Paramount Gold Acquires the Montecristo III concession at their San Miguel Project, Mexico.

CHIHUAHUA, Mexico -- Paramount Gold Mining Corp. (OTC:PGDP)(FWB:P6G) is pleased to announce that is has acquired the Montecristo III mining concession which is located adjacent to the San Miguel Project in the Sierra Madre Gold-Silver belt, Chihuahua, Mexico.

Bill Reed, Manager of Exploration in Mexico commented " The Montecristo III concession is a very key addition to our San Miguel holdings because a mineralized intrusive dike system recently mapped and sampled on the Montecristo and the Montecristo II concessions is known to extend north onto the Montecristo III concession. We will start a drill campaign on these concessions in the next week while trenching is ongoing at La Blanca."

This newly acquired concession is located north of the Montecristo concession group and the Sangre de Cristo concession that Paramount acquired earlier. A series of mineralized quartz latite dikes that has intruded the basal andesitic volcanic units is known to host silver mineralization over a wide zone that extends into the Montecristo III concession. A closely spaced parallel set of these dikes on the Montecristo II concession ran 224 grams/tonne silver over 14 meters and 163 grams/tonne silver over 7.4 meters (see News Release dated March 20, 2006) and a Consejo de Recursos Minerales early drill hole on the Sangre de Cristo concession which cut a mineralized dike was reported as containing between 350 and 400 grams/tonne silver over +10 meters. Paramount is currently repairing roads and preparing drill pads to drill test both of these occurrences.

About San Miguel

San Miguel is currently comprised of 17 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Temoris mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources Corp., to acquire a 70% interest in the San Miguel project.

About Paramount Gold

Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the San Miguel and Linda projects in Mexico and Peru, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world. The Company trades on the OTC market under the symbol "PGDP" and on the Frankfurt Exchange under the symbol "P6G". For more information, please visit the Company's web site at: www.paramountgold.com (now available in the following languages: English, German, French, Spanish, and Mandarin).

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.