Tuesday, September 30, 2008

Paramount Gold and Silver Corp. Reports on "Clavo 99"

CHIHUAHUA, MEXICO, Sep 30, 2008 (MARKET WIRE via COMTEX) -- Paramount Gold and Silver Corp. (PZG ) reports assay results from three drill holes at Clavo 99. The higher good grades in the deeper, northwestern extension of Clavo 99 have been confirmed by diamond drill holes SM-54, 60 and 61.

As seen in previously reported holes SM-46, 50 and 52 close by to the northwest, hole SM-60 had both modest grades over a modest thickness, suggesting that it is near the margin of Clavo 99. Hole SM-54 was an excellent hole (4.33m @ 3.27 g/t Au, 215.9 g/t Ag), fairly typical of the Clavo as a whole. However, SM-61 was further into the clavo and deeper. It had similarly good grades, but a greater thickness of 13.2 m of 1.57 g/t Au and 107.2 g/t Ag.

For assays and maps visit www.paramountgold.com
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Grade
Thickness
Hole From To Interval True Gold Silver Gold Gold
Width Equiv.(i) Equiv.(i)
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Number (Meters)(Meters) (Meters)(Meters)(grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
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SM-54 211.70 212.70 1.00 0.57 1.79 338.0 8.55 4.87
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222.80 223.80 1.00 0.57 1.53 120.0 3.93 2.24
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245.90 262.50 7.60 4.33 3.27 215.9 7.59 32.86
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SM-60 161.20 166.40 5.20 2.98 0.13 17.8 0.49 1.46
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172.3 178.20 5.90 3.38 0.61 20.60 1.02 3.45
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204.10 208.50 4.40 2.52 1.29 6.1 1.41 3.55
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SM-61 183.85 192.00 8.15 5.35 1.04 88.9 2.82 15.09
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incl. 186.00 190.30 4.30 2.82 1.52 156.6 4.65 13.11
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197.00 205.00 8.00 5.25 2.47 251.2 7.49 39.32
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205.00 208.50 3.05 2.00 0.32 8.3 0.49 0.98
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208.50 213.00 4.95 3.25 2.03 21.9 2.47 8.03
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213.00 217.20 4.20 2.76 0.21 5.4 0.32 0.88
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197.00 217.20 20.20 13.25 1.57 107.2 3.71 49.17
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(i) Calculated at Ag/Au = 50


Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Drill holes SM-54, 60 and 61 revealed additional high grade gold and silver intercepts at Clavo 99. These latest results maintain our excitement for the potential of extending this high grade zone along strike and to greater depths."

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

Contacts:
Paramount Gold and Silver Corp.
Larry Segerstrom, COO
866-481-2233 / 613-226-9881

Paramount Gold and Silver Corp.
Chris Halkai, Investor Relations
866-481-2233 / 613-226-9881
Paramountgold.com

SOURCE: Paramount Gold and Silver Corp.
Paramountgold.com

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