Paramount Gold and Silver Extends High Grade Gold and Silver Values Down Dip on Don Ese Vein at San Miguel Project, Mexico

Paramount Gold and Silver Extends High Grade Gold and Silver Values Down Dip on 
Don Ese Vein at San Miguel Project, Mexico 
DS-13-032 reports intercepts up to 42.5 g/T gold and 186 g/T silver
within a 22.5 meter wide mineralized zone 
WINNEMUCCA, NEVADA -- (Marketwired) -- 04/25/13 -- Paramount Gold and
("Paramount") today reported that a new drill program designed to
test the depth potential of the high grade Don Ese Vein has
intersected outstanding gold and silver grades over
greater-than-expected widths, indicating that substantial additional
resources could be developed below the current resource model. 
Drill hole DS-13-030 targeted the Don Ese Vein approximately 100
meters below hole DS-12-025 which was drilled on the same section
last year (see section below). DS-13-30 intercepted two structures--
6.6 meters grading 2.5 grams per tonne (g/T) gold and 315 g/T silver
in the hanging wall (8.4 g/T gold equivalent at current metal prices)
and a further intercept of 19.4 meters grading 2.3 g/T gold and 246
g/T silver in the footwall (6.9 g/T gold equivalent). These two
intercepts lie within a structural zone which is 50.6 meters wide
with an average grade of 1.33 g/T gold and 150 g/T silver (4.1 g/T
gold equivalent). Hole DS-13-030 is one of the best drilled to date
at Don Ese and represents clear evidence of a structure which is
widening at depth while continuing to report exceptional precious
metal values. See details in the table below.  
Drill hole DS-13-032 targeted a 184 meter gap with no drill data
along strike between DS-10-001 and DS-10-003 where the resource model
reported waste or low grade material. DS-13-032 intersected a wide
structural zone of stockwork and massive veins with gold grades up to
42.5 g/T gold and 186 g/T silver. Overall, the mineralized zone in
this hole is 22.5 meters wide with an average grade of 3.16 g/T gold
and 44.3 g/t silver (4.0 g/T gold equivalent).  
A third hole, DS-13-031, is the northern most hole drilled on the Don
Ese structure, located close to the property boundary adjoining the
Coeur d'Alene ground to the west. DS-13-031 intersected 4.6 meters
grading 1.31 g/T gold and 21.6 g/T silver (1.7 g/T gold equivalent),
indicating that the Don Ese Vein pinches out as it crosses onto
Coeur's Palmarejo Mine property.  

Hole #     Area          Total From (m)   To (m) Width (m)   Au g/T   Ag g/T
DS-13-030  DON ESE       524.4   442.35   492.90     50.55    1.325   150.00
                     Including   451.55   458.10      6.55    2.469   314.67
                     Including   467.80   487.15     19.35    2.300   245.80
DS-13-031  DON ESE         683   586.80   591.40      4.60     1.31   21.660
DS-13-032  DON ESE      621.95   515.75   538.25     22.50    3.160    44.34
                     including   527.10   530.05      2.95   14.180    98.15
                     including   527.10   527.95      0.85   42.500   186.00
                     including   535.55   538.25      2.30    6.560   113.97
                     including   535.95   536.55      0.60   17.000   125.00
                                 541.15   543.90      2.75    0.370    18.78
                                 555.90   556.40      0.50    2.340    13.10
                                 579.45   579.95      0.50    1.068    14.30
True widths are expected to approximate 70% of reported intercepts.         

