Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) (Paramount) today reported some of the highest silver grades yet discovered at its 100% owned San Miguel Project in Mexico. Nine new in-fill holes drilled into the fast-growing San Antonio silver deposit returned intercepts of 20.1 meters grading 201.89 g/T of silver and 11.45 meters grading 418.21 g/T of silver. Eight of the nine holes intersected significant values, continuing the high success rate of recent months on the San Miguel Project.

San Antonio is a shallow, bulk-mineable target with considerable potential to grow. A total of 98 core holes have now been drilled into San Antonio of which 19 of the recent drill holes were not included in the latest resource estimation for this deposit completed by Mine Development Associates (MDA) of Reno, Nevada last December (see news release of December 28, 2011 for details). The drill results reported today are expected to increase the resource, upgrade inferred resources and improve the deposit`s overall grade (see typical cross-section at the following address: http://www.paramountgold.com/_img/SanAntonioBulkTonnageSilverDeposit.jpg).

San Antonio is in the central portion of the recently recognized La Union-La Veronica Mega Structure, a mineralized corridor stretching for more than seven kilometers and hosts four known deposits (see figure in January 11, 2012 release at the following address: http://media3.marketwire.com/docs/Paramount_map_0111.pdf). Approximately 2.8 km of this corridor remains untested including a 1.2 km gap north from San Antonio towards the La Veronica deposit (where one rig is now drilling) and a second 300 meter gap south from San Antonio towards the gold-rich La Union deposit. These gaps offer an exciting, low cost opportunity to increase the overall resource substantially and drilling is now focused on expanding resources into these gaps. (See cross section and news release of January 11, 2012)

These holes were drilled to intercept the structure at right angles and the reported intercepts are therefore believed to closely approximate true width.

Christopher Crupi, Paramount's CEO, commented, these results are very exciting because they confirm the potential for a low-cost open pit mine which could offer excellent returns while the deeper, gold-rich deposits are developed from underground. We are also increasingly encouraged by the possibility of melding together the four deposits in the mega structure into one big operation with a significantly larger resource. All the evidence suggests that what we thought of as separate deposits are actually parts of a larger whole. The sheer number of exceptional opportunities available to us for resource expansion is proving to us that the San Miguel Project is one of the premier precious metals projects in Mexico.

A new resource estimate by MDA is expected during the second quarter of 2012 for the entire San Miguel Project, including 2011 and early 2012 drill results. This new estimate will be incorporated into a Preliminary Economic Assessment planned for later this year which will evaluate mining scenarios, mining rates and process alternatives and define a path to a Preliminary Feasibility Study which would report reserves. In addition, Paramount is continuing to explore the potential of its large property position and is prioritizing numerous untested targets as well as extensions of known deposits, many of which remain open.

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Glen van Treek, Exploration Vice President 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 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% of the samples. Samples are being assayed at ALS Chemex, Vancouver using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

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). 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 100% owned San Miguel Project consists of 150,000 hectares in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. The current work program at San Miguel 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 San Miguel 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 Sleeper Gold Project which is emerging as one of Nevada's largest new undeveloped gold resources.(See global resource table below)

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; December 28 2011, San Miguel.

Cautionary Note to U.S. Investors Concerning Estimates of Measured &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 San Miguel 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, 2010 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.

CONTACT INFORMATION: Paramount Gold and Silver Corp. Glen Van Treek, VP Exploration Christopher Crupi, CEO 613-226-9881 ccrupi@paramountgold.com