Paramount Gold and Silver Adds 500 m. of Strike to High-Grade Southern Extension of San Miguel Project's La Union Zone

Paramount Gold and Silver Corp.

today reported outstanding new assays from the southward extension of the high-grade La Union zone which could have major consequences for its 100%-owned San Miguel Project in Mexico. La Union lies within the 7.5 km long Guazapares Megastructure which hosts a series of precious metal zones with unexplored gaps between them. To the south of La Union is an unexplored 1.3 km gap which stretches down to the Santa Clara zone. This gap is a key target for its potential to host a continuation of La Union's high grades. Core hole LU-12-046, grading 6.21 g/T of gold and 53.71 g/T of silver over 4.9 meters is especially significant because it is the biggest step-out yet, located 500 meters south of La Union and well into the unexplored gap in the Guazapares Megastructure. New drilling also found significant widths: core hole LU-12-45 returned an exceptional 28.2 meter intercept grading 5.08 g/T of gold and 11.0 g/T of silver. To date, exploration drilling between La Union and Santa Clara has been preliminary and shallow in nature, successfully intersecting the principal structure which is well mineralized with gold and silver. Paramount geologists are now evaluating these results to determine the "optimum elevation" within the structure where additional high-grade gold is likely to be found. This method has helped Paramount to substantially increase drilling success at other targets on its San Miguel Project. Widths of the structure vary substantially over short distances. Paramount believes that it may be possible to anticipate these wider zones which appear to relate to inflections in the structure's dip.