Paramount Gold and Silver Corp. is a precious metals exploration company listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) under the symbol "PZG", and quoted on the Frankfurt Stock Exchange under the symbol "P6G". The Company's objectives are to aggressively explore and develop the San Miguel project located in Chihuahua, Mexico, within the Sierra Madre Occidental gold and silver belt.

SAN MIGUEL PROJECT: A SIGNIFICANT DISCOVERY IN SIERRA MADRE, MEXICO

The San Miguel project is located in Chihuahua, Mexico. It lies in the Temoris mining district and is part of the prolific gold-silver belt of the Sierra Madre Occidental.

The San Miguel project is accessible by vehicle and railway and its infrastructure is well developed with a recently constructed 33,000 volt power line. The Temoris mining district lies within a northwest trending belt of gold and silver deposits in the western portion of the Sierra Madre Occidental. Gold and silver mineralization in the project area occurs as quartz veins and breccias within the west-northwest and north-northwest striking faults.

A National Instrument 43-101 compliant mineral resource estimate released on December 1st, 2008 established a resource of 2.645 million Au-equivalent ounces at San Miguel.

Paramount is currently conducting an extensive exploration program at the San Miguel project in the Guazapares Mining District, part of the Sierra Madre gold-silver belt in Chihuahua, Mexico. Paramount holds a 100% interest in the project and has completed 47,560 meters of drilling at San Miguel since the summer of 2006. As part of its district exploration program, Paramount has recently acquired key mining concessions in its District consolidation strategy from Mexoro Minerals, which adds Mexoro's Encino Gordo and Guazapares areas to Paramount's "Clavo 99" discovery area to produce a land package in excess of 1,000 hectares. In addition Paramount has recently acquired Garibaldi Resources Temoris Project in the surrounding area. Paramount's land package now includes most of the ground to the surrounding Coeur d'Alene's Palmarejo - Trogan project.