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Paramount Gold and Silver Corp. Expand High Grade Gold and Silver Mineralization to Depth and Confirm Their First High Grade Zone (Clavo) Within the San Miguel Vein

Posted on: Friday, 29 February 2008, 03:00 CST

Paramount Gold and Silver Corp. (TSX: PZG)(AMEX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) is pleased to announce assay results from 14 drill holes in the San Miguel Zone of its San Miguel project in the Guazapares Mining District, Mexico. Drill holes SM-05 to SM-18 were drilled 30-90 meters apart and were designed to intercept the San Miguel vein structure approximately 50-150 meters below the surface.

These drill holes extend the high grade gold and silver mineralization found in holes SM-01 to SM-04 (reported Jan. 24, 2008 (http://www.paramountgold.com/news/press_release.asp?ID=100100)). The nature of this mineralization suggests that we have found what is commonly known in Mexico as a Clavo; a mineralized body inside a vein with small dimensions and high grades. In light of these assay results, this part of the area in the San Miguel zone will be referred to as 'Clavo 99'. The mineralization in 'Clavo 99' was extended by approximately 100m down dip: SM-13 (12.53m of 1.38 g/t Au Eq. and 1.03m of 9.26 g/t Au), SM-15 (4.02m of 13.87 g/t Au Eq.) and SM-18 (8.03m of 2.22 g/t Au Eq.), and 100m along strike to the southeast: SM-05 (5.06m of 3.71 g/t Au Eq.) and SM-07 (6.65m of 5.18 g/t Au Eq.). For a complete view of all drill hole locations from the San Miguel vein, please see the attached longitudinal section at the end of this press release.

Highlights of these assay results are seen in the table below (visit www.paramountgold.com for further assay details, map of project showing the location of the San Miguel Zone, map of the southern part of the Zone itself, and a longitudinal section of the vein structure):

