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 
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) -- 04/01/14 --  Paramount Gold
A0HGKQ) ("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
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