Paramount Gold's Sleeper Project Re-Logging Program Finds Unassayed Core with Good Gold Grades

Paramount Gold's Sleeper Project Re-Logging Program Finds Unassayed Core with 
Good Gold Grades 
FOR: Paramount Gold and Silver Corp. 
APRIL 1, 2014 
Paramount Gold's Sleeper Project Re-Logging Program Finds Unassayed Core
with Good Gold Grades 
Intervals Thought to Be Barren by Previous Operator Return Samples Up to 7.65
g/T Au; May Increase In-Pit Resource Size and Grade 
WINNEMUCCA, NEVADA--(Marketwired - April 1, 2014) - Paramount Gold and Silver
("Paramount") announced today that assays of core from 19 holes
drilled on Paramount's 100%-owned Sleeper Gold Project in Nevada by a
previous owner have returned significant gold values. The core had not
previously been split or assayed. 
In 2013, Paramount commenced a program of re-logging core from 54 core holes
representing 18,900 meters drilled into the Sleeper Gold Project by previous
operators between 2004 and 2007. The aim was to update the geological model and
interpretations for the original Sleeper deposits to assist in the search for
similar occurrences in the district which has been consolidated under Paramount
ownership. During the process of re-logging, remodeling, and improving the
extensive database, Paramount staff discovered numerous intervals of core
within the Sleeper deposit which had never been sawn and assayed--many of them
located inside the conceptual pit design contained in the project's 2012
Preliminary Economic Assessment (PEA). These unassayed intervals were typically
entered into the database with no grade or an assumed grade of zero which would
have had the effect of understating the resource size and grade. 
A total of 1,846 new samples were collected in the re-logging program, each
typically representing a 1.52 meter sample interval, for a total of 2,722
meters of core. These samples were selected from a total of 40 core drill holes
that were drilled between 2004 and 2007 in the Sleeper, West Wood and Facility
areas. Sampling and assaying of these intervals were performed by ALS Global at
their Laboratories in Vancouver, Canada. Grades up to 7.65 g/T of gold and 49.3
g/T of silver were reported with an outstanding 21% (383 samples representing
547 meters of core) returning gold grades over the PEA global cut off of 0.1
g/T. These 383 samples had a weighted average grade of 0.49 g/T of gold and 1.9
g/T of silver. Moreover, 5% of these samples returned grades over 0.5 g/T of
gold with an average of 1.23 g/T and 2.2 g/T of silver. Partially sampled drill
hole WW-18-04 intersected 18.9 meters grading 1.48 g/T of gold while WW-27-04
returned 55.5 meters grading 0.51 g/T of gold and 1.97 g/T of silver. Both
holes were drilled in the West Wood area in 2004. 
This new data along with an additional 33 core holes drilled by Paramount since
the last resource update are now being incorporated by SRK Consulting
( into an updated resource estimate expected to be completed in
June, 2014. Significant assay results from this newly split and assayed core
are as follows: 
Hole -ID        From (m)       To (m)    Width (m)      Au g/T       Ag g/T
WW-27-04         429.77       445.01        15.24         0.49         1.55 
487.68       543.19        55.50         0.51         1.97
XC-06-14         144.78       148.10         3.32         0.28         2.16 
151.85       169.96        18.11         0.22         0.51
XC-07-21          25.30        34.41         9.11         0.52         3.75 
38.74        41.15         2.41         0.33         2.47 
51.82        60.05         8.23         0.21         2.14 
72.05        79.19         7.13         0.78         0.79 
80.50       111.86        31.36         0.27         0.58 
114.30       126.49        12.19         0.26         0.47 
144.78       166.12        21.34         0.16         0.51
MC-41-04         606.55       611.13         4.57         0.66         0.63
XC-07-43         146.91       152.10         5.18         0.34         7.76 
153.35       166.73        13.38         0.52         4.61 
168.40       175.26         6.86         0.18         1.78
XC-07-44          83.09        89.58         6.49         0.24         2.96 
95.19       109.73        14.54         0.59         8.21 
115.82       120.40         4.57         0.09         2.80
WW-22-04         123.44       128.02         4.57         0.82         0.50 
225.55       246.89        21.34         1.32         0.68
XW-07-56         178.31       190.04        11.73         0.25         0.38
WW-16-04         274.32       280.42         6.10         0.39         8.25
WW-19-04         294.13       300.23         6.10         0.33         2.43
