Paramount Gold and Silver Corp. Commences Drill Program to Advance Their Sleeper Gold Project

WINNEMUCCA, NEVADA -- (Marketwire) -- 10/20/10 -- Paramount Gold (NYSE Amex: PZG)(TSX: PZG) (FRANKFURT: WKN:A0HGKQ) ('Paramount') announced today that its drill program to expand gold resources at its recently acquired Sleeper Gold Project in Nevada will commence next week. Details of the $3 million exploration program were announced by Paramount on September 13, 2010.

Summary of drill program:

The exploration program will focus on two resource areas near historical mining, the West Wood Vein and the Facilities target.

At West Wood, the program is designed to:

--  Confirm the geological model on which the existing resource estimate was
    based;

--  Test the potential for a significant strike extension to the north of
    the West Wood resource area and;

--  Collect samples for use in metallurgical test work as the next step in
    completing a Preliminary Economic Assessment of the West Wood resource.

On the Facilities target drilling will concentrate on:

--  Evaluating the potential for expansion of high grade vein occurrences in
    the target area;

--  Collect new mineralized material for use in metallurgical test work; and

--  Increase the drill density to upgrade the classification of inferred
    resources in the resource area.

Other existing targets are being evaluated and prioritized for inclusion in the program. 'Paramount is aggressively pursuing its strategy of developing new gold resources around existing mining camps situated in geological environments with exceptional potential for the discovery of large deposits and we are especially excited to commence drilling on the Sleeper project, our second large-scale resource expansion program', Paramount CEO Christopher Crupi said.

For more information on the Corporation visit the Company's website at www.paramountgold.com.

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, 2010 and its most recent quarterly reports filed with the SEC available on www.sec.gov and applicable Canadian securities regulators available on www.sedar.com. 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.

Contacts:

Paramount Gold and Silver Corp.

Christopher Crupi

CEO

866-481-2233

613-226-9881


Paramount Gold and Silver Corp.

Chris Theodossiou

Investor Relations

866-481-2233

613-226-9881