Mr. Christopher Crupi

PARAMOUNT GOLD AND SILVER REPORTS MORE HIGH-GRADE DRILL RESULTS FROM ITS SAN MIGUEL PROJECT IN MEXICO

Paramount Gold and Silver Corp. has released more high-grade gold and silver values from six holes recently drilled at its 100-per-cent-owned San Miguel project in northwestern Mexico. These six holes from the continuing resource delineation program at the San Miguel vein target all returned excellent intercepts including 10.8 metres grading 8.33 grams per tonne gold and 32.5 g/t silver.

Paramount is currently using three core drills to explore new targets and to infill the two-kilometre-long San Miguel vein, the nearly one km long Don Ese North vein and the growing silver-rich San Antonio bulk tonnage area.

Paramount's chief executive officer, Christopher Crupi, commented: "We expect these results to expand the size and increase the grade of the San Miguel vein resource. Over the next four months, we plan to report new resource estimates for all of the San Miguel deposits. We believe the new overall resource totals for the San Miguel project will reflect the outstanding success of our drilling programs over the last year."

                                RESULTS FOR SIX HOLES

                               Total                                        
Hole No.   Area            length (m)    From      To  Width  Au g/t  Ag g/t

SM-11-079  San Miguel vein    386.95   199.65  204.10   4.45    1.32  588.15
                                       250.65  253.65   3.00    4.67  145.12
                                       255.80  257.35   1.55    2.14  162.00
                                       258.85  261.90   3.05    6.57  487.36
                                       263.50  273.55  10.05    3.45   45.84
                           including   263.50  267.65   4.15    7.17  103.18
                                       276.70  287.55  10.85    8.33   32.55
                                       325.10  333.95   8.85    0.55    8.43
SM-11-080  San Miguel vein    298.70   102.15  106.55   4.40    2.51  594.40
                                       148.65  152.30   3.65    0.56    4.80
                                       208.70  213.50   4.80    0.39   12.07
                                       214.70  227.10  12.40    0.95   14.51
                                       233.90  236.95   3.05    1.22   27.44
SM-11-083  San Miguel vein    368.85   207.90  218.55  10.65    0.45  140.96
                                       231.40  243.70  12.30    4.16  398.46
                           including   233.15  239.25   6.10    6.92  640.69
                                       275.35  283.55   8.20    2.38   24.64
                           including   280.50  283.55   3.05    3.72   27.86
                                       312.45  318.10   5.65    1.84    6.51
                                       319.85  324.90   5.05    0.30    6.14
                                       325.50  329.90   4.40    1.03   10.11
                                       331.90  336.35   4.45    0.84   41.04
SM-11-084  San Miguel vein    231.25   183.45  199.95  16.50    0.63    7.66
                           including   187.15  191.55   4.40    1.00    5.55
                                       213.90  220.70   6.80    5.45   18.47
                           including   216.40  220.05   3.65    9.74   32.51
SM-11-085  San Miguel vein    353.15   208.45  213.60   5.15    0.18   25.25
                                       266.50  284.70  18.20    1.98   23.37
                           including   274.30  278.90   4.60    5.69   49.94
SM-11-086  San Miguel vein    225.50   104.50  111.70   7.20    0.04   80.19
                                       116.75  145.50  28.75    0.65   47.56
                           including   129.50  133.20   3.70    1.77  153.59
                           including   139.00  142.90   3.90    1.73  133.82
                                       147.20  154.80   7.60    0.39    1.73
                                       168.00  172.00   4.00    1.03    7.01

The orientation of these drill holes was designed to intercept the structural feature at right angles so as to provide a close approximation to true width.

On the San Miguel vein, 27 drill holes have been completed during the 2011 campaign, totalling 7,169 metres. Results have been released for 20 holes including the six noted in the table. Assays are pending for seven more holes. An additional five holes totalling 1,305 metres are planned to complete drilling on this target for 2011.

Paramount has commissioned Mine Development Associates of Reno, Nev., to update the resource estimates on the San Miguel project. MDA is expected to complete the modelling and resource estimates for the three deposits on the La Union vein structure (San Jose, San Luis and La Union) and the silver-rich San Antonio bulk tonnage zone in December, 2011. These are the remaining deposits not updated by MDA in April, 2011. With this update, Paramount will have modelled all the San Miguel deposits to industry standards required for mine planning. The other deposits currently being drilled (San Miguel, San Francisco and Don Ese) will also be re-estimated in early 2012. Updated models for all of San Miguel's deposits will then be incorporated into a preliminary economic assessment planned for next year to evaluate mining scenarios, mining rates and process alternatives, and define a path to a preliminary feasibility study which would report reserves. In addition, the company is continuing to explore the potential of its large property position and is prioritizing numerous untested targets.

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico SA de CV personnel under the supervision of Glen van Treek, exploration vice-president of the company, and Bill Threlkeld, a qualified person as defined by National Instrument 43-101, who have both reviewed and approved this press release. A continuing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10 per cent of the samples. Samples are being assayed at ALS Chemex, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

We seek Safe Harbor.