Paramount Gold Drills 569 g/t Silver Across 3.0 meters and 184 g/t Silver Across 61.90 meters, Ending in Mineralization of 438 g/t Silver at their San Miguel Project, Mexico.

CHIHUAHUA, Mexico -- Paramount Gold Mining Corp. (OTC: PGDP) (Frankfurt: P6G, WKN: A0HGKQ), is pleased to announce the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The following results are six in-fill drill holes completed in the San Antonio area, between drill holes SA-10 (10.7 meters of 296 g/t silver) reported on Jan. 30th, 2007 and SA-01 (44.85 meters averaging 133.4 g/t silver) reported Dec. 14th, 2006. These six drill holes span a distance along strike of approximately 360 meters.

Drill hole SA-19 had numerous high grade intersects of silver, including 1.75 meters of 1,294 g/t silver and 4.40 meters of 1,162 g/t silver. SA-19 intersected 61.9 meters that averaged 184 g/t silver with 0.41% combined lead and zinc from 25.0 to 86.9 meters. The hole ended in strong mineralization at 89.10 meters with a 0.90 meter intersect from 88.20 to 89.10 meters of 438 g/t silver with 2.36% combined lead/zinc. SA-19 was drilled at a 55 degree angle, and with most drill holes being drilled at 55 to 65 degrees, true widths are estimated to be 80% of reported drill core lengths.

SA-17 intersected 4.3 meters (45.0 to 49.3) of 218 g/t silver and 7.0 meters (57.0 to 64.0) of 253 g/t silver. The best intersect for SA-16 was 3.0 meters (59.5 to 62.5) of 569 g/t silver.

Bill Reed, Exploration Manager for Mexico said, "The recent results in the San Antonio zone fill in some of our previous wide spaced drill holes. Not only does it potentially expand our silver resource, but it also gives us more confidence in the continuity of this zone. The mineralized zone appears to widen out in the San Antonio area as witnessed by drill hole SA-19 that intersected 61.9 meters of strong silver mineralization and the hole was still in strong mineralization when it ended."

San Antonio zone Highlights (see the drill table below)

SA-15 cut 2.30 meters from 25.3 to 27.6 of 196 g/t silver with 1.18%
combined lead/zinc and
0.80 meters from 106.7 to 107.5 of 199 g/t silver with 1.71% combined
lead/zinc

SA-16 averaged 12.9 meters from 49.6 to 62.5 of 172 g/t silver
including 0.8 meters from 49.6 to 50.4 of 362 g/t silver
including 3.0 meters from 59.5 to 62.5 of 569 g/t silver.

SA-17 averaged 19.0 meters from 45.0 to 64.0 of 156 g/t silver
including 4.3 meters from 45.0 to 49.3 of 218 g/t silver
including 7.0 meters from 57.0 to 64.0 of 253 g/t silver.

SA-19 averaged 61.9 meters from 25.0 to 86.9 of 184 g/t silver with
0.41% combined lead/zinc
including 1.75 meters from 37.0 to 38.75 of 1,294 g/t silver
including 1.80 meters from 57.0 to 58.8 of 287 g/t silver.
including 6.50 meters from 76.0 to 82.5 of 172 g/t silver
including 4.40 meters from 82.5 to 86.9 of 1,162 g/t silver.

The hole ended in strong mineralization at 89.10 meters with a 0.90 meter intersect from 88.20 to 89.10 meters of 438 g/t silver with 2.36% combined lead/zinc

Drill Hole Locations

A drill hole and trench location map can be found at Paramount's web site www.paramountgold.com.

SA-19 is located approximately 50 meters to the south of SA-10 which reported 51.6 meters that averaged 78 g/t silver with 0.57% combined lead and zinc from 11.3 to 62.9 meters, including 8.25 meters of 683 g/t silver, 16.70 meters of 129.0 g/t silver and 8.4 meters of 137 g/t silver with 1.19% combined lead and zinc.

SA-16, SA-17 and SA-18 were collared from the same location, between previous drill holes SA-11 (5.4 meters of 217 g/t silver) and SA-13 (10.7 meters of 296 g/t silver) and approximately 180 meters south of SA-19. SA-16 was drilled vertical (90 degrees), SA-17 was drilled towards the east (60 degrees) at a 55 degree angle and SA-18 was drilled towards the southwest (240 degrees) at a 55 degree angle.

SA-14 is located approximately 60 meters east of SA-01 (44.85 meters averaging 133.4 g/t silver) and SA-15 is located approximately 50 meters north of SA-14.

Quality Control Person

Paramount takes detail photos of the entire core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile) sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.

C.W. (Bill) Reed, B. Sc. Mineralogy, is the qualified person and has prepared the detail and review with respect to this news release.

