Paramount Gold drills 36 m of 2.69 g/t Au at San Miguel

Winnemucca, Nevada – November 28, 2011 -Paramount Gold and Silver Corp. (NYSE/TSX: PZG) (Frankfurt: WKN: A0HGKQ) (“Paramount”) today reported more high-grade gold and silver results from 10 holes recently completed at its 100%-owned San Miguel Project in northwestern Mexico.

Paramount is currently using three core rigs primarily to in-fill the two kilometer long San Miguel Vein, the nearly one kilometer long Don Ese North Vein and the shallow, silver-rich San Antonio bulk tonnage area. The aim of this drilling is to expand and upgrade resources for inclusion in a Preliminary Economic Assessment (PEA) planned for next year. Exploration step-out holes are also being drilled to look for extensions to known deposits that could also be included in the PEA.

Paramount recently tested for a possible extension of the high-grade La Union deposit, drilling a 40 meter step-out from the nearest existing hole.  This drill hole returned several very high grade intercepts with a total mineralized interval of 36.5 meters grading 2.69 g/t of gold and 3.75 g/T of silver—a strong indication of the potential to find additional high-grade shoots and open up the high quality resource at La Union.

In-fill drilling on the southern portion of the Don Ese North vein intersected excellent gold and silver grades including 8.7 meters grading 2.25 g/T of gold and 106.7 g/T of silver. Ongoing in-fill drilling on the San Miguel Vein continued to return better-than-expected precious metal grades including 5.1 meters grading 2.9 g/T of gold and 411.2 g/T of silver.

Christopher Crupi, Paramount`s CEO, commented that “the high-grade intercepts at La Union demonstrate that some of the best zones at San Miguel remain open and are likely to expand. As we continue to refine our understanding of San Miguel mineralization, we expect further successful step-outs from known deposits. This year, we have focused our drilling on preparing a high quality resource which we can take towards preliminary feasibility. Next year, we plan to get back to exploring our large and extraordinarily prospective land position with the added benefit of all that we have learned this year.”
Results for the most recent ten holes are as follow:

See updated section of La Union Area

The orientation of these drill holes was designed to intersect target structural features as close as possible to right angles so that intercepts represent a close approximation to true width.

Paramount has commissioned Mine Development Associates (MDA, www.mda.com) of Reno, Nevada to update the resource estimates on the San Miguel Project. MDA is expected to complete the modeling and resource estimates for the three deposits on the La Union Vein structure (San Jose, San Luis and La Union) and the silver-rich San Antonio bulk tonnage zone in December 2011. These are the remaining deposits which were not updated in April 2011. With this update, Paramount will have re-modeled all the San Miguel deposits to industry standards required for mine planning. The other deposits currently being drilled (San Miguel, San Francisco and Don Ese) will also be re-estimated in early 2012.

Updated models for all of San Miguel`s deposits will be incorporated into a PEA planned for next year which will evaluate mining scenarios, mining rates and process alternatives and define a path to a Preliminary Feasibility Study which would report reserves.

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Glen van Treek, Exploration Vice President of the Company and Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101, who have both reviewed and approved this press release.  An ongoing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at ALS Chemex, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

About Paramount Gold
Paramount is a U.S.-based exploration and development company with multi-million ounce advanced stage precious metals projects in Nevada (Sleeper) and northern Mexico (San Miguel).  Fully-funded exploration programs are now in progress at these two core projects which are expected to generate substantial additional value for our shareholders. Engineering studies are also scheduled for completion in 2012 to define a development path and economic valuation for each project.

The San Miguel Project consists of 188,000 hectares (465,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp.  The current work program at San Miguel is consistent with Paramount’s strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. The San Miguel Project is ideally situated near established, low cost production where the infrastructure already exists for early, cost-effective exploitation.

Paramount also owns 100% of the Sleeper Gold Project which is emerging as one of Nevada’s largest new undeveloped gold resources, containing an in situ measured and indicated resource of 2.6 million ounces of gold and 25.3 million ounces of silver and an additional inferred resource of 1.1 million ounces of gold and 8.2 million ounces of silver (see table at http://www.paramountgold.com/Resources/Index.asp).

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources
This news release uses the terms “measured and indicated resources” and “inferred resources”. We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC.  “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases.  The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves”, as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable

Safe Harbor for Forward-Looking Statements:

This release and related documents may include “forward-looking statements” including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the San Miguel Project and the expected results of this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. Paramount’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount’s Annual Report on Form 10-K for the year ended June 30, 2011 and its most recent quarterly reports filed with the SEC.

Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

Paramount Gold and Silver Corp.
Glen Van Treek, VP Exploration
Chris Theodossiou, Investor Relations
866-481-2233