Paramount Gold and Silver Reports New Drill Results Expand San Francisco Deposit  

WINNEMUCCA, NV - Paramount Gold and Silver Corp. reported new assay results from its ongoing drilling program at the San Miguel project in Mexico have extended the bulk-mineable San Francisco deposit and discovered a new, closely-spaced swarm of higher grade gold-silver veins named Santa Clara.

Drilling in 2011 has been focused on testing several new targets and expanding known mineralized areas. Drilling continues to enlarge the San Francisco area, one of the larger mineralized zones at San Miguel, which has been extended approximately 200 meters along strike with this year's drilling. Excellent results were also intersected at a new target area named Santa Clara where follow up drilling will be carried out this year. Only five holes were permitted and drilled to date on the promising Don Ese Sur target located 3.5 km south of last year's Don Ese high grade vein discovery. One of these holes generated two significant intercepts, with grades up to 78 g/t of silver, while the other four returned no significant values. However, Don Ese Sur remains an important target with more than 1.6 km of strike length left to explore and 15 more holes planned once permits are obtained. One of four initial holes drilled on the new La Verde and El Ojito targets produced an intercept with good grade while the other three had no significant intervals. Drilling continues at San Miguel with two core rigs to upgrade and expand resources in the main target areas, including San Miguel, San Francisco and San Antonio. Follow up drilling at the main Don Ese structure will also resume this year to increase the size and quality of the initial resource reported in early April 2011. The orientation of these drill holes was designed to intercept the structural features at right angles so as to provide a true width on those structures. Although the intersections are believed in general to be the true width of the mineralized feature, additional drilling and modeling is required to confirm this conclusion. The company's address is 665 Anderson Street, Winnemucca, NV 89445, (775)625-3600.