Paramount Gold Drills 683 g/t Silver Across 8.25 Meters and 296 g/t Silver Across 10.7 Meters at Their San Miguel Project, Mexico.

CHIHUAHUA, Mexico -- Paramount Gold Mining Corp. (OTC:PGDP) (Frankfurt:P6G) (WKN:A0HGKQ), is pleased to release the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The following results are four drill holes completed in the San Antonio area and are in fill holes between drill holes SA-01 to SA-09 reported on Dec 14th, 2006. These four drill holes span a distance along strike of about 325 meters.

Drill hole SA-10 intersected 8.25 meters (107.30 to 115.55) of 683 g/t silver, 16.70 meters (11.3 to 28.0) of 129.0 g/t silver and 8.4 meters (44.6 to 53.0) of 137 g/t silver with 1.19% combined lead and zinc. This hole hit 51.6 meters that averaged 78 g/t silver with 0.57% combined lead and zinc from 11.3 to 62.9 meters. SA-11 intersected 5.4 meters (35.4 to 40.8) of 217 g/t silver and had a number of shorter intersects down hole such as 0.90 meters (131.5 to 132.4) of 427 g/t silver. SA-12 intersected 34.5 meters (40.8 to 75.3) of 134 g/t silver and had another intersect above that of 0.70 meters (31.5 to 32.2) of 684 g/t silver. SA-13 intersected 10.7 meters (53.0 to 63.7) of 296 g/t silver.

Bill Reed, Exploration Manager, Mexico said, "These drill results continue to confirm continuity and grades over substantial widths as drill holes SA-11 and SA-13 fill in about 130 meters of the 300 meter gap between step out holes SA-01 and SA-10. The mineralized system appears to be getting stronger as we step out along strike to the north and our drilling to date has been quite shallow with most drill holes between 100 and 150 meters deep. I believe we have tremendous potential to expand this discovery, not only by continuing to drill along strike but by drill testing to depth as well. The Alaska Juneau company was still mining high grade silver and gold at depths of 200 meters at the San Luis mine located on this mineralized trend and old mine records indicated higher grade ore below that depth."

San Antonio zone Highlights

SA-10 cut 8.25 meters from 107.30 to 115.55 of 683 g/t silver and 16.70 meters from 11.3 to 28.0 meters of 129.0 g/t silver and 8.4 meters from 44.6 to 53.0 meters of 137 g/t silver with 1.19% combined lead and zinc.

SA-11 cut 5.4 meters from 35.4 to 40.8 of 217 g/t silver and 3.5 meters from 55.5 to 59.0 of 122 g/t silver and 0.90 meters from 131.5 to 132.4 of 427 g/t silver.

SA-12 cut 34.5 meters from 40.8 to 75.3 averaging 134 g/t silver and 0.60 meters from 24.2 to 24.8 of 138 g/t silver and 0.70 meters from 31.5 to 32.2 of 684 g/t silver.

SA-13 cut 10.7 meters (53.0 to 63.7) of 296 g/t silver.

Drill Hole locations

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

SA-10 steps out approximately 60 meters to the south of SA-09 that reported three silver intersects, including 5.7 meters of 152 g/t silver and 6.1 meters of 149 g/t silver, see Dec. 14, 2006 news release:

SA-12 is a step out approximately 40 meters to the south of SA-01 that reported four silver intersects and averaged 44.85 meters of 133.4 g/t silver see Dec. 14, 2006 news release:

SA-13 steps out approximately 40 meters to the north of SA-01

SA-11 is about 85 meters north of SA-13 and under trench ZSA-09 that reported 61.9 meters averaging 79.0 g/t Ag, including 2.1 meters of 625 g/t Ag, and 1.0 meters of 887 g/t Ag with 5.59% lead, see news release Jan. 2, 2007.

Quality Control Person

Paramount takes detailed 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 acting as 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 - 10      11.30   28.00   16.70  0.00  129.00   2.15  0.20  0.27
             28.00   44.60   16.60  0.00   27.00   0.46  0.17  0.26
             44.60   53.00    8.40  0.00  137.00   2.28  0.54  0.65
             53.00   60.50    7.50  0.00   17.00   0.28  0.12  0.23
             60.50   62.90    2.40  0.00   62.00   1.04  0.22  0.42

Average      11.30   62.90   51.60  0.00   78.00   1.30  0.24  0.33

             92.00  107.30   15.30  0.00   26.00   0.43  0.11  0.28
            107.30  115.55    8.25  0.00  683.00  11.38  0.78  0.97
            115.55  120.00    4.45  0.00   64.00   1.06  0.22  0.46

SA - 11       0.00   11.00   11.00  0.00   62.00   1.04  0.08  0.21
             11.00   24.00   13.00  0.00   26.00   0.43  0.06  0.18
             24.00   34.00   10.00  0.00   63.00   1.04  0.03  0.13
             35.40   40.80    5.40  0.00  217.00   3.61  0.02  0.14

Average       0.00   40.80   40.80  0.00   69.00   1.15  0.05  0.17

             55.50   59.00    3.50  0.00  122.00   2.04  0.09  0.22
            116.45  117.50    1.05  0.00  102.00   1.70  0.70  2.01
            131.50  132.40    0.90  0.00  427.00   7.12  0.18  0.58
            154.20  157.10    2.90  0.00   59.00   0.99  0.26  0.31

SA - 12      24.20   24.80    0.60  0.00  138.00   2.30  1.26  1.51
             31.50   32.20    0.70  0.00  684.00  11.40  0.75  0.33
             40.80   42.30    1.50  0.00  293.00   4.88  0.12  0.10
             45.30   55.90   10.60  0.00   63.00   1.04  0.16  0.15
             55.90   72.05   16.15  0.00  201.00   3.35  0.13  0.15
             72.05   75.30    3.25  0.00   57.00   0.95  0.04  0.16

Average      40.80   75.30   34.50  0.00  134.00   2.23  0.13  0.15


SA - 13      18.50   19.00    0.50  0.00  338.00   5.63  0.11  0.12
             27.70   30.20    2.50  0.00   56.00   0.93  0.05  0.17
             53.00   63.70   10.70  0.00  296.00   4.93  0.05  0.10
             63.70   69.10    5.40  0.00   29.00   0.49  0.06  0.16

About San Miguel

San Miguel is currently comprised of 16 concessions covering an estimated +7 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, to acquire a 70% interest in the San Miguel project.

About Paramount Gold

Paramount Gold is a precious metals exploration company listed on the OTCBB under the symbol PGDP and on the Frankfurt stock exchange under the symbol P6G (WKN: A0HGKQ). The Company's objectives are to a) aggressively explore and develop the San Miguel project, located in Chihuahua, Mexico within the Sierra Madre Occidental gold/silver belt; and b) 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 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.