Paramount Gold and Silver Corp. Reports 10.3 g/t Gold Across 10.3 meters at Clavo 66

Paramount Gold and Silver Corp. announces very high grade assay results from hole LU-21 in Clavo 66. A recent press release, dated September 2, 2008, announced the discovery of a new high-grade gold-bearing zone, Clavo 66, in the southern portion of its San Miguel Project.

LU-21 was drilled at the southeastern margin of Clavo 66, and intersected the vein 125 meters below the surface. LU-21 is 50 meters below LU-16 and 70 meters west of LU-15. The longitudinal section of Clavo 66 (http://www.paramountgold.com/projects/san_miguel_maps.asp) shows that Clavo 66 appears to plunge to the left on the section and LU-21 is the deepest and furthest down-plunge hole in the mineralized zone.

For assays and maps visit www.paramountgold.com

Clavo 66 has grown to dimensions of at least 250 meters along strike and 150 meters vertically. It remains open down plunge to the southeast and with depth. The deepest hole to date, LU-21, has the best combination of thickness and grade of the 13 holes in the Clavo.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, “Similar to Clavo 99 at San Miguel and the deep drilling at San Antonio, Clavo 66 seems to improve with depth. Particularly encouraging at Clavo 66 is the 10.3 meter width of the mineralization. With good widths and high grades such as these, drilling can add very substantial tonnages to a resource in a relatively small area along strike and down dip. The next round of drilling at Clavo 66 will be very exciting.”