Paramount Gold and Silver Begins Drilling to Find a Second Sleeper Mine in Nevada

Paramount Gold and Silver Corp. PZG(NYSE Amex:PZG)PZGPA ("Paramount") announced today that it has completed staking and filing 920 new lode mining claims adjacent to the west, and immediately south, of the Company's 100%-owned Sleeper Gold Project. The new Mimi claims, totaling 18,400 acres, cover exciting new geophysical targets developed by Paramount in consultation with Jim Wright, a well-known geophysicist with more than 35 years of successful work on Nevada gold projects. Drilling on the new claims has begun. The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca. Acquired by Paramount in 2010, the project area includes the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as staked and purchased lands now totaling 2,570 claims and covering about 47,500 acres which stretch south down trend to Newmont's Sandman project. This acquisition is consistent with the Company's strategy of district-scale exploration near infrastructure in established mining camps.