PZG Corporate Strategy: Be Where It Counts

To pursue the Paramount formula of creating value while reducing risk, we follow a three-part strategy:

1. Acquiring and expanding known deposits in large-scale geological environments in North America only.
   Working to expand known deposits eliminates discovery risks and significantly increases the efficiency and effectiveness of exploration programs. Large land packages are assembled to provide room to grow. North America is the premier location because of security of tenure, known and workable permitting requirements, ease of access and deep talent pools. For these reasons, North American deposits command premium valuations.
2. Locating in established mining camps near successful operating mines.
   Being close to other producers greatly reduces the costs related to infrastructure requirements at the exploration stage and especially for mine construction and operations. The result is a major enhancement of project economics. Relatively smaller deposits can be successful compared to remote locations, mine-building can more easily be joint-ventured and both the economic and regulatory parameters are further de-risked and defined by neighboring operations.
3. Generating near-term cash flow to reduce financing risks and provide for greater operating flexibility.
   The optimum time to expand work programs or acquire new projects is often when new capital is hardest to obtain. To offset this risk, we are advancing an estimated 50.3 million tonnes of gold-bearing tailings and leach pad heaps containing an estimated 713,920 ounces of resources at the former Sleeper mine towards an early production decision. Most of the needed permits remain in place from previous operations. Detailed sampling and metallurgical testing are now moving ahead to estimate the value of this resource which we expect to joint-venture with a producer.