Drilling To Upgrade Resource/Improve Grade At Don Ese

NEVADA - Paramount Gold and Silver Corp. announced strong results from the first two core holes in the current drill program at the high grade Don Ese deposit, located on its 100%-owned San Miguel Project in northern Mexico. Wide intercepts of excellent grade are expected to upgrade resources in the north end of the deposit to the measured category, as part of Paramount's plan to complete a Pre-Feasibility Study for San Miguel, and potentially increase the average resource grade in this area.

DE-046 intersected the Don Ese vein for 20.2 meters including an internal 6.1 meter zone with no core recovery (NR) where the material was likely too soft to retain integrity within the core barrel. Above the NR zone, 10.85 meters averaged 2.00 g/T gold and 213.51 g/T silver. Below the NR zone, another 3.25 meters graded 4.34 g/T gold and 222.4 g/T of silver.

Drill hole DE-047 intersected a wider-than-expected 29 meters of structure averaging 1.47 g/T gold and 154 g/T silver, including a higher grade zone of 5.9 meters grading 2.61 g/T gold and 369.3 g /T silver, an outstanding 8.76 gold equivalent g/T grade (using a 1 to 60 gold-to-silver price ratio).

Paramount currently has four core rigs drilling at San Miguel, three of them on the Don Ese deposit and the nearby, newly discovered Dana structure where intercepts up to 14.2 g/T gold and 657 g/T silver have been found.

True widths are believed to be not less than 90% of the reported intercepts.

CEO Christopher Crupi said, "Once again, drilling at Don Ese confirms excellent continuity of higher grade material that our recent Preliminary Economic Assessment shows to be economic even at current metal prices."

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Glen van Treek, Exploration Vice President of the Company and Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101, who have both reviewed and approved this press release.  An ongoing quality control/quality assurance protocol is being employed for the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at ALS Chemex and Acme Laboratories, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.