Paramount Gold and Silver Corp. Reports High Grade Gold Results From Surface and Underground Sampling of a New Area in Its San Miguel Project

Paramount Gold and Silver Corp. (TSX: PZG) (AMEX: PZG) (FRANKFURT: P6G) (WKN: A0HGKQ) is pleased to announce assay results from sampling of veins and breccias in the previously untested Guadalupe de Los Reyes area in its San Miguel project, in the Guazapares Mining District, Mexico.

The Guadalupe de Los Reyes area is inside the large rhyodacite dome complex that is exposed between the San Miguel and Montecristo Zones. The higher precious metals grades are associated with northeast and northwest trending fault zones, which is consistent with our project exploration model. In this area, gold and silver occur in quartz veins and hydrothermal breccias along the faults, as well as in adjacent quartz veinlet stockworks and breccias. The principal structure is exposed for approximately 100 meters along strike, and appears to continue under cover to the northeast. The Guadalupe de Los Reyes mine is found on this principal structure, and is the site of historic, small-scale, high-grade gold production.

Sampling and geologic mapping are ongoing, tracing these and parallel structures along strike, with the goal of defining drilling targets. These results are particularly exciting because they indicate that this is a gold dominant part of the system with excellent gold grades and high gold-to-silver ratios. As noted in the table below, the mineralization exposed on the surface is several meters wide with gold grades in the range of 3.7 to 6.6 g/t. Underground sampling of accessible portions of the old Guadalupe de Los Reyes mine, down to a depth of 20 meters from the surface, included intervals with gold grades of up to 20.7 g/t.

Highlights of the assay results from Guadalupe de Los Reyes concession (see table at www.paramountgold.com for further details):

Surface samples:

 ———————————————————————– — Width (m)                          Au (g/t)                        Ag (g/t) ————————————————————————–      5.8                              3.69                            35.0 ————————————————————————–      5.4                              6.64                            10.0 ————————————————————————– Underground samples (Guadalupe de Los Reyes Mine): ————————————————————————– Width (m)                          Au (g/t)                        Ag (g/t) ————————————————————————–      1.0                              20.7                            30.0 ————————————————————————–      1.0                             18.45                            64.0 ————————————————————————–      1.8                             11.05                            34.0 ————————————————————————– 

Larry Segerstrom, COO of Paramount Gold and Silver Corp., comments, “These analytical results confirm the presence of excellent gold grades across mineable widths in surface and near-surface exposures within the dacite dome complex. They also seem to be pointing us in the direction of a gold-dominant part of the system. These results further advance our objective of discovering and developing more gold rich, high-grade bodies, such as the ones in the San Miguel and San Luis Zones.”

Quality Control

Samples were collected from surface exposures and from shallow older artisanal workings. They are channel samples rather than selected high grades specimens. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

About Paramount

Paramount Gold is listed on the AMEX and TSX under the symbol PZG and trades on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). Paramount Gold is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold-silver belt of Mexico. Paramount has completed over 29,000 meters of core drilling, totaling 162 drill holes on the project, with results pending on 43 of these holes. In April 2007, Paramount began a 50,000 meter drill program, of which 22,000 meters have been completed to date. In 2007, Paramount completed $25 million in financing which is being utilized to develop their San Miguel and Andrea projects and other opportunities.

Paramount Gold and Silver Corp. is the operator of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (OTC: TRGD.PK) (30%). Tara Gold is required to contribute 30% of exploration costs to maintain their interest.

“Safe-Harbor” Statement: This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially.

 Contacts: Paramount Gold and Silver Corp. Larry Segerstrom Chief Operating Officer 613-226-9881  Paramount Gold and Silver Corp. Chris Halkai Corporate Relations 613-226-9881/Toll-free: 1-866-481-2231 info@paramountgold.comwww.paramountgold.com

SOURCE: Paramount Gold and Silver Corp.