New Core Drilling by Paramount Gold and Silver Intersects High Grade Values at San Miguel Project in Mexico

New Core Drilling by Paramount Gold and Silver Intersects High Grade Values at 
San Miguel Project in Mexico 
All six holes at Don Ese intersected very high grades including 36.5
meters of 3.66 g/T gold and 222 g/T silver (7.7 g/T gold equivalent);
other intercepts up to 56 g/T gold and 4.8 kg/T silver (141 opt) 
WINNEMUCCA, NEVADA -- (Marketwired) -- 01/14/14 --  Paramount Gold
A0HGKQ) ("Paramount") today reported outstanding results from the
first phase of an ongoing core drilling program on its 100%-owned San
Miguel Project in northern Mexico.  
As previously announced, Paramount recently resumed drilling with two
core rigs at its San Miguel Project (see November 25, 2013 news
release). The drill program is designed to move the San Miguel
Project towards an updated Preliminary Economic Assessment (PEA)
which could incorporate a heap leach scenario for mid-to-lower-grade
material. Objectives for the current work program include: (1) adding
resources at two new high priority exploration targets; (2) acquiring
material for further metallurgical testing of heap leach processing;
and (3) upgrading inferred resources to measured and indicated. 
Drilling began in the Don Ese area, immediately adjacent to Coeur
d'Alene's Guadalupe mine (part of the Palmarejo Mine Complex), to
convert inferred resources to measured and indicated and acquire
material for metallurgical tests. Results demonstrate that the
resource model is sound and that upgrading resources is likely only a
matter of drill spacing. "We expect these outstanding new intercepts
to increase both the size and grade of the Don Ese resource as well
as moving more of it into the indicated category," Paramount CEO
Christopher Crupi said, "The Don Ese deposit continues to improve
every time we work on it." 
Results from the six additional holes drilled in late 2013 are as

             Total Length                                                   
Hole #                (m)  From (m)    To (m)  Width (m)  Au (g/T)  Ag (g/T)
DS-13-035          423.50    332.00    348.75      16.75      1.48     209.8
                Including    338.10    342.50       4.40      3.57     484.4
                             352.85    357.75       4.90      0.14      25.4
                             364.65    366.60       1.95      3.97     200.9
                             398.15    398.65       0.50      1.00     247.0
DS-13-036                    421.35    422.10       0.75      0.35      87.1
                             429.80    432.45       2.65      2.18     133.8
                including    431.40    432.45       1.05      5.25     247.0
                             439.75    470.30      30.55      0.74      86.3
                including    439.75    441.75       2.00      3.03     448.0
                             489.40    489.95       0.55      3.79      89.3
DS-13-037          359.05    278.25    281.25       3.00      0.30      28.2
                             352.60    353.90       1.30      0.25     132.0
DS-13-038          340.85    296.90    304.65       7.75      2.54     230.8
                including    298.00    299.65       1.65      4.19     271.2
                             312.05    314.00       1.95      0.20      35.9
                             315.45    316.05       0.60      0.41      63.4
                             327.00    327.90       0.90      2.44     303.0
                             335.00    335.65       0.65      3.91     624.0
                             339.35    339.85       0.50      2.46     268.0
DS-13-039          383.80    293.30    298.80       5.50      1.48     198.7
                             300.25    301.65       1.40      0.51      89.9
                             326.35    326.80       0.45      0.22      70.5
                             344.80    345.45       0.65      0.75     210.0
                             367.90    371.85       3.95     11.87   2,294.8
                including    369.70    371.85       2.15     18.00   3,435.4
                including    369.70    370.50       0.80     29.40   4,833.0
                             374.30    376.10       1.80      0.51     161.7
DS-13-041          472.60    384.75    421.20      36.45      3.66     222.2
                including    393.55    397.35       3.80      2.77     243.0
                including    403.05    418.90      15.85      7.04     365.3
                including    405.05    409.65       4.60     16.51     723.5
                including    405.05    406.05       1.00     56.60   1,907.0
                including    407.05    408.00       0.95     10.90     483.0
                             423.80    424.35       0.55      1.05      33.5
                             427.70    428.95       1.25      1.71     130.3
True widths are expected to be at least 80% of reported intercepts.         

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. 
San Miguel Project PEA 
The PEA was prepared by Metal Mining Consultants ("MMC") of Denver,
Colorado incorporating a resource model developed by MDA. The PEA
confirms that the San Miguel Project represents an unusually robust
economic opportunity to develop a low cost mine in the prolific
Sierra Madre belt in Mexico. In their analysis, MMC proposed a 4,000
tonnes per day mill fed by open pits and underground mines, resulting
in a projected 14 year operation with a total metal production of
803,000 ounces of gold and 43.2 million ounces of silver (1,637,000
ounces of gold equivalent at the base case gold-to-silver price ratio
of 51.7 to 1). 
Start-up capital costs including working capital are estimated at
$243 million. Sustaining capital costs over the project's life are
projected to be an additional $227 million. With $70.3 million in
contingencies, total life-of-mine capital costs are estimated at $540
million. Projected life-of-mine average cash operating costs are $512
per ounce of equivalent gold recovered. The total cost of production
(including cash operating costs and total capital and contingency
costs over the life of the mine) is estimated at US$842 per ounce of
gold equivalent, which compares favorably with current producers in
the region. 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%.  
Note that 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. 
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
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, 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.  
To view the map associated with this press release, please visit the
following link: 
Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration
Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
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