Paramount Gold and Silver Corp. is a precious metals exploration company listed on the Toronto Stock Exchange (TSX) and the American Stock Exchange (AMEX) under the symbol "PZG", and quoted on the Frankfurt Stock Exchange under the symbol "P6G". The Company's objectives are to aggressively explore and develop the San Miguel project located in Chihuahua, Mexico, within the Sierra Madre Occidental gold and silver belt.

SAN MIGUEL PROJECT: A SIGNIFICANT DISCOVERY IN SIERRA MADRE, MEXICO

The San Miguel project is located in Chihuahua, Mexico. It lies in the Temoris mining district and is part of the prolific gold-silver belt of the Sierra Madre Occidental.

The San Miguel project is accessible by vehicle and railway and its infrastructure is well developed with a recently constructed 33,000 volt power line. The Temoris mining district lies within a northwest trending belt of gold and silver deposits in the western portion of the Sierra Madre Occidental. Gold and silver mineralization in the project area occurs as quartz veins and breccias within the west-northwest and north-northwest striking faults.

National Instrument 43-101 compliant mineral resource estimate released on June 25, 2008 shows 108.5 Million Ag-equivalent ounces at San Miguel. As of April 30th, 2008, 176 HQ size diamond drill holes have been completed totaling 34,926 meters in various exploration areas. 132 of the holes have been drilled in mineralized areas along the Guazapares Fault structure and 44 holes have targeted the San Miguel vein in the Batosegachic Fault. Paramount has also completed 69 trenches totaling 3,899 meters. Paramount expects to increase this resource significantly as drilling continues.