On May 3, 2006, Paramount Gold Mining Corp. staked the Andrea concession, a mining concession located in Chihuahua, Mexico, between their existing San Miguel project and the Goldcorp/Glamis (GLG:NYSE) El Sauzal gold mine. The Andrea concession consists of approximately 86,300 hectares which was claimed recently by Paramount in its own name. The Andrea is in the vicinity of other concessions belonging to Palmarejo (PJO:TSX.V) and Pañoles.

• 86,300 hectare concession that covers most of the ground between Paramount’s San Miguel project and GoldCorp’s El Sauzal gold mine
• Completed an extensive stream sediment sampling program (371 drainage basins), as well as a hydrothermal alteration mineral mapping program using Aster satellite imagery. These programs identified several areas with anomalous gold, silver, copper and zinc and strong hydrothermal alteration.
• Early targets identified from field follow-up include:
  • Marimara, porphyry copper target; assays pending.
  • Mesa Colorada, a gold-silver target with intense stream sediment and alteration anomalies in an area of intersection of regional lineaments; assays pending.
  • Maty gold-silver target: results from initial sampling show contents of 3.4 to 19.2 g/t Au and 76 to 702 g/t Ag in vein material.
  • Follow-up work identified 25 phase-two target areas, four of which were anomalous in copper and 21 of which were anomalous in gold. Of these, six higher priority ones will be evaluated further after the rainy season.