Preliminary Economic Assessment For Sleeper Gold Project

WINNEMUCCA, NV - Paramount Gold Nevada Corp. reported that the National Instrument 43-101 technical report related to the Preliminary Economic Assessment (PEA) on its 100% owned Sleeper Gold Project was filed. The report was completed by Metal Mining Consultants (MMC).

Given this positive PEA coupled with MMC's recommendation, Paramount's team is in the midst of composing a detailed plan along with the the expected budget required to complete a PFS

A prefeasibility study is intended to assist in determining whether its potential investment will pay off. Prior to committing a large sum of cash to collect information and obtain permits, this study, which uses the base, case for developing a project, is completed to determine whether the project may be developed further. This study would incorporate a wide array of information including but not limited to geologic models, mine design, community relations, permit challenges and timing, infrastructure, and geographic obstacles.

In the case of Sleeper, a prefeasibility study would entail both additional metallurgical testing and infill drilling which would potentially convert mineralized material to economic reserves. It is important to note that the company holds numerous permits in good standing from the former mine, which will provide an excellent base for the future permitting process.

The report incorporates a global mineralized material estimate completed by SRK Consulting, the results of new metallurgical tests completed over the last two years by McClelland Laboratories.

The base case scenario is a 30,000 tonne per day heap leach only operation which is fed by open pit mining based on mining higher grade open pit oxide and suitable mixed mineral materials, fed by open pit mining.

Commenting on the PEA, Paramount President and CEO, Glen van Treek said, "We are extremely pleased with the approach taken on this PEA by MMC, which focused on the reduction of capital and operational costs within a proven heap leach operation. The project costs per ounce of gold equivalent produced on a cash cost and all in sustaining cost basis including initial capital expenditures are $529 and $869 respectively, which is very competitive as compared to its peers. The results of this PEA clearly indicate that Sleeper could be an economical operation in the current metal price environment and we are excited to take the next steps towards making this a reality. "