Paramount Gold & Silver Files 43-101 Resource Report on Sleeper Nevada Project In Pit Preliminary Resource Could Reach up to 2.6 Million Ounces of Gold Plus Silver Credits

WINNEMUCCA, NEVADA -- (Marketwire) -- 11/03/11 -- Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX: PZG) (FRANKFURT: WKN:A0HGKQ) ('Paramount') has received and filed on SEDAR (www.sedar.com) the final NI 43-101 Resource Estimation Report on its 100%-owned Sleeper Gold Project in Nevada. The report was prepared by SRK Consulting (www.SRK.com), a well-known mining consultancy.

As previously announced, the report confirms that the Sleeper Gold Project contains an in situ measured and indicated resource of 2.6 million ounces of gold and 25.3 million ounces of silver and an additional inferred resource of 1.1 million ounces of gold and 8.2 million ounces of silver using a cut-off grade of 0.20 grams of gold per tonne (g/T) for oxide and alluvial material and 0.25 grams per tonne (g/T) for sulfide material. (See tables below for details)

In order to demonstrate that these resources can be mined economically using reasonable assumptions, SRK constructed several preliminary economic pits including all three resource categories, measured, indicated and inferred. These pits were defined using estimated revenue factors and industry average mining, process and general administration costs. SRK`s assumptions included a gold price of $1,400 per ounce and total mining, process and G&A costs of $7.90/tonne of ore for oxide heap leach material and $13.30/tonne of material requiring a sulfide flotation recovery process. Based on these assumptions, which Paramount considers conservative, current total in-pit resources at Sleeper could range from 1.1 Million ounces of gold to 2.6 Million ounces of gold, plus silver credits.

In conclusion, SRK remarks that 'The Sleeper gold-silver deposit represents a project with a great deal of potential for being an important gold producer in Nevada once again. Exploration potential adjacent to the mine is very positive as well as brownfield opportunities in the other targets within the claim block that still remain to be tested.'

Paramount is advancing a Preliminary Economic Assessment (PEA) with Tetra Tech (www.tetraTech.com) and BCG Engineering Inc. (www.bgcengineering.com) for geotechnical engineering support. The PEA is looking at best process alternatives, preliminary capital and operating costs as well as defining the permitting path to re-start operations at Sleeper.

As part of the PEA, Paramount will also evaluate the processing of approximately 52 Million tonnes of gold bearing waste dumps and tailings extracted during production from 1985 to 1996 by AMAX Gold. Recent metallurgical tests completed by Mc Clelland laboratories of Reno, Nevada, showed excellent gold recoveries averaging 70% for the three waste dumps.

The following table summarizes SRK's resource estimate:

Sleeper Resources Table

          ------------------------------------------------------------------
          Cut-off Au
                 g/T                        MEASURED
----------          --------------------------------------------------------
Material                  Tonnes    Au g/T    Ag g/T       Au Oz       Ag Oz
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Oxide           0.20  31,960,502      0.39      4.23     397,669   4,346,620
Sulfide         0.25  91,074,631      0.54      5.06   1,569,495  14,816,501
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        Total        123,035,133      0.50      4.84   1,967,164  19,163,121
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          ------------------------------------------------------------------
          Cut-off Au
                 g/T                        INDICATED
----------          --------------------------------------------------------
Material                  Tonnes    Au g/T    Ag g/T       Au Oz       Ag Oz
----------------------------------------------------------------------------
Oxide           0.20  10,829,438      0.33      4.12     114,203   1,434,501
Sulfide         0.25  38,898,882      0.44      3.79     544,032   4,739,953
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        Total         49,728,320      0.41      3.86     658,235   6,174,454
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----------------------------------------------------------------------------
          Cut-off Au
                 g/T                 MEASURED AND INDICATED
                    --------------------------------------------------------
Material                  Tonnes    Au g/T    Ag g/T       Au Oz       Ag Oz
----------------------------------------------------------------------------
Oxide           0.20  42,789,940      0.37      4.20     511,872   5,781,121
Sulfide         0.25 129,973,513      0.51      4.68   2,113,527  19,556,454
----------------------------------------------------------------------------
        Total        172,763,453      0.47      4.56   2,625,399  25,337,575
----------------------------------------------------------------------------


----------------------------------------------------------------------------
          Cut-off Au
                 g/T                        INFERRED
                    --------------------------------------------------------
Material                  Tonnes    Au g/T    Ag g/T       Au Oz       Ag Oz
----------------------------------------------------------------------------
Alluvial        0.20     151,675      2.03         -       9,890           -
Oxide           0.20  13,191,635      0.32      3.42     136,145   1,450,516
Sulfide         0.25  68,410,857      0.44      3.07     974,376   6,752,446
----------------------------------------------------------------------------
        Total         81,754,167      0.43      3.12   1,120,410   8,202,962
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Exploration activities at Sleeper are being conducted by Paramount Gold 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 and approved this press release. This release was also reviewed and approved by SRK's George Even, a Qualified Person responsible for the resource estimation. An ongoing quality control/quality assurance protocol was employed during the program including blank, duplicate and reference standards in every batch of assays. Samples were assayed at ALS Chemex, Reno, Nevada using fire assay atomic absorption methods for gold, and aqua regia digestion ICP methods at ALS Chemex Vancouver, Canada for other elements. External check samples are also being conducted at Inspectorate Lab in Reno, Nevada.

The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca, Nevada. Acquired by Paramount in 2010, the 49.6 square mile project area includes the original Sleeper high-grade open pit mine as well as newly purchased claims stretching south down trend to Newmont`s Sandman project.

The current work program at Sleeper is consistent with Paramount's strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. As a former high-grade gold producer, Sleeper is ideally located near established, low cost production in Nevada, where the infrastructure already exists for early, cost-effective exploitation.

Paramount also owns 100% of the San Miguel Project which 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. Drilling continues at San Miguel with the aim of upgrading and expanding its multi-million ounce gold and silver resource in the coming months to be followed by completion of a PEA in 2012.

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 production and future exploration work at the 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, 2011 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.

Contacts:

Paramount Gold and Silver Corp.

Glen Van Treek, VP Exploration

Christopher Crupi, CEO

866-481-2233 / 613-226-9881