Updated Mineral Resource Estimate for Paramount Gold and Silver's San Miguel Project Expected in August, 2012

WINNEMUCCA, NEVADA -- (Marketwire) -- 06/18/12 -- Paramount Gold and Silver Corp.(NYSE MKT: PZG)(NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ("Paramount") reported today that Mine Development Associates (www.mda.com) of Reno, Nevada is currently preparing an updated National Instrument 43-101-compliant mineral resource estimate for its 100%-owned San Miguel Project in Mexico for expected release in August, 2012. The updated estimate, originally scheduled for June, will cover five of the Project's resource areas and will incorporate the results from over 33,000 meters of new drilling in 120 drill holes completed in these areas in 2011 and 2012. The new drill results increase by 41% the total amount of drill core available from these areas for inclusion in the updated resource estimate, compared to the last estimate released on December 28, 2011.

In accordance with NI 43-101, Paramount will file a technical report supporting the disclosure of the updated mineral resource estimate within 45 days after release of the estimate.

Part of the 2011 and 2012 drilling was dedicated to upgrading mineral resources contained in previous estimates to categories of higher confidence. Ongoing exploration drilling also discovered new zones and significant expansions of previously identified zones along structural corridors. These new zones and expansions have been aggressively drilled over the past six months and have led to geological models that Paramount believes can now be incorporated into the updated mineral resource estimate. Work on the project continues to identify new opportunities for continued exploration drilling.

Christopher Crupi, CEO of Paramount, commented that "the pace of exploration has quickened and our drilling success rate has increased, leading to a delay in the updated mineral resource estimate to include as much of the new data as possible. The 2011 and 2012 drill programs have produced excellent results and we are very excited to update our mineral resource estimate as we expect to see not only increases in the tonnage and grades but also in the overall quality of the mineral resources. However, in reality, we believe this new resource estimate will be quickly outdated by positive new results from our current drill program."

Paramount expects the updated mineral resource estimate to be incorporated into a Preliminary Economic Assessment that will evaluate mining scenarios, mining rates and process alternatives with the objective of moving towards of a Preliminary Feasibility Study which would qualify mineral reserves. In addition, Paramount is continuing to explore the potential of its large property position and is prioritizing numerous untested targets, new discoveries as well as extensions of known deposits, many of which remain open. Drilling continues at San Miguel with two diamond drills. Paramount currently holds $25 million in cash and working capital to fund ongoing exploratory programs.

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 and approved the contents of this press release.

About Paramount Gold:

Paramount Gold is a U.S.-based exploration and development company with advanced stage precious metals projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded exploration programs are now in progress at these two core projects. Engineering studies are scheduled for 2012 with a view to the preparation of a Preliminary Economic Assessment in respect of each project.

The 100% owned San Miguel Project consists of 150,160 hectares (371,053 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. The current work program at San Miguel is part of 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. The San Miguel Project is ideally situated near established, low cost production where the infrastructure already exists. Paramount also owns 100% of the Sleeper Gold Project which is emerging as one of Nevada's largest new gold deposits.

Cautionary Note to U.S. Investors Concerning Mineral Resource Estimates:

This news release uses the term "mineral resource estimates". We advise U.S. investors that while this term is defined in, and permitted by, Canadian regulations, this term is not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. "Inferred mineral 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. 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 mineral resource estimate 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 preparation of an updated mineral resource estimate and the timing thereof, the preparation of a Preliminary Economic Assessment, 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, 2011 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.

Contacts:

Paramount Gold and Silver Corp.

Glen Van Treek, VP Exploration

866-481-2233


Paramount Gold and Silver Corp.

Christopher Crupi, CEO

866-481-2233