Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ)(Paramount) announced today highly-favorable assay results from 65 holes drilled into the waste dumps located on its 100%-owned Sleeper Gold Project in Nevada, including a 45 meter intercept grading 0.558 g/T of gold, a 24 meter intercept grading 0.754 g/T and an 18 meter intercept averaging 0.963 g/T.

The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca, Nevada. Acquired by Paramount in 2010, the 49.6 square mile project area includes the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as purchased claims stretching south down trend to Newmont`s Sandman project. Work to date by Paramount has established a large, in situ gold and silver resource (see table below).

According to AMAX operations reports, approximately 54 million tonnes of waste were place on the north, west and south waste dumps during the mine`s life. In 2011, Paramount completed nine sonic drill holes on these three waste dumps to determine if they could make a contribution to the growing resource on the Sleeper Gold Project. This drilling established that precious metal grades were high enough to offer economic potential. Undisturbed material for initial metallurgical testing generated very promising recoveries averaging 70% for gold and 34% for silver over a short leach cycle (see November 22, 2011 news release). These results prompted Paramount to undertake a more detailed program consisting of 65 vertical drill holes totaling 2,321 meters on all three dumps...a density sufficient to establish a reportable resource estimate. McClelland Lab of Reno, Nevada was also commissioned to perform large column leach tests on representative samples. Results from the column leach tests are expected shortly.

Of the 65 holes drilled, 47 (a surprising 72%) returned intercepts with grades above 0.20 grams of gold per tonne, including 18 holes with significant intervals averaging more than 0.40 grams per tonne. A drill hole database has been provided to Tetra Tech (www.TetraTech.com), a leading international mining consulting firm, to prepare a resource estimation for the dumps. Tetra Tech has been engaged to prepare an NI 43-101 compliant Preliminary Economic Assessment (PEA) of the Sleeper Gold Project for completion in the current quarter.

Commenting on the drill results, Paramount CEO, Christopher Crupi stated that all the data now points to the waste dumps making an important contribution to the overall resource. While we need to see the final results from the leach column tests, we are increasingly confident of the economic potential of this mineral inventory. We are frankly surprised that some of this material did not go to the leach pads when it was first mined even given the lower gold prices at that time.

To view assay results on all 65 holes completed on the waste dumps, go to http://paramountgold.com/_docs/WasteDumpRC.pdf. All holes were drilled vertically into the flat-lying dumps to assure that intercepts represent true widths.

Exploration activities at Sleeper are being conducted by Paramount 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. An ongoing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Samples are being assayed at Inspectorate, Reno, Nevada using fire assay atomic absorption methods for gold.

About Paramount Gold

Paramount Gold is a U.S. based exploration and development company with multi-million ounce advanced stage precious metals projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded exploration programs are now in progress at these two core projects which are expected to generate substantial additional value for our shareholders. Engineering studies are scheduled for completion in 2012 to define a development path and economic valuation for each project.

The Sleeper Gold Project is emerging as one of Nevada's largest new undeveloped gold resources. (See global resource table below). The current work program at Sleeper is part of Paramount's strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. The Sleeper Gold Project is ideally situated near established, low cost production where the infrastructure already exists for early, cost-effective exploitation. Paramount also owns 100% of the San Miguel Project consisting of 188,000 hectares (465,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp.

For a detailed report on these resource estimates, their QPs and methodologies please see the following news releases: April 11, 2011 (San Miguel); September 13, 2011 (Sleeper); and December 28, 2011 (San Miguel).

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms measured and indicated resources and inferred resources. We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant reserves, as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Safe Harbor for Forward-Looking Statements

This release and related documents may include forward-looking statements including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project and the Dunes Project and the expected results of this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. Paramount's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as believes plans anticipates expects estimates and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount's Annual Report on Form 10-K for the year ended June 30, 2011 and its most recent quarterly reports filed with the SEC. Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.To view the photo associated with this release, please visit the following link: http://media3.marketwire.com/docs/sleeperwaste_feb0704.pdf

CONTACT INFORMATION:Paramount Gold and Silver Corp.Glen Van Treek, VP ExplorationChris Theodossiou, Investor Relations866-481-2233INDUSTRY: Financial Services - Investment Services and Trading, Manufacturing and Production - Mining and Metals