Paramount Gold and Silver Resumes Core Drilling at San Miguel Project in Mexico

Paramount Gold and Silver Resumes Core Drilling at San Miguel Project in Mexico 
WINNEMUCCA, NEVADA -- (Marketwired) -- 11/25/13 -- Paramount Gold and
("Paramount") today announced that two core rigs have begun drilling
on its 100%-owned San Miguel Project, Mexico. The main objectives for
the program are to: (1) add resources at two new high priority
exploration targets; (2) acquire material for further metallurgical
testing of heap leach processing; and (3) upgrade inferred resources
to measured and indicated.  
Exploration: Over the past several months, Paramount's geological
team has been conducting extensive surface mapping of mineralized
areas outside the project's main deposits. This work has defined
several zones with potential for additional resources within economic
distance of the process plant location identified in this year's
Preliminary Economic Assessment (PEA). One of the primary targets
will be the newly-discovered 4 km long San Isidro vein. Two
preliminary holes drilled earlier this year on this structure
intercepted up to 2.8 g/T of gold and up to 214 g/T of silver (see
September 19, 2013 news release). Additional drilling is also planned
for the La Bavisa area adjacent to the high grade Don Ese resource.
Drilling at La Bavisa to date has been highly encouraging, including
12.2 meters grading 1.26 g/T of gold and 285 g/T of silver (see 2012
news releases of May 22nd and November 28th).  
PEA Update/PFS: As announced on Nov. 6, 2013, Paramount now believes
that heap leaching of mid-to-lower-grade material is feasible at two
of San Miguel's deposits, potentially resulting in a substantial
increase in mineable material, a large reduction in the ore-to-waste
and strip ratios and a significant improvement in project economics.
Paramount now intends to update its already very positive PEA and
then move immediately to a Pre-Feasibility Study (PFS). The PEA
update will incorporate the excellent heap leach metallurgical test
results obtained to date (see November 6, 2013 news release) as well
as the results of additional tests to be conducted on material
obtained from the current drill program. In preparation for the PEA
update and a PFS, additional drilling will also aim to increase the
resources in the measured and indicated categories as these could
qualify as reserves in a PFS. Drilling for these objectives is
planned for Don Ese, San Francisco, San Antonio and a southern
extension of the La Union Vein. 
The current PEA mine plan includes a total of 18.5 million tonnes
containing 859,000 ounces of gold and 62 million ounces of silver as

    Total Production             Grade                Contained metal       
         Tonnes          Au g/T Ag g/T    AuEq   Au Oz       Ag Oz   AuEq Oz
Open pit       9,637,358   0.38    101    2.07 118,259  31,423,370   641,982
Under ground   8,855,054    2.6    108     4.4 741,063  30,643,380 1,251,786
Total         18,492,412   1.45    104    3.19 859,322  62,066,750 1,893,768

Current resource within the PEA Mine Plan. 
In the existing PEA, the San Francisco and San Antonio open pits
contribute just 4.2 million tonnes to the mine plan, containing
27,570 ounces of gold and 13.9 million ounces of silver. Resources
estimated by Mine Development Associates ("MDA") of Reno, Nevada
indicate that at a lower cut-off grade, which could be expected in a
heap leach scenario, contributed tonnes from San Francisco and San
Antonio could increase almost ten times to nearly 42 million tonnes
or about 396,000 ounces of gold and 32 million ounces of silver, as
follows. (For PEA and resource details see February 28, 2013 news

                                     Measured & Indicated                   
            Cut Off    Tonnes          Grade            Contained metal     
          Ag Eq Au Eq                                                       
Deposit     g/T   g/T           Au g/T Ag g/T  AuEq Au Oz      Ag Oz AuEq Oz
 Francisco   10  0.17         -      -      -     -     -          -       -
 Antonio     25  0.42 7,389,000   0.02     70  1.19 5,000 16,533,000 280,550
Total                 7,389,000   0.02     70  1.18 5,000 16,533,000 280,550
            Cut Off    Tonnes         Grade            Contained metal      
Deposit   Ag EqAu Eq                                                        
            g/T  g/T           Au g/T Ag g/T AuEq   Au Oz      Ag Oz AuEq Oz
 Francisco   10 0.17 32,033,000  0.38     10 0.55 386,000 10,277,000 557,283
 Antonio     25 0.42  2,110,000  0.08     73 1.30   5,000  4,978,000  87,967
Total                34,143,000  0.36     14 0.59 391,000 15,255,000 645,250

MDA resource estimate at lower cut off for the two open pit only
Note: the PEA and related estimates of resources included in the PEA
mine plan incorporate 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.  
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 QP as defined by National Instrument 43-101, who have both reviewed
and approved this news release. Michael Gustin of MDA, a Qualified
Person responsible for resource estimation, has also reviewed and
approved the portions of this news release that relate to the San
Miguel resource estimate. 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, Vancouver, B.C., using fire assay atomic absorption methods
for gold and aqua regia digestion ICP methods for other elements. 
About Paramount Gold  
Paramount Gold is a U.S. based exploration and development company
with multi-million ounce advanced stage precious metals projects in
Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded
exploration programs are now in progress at these two core projects
which are expected to generate substantial additional value for our
shareholders. Engineering studies are scheduled to be updated in 2014
to define an improved development path and economic valuation for
each project. 
The 100% owned San Miguel Project consists of over 140,000 hectares
(approximately 350,000 acres) in the Palmarejo District of northwest
Mexico, making Paramount the largest claim holder in this rapidly
growing precious metals mining camp. The current work program at San
Miguel is part of Paramount's strategy of expanding and upgrading
known, large-scale precious metal occurrences in established mining
camps, defining their economic potential and then partnering them
with nearby producers. The San Miguel Project is ideally situated
near established, low cost production where the infrastructure
already exists for early, cost-effective exploitation. Paramount also
owns 100% of the Sleeper Gold Project which is emerging as one of
Nevada's largest new undeveloped gold 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    20,450,000
Total                                       2,802,000             60,693,000

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 metallurgical test results and the potential for
heap leaching at San Miguel, future work at the San Miguel Project
and the expected results of this work, estimates of resources
including expected volumes and grades, the results of the project's
PEA and expectations for an updated PEA and PFS. 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,
2013 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. 
Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration
Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
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