Paramount Gold and Silver Corp. began as a gold/silver exploration company in early 2005. In August 2005, Paramount signed an option agreement to acquire up to a 70% interest in the San Miguel Groupings, located in the Temoris mining district, Chihuahua, Mexico. These groupings included past producing mines, including the high-grade former producing San Luis Mine.

In May 2006, Paramount staked the Andrea concession, an 86,300 hectare mining concession located in Chihuahua, Mexico, between its existing San Miguel project and the Goldcorp/Glamis El Sauzal gold mine. The Andrea is in the vicinity of other concessions belonging to Palmarejo and Pañoles. Preliminary exploration work and geophysics are currently being conducted on the property, and drilling is expected to commence in late 2008.

In October 2006, Paramount signed a letter of intent setting out the terms of an option to earn up to an 80% interest in over 6,000 hectares of property from Garibaldi Resources, Inc. (TSX.V: GGI). In June 2008 this JV area was expanded to 17,200 hectares and includes two exploration targets developed by Garibaldi. In May 2008, Paramount entered into a strategic alliance with Mexoro Minerals Limited regarding, among other properties, their Guazapares and Encino Gordo properties, adding 1000 hectares to the project. These two are between and adjacent to Paramount concessions on the Guazapares and Batosegachic structures and cover the extensions of the San Miguel vein to the northwest. With these two agreements, Paramount now controls most of the ground between the San Miguel project and the Coeur d'Alene's Palmarejo-Trogan project 15 km to the west and another block to the north.