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WINNEMUCCA, NEVADA, Oct 22, 2012 (Menafn – MARKETWIRE via COMTEX) –Paramount Gold and Silver Corp. (nyse mkt:PZG)PZG(frankfurt:P6G)(wkn:A0HGKQ) (“Paramount”) announcedtoday that it has received the final results from a large-scale,comprehensive metallurgical test program for its 100%-owned SanMiguel Project in northern Mexico. The results predict highrecoveries of gold and silver from either a milling/cyanide leach orconventional milling/flotation process. The data will now beevaluated by Scott E. Wilson Consulting for inclusion in theirPreliminary Economic Assessment of the San Miguel Project scheduledfor the end of this year.


The program was conducted by McClelland Laboratories(http://www.mettest.com/mliindex.htm) of Reno, Nevada using compositesamples prepared by ALS Chemex of Chihuahua, Mexico from about twotonnes of drill core supplied by Paramount. McClelland conducted atotal of 114 separate metallurgical tests. In 38 trials, coarsesamples (P8019mm) were subjected to cyanide bottle roll tests (BRT)in order to assess the potential for heap leaching. Crushed corerejects were used to generate an additional 76 samples of relativelyfine grain material (P8075um) which were also subjected to cyanideBRT as well as flotation tests. The size of this fine grain materialis well within the range considered normal for conventional milling.


Overall, gold recoveries on fine grain samples (P8075um) grading morethan 0.1 g/T Au averaged 94% in cyanide BRT and 82% in flotationtests with modest reagent consumption. Less effective were thecyanide BRT recoveries of gold in coarse material (P8019mm),indicating that a heap leach process would likely not be effective.Silver recoveries from the fine grained samples grading over 5.0 g/TAg averaged 74% for cyanide BRT and 79% for flotation tests. Cyanidesilver recoveries from coarse material were comparatively low.


Paramount investors can review and download all test results andrelated charts from our web site(http://paramountgold.com/Projects/SanMiguel_TechnicalReports.asp).Average gold and silver recoveries from the five main areas at SanMiguel are as follows:



———————————————————————–
—–
BRT 200 Mesh 75umFlotation %BRT 3/4 Inch %
Area% RecoveryRecoveryRecovery
——————————————————
AuAgAuAgAuAg
—————————————————————————-
La Union95.4878.7589.2379.3032.7825.84
—————————————————————————-
Don Ese93.0852.3683.2664.9240.6814.82
—————————————————————————-
San Miguel94.6379.0077.283.1435.0315.83
—————————————————————————-
San Francisco93.4479.3678.8258.0845.427.14
—————————————————————————-
San Antonio75.6267.1529.08
—————————————————————————-
Average gold recoveries include samples with Au greater than 0.1 g/T and Ag
greater than 5 g/T. including sulfide, mixed and oxide mineralized
material.



Paramount CEO, Christopher Crupi commented that “these results indicatethat San Miguel can expect excellent recoveries using a standard millfollowed by either flotation or whole rock cyanide leaching withrelatively low cyanide and lime consumption. McClelland will nowproceed with additional cyanide leach tests designed to optimizesilver recoveries especially from higher grade material, which couldfurther enhance project economics. The potential of San Miguelcontinues to surprise us to the upside. These positive metallurgicalresults are a major step in de-risking the project and moving ittowards early production.”


NI 43-101 Disclosure


Exploration activities at San Miguel are being conducted by ParamountGold de Mexico S.A de C.V personnel under the supervision of Glen vanTreek, Exploration Vice President of the Company and Bill Threlkeld,a QP as defined by National Instrument 43-101, who have both reviewedand approved this news release. An ongoing quality control/qualityassurance protocol is being employed for exploration work at SanMiguel including blank, duplicate and reference standards in everybatch of assays. Cross-check analyses are being conducted at a secondexternal laboratory on 10% of the samples. Samples are being assayedat ALS Chemex, Vancouver, B.C., using fire assay atomic absorptionmethods for gold and aqua regia digestion ICP methods for otherelements.


About Paramount Gold


Paramount Gold is a U.S. based exploration and development companywith multi-million ounce advanced stage precious metals projects inNevada (Sleeper) and northern Mexico (San Miguel). Fully fundedexploration programs are now in progress at these two core projectswhich are expected to generate substantial additional value for ourshareholders. Engineering studies are scheduled for completion in2012 to define a development path and economic valuation for eachproject.


