Paramount reports resource increase at San Miguel project

Paramount Gold and Silver Corp., a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in Mexico, has completed an updated National Instrument 43-101 compliant mineral resource estimate for its San Miguel Project.

ACA Howe International Ltd. has prepared the technical report and resource estimate. National Instrument 43-101 is a rule developed by the Canadian Securities Administrators which established standards for certain public disclosure of scientific and technical information concerning mineral projects.

The requirements of National Instrument 43-101 are not the same as those of the SEC.

To carry out the resource estimate, ACA Howe carefully verified and then imported Paramount’s drilling database into Micromine modelling software.

Mineralized zones were outlined on cross sections to provide geologic boundaries. A 25 g/t silver equivalent cut-off was used in the outlining process. Assay data were treated statistically using variography and ordinary point kriging.

A single block model was created using wire frames to provide geologic control to the modelling.

Paramount initiated diamond core drilling in April 2006. As of April 30th, 2008, 176 HQ size diamond drill holes have been completed totalling 34,926 meters in various exploration areas.

132 of the holes have been drilled in mineralized areas along the Guazapares Fault structure and 44 holes have targeted the San Miguel vein in the Batosegachic Fault.

Paramount has also completed 69 trenches totalling 3,899 meters. Paramount’s exploration efforts to date have focused on the diamond drilling of segments of the Guazapares Fault structure over a seven-kilometre strike-length between the La Union and Montecristo zones and most recently, on the San Miguel Vein hosted by the sub-parallel Batosegachic Fault structure approximately 3 kilometres west of the Guazapares structure.

Drilling to date along the Guazapares structure has been largely preliminary in nature.

Drilling on the San Miguel vein began in August 2007 and has been the focus of drilling since November 2007 through to the time of ACA Howe’s visit at the end of April 2008.

Drilling at the San Miguel vein has generally been more intensive than that completed along the Guazapares structure in an effort to delineate the higher grade mineralized shoot referred to as “Clavo 99″.

Ground magnetic and IP geophysical surveys were conducted over the Project area from September 2007 to March 2008.

Paramount Gold and Silver Corp. is the manager of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (30%).