Paramount Gold and Silver Further Expands San Francisco Bulk Tonnage Potential at San Miguel

WINNEMUCCA, NEVADA--(Marketwired - Nov. 19, 2014) - Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG) ("Paramount") announced today that new core drilling at its 100%-owned San Miguel Project in northern Mexico continues to expand the potential size of the bulk minable San Francisco deposit. Three new holes intersected shallow oxide mineralization in areas with limited or no previous drilling. Two other recently reported holes also intersected wide zones of oxide precious metal mineralization close to surface in the San Francisco deposit (see October 21, 2014 news release). Together, these five holes are expected to increase the size of the San Francisco resource and pit configuration contained in the San Miguel Preliminary Economic Assessment (PEA) released on August 25, 2014.

The San Miguel PEA proposed adding a heap leaching operation to what had previously been a mill-only development scenario for San Miguel, based on successful heap leach metallurgical tests. Adding a heap leach operation to the front end of the production scenario brought down initial capital costs while helping to fund underground mining and related mill construction from cash flow. The new PEA also featured a very substantial increase in resources compared to the 2013 PEA by including relatively lower grade material from bulk minable deposits like San Francisco.

The PEA and its resource estimate established a 9 g/T silver equivalent cut-off grade for the open pit heap leach scenario at San Francisco (a 0.15 g/T gold equivalent grade). The current drilling is intersecting good widths of material grading at least three times this cut-off grade in areas outside the PEA pit design. This drilling should enable an increase of the resource and connect several smaller open pits into a single, larger pit with better mining economics.

The assay results of the aforementioned three holes are as follows:

Hole #	Area	Total Length (m)	From (m)	To (m)	Width (m)	Au (g/T)	Ag (g/T)
SF-14-059	SAN FRANCISCO	245.70	4.40	13.60	9.20	0.07	13.3
			18.10	67.15	49.30	0.11	26.2
		Including	21.10	26.40	5.30	0.24	75.8
		Including	51.70	52.35	0.65	0.36	249.0
			115.80	118.20	2.40	0.11	25.9
SF-14-060	SAN FRANCISCO	248.80	0.00	58.30	58.30	0.03	27.7
		Including	17.00	23.10	6.10	0.04	75.6
		Including	36.00	41.05	5.05	0.04	53.1
			102.90	129.80	26.90	0.05	23.6
			142.65	154.00	11.35	0.03	7.6
SF-14-061	SAN FRANCISCO	262.65	32.80	56.85	24.05	0.03	20.6
			62.95	93.50	30.55	0.05	32.5
		Including	78.80	87.00	8.20	0.11	81.4
			98.85	126.25	27.40	0.04	11.9

A definitive true width estimate requires additional drilling but is expected to be approximately 90% of the reported intercept.