Positive Drill Program Results At The Frost Project

WINNEMUCCA, NV - Paramount Gold Nevada Corp. announced positive results from its first drill program at its Frost project located within trucking distance of the proposed Grassy Mountain Mine operation.

“We are pleased with the results of this initial program. We have encountered a robust gold system which could have the potential to generate significant tonnage of economic material,” said Glen Van Treek, President and Chief Operating Officer. “There is much more drilling to be done but these results confirm the presence of a gold system as indicated by our surface work.”

A total of 13 reverse circulation drill holes totaling 9,010 feet were completed to test targets based upon surface geology and sampling, along with ground and helicopter borne geophysical surveys. The drill plan was also designed to locate and test historical intercepts from drilling in the 1990’s which had significant gold values, however no records remain of the precise locations of the historic holes. Several drill holes intersected significant gold grades over interesting intervals including a 5-foot sample with a gold grade of 14.4 g/t and shallow intercepts up to 70 feet averaging 1.04 g/t.

The high-grade intercepts are related to silicified structures that have been interpreted to have near vertical dips. Specifically, intercepts in holes 2, 3 and 13 are interpreted to be the same vertical structure where the gold grade is increasing with depth as evidenced from the 20-feet grading 2.48 g/t of gold at 170-foot depth, and 4.85 g/t of gold at a depth of 370 feet. See figure 1 which illustrates the intercepts along with the CSAMT line.

The initial drill program has provided Paramount with an increased understanding of the gold distribution. The orientation of the main mineralized zone and the increase in gold grade with depth will be key factors for defining a second, follow-up drilling phase. 3D modeling of the drilling, assays and geologic interpretation are ongoing. Results will be used for targeting a wider or more disseminated zone of mineralized material that can be mined and trucked to the proposed Grassy Mountain operation thus increasing the project’s overall mine life.

Based upon similar low sulfidation epithermal deposits around the world and Paramount’s experience with the Grassy Mountain and Sleeper projects, it is expected that the Frost veins will pinch and swell, changing in width dramatically along strike or at depth. The Company is pursuing evidence that these veins could be the lateral extension of a much larger mineralized zone.