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Paramount Gold Announces Market Value Financing

Posted on: Thursday, 13 October 2005, 09:01 CDT

Paramount Gold Mining Corp. (OTC:PGDP) is pleased to announce that it has concluded arrangements for a US $750,000 private placement financing of 1-year restricted stock. The transaction is based on a per share price of US $1.26 with no warrants attached or finder fees. The price is calculated on the basis of the average closing price of Paramount's common stock over the past 10 trading days. Haynes Capital Corp., a global capital management company that enhances issuer access to the investment community, arranged the financing.

"Paramount Gold Mining Corp commenced trading only seven weeks ago, and in this short time period the Company has announced significant additions to their management team, and three advanced-stage property acquisitions, including the recent deal with Barrick Gold (NYSE:ABX). We have received overwhelming interest in this financing from sophisticated investors in North America and Europe who are confident the Company will become a producer in the near future," said Richard Gallo of Haynes Capital Corp.

Paramount's plans are to use the funds to commence comprehensive work programs, including drilling, at the San Miguel and Yoquivo properties located in the proven gold district of Chihuahua, Mexico and the Linda Property in Peru. The Company will also use a portion of the proceeds to fund additional property acquisitions presently being evaluated that meet the criteria of being either advanced-stage properties or current producing mines.

Commenting on the work program at San Miguel, former Hecla (NYSE:HL) Chief Geologist Bill Reed stated; "The San Luis mine had previous assays across a 13 meter zone that ran 2 gpt gold and 400 gpt silver. This zone can be traced on surface for about 200 metres and the mine was known for multi-ounce per tonne ore. From everything I have seen thus far, I believe this high grade ore is still in the mine and I am excited to start the process of what I believe will lead to the discovery of an economic, open-pit mine".

About Paramount Gold

Paramount Gold Mining Corp. is a precious metals exploration and development company. The objective of its management team is to grow Paramount into a significant gold and precious metals producer by developing the San Miguel, Yoquivo, and Linda projects in Mexico and Peru, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world. www.paramountgold.com

About Haynes Capital

Haynes Capital Corp is a capital management company that helps its clients to enhance their access to the investment community using its network of contacts and associations. Services provided by Haynes include corporate finance strategies, investor awareness programs, and strategic business development.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Source: Business Wire

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