Drill hole    From      To   Width     Gold   Silver   Gold  Lead  Zinc
            Meters  Meters  Meters      g/t      g/t  Equiv     %     %
SA - 14       0.00    7.40    7.40     0.03    19.00   0.34  0.01  0.09
             44.80   49.05    4.25     0.00    19.00   0.31  0.12  0.32
            191.05  194.10    3.05     0.00     4.00   0.06  0.92  0.45
            199.10  201.10    2.00     0.00     5.00   0.08  0.31  0.59
            208.90  210.00    1.10     0.00    41.00   0.68  0.42  0.65

SA - 15      20.40   25.30    4.90     0.00    29.00   0.48  0.07  0.33
             25.30   27.60    2.30     0.04   196.00   3.97  0.49  0.69
             29.10   30.75    1.65     0.00   115.00   1.92  0.45  1.21
             32.30   34.80    2.50     0.00    28.00   0.47  0.11  0.29
             82.00   84.80    2.80     0.00    33.00   0.54  0.15  0.39
             99.00  101.00    2.00     0.00   112.00   1.86  0.07  0.13
            101.00  104.70    3.70     0.00    27.00   0.44  0.46  0.21
            106.70  107.50    0.80     0.00   199.00   3.32  0.53  1.18
            107.50  112.50    5.00     0.00    20.00   0.32  0.14  0.27

SA - 16       0.00   14.35   14.35     0.00    24.00   0.40  0.02  0.27
             27.45   28.50    1.05     0.00    90.00   1.50  0.03  0.11
             49.60   50.40    0.80     0.00   362.00   6.03  0.10  0.13
             50.40   59.50    9.10     0.00    25.00   0.42  0.02  0.12
             59.50   62.50    3.00     0.00   569.00  .9.49  0.04  0.10
             62.50   68.00    5.50     0.00    39.00   0.64  0.02  0.09
             90.00   90.85    0.85     0.00    71.00   1.18  0.10  0.31
            108.80  112.15    3.35     0.00     8.00   0.13  0.26  0.82
            182.60  183.20    0.00     0.00    71.00   1.18  0.72  1.93
Average      49.60   62.50   12.90     0.00   172.00   2.87  0.03  0.12

SA - 17       0.00    6.00    6.00     0.00    46.00   0.76  0.05  0.26
              6.00   23.50   17.50     0.00    13.00   0.21  0.03  0.24
             23.50   29.00    5.50     0.00    46.00   0.77  0.02  0.18
             37.50   39.50    2.00     0.00    73.00   1.22  0.05  0.18
             45.00   49.30    4.30     0.00   218.00   3.64  0.08  0.16
             49.30   57.00    7.70     0.00    32.00   0.53  0.06  0.18
             57.00   64.00    7.00     0.00   253.00   4.22  0.23  0.24
             64.00   66.70    2.70     0.00    44.00   0.74  0.19  0.18
             95.90  105.00    9.10     0.00    33.00   0.55  0.19  0.47
            105.00  108.80    3.80     0.00   106.00   1.17  0.33  0.90
            108.80  128.80   20.00     0.00    33.00   0.56  0.22  0.60

Average      45.00   64.00   19.00     0.00   156.00   2.59  0.13  0.20
Average      95.90  128.80   32.90     0.00    41.00   0.69  0.22  0.60

SA - 18      37.50   38.70    1.20     0.00    92.00   1.53  0.09  0.25
             42.00   43.00    1.00     0.00    46.00   0.77  0.03  0.23
             53.25   54.05    0.80     0.00    66.00   1.10  0.04  0.10

SA - 19       0.00   21.00   21.00     0.00    52.00   0.87  0.05  0.14
             25.00   28.00    3.00     0.00   199.00   3.31  0.20  0.31
             28.00   37.00    9.00     0.00    25.00   0.42  0.05  0.12
             37.00   38.75    1.75     0.00  1294.00  21.57  0.61  0.44
             38.75   57.00   18.25     0.01    78.00   1.30  0.19  0.43
             57.00   58.80    1.80     0.00   287.00   4.78  1.33  0.62
             61.25   61.60    0.35     0.00   347.00   5.78  0.70  0.59
             76.00   82.50    6.50     0.00   172.00   2.87  0.21  0.38
             82.50   86.90    4.40     0.05  1162.00  19.37  0.12  0.25
             86.90   88.20    1.30  pending  pending
             88.20   89.10    0.90     0.00   438.00   7.30  1.06  1.30

Average      37.00   61.60   24.60     0.00   176.00   2.93  0.29  0.40
Average      76.00   86.90   10.90     0.02   572.00   9.53  0.18  0.33
Average      25.00   86.90   61.90     0.00   184.00   3.06  0.16  0.25

About San Miguel

San Miguel is currently comprised of 16 concessions covering an estimated +8 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares 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, and has earned a 70% interest in the San Miguel project.

About Paramount Gold

Paramount Gold is a precious metals exploration company quoted on the OTCBB under the symbol PGDP and listed on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). The Company's objectives are to explore and develop the San Miguel project, located in Chihuahua, Mexico within the Sierra Madre Occidental gold/silver belt and fully develop the potential of the strategic alliance with Teck Cominco for gold exploration in South America. 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 commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of ore samples, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.