Paramount Gold and Silver Appoints VP Exploration

WINNEMUCCA, NEVADA -- (Marketwire) -- 01/04/11 -- Paramount Gold (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ('Paramount') announced today that it has appointed Mr. Glen Van Treek as its new Vice President of Exploration.

Mr. Van Treek has over 20 years of experience managing projects in different geological environments. He has personally directed or participated in several advanced geological modeling and mine planning during evaluation, prefeasibility, feasibility and construction phases. Project experience includes: La Coipa, Zaldivar and Andacollo Mines in Chile, Mulatos Mine in Mexico, La Libertad Mine in Nicaragua, San Andres Mine in Honduras, and Samira Hill Mine in Niger.

Mr. Van Treek has been employed by Teck (NYSE: TCK) since 2000 in a number of senior positions, including exploration, mining and corporate development. He comes to Paramount directly from Teck where he was most recently in charge of the geologic exploration program and production geology at Quebrada Blanca Mine in Chile. Prior to Teck, Mr. Van Treek held positions with Placer Dome in Chile, USA and Africa. Mr. Van Treek is a professional geologist and has a degree in geology from the University of Chile.

Mr. Van Treek will begin with Paramount in late January 2011 and will be responsible for overseeing Paramount's exploration programs in Mexico (San Miguel Project) and Nevada (Sleeper Gold Project).

Paramount CEO Christopher Crupi commented, 'We are very pleased to have Mr. Glen Van Treek join our technical team. Mr. Van Treek has the experience in directing and advancing exploration projects to the feasibility stage and we look forward to him leading our geologic team in the New Year.'

Paramount owns a 100% interest in the 188,000 hectare (465,000 acre) San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in this rapidly growing precious metals mining camp. Ongoing exploration at San Miguel continues to develop new targets for drill testing. Four new targets are expected to be drilled in the first quarter of 2011. Resource delineation drilling has meanwhile been focused on the San Francisco, Veronica, Monte Cristo, and San Miguel Vein targets. Results from the resource delineation drilling will be incorporated into a new National Instrument 43-101 compliant resource estimate expected in the first quarter of 2011.

Paramount Gold is a U.S. domiciled exploration and development company with multi-million ounce advanced stage projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded programs are now in progress at our two main projects to substantially expand resources over the next two years. Plans are also underway to exploit a large, surface inventory of gold in tailings and leach pad heaps on our Sleeper property for potential near-term cash flow. For more information 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 Sleeper Gold 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

Chris Theodossiou, Investor Relations

866-481-2233 / 613-226-9881
www.paramountgold.com