The 100% owned San Miguel Project consists of 150,160 hectares(371,053 acres) in the Palmarejo District of northwest Mexico, makingParamount the largest claim holder in this rapidly growing preciousmetals mining camp. The current work program at San Miguel is part ofParamount’s strategy of expanding and upgrading known, large-scaleprecious metal occurrences in established mining camps, definingtheir economic potential and then partnering them with nearbyproducers. The San Miguel Project is ideally situated nearestablished, low cost production where the infrastructure alreadyexists for early, cost-effective exploitation. Paramount also owns100% of the Sleeper Gold Project which is emerging as one of Nevada’slargest new undeveloped gold resources.


SUMMARY OF ALL PZG NI 43-101 COMPLIANT RESOURCE ESTIMATES



———————————————————————–
—–
MEASURED AND INDICATED RESOURCES
—————————————————————————-
PROJECTTonnesAu g/TAu OuncesAg g/TAg Ounces
—————————————————————————-
San Miguel23,918,0000.83639,00070.053,559,000
—————————————————————————-
Sleeper326,963,0000.333,479,0003.8640,606,000
—————————————————————————-
Total4,118,00094,165,000
—————————————————————————-
INFERRED RESOURCES
—————————————————————————-
PROJECTTonnesAu g/TAu OuncesAg g/TAg Ounces
—————————————————————————-
San Miguel37,470,0000.69830,00038.0046,243,000
—————————————————————————-
Sleeper223,624,0000.271,972,0002.8420,450,000
—————————————————————————-
Total2,802,00060,693,000
—————————————————————————-



Cautionary Note to U.S. Investors Concerning Estimates of Indicated andInferred Resources


This news release uses the terms “measured and indicated resources”and “inferred resources”. We advise U.S. investors that while theseterms are defined in, and permitted by, Canadian regulations, theseterms are not defined terms under SEC Industry Guide 7 and notnormally permitted to be used in reports and registration statementsfiled with the SEC. “Inferred resources” have a great amount ofuncertainty as to their existence, and great uncertainty as to theireconomic and legal feasibility. It cannot be assumed that all or anypart of an inferred mineral resource will ever be upgraded to ahigher category. Under Canadian rules, estimates of inferred mineralresources may not form the basis of a feasibility study orprefeasibility studies, except in rare cases. The SEC normally onlypermits issuers to report mineralization that does not constitute SECIndustry Guide 7 compliant “reserves”, as in-place tonnage and gradewithout reference to unit measures. U.S. investors are cautioned notto assume that any part or all of mineral deposits in this categorywill ever be converted into reserves. U.S. investors are cautionednot to assume that any part or all of an inferred resource exists oris economically or legally minable.


Safe Harbor for Forward-Looking Statements:


This release and related documents may include “forward-lookingstatements” including, but not limited to, statements related to theinterpretation of metallurgical test results and expected recoveriesof gold and silver and future metallurgical testing at the San MiguelProject and the expected results of this work, estimates of resourcesincluding expected volumes and grades and the anticipated completionof a PEA. Forward-looking statements are statements that are nothistorical fact and are subject to a variety of risks anduncertainties which could cause actual events to differ materiallyfrom those reflected in the forward-looking statements includingfluctuations in the price of gold, inability to complete drillprograms on time and on budget, and future financing ability.Paramount’s future expectations, beliefs, goals, plans or prospectsconstitute forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andother applicable securities laws. Words such as “believes,” “plans,””anticipates,” “expects,” “estimates” and similar expressions shouldalso be considered to be forward-looking statements. There are anumber of important factors that could cause actual results or eventsto differ materially from those indicated by such forward-lookingstatements, including, but not limited to: uncertainties involvinginterpretation of drilling results, environmental matters, lack ofability to obtain required permitting, equipment breakdown ordisruptions, and the other factors described in Paramount’s AnnualReport on Form 10-K for the year ended June 30, 2012 and its mostrecent quarterly reports filed with the SEC.


Except as required by applicable law, Paramount disclaims anyintention or obligation to update any forward-looking statements as aresult of developments occurring after the date of this document.



Contacts:
Paramount Gold and Silver Corp.
Glen Van Treek, VP Exploration
Chris Theodossiou, Investor Relations
866-481-2233

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