Paramount Gold Announces PEA for San Miguel Project Confirms Robust Combination of Heap Leaching and Milling

Paramount Gold and Silver Corp. (NYSE MKT:

) announced today the results of a Preliminary Economic Assessment ("PEA") for its 100%-owned San Miguel gold and silver project located in Chihuahua State, Mexico. The PEA was prepared by Metal Mining Consultants Inc. ("MMC") of Denver, Colorado incorporating a resource model developed by Mine Development Associates ("MDA") of Reno, Nevada. The new PEA confirms that the San Miguel project represents a potentially robust economic opportunity to develop a low-cost mine in the prolific Sierra Madre belt in Mexico. The new PEA adds an efficient, inexpensive open pit, heap leach operation to the front end of the production scenario which helps fund underground mining and related mill construction from cash flow. The new PEA also features a very substantial increase in measured, indicated and inferred resources compared to the 2013 PEA also prepared by MMC. The complete PEA has been filed at SEDAR on August 22, 2014.Commenting on the results, Paramount CEO Christopher Crupi stated: "This new PEA incorporates a much more mature and efficient design than the one from last year. The additional drilling and metallurgical testing since the first iteration have allowed us