Current Exploration Programs

Paramount is now beginning a 6 month exploration program that will run from October 2010 through March 2011 with an estimated budget of $3M designed to expand and upgrade resources.

Paramount is also proceeding with a study of the economic potential of the independently estimated 50.3 million tonnes of gold-bearing heaps and tailings on the Sleeper property grading 0.44 grams per tonne (g/t) of gold, containing an estimated 714,000 ounces of gold resources. Detailed sampling and metallurgical testing are being initiated to estimate the value of this resource with the aim of upgrading it to reserves and joint-venturing it with a producer.

The exploration program has three main objectives:

1. definition drilling to up-grade resources at the West Wood deposit and prepare it for a Preliminary Assessment [`PA`] of its economic potential;
2. delineation drilling to expand and evaluate resources at the Facilities deposit for possible inclusion in the PA; and
3. drill evaluation of up to six new priority targets on the property identified by Paramount's geological team.

West Wood Vein Target

The West Wood target is on the southwest corner of the Sleeper Pit and has been extensively drilled to reveal a high grade core zone surrounded by lower grade gold concentrations. With characteristics similar to the original Sleeper deposit, this target has NI 43-101 compliant estimated resources of:

• Indicated Resources of 16.96 million tonnes grading 0.98g/t of gold and 4.6g/t of silver containing 530,000 ounces of gold and 2.5 million ounces of silver at a 0.4g/t Au cutoff;
• Inferred Resources of 390,000 tonnes grading 0.56g/t of gold and 2.3g/t of silver containing 10,000 ounces of gold and 30,000 ounces of silver at a 0.4g/t Au cutoff.

An eight hole core program of about 3,200 meters is planned for the West Wood target. This work will concentrate on obtaining sample material for metallurgical testing and collecting geotechnical information for conceptual pit planning. In addition, work is planned to determine the north and south limits for the West Wood target and to upgrade resources. Results are not expected to add significantly to resources but should increase confidence in resource classification and provide fresh material for basic processing and engineering studies required for a PA.

Facilities Target Area

The Facilities Target is on the eastern side of the Sleeper pit and is a broad area of continuous lower grade gold-bearing material. Several drill holes encountered bonanza grade intersections. At present, however, the drill spacing is too wide to define the extent and distribution of the higher grade material. It is anticipated that defining the limits of the higher grade intervals in the Facilities Target should have a positive effect on the grade of this resource. The current NI 43-101 resource estimate is the following:

• Indicated Resources of 10 million tonnes grading 0.69g/t of gold and 7.8g/t of silver containing 220,000 ounces of gold and 2.5 million ounces of silver at a 0.4g/t Au cutoff;
• Inferred Resources of 19.6 million tonnes grading 0.60g/t of gold and 6.7 g/t of silver containing 370,000 ounces of gold and 4.2 million ounces of silver at a 0.4g/t Au cutoff.

A program of 20 reverse circulation drill holes totaling approximately 5,000 meters is planned on the Facilities Target. These holes will be closely spaced horizontal and vertical off-sets to existing bonanza-grade intersections.

New Targets

Approximately 1,250 meters will be drilled to test priority exploration concepts and refine exploration drill strategies. Results from this program are expected to lead to definition of up to six targets for developing additional resources on the project.