Paramount Gold and Silver Continues to Intersect High Gold and Silver Grades at Don Ese Deposit in Mexico

WINNEMUCCA, NEVADA--(Marketwired - Dec. 10, 2014) - Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today announced results from three additional core holes drilled at the high grade Don Ese deposit, located on its 100%-owned San Miguel Project in northern Mexico. Exceptional grades and widths from these infill holes are likely to upgrade resources to the measured and indicated categories and potentially increase the resource size and grade.

Drill hole DS-049 intersected the Don Ese vein as expected with grades exceeding what had been previously predicted by the model as inferred resources. The vein intercept totaled 15.6 meters grading 2.59 grams per tonne of gold (g/T Au) and 366.0 grams per tonne of silver (g/T Ag), a gold equivalent grade of 8.69 g/T Au using a 1 to 60 Au:Ag ratio. Included in this intercept are 5.95 meters grading 4.24 g/T Au and 561 g/T Ag. Drill hole DS-049 will most likely convert inferred resources to measured and indicated at higher grades (see cross section below).

Drill hole DS-050 intersected multiple mineralized zones with the main vein grading 1.34 g/T Au and 216 g/T Ag over 6.95 meters, including 1.1 meters grading 6.38 g/T Au and 1,050 g/T Ag (see the cross sections below).

Paramount is currently drilling the Don Ese and Dana structures with three core rigs as part of its program of moving the San Miguel Project towards a Pre-Feasibility Study. Don Ese and the closely related, parallel Dana are located about 800 meters from Coeur Mining Inc.'s Guadalupe deposit on its flagship Palmarejo Project. Don Ese, Dana and Guadalupe are similar occurrences which appear to be parts of the same mineralizing system.

Paramount CEO Christopher Crupi noted that the Company plans to continue its program through the winter. "This is an ideal time to explore given the significant drop in costs due to the current environment and thus ensuring that when the precious metals market turns, we have added substantial value to our projects."

Details from the holes drilled in the current program at Don Ese are below:

Hole #

Area

Total Length (m)

From (m)

To (m)

Width (m)

Au (g/T)

Ag