July 7, 2008

Paramount Gold and Silver Corp. Extends Clavo 99 at Its San Miguel Project

CHIHUAHUA, MEXICO--(Marketwire - July 7, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) announces assay results from diamond drill holes SM-45, 46 and 47 were drilled to intercept the vein below the excellent holes SM-13, 15 and 24, near the northwestern margin of 'Clavo 99'. SM-45 and 46 cut the vein 50 meters down dip, and SM-47 cut the vein 100 meters down dip from holes SM-45 and 46. Hole SM-47 indicates that 'Clavo 99' extends to a depth of nearly 300 meters in the northwestern portion and remains open at depth, and to the northwest.

Highlights of these assay results are seen in the table below (visit www.paramountgold.com for further assay details and updated maps of the project): -------------------------------------------------------------------- -----

_____________________________True____________________Gold______Grade Hole______From______To Interval__Width____Gold__Silver__ Equiv. Thickness -------------------------------------------------------------------- ----- ________________________________________(grams/ (grams/ (grams/ __(grams x Number (meters)(meters) (meters)(meters)__ ton)____ton)____ton)____meters) -------------------------------------------------------------------- ----- -------------------------------------------------------------------- ----- SM-45____144.6__ 150.2______5.6____3.96__ 0.34______45____1.24______ 4.91 -------------------------------------------------------------------- ----- ________ 150.2__155.95____ 5.75____4.07__ 3.13____ 206____7.25______29.47 -------------------------------------------------------------------- ----- -------------------------------------------------------------------- ----- SM-46____161.0__ 166.1______5.1____3.91__ 0.12______11____0.34______ 1.33 -------------------------------------------------------------------- ----- ________ 180.0__ 184.2______4.2____3.22__ 0.41______ 1____0.44______ 1.42 -------------------------------------------------------------------- ----- incl.____180.9__ 181.7______0.8____0.61__ 0.99______ 4____1.07______ 0.66 -------------------------------------------------------------------- ----- -------------------------------------------------------------------- ----- SM-47____188.0__ 206.0____ 18.0__ 12.73__ 0.81______24____1.30______16.54 -------------------------------------------------------------------- ----- incl.____188.0__ 191.0______3.0____2.12__ 1.15______15____1.44______ 3.05 -------------------------------------------------------------------- ----- incl.____198.0__ 201.0______3.0____2.12__ 1.80______15____2.11______ 4.48 -------------------------------------------------------------------- ----- incl.____204.6__ 206.0______1.4____0.99__ 2.72____ 220____6.79______ 6.72 -------------------------------------------------------------------- ----- -------------------------------------------------------------------- -----

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "The results of these three holes confirm that the northwest portion of 'Clavo 99' continues to expand down dip. We are excited for the pending assays of seven drill holes which could expand 'Clavo 99' further to the northwest."

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).

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 Gold and Silver Corp. is the manager of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (TRGD.PK) (30%). Paramount recently signed a Strategic Alliance with Mexoro Minerals Ltd. (MXOM.OB). Paramount has signed an agreement with Garibaldi Resources Inc. (TSX VENTURE:GGI) to form a joint venture agreement, and acquire an interest in 17,208 hectares of property.

"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.

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