Paramount CEO Christopher Crupi commented: "We have thought for some
time that the Don Ese Vein would continue to depth and that widths
and grades could increase. This new drill hole, along with additional
drilling now in progress, demonstrates that the current resource is
wide open to an unknown depth which we intend to define and integrate
into an updated resource estimate later this year."  
These new Don Ese results were not included in the database used for
the robust San Miguel Preliminary Economic Assessment (PEA) released
on February 28, 2013. Also not included in the PEA were results of
recent drilling at the newly discovered La Bavisa vein (see press
releases from May 22, 2012 and November 28, 2012), in the vicinity of
Don Ese. "The reality is that San Miguel continues to grow quickly,
outpacing our engineering work, and we are far from exhausting our
list of highly prospective opportunities for resource expansion,"
Crupi said. 
At a gold price of $1500 per ounce and a silver price of $29 per
ounce (the 3 year trailing average of gold and silver prices at the
end of January 2013), the San Miguel PEA estimated a $1.1 billion
pre-tax net cash flow, a $707 million pre-tax net present value at a
5% discount rate and a highly accretive internal rate of return of
33.2%. At recent spot prices of $1600 gold and $33 silver, San
Miguel's projected economics improve to $1.3 billion in pre-tax net
cash flow, $893 million of net present value at a 5% discount rate
and a 39.3% IRR. At recent metal price highs of $1,900 per ounce of
gold and $36 for silver, the estimated NPV at a 5% discount rate
rises to $1.166 billion with a 48.3% IRR. Note Mineral resources that
are not mineral reserves do not have demonstrated economic viability.
The PEA incorporates inferred mineral resources which are considered
to be too geologically speculative to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves and, as such, do not have
demonstrated economic viability. There can be no certainty that the
estimates contained in the PEA will be realized. 
Additionally Paramount conducted a three drill hole program on La
Tinaja a new vein target located south of Temoris town. Although
drill holes LT-13-001 to LT-13-003 targeted gold mineralization found
at surface drilling did not intersect significant gold and silver
NI 43-101 Disclosure 
Exploration activities at San Miguel are being conducted by Paramount
Gold de Mexico S.A de C.V personnel under the supervision of Glen van
Treek, Exploration Vice President of the Company and Bill Threlkeld,
a Qualified Person as defined by National Instrument 43-101, who have
both reviewed and approved this press release. An ongoing quality
control/quality assurance protocol is being employed for the program
including blank, duplicate and reference standards in every batch of
assays. Cross-check analyses are being conducted at a second external
laboratory on 10% of the samples. Samples are being assayed at ALS
Chemex and Acme Laboratories, Vancouver, B.C., using fire assay
atomic absorption methods for gold and aqua regia digestion ICP
methods for other elements.  
About Paramount  
Paramount is a U.S.-based exploration and development company with
multi-million ounce advanced stage precious metals projects in
northern Mexico (San Miguel) and Nevada (Sleeper). Fully-funded
exploration and engineering programs are now in progress at these two
core projects which are expected to generate substantial additional
value for our shareholders. 
The San Miguel Project consists of over 142,000 hectares (over
353,000 acres) in the Palmarejo District of northwest Mexico, making
Paramount the largest claim holder in this rapidly growing precious
metals mining camp. The San Miguel Project is ideally situated near
established, low cost production where the infrastructure already
exists for early, cost-effective exploitation. A PEA for San Miguel
was completed and announced on February 28, 2013. 
The Sleeper Gold Project is located off a main highway about 25 miles
from the town of Winnemucca. In 2010, Paramount acquired a 100%
interest in the project including the original Sleeper high-grade
open pit mine operated by Amax Gold from 1986 to 1996 as well as
staked and purchased lands now totaling 2,570 claims and covering
about 47,500 acres which stretch south down trend to Newmont's
Sandman project. This acquisition is consistent with the Company's
strategy of district-scale exploration near infrastructure in
established mining camps. A PEA was completed for Sleeper and
announced on July 30, 2012. 

Summary of PZG's Estimated NI 43-101 Compliant Resources                    

MEASURED AND INDICATED RESOURCES                                           
PROJECT            Tonnes      Au g/T   Au Ounces       Ag g/T    Ag Ounces
San Miguel     23,918,000        0.83     639,000         70.0   53,559,000
Sleeper       326,963,000        0.33   3,479,000         3.86   40,606,000
Total                                   4,118,000                94,165,000
INFERRED RESOURCES                                                         
PROJECT            Tonnes      Au g/T   Au Ounces       Ag g/T    Ag Ounces
San Miguel     37,470,000        0.69     830,000        38.00   46,243,000
Sleeper       223,624,000        0.27   1,972,000         2.84   20,459,000
Total                                   2,802,000                66,702,000

For details on these resource estimates please see the following news
releases: San Miguel Resource Estimate, September 5, 2012; and
Sleeper Resource Estimate, July 30, 2012. 
Cautionary Note to U.S. Investors Concerning Estimates of Indicated
and Inferred Resources  
This news release uses the terms "measured and indicated resources"
and "inferred resources". We advise U.S. investors that while these
terms are defined in, and permitted by, Canadian regulations, these
terms are not defined terms under SEC Industry Guide 7 and not
normally permitted to be used in reports and registration statements
filed with the SEC. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. The SEC normally only
permits issuers to report mineralization that does not constitute SEC
Industry Guide 7 compliant "reserves", as in-place tonnage and grade
without reference to unit measures. U.S. investors are cautioned not
to assume that any part or all of mineral deposits in this category
will ever be converted into reserves. U.S. investors are cautioned
not to assume that any part or all of an inferred resource exists or
is economically or legally minable  
Safe Harbor for Forward-Looking Statements:  
This release and related documents may include "forward-looking
statements" including, but not limited to, statements related to the
interpretation of drilling results and potential mineralization,
future exploration work at the San Miguel Project and the expected
results of this work, estimates of resources including expected
volumes and grades and the economic projections included in the
project's PEA. Forward-looking statements are statements that are not
historical fact and are subject to a variety of risks and
uncertainties which could cause actual events to differ materially
from those reflected in the forward-looking statements including
fluctuations in the price of gold, inability to complete drill
programs on time and on budget, and future financing ability.
Paramount's future expectations, beliefs, goals, plans or prospects
constitute forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
other applicable securities laws. Words such as "believes," "plans,"
"anticipates," "expects," "estimates" and similar expressions should
also be considered to be forward-looking statements. There are a
number of important factors that could cause actual results or events
to differ materially from those indicated by such forward-looking
statements, including, but not limited to: uncertainties involving
interpretation of drilling results, environmental matters, lack of
ability to obtain required permitting, equipment breakdown or
disruptions, and the other factors described in Paramount's Annual
Report on Form 10-K for the year ended June 30, 2012 and its most
recent quarterly reports filed with the SEC. 
Except as required by applicable law, Paramount disclaims any
intention or obligation to update any forward-looking statements as a
result of developments occurring after the date of this document.  
Maps are available at the following address:
Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration
Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
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