WINNEMUCCA, NEVADA--(Marketwire - July 26, 2011) - Paramount Gold and Silver Corp. (NYSE Amex:PZG)(News - Market indicators)(FRANKFURT:P6G)(WKN:A0HGKQ)("Paramount Gold" or the "Company") announced today new higher-gradeassay results from ongoing resource delineation drilling at its 100% owned San Miguel project in northwestern Mexicowhich are likely to increase the size, grade and quality of its resource estimates.

Assays for eleven new core drillholes have been received from Paramount's in-fill drilling program. Six of these drillholesare located in the silver rich zone at San Antonio confirming itspotential for a bulk tonnage silver deposit. The remaining five drill holes are located on the San Miguel Vein, intersecting high grade silver and gold including a 9.1 meter intercept grading 555.7 grams per tonne of silver and 1.63 grams per tonne of gold.

Paramount Gold CEO Christopher Crupi noted, "these excellent results should allow us to upgrade a large portion of the resourcesin these two deposits from the inferredcategory to the measured and indicated categories. Ourinfill drilling is focusing on the San Antonio, San Miguel,San Francisco and Don Ese deposits because they will drive the NI 43-101 compliant Preliminary Economic Assessment which is now in progress and is expected to be released later this year. Exploration drilling is focused on a promising deep test of the La Verde area and expansion of last year`s Don Ese discovery which could also add resources in the near term."

Detailed assay data from the eleven new drill holes are as follows:

The orientation of these drill holes was designed to intercept the structural features at right angles so as to provide a true width.The intersections are believed in general to represent the true width of the mineralized features but additional drilling and modeling will berequired to confirm this conclusion.

The San Miguel project consists of 188,000 hectares (465,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp.Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Glen van Treek, exploration vice president of the Company and Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101,who have both reviewed this news release. An ongoing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at ALS Chemex, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources:

This news release uses the terms "measured and indicated resources" and "inferred resources". We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves", as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

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.

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.