 ----------------------------------------------------------------------- --- ------------------------------------------------------------------- -------                                                       Gold   Gold                                        True    Gold  Silver  Equiv.   Equiv. Hole      From       To  Interval    Width  (grams/ (grams/(grams/(grams x Number (Meters) (Meters)  (Meters) (Meters)    ton)    ton)   ton)  meters) -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-05    50.75    57.90      7.15     5.06    1.05  159.00   3.71    18.76 --------------------------------------------------------------------------                         Including:    3.01    0.99  258.86   5.30    15.95 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-06    51.90    62.00     10.10     7.14    0.82   41.00   1.50    10.71 --------------------------------------------------------------------------                         Including:    1.34    2.28  120.00   4.29     5.76 --------------------------------------------------------------------------          98.50   115.00     16.50    10.94    0.75   18.00   1.05    11.49 --------------------------------------------------------------------------                         Including:    1.00    4.49   19.00   4.81     4.81 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-07    45.00    48.60      3.60     2.55    0.48   60.00   1.48     3.77 --------------------------------------------------------------------------          48.60    50.80      2.20     1.56          Cavity --------------------------------------------------------------------------          50.80    56.00      5.20     3.68    0.46   67.00   1.58     5.81 --------------------------------------------------------------------------          56.00    56.60      0.60     0.42          Cavity --------------------------------------------------------------------------          56.60    66.00      9.40     6.65    0.93  255.00   5.18    34.43 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-09    74.35    75.15      0.80     0.57    2.70  129.00   4.85     2.74 --------------------------------------------------------------------------          84.20    86.50      2.30     1.63    1.03  147.00   3.47     5.64 --------------------------------------------------------------------------         102.65   108.00      5.35     3.78    2.44  216.47   6.05    22.87 --------------------------------------------------------------------------                         Including:    1.27    6.75   15.00   7.00     8.91 --------------------------------------------------------------------------                         Including:    0.71    0.00 1050.00  17.50    12.37 --------------------------------------------------------------------------         133.00   135.00      2.00     1.15    4.30   88.00   5.75     6.59 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-10    54.90    58.90      4.00     2.83    1.23  207.00   4.69    13.26 --------------------------------------------------------------------------         134.00   134.80      0.80     0.40    3.94  107.00   5.72     2.29 --------------------------------------------------------------------------         134.80   136.30      1.50     0.75          Cavity --------------------------------------------------------------------------         136.30   137.10      0.80     0.40    3.61   91.00   5.13     2.05 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-11    26.50    28.20      1.70     1.30    0.28  140.00   2.60     3.39 --------------------------------------------------------------------------          65.30    69.30      4.00     3.06    2.10   15.00   2.35     7.20 --------------------------------------------------------------------------          85.00    86.00      1.00     0.77   64.70    0.00  64.70    49.56 --------------------------------------------------------------------------         154.10   155.30      1.20     0.77   93.70    0.00  93.70    72.19 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-13   122.10   123.70      1.60     1.03    6.39  172.00   9.26     9.52 --------------------------------------------------------------------------                         including     0.51   12.65  231.00  16.50     8.48 --------------------------------------------------------------------------         123.70   143.20     19.50    12.53    0.76   37.23   1.38    17.30 --------------------------------------------------------------------------                         including     4.82    1.22   78.23   2.52    12.15 --------------------------------------------------------------------------         157.00   163.80      6.80     4.37    1.04    5.76   1.13     4.94 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-14    38.00    41.00      3.00     2.60    0.48   33.00   1.03     2.68 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-15   130.80   132.70      1.90     1.14    3.30  502.95  11.68    13.32 --------------------------------------------------------------------------                         including     0.48    6.02 1090.00  24.19    11.61 --------------------------------------------------------------------------         139.00   145.70      6.70     4.02    4.32  572.73  13.87    55.76 --------------------------------------------------------------------------                         including     0.60    4.85 1785.00  34.60    20.76 --------------------------------------------------------------------------                         including     0.60   15.40  186.00  18.50    11.10 --------------------------------------------------------------------------         148.40   151.10      2.70     1.62    7.94   35.00   8.53    13.82 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-16    45.50    49.70      4.20     3.64    0.51  323.00   5.89    21.42 --------------------------------------------------------------------------         140.00   148.00      8.00     6.93    0.98    4.00   1.05     7.27 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- SM-18    93.30    99.00      5.70     3.66    0.10  292.00   4.96    18.15 --------------------------------------------------------------------------         99.00   105.40      6.40     4.11    0.06   55.00   0.97     3.99 --------------------------------------------------------------------------         139.00   151.60     12.60     8.03    1.53   41.00   2.22    17.82 --------------------------------------------------------------------------                         including     1.28    4.90  118.00   6.86     8.81 --------------------------------------------------------------------------                         including     1.28    3.41    6.00   3.50     4.49 -------------------------------------------------------------------------- -------------------------------------------------------------------------- --------------------------------------------------------------------------                                                       Gold   Gold                                        True    Gold  Silver  Equiv.   Equiv. Hole      From       To  Interval    Width  (grams/ (grams/(grams/(grams x Number (Meters) (Meters)  (Meters) (Meters)    ton)    ton)   ton)  meters) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "These results confirm the continuity of the gold and silver mineralization from the surface down to at least 150 meters of depth. They also extend the mineralization to 250 meters along strike and it remains open. These grades and volumes are consistent with and substantiate the discovery of a high-grade ore shoot similar to those at nearby Palmarejo. The geological characteristics of the vein structure strongly suggest that similar mineralization may persist to a depth of 250 meters or more."

Currently, 'Clavo 99' is approximately 275 m wide and goes to a depth of 150 m. Assays are pending on holes SM-19 to SM-24, which were drilled to test the strike length potential of the system. Paramount is currently drilling the San Miguel vein deeper and along strike to better define 'Clavo 99' and to test for other Clavos. Holes SM-34 and SM-35, which have just been sent to ALS Chemex for assaying, were drilled to test the Clavo to 200 m of depth. SM-34 was drilled 50 meters below SM-15, and SM-35 was drilled 50 meters below SM-18 and SM-20.

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. 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. Half-core samples are being retained on site for verification and reference purposes.

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 approximately 33 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. (PINK SHEETS: TRGD) (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.

A map of the San Miguel Area is available on the Marketwire website at the following address: http://media3.marketwire.com/docs/SanMiguelArea.jpg

- Longitudinal Section of the southern part of the San Miguel vein structure.

- Note: AuEq60 is gold-equivalent calculated at a 60:1 silver to gold ratio.

 Contacts: Paramount Gold and Silver Corp. Larry Segerstrom COO 613-226-9881  Paramount Gold and Silver Corp. Chris Halkai Corporate Relations 866-481-2233 613-226-9881 www.paramountgold.com

SOURCE: Paramount Gold and Silver Corp.

Source: MARKET WIRE

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