Paramount Gold reported a $3 million exploration program designed to expand and upgrade resources at our 100% owned Sleeper Gold Mine Project in Nevada. Paramount is also commencing a study to determine the feasibility for near-term exploitation of the property`s large surface mineral inventory of gold in tailings and heaps. The Sleeper Project was acquired in the recently completed takeover of X-Cal Resources.

The exploration program has three main objectives: [1] definition drilling to up-grade resources at the West Wood deposit and prepare it for a Preliminary Assessment [`PA`] of its economic potential; [2] delineation drilling to expand and evaluate resources at the Facilities deposit for possible inclusion in the PA; and [3] drill evaluation of up to six new priority targets on the property identified by Paramount╒s geological team. CEO, Christopher Crupi said, The exploration program will focus on expanding and upgrading in-situ resources on two known gold deposits using core and reverse circulation drilling. We will also begin the process of evaluating the wealth of less explored targets where new deposits could be found. This program has been greatly facilitated by the professional work and the high quality data base contributed by X-Cal management.This first phase of exploration is expected to run until March 2011. Paramount is also proceeding with a study of the economic potential of the independently estimated 50.3 million tonnes of gold-bearing heaps and tailings on the Sleeper property grading 0.44 grams per tonne (g/t) of gold, containing an estimated 714,000 ounces of indicated gold resources. Detailed sampling and metallurgical testing are being initiated to estimate the value of this resource with the aim of upgrading it to reserves and joint-venturing it with a producer. We believe Sleeper`s surface mineral inventory could represent an early cash flow opportunity for Paramount, Crupi said. The West Wood target is on the southwest corner of the Sleeper Pit and has been extensively drilled to reveal a high grade core zone surrounded by lower grade gold concentrations. An eight hole core program of about 3,200 meters is planned for the West Wood target. This work will concentrate on obtaining sample material for metallurgical testing and collecting geotechnical information for conceptual pit planning. In addition, work is planned to determine the north and south limits for the West Wood target and to upgrade resources. Results are not expected to add significantly to resources but should increase confidence in resource classification and provide fresh material for basic processing and engineering studies required for a PA. The Facilities Target is on the eastern side of the Sleeper pit and is a broad area of continuous lower grade gold-bearing material. Several drill holes encountered bonanza grade intersections. At present, however, the drill spacing is too wide to define the extent and distribution of the higher grade material. It is anticipated that defining the limits of the higher grade intervals in the Facilities Target should have a positive effect on the grade of this resource. A program of 20 reverse circulation drill holes totaling approximately 5,000 meters is planned on the Facilities Target. These holes will be closely spaced horizontal and vertical off-sets to existing bonanza-grade intersections. Approximately 1,250 meters will be drilled to test priority exploration concepts and refine exploration drill strategies. Results from this program are expected to lead to definition of up to six targets for developing additional resources on the project. The company's address is 665 Anderson Street, Winnemucca, NV 89445, (613) 226-9881.