Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) (Paramount) today reported more high-grade assay results from eight additional holes drilled at the fast-growing silver-rich San Antonio deposit on its 100%-owned San Miguel Project in Mexico.

All eight holes reported significant silver mineralization including intercepts of 24 meters grading 172 g/T of silver, 12.4 meters grading 299 g/T of silver and 9.4 meters of 318 g/T of silver. These new results were not included in the most recent resource estimation for the San Antonio deposit completed by Mine Development Associates (MDA) of Reno, Nevada (see news release of December 28, 2011 for details). The drill results reported today are expected to increase the recently-reported resource, upgrade inferred resources and improve the deposit's overall grade.

San Antonio is a shallow, bulk-mineable target with considerable potential to grow. Recent drilling and surface exploration provides evidence that the silver-rich San Antonio, the gold-rich La Union immediately to the south, the Santa Clara farther to the south and the silver-gold-rich La Veronica to the north are all parts of the same mega structure that can be traced for almost 7.5 kilometers. To date, much of this highly-prospective structure remains undrilled including approximately 1.2 kilometers in the central part of the structure, about 300 meters between the gold-rich La Union zone and San Antonio and approximately 1.3 kilometers between La Union and Santa Clara. These gaps offer an exciting, low cost opportunity to increase the overall resource substantially. Once the known resource areas have been upgraded for the Preliminary Economic Assessment, drilling will focus on expanding resources in these gaps. (See map: http://media3.marketwire.com/docs/Paramount_map_0111.pdf)

Drill hole intercepts for the most recent eight holes are as follows:

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The orientation of these drill holes was designed to intercept the structural features at right angles so as to provide a close approximation to true width.

Christopher Crupi, Paramount's CEO, commented that a bigger picture is now emerging for the San Miguel Project. What were originally thought to be smaller, individual deposits now appear to be connected links within very large mineralized corridors similar to the one hosting Couer d'Alene's neighboring Palmarejo mine. These continuous corridors not only offer the potential for expanded resources but also important economies of scale when they are exploited. The more we drill, the better San Miguel looks. We anticipate an exciting year of progress on this project in 2012.

Paramount has commenced its 2012 drill campaign with three core rigs. The first priority is to increase and upgrade resources at the San Antonio, San Miguel Vein and Don Ese deposits, to be followed by high-potential exploration drilling between existing deposits along known structures, to increase resources further.

A new resource estimate by MDA is expected during the second quarter of 2012 for the entire San Miguel Project which will include 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 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 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, B.C., 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). 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 100% owned San Miguel Project consists 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. 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)

SUMMARY OF ALL PZG NI 43-101 COMPLIANT RESOURCE ESTIMATES

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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 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, 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.

CONTACT INFORMATION:
Paramount Gold and Silver Corp.
Glen Van Treek, VP Exploration
Chris Theodossiou, Investor Relations
866-481-2233