Paramount Gold and Silver Corp. Reports High Grade Gold Assays at Clavo 66 (11.35 g/t Au Over 3.5 Metres)

CHIHUAHUA, MEXICO, Oct 10, 2008 (MARKET WIRE via COMTEX) -- Paramount Gold and Silver Corp. (CA:PZG) (PZG:Paramount Gold and Silver Corp) (FRANKFURT: P6G)(WKN: A0HGKQ) has received the assays from drill hole LU-18 from the heart of Clavo 66, which intersected the main mineralized structure at a depth of approximately 80 meters from the surface drilled to expand the resource. The structure contained a 3.52 meter (true width) intercept of 11.35 g/t gold with additional 1.48 to 1.85 g/t Au Eq. mineralization for approximately 2 meters in the hanging wall and 1 meter in the footwall.

Highlights are below (visit www.paramountgold.com for further details):
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Grade
Thick-
ness
Gold Gold
Inter- True Equiv. Equiv.
Hole From To val Width Gold Silver (i) (i) Pb Zn
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Number (m) (m) (m) (m) (g/t) (g/t) (g/t) (g x m) % %
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LU-18 108.00 108.85 0.85 0.80 0.06 65.0 1.36 1.09 3.63 4.89
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110.85 112.00 1.15 1.08 1.08 9.0 1.26 1.36 0.10 0.23
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117.00 119.00 2.00 1.88 1.80 3.0 1.85 3.47 0.03 0.15
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119.00 122.75 3.75 3.52 11.35 13.0 11.62 40.92 0.14 0.63
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122.75 123.75 1.00 0.94 1.48 0.0 1.48 1.39 0.01 0.04
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156.00 157.00 1.00 0.94 0.78 1.0 0.80 0.75 0.00 0.01
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177.00 180.00 3.00 2.82 0.57 1.0 0.59 1.66 0.00 0.01
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180.00 181.00 1.00 0.94 2.28 5.0 2.38 2.23 0.00 0.01
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(i) Calculated at Ag/Au = 50


Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "LU-18 is very encouraging in its confirmation of the continuity of thick high gold mineralization at Clavo 66 and supports Paramount's decision to proceed to prefeasibility studies at Clavo 66."

Also reported is important drill hole SJ-13, which was drilled to test a geophysical anomaly below surface mineralization in the San Jose area. Surface mapping and earlier drilling indicated that the mineralized zone generally dips east. However, there are some veins at the surface that also dip west, towards a strong geophysical anomaly. Drill hole SJ-13 confirmed that veining dips west. The geophysical anomaly appears to be owing to the steep side of a shallow intrusion that underlies the San Jose area to the immediate east at a much higher level than where it was intersected in this hole. Further drill testing is planned in this area.

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

Paramount Gold and Silver Corp. is the operator and 100% owner of the San Miguel Project.

Contacts:

Paramount Gold and Silver Corp.
Larry Segerstrom, COO
866-481-2233 / 613-226-9881

Paramount Gold and Silver Corp.
Chris Halkai, Investor Relations
866-481-2233 / 613-226-9881


SOURCE: Paramount Gold and Silver Corp.
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