Paramount Gold And Silver Exploration Program Update

Ottawa, Ontario, U.S.A., Jan 2, 2008 - (Hugin via ABN Newswire) - OTTAWA, ON--(Marketwire - January 02, 2008) - Paramount Gold and Silver Corp. (TSX: PZG) (AMEX: PZG) (FRANKFURT: P6G) (WKN: A0HGKQ) is pleased to announce its 2008 exploration plans.

In early 2007, Paramount released its first NI 43-101 Resource Estimate, which established an inferred resource of 35 Million ounces of silver equivalent. This report was based on the results of 39 drill holes from the San Antonio Zone, at the San Miguel project, during our 2006 exploration program. At its flagship San Miguel project, Paramount has completed an additional 100 drill holes for a total of approximately 24,000 meters in 2007. In 2007, Paramount closed US$25 Million in private placement financings in order to fund its ongoing exploration and development programs.

The San Miguel project has been divided into four areas, each with different geology, and thus, with a different development strategy, including San Antonio (initial resource estimate), San Luis Mine (former bonanza-grade gold producer), Montecristo (bulk tonnage target), and San Miguel.

Paramount has commenced a comprehensive geophysical program (IP-resistivity) in the region, in order to better understand and target the mineralization at depth.

Paramount completed early reconnaissance work at its wholly owned 86,300 hectare Andrea concession, including its own satellite image analysis and a thorough sampling of sediment from 371 drainage basins. The results of this identified several gold and silver targets, and a porphyry copper target.

Plans for 2008

Paramount intends to complete an update to its initial resource estimate, incorporating the 100 drill holes completed in 2007, and the 30 holes pending assay. Paramount's drill program will target deeper mineralized zones using intelligence obtained by geophysics and detailed structural analysis. Paramount will commence a program to explore and drill the high grade, formerly producing San Luis Mine. Three new target areas have been identified in its San Miguel project, and Paramount will conduct initial evaluation and follow up drilling on these targets. Paramount intends to conduct geologic mapping and surface sampling with a view to establish drill targets in our joint venture with Garibaldi Resources. In late 2008, Paramount will commence a scoping study as it approaches mine development.

Paramount is building its project portfolio through the addition of precious metals projects in Mexico and South America, and is also considering strategic corporate initiatives in Mexico with other exploration/development companies.

Analyst Site Visits

In December 2007, Paramount was the host to a group analyst site visit, and the first independent research report has been released by Beacon Rock Research (www.beaconrockresearch.com). The report can be viewed in its entirety at http://www.beaconrockresearch.com/files/PZG.Spec.07.12.26.pdf Paramount will be hosting three analyst group tours in the first quarter of 2008.

About Paramount Gold

Paramount Gold is listed on the AMEX and TSX under the symbol PZG and on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). Paramount Gold is a precious metals mining Exploration Company presently in the early stages of an extensive exploration program at their San Miguel project in the Temoris mining district of the Sierra Madre Occidental in Mexico. Paramount has completed over 27,000 meters of core drilling, totaling 155 drill holes on the project, with results pending on the last 30 of these holes. In April 2007, Paramount began a 50,000 meter drill program, of which 20,000 meters have been completed to date. In March 2007, Paramount completed a $21.8 million financing which is being utilized to develop their San Miguel and Andrea projects and other opportunities.

"Safe-Harbor" Statement: This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially.

Contacts: Paramount Gold and Silver Corp. Charles William Reed VP Exploration 520-907-9986

Paramount Gold and Silver Corp. Chris Halkai Corporate Relations Toll-free: 1-866-481-2233 or 613-226-9881

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Paramount Gold and Silver Corp.

http://www.paramountgold.com/

ISIN: US69924P1021

Stock Identifier: NYS.PZG

US: TSX:PZG