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Paramount Gold and Silver Corp
Symbol PZG
Shares Issued 161,306,269
Close 2014-10-22 C$ 0.80
Market Cap C$ 129,045,015
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Paramount Gold drills 5.4 m of 183 g/t Ag at San Miguel

2014-10-23 05:15 ET - News Release

Mr. Christopher Crupi reports

PARAMOUNT GOLD AND SILVER INTERSECTS HIGH GOLD GRADE IN THE NEWLY DISCOVERED DANA STRUCTURE AT SAN MIGUEL, MEXICO

Paramount Gold and Silver Corp.'s second drill hole on the newly discovered Dana structure at its 100-per-cent-owned San Miguel project in northern Mexico has intersected high gold grades in addition to the significant silver grades found in the discovery hole released last week.

The first hole drilled into Dana, DN-001, returned multiple intercepts of high-grade silver with lower grades of gold including 3.6 metres of 157.1 grams per tonne of silver and 0.40 gram per tonne of gold containing assays up to 659 grams per tonne of silver (21 ounces per ton) and 1.18 grams per tonne gold (see news release of Oct. 15, 2014). Paramount geologists believed that gold grades would increase at lower elevations similar to the nearby high-grade Don Ese deposit which it resembles. DN-002 was drilled along strike 100 metres northwest of DN-001 to intersect the Dana structure 50 metres deeper. DN-002 cut a stockwork zone with internal silicified breccia totalling 5.4 metres and grading an average of 3.79 grams per tonne gold and 183 grams per tonne silver, which amounts to a 6.84-gram-per-tonne-gold-equivalent grade using a gold-to-silver ratio of 1:60.

The new Dana discovery runs 400 to 500 metres southwest of the Don Ese structure and parallel to it, and has a strike length potential on Paramount ground of about one kilometre. Don Ese is the highest-grade and most valuable gold/silver deposit at San Miguel. The location of Dana favours early development from underground in parallel with Don Ese. Paramount has made Dana a top priority for resource expansion by immediately moving a second core rig onto this target. Dana is just 800 metres northeast of Coeur Mining's Guadalupe underground mine currently under development at its flagship Palmarejo project. Guadalupe is expected to become the main source of ore for the Palmarejo operation.

Commenting on the results, Paramount chief executive officer, Christopher Crupi, said: "The Dana structure represents a significant discovery. We think the Dana-Don Ese-Guadalupe area is likely to be the future of the Palmarejo district."

Paramount has completed a third hole located to intersect the structure to the southeast about 120 metres from DN-001 or 220 metres from DN-002. Core is now being assayed. A fourth hole is now in progress to intersect the structure a further 120 metres to the southeast.

                              RESULTS FROM DN-002
                      Total
Hole No.  Area    length (m)  From (m)    To (m) Width (m)   Au g/t    Ag g/t

DN-002    Dana       519.90    468.30    473.70      5.40      3.79     182.6
Including                      470.80    472.20      1.40     14.20     657.0
                               498.05    501.65      3.60      0.17      55.2

A definitive true width estimate requires additional drilling but is expected to be approximately 90 per cent of the reported intercept.

National Instrument 43-101 disclosure

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A. de C.V. employees 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 for 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 and Acme Laboratories, Vancouver, using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

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