Paramount Gold and Silver Discovers New High Grade Structure on San Miguel Project in Mexico

WINNEMUCCA, NEVADA--(Marketwired - Oct. 15, 2014) - Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG)(FRANKFURT:P6G) on the first drill hole of the exploration program recently initiated on its 100%-owned San Miguel Project in northern Mexico has discovered a new high grade precious metals structure called Dana. The new discovery runs about 500 meters west of the Don Ese structure and parallel to it, and has a strike length potential on Paramount ground of about one kilometer. Don Ese is the highest grade and most valuable gold/silver deposit at San Miguel.

The first hole drilled into Dana returned multiple intercepts of high grade silver with gold including 3.6 meters of 157.1 grams per tonne of silver (g/T) and 0.40 g/T of gold, with some assays up to 659 g/T of silver (21 ozs per ton) and 1.18 g/T gold.

Commenting on the discovery, Paramount CEO Christopher Crupi said that the Dana discovery looks exactly like Don Ese in its early stages of exploration. "Like Don Ese, Dana is relatively narrow at the surface but it quickly opens up at depth. Our first hole at Dana intersected an impressive 28 meters of hydrothermal breccia, quartz stock work and quartz veins containing precious metal mineralization. This hole is still high in the system and it's therefore silver rich, similar to Don Ese at the same elevation. We expect Dana to generate considerably higher gold values as we get deeper into the system, just as we found at Don Ese." said Crupi.

The location of Dana favors early development from underground in parallel with Don Ese. "We have made Dana a top priority for resource expansion by immediately moving a second core rig onto this target," Crupi noted. "Dana is close to our claim boundary and it's just 800 meters northeast of Coeur Mining's Guadalupe underground mine currently under development at its flagship Palmarejo Project. Fortunately, Dana dips to the east, further onto our claims."

The Dana discovery hole returned the following:

Hole #	Area	Total Length (m)	From (m)	To (m)	Width (m)	Au g/T	Ag g/T
DN-14-001	DANA		328.50	334.20	5.70	0.043	91.14
			346.10	349.70	3.60	0.400	157.10
			351.00	355.90	4.90	0.384	86.76

This hole was drilled to intersect the structure at right angles. Additional drilling is required to confirm true width of the structure but it is expected that it will not be less than 85% of the reported intercept.