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Paramount Gold Confirms Don Ese Drill Hole Locations

01.03.2011  |  Marketwire

WINNEMUCCA, NEVADA -- (Marketwire) -- 03/01/11 -- Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ('Paramount') said today it has reviewed the news release issued by Coeur d'Alene Mines Corporation ('Coeur') on February 28, 2011 in which Coeur suggests that the Don Ese structure which Paramount successfully drilled on Paramount's San Miguel Project in northern Mexico in late 2010 may be located on Coeur's concessions. As previously stated by Paramount, the Don Ese structure does trend onto Coeur's claims. However, Paramount states unequivocally that the Don Ese mineralization reported in Paramount's December 9, 2010 news release is exclusively on Paramount's claims. See the attached map (http://media3.marketwire.com/docs/MAP_DON_ESE_AREA.jpg) which shows Paramount's drill hole locations, property boundaries, mineralized structure and government survey control points.


Christopher Crupi, Paramount CEO stated that 'our independent, professional surveyors from Hermosillo, Mexico have conclusively confirmed the location of our drill holes and that the Don Ese mineralization reported in our December 9, 2010 news release is exclusively on Paramount claims. One of our holes was inadvertently collared on Coeur ground but this hole crossed over the property boundary into our claims before mineralization was encountered. We would welcome a meeting with Coeur so that our technical teams can review the survey data and resolve this misunderstanding. We are providing Coeur with a detailed claim map with drill hole locations and projected intercepts using the government survey control points.'


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 Sleeper Gold Mine 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 and X-Cal's filings with the 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



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