WW-18-04         243.84       251.46         7.62         0.51         0.50 
257.56       262.13         4.57         0.29         0.53 
289.56       308.46        18.90         1.48         1.61
WW-37-05          66.75       109.42        42.67         0.57         0.55
WW-14-04         369.42       374.91         5.49         0.22         2.14
WW-13-04         227.69       270.36        42.67         0.59         0.56
WW-15-04         311.20       315.47         4.27         0.18         0.50
WW-29-04         175.26       182.27         7.01         0.42         0.50
WW-36-05          91.44       106.62        15.18         0.45         0.50
MC021A           139.90       173.74        33.83         0.15         4.25 
182.88       206.05        23.16         0.11         2.44 
234.70       248.41        13.72         0.23         5.03 
288.34       300.23        11.89         0.27         3.05
MC-46-04         376.43       381.00         4.57         0.53         0.53
The new geological model and structural interpretation developed as a result of
the re-logging program have defined a new set of high priority exploration
targets. Paramount is designing a drill program which will be prioritized once
the new SRK resource model is received. Paramount staff believes there is
significant potential to find a new high grade vein deposit in the large claim
block that it holds in the district. 
NI 43-101 Disclosure 
Exploration activities at Sleeper are being conducted by Paramount Gold 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, both of whom have reviewed and approved this press release. An ongoing
quality control/quality assurance protocol is being employed during the program
including blank, duplicate and reference standards in every batch of assays.
Samples are being assayed at ALS Global, Reno, Nevada while multi-element
analysis is being performed in Vancouver, Canada. External check samples are
also being conducted at Inspectorate Lab in Reno, Nevada. 
Sleeper PEA 
The Preliminary Economic Assessment led by Scott E. Wilson Consulting Inc.
(renamed Metal Mining Consultants at and
originally released on July 30, 2012, specifies a development scenario for
Sleeper consisting of a large-scale open pit mining operation with a heap leach
processing plant handling both oxide and sulphide material, producing a
gold-silver dore. The base case scenario incorporates an 81,000 tonnes per day
operation (approximately 30 million tonnes per year throughput), resulting in a
projected 17 year operation with average annual production of 172,000 ounces of
gold and 263,000 ounces of silver. Projected life-of-mine average cash
operating costs are US$767 per ounce of equivalent gold recovered. Start-up
capital costs for this project scenario are estimated at US$346 million.
Sustaining capital costs over the project's life are estimated at an
additional $278 million. Total capital cost contingencies over the project life
are estimated at an additional $64 million, bringing the total life of mine
capital costs to $688 million. The total cost of equivalent gold production
(including cash operating costs and total capital and contingency costs over
the life of the mine) is estimated at US$996 per ounce. 
At a gold price of US$1,384 per ounce and a silver price of $26.33 per ounce
(the 3 year trailing average of gold and silver prices as at July 3, 2012), the
base case has a US$1.2 billion pre-tax net cash flow, a US$695 million net
present value at a 5% discount rate and an internal rate of return (IRR) of
26.8%. At US$1,618 gold (the spot price on July 3, 2012), the total pre-tax net
cash flow increases by 160% over the base case to US$1.9 billion, the net
present value at a 5% discount rate almost doubles to US$1.2 billion and the
internal rate of return improves to a robust 40%. 
About Paramount 
Paramount 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 and engineering
programs are now in progress at these two core projects which are expected to
generate substantial additional value for our shareholders. 
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. 
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. 
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
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 Sleeper Gold Project and the MIMI and the expected
results of this work; and the accuracy and reliability of projections contained
in mineral resource estimates and Preliminary Economic Assessments.
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
INDUSTRY:  Financial Services - Investment Services and Trading, Manufacturing
and Production - Mining and Metals 
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