Paramount Gold and Silver Corp. Arranges $9,000,000 Equity Financing

Paramount Gold and Silver Corp. (TSX: PZG)(NYSE-A: PZG)(AMEX: PZG)(FRANKFURT: P6G) is pleased to announce an agreement in principal to make a non-brokered private placement of C$9,000,000 through the sale of 12,000,000 restricted units at 75 cents per unit. This placement is priced at a premium to the 20 day volume weighted average price on the TSX and is subject to definitive documentation and regulatory approvals. Each unit is comprised of one common share and one share purchase warrant exercisable at a price of $1.05 per share for a period of four years. The share purchase warrants cannot be exercised until after six months and one day from issuance.

The subscriber is FCMI Financial Corporation, a private corporation based in Toronto, controlled by Albert D. Friedberg and members of his family.

Rudi Fronk, President and CEO of Seabridge Gold Inc. (TSX: SEA) (NYSE.A: SA) and Eliseo Gonzalez-Urien, Director of Seabridge Gold Inc., will join the Board of Directors of Paramount Gold and Silver Corp. after closing. Rudi Fronk has over 25 years experience in the gold business, primarily as a senior officer and director of publicly traded companies. Since 1999, Mr. Fronk has served as President and CEO of Seabridge Gold. Mr. Fronk previously held senior management positions with Greenstone Resources, Columbia Resources, Behre Dolbear & Company, Riverside Associates, Phibro-Salomon, Amax, and DRX. Mr. Fronk is a graduate of Columbia University and holds a Bachelor of Science in Mining Engineering and a Master of Science in Mineral Economics.

Mr. Gonzalez-Urien is one of the most highly regarded exploration geologists in the mining industry. From 1989 through 2001 Mr. Gonzalez-Urien held various executive positions with Placer Dome Inc. including Senior Vice President of the parent company and President of Placer Dome Exploration Inc. During this period he was charged with ultimate responsibility for Placer Dome?s worldwide exploration activities. Prior to Placer Dome, Mr. Gonzalez-Urien held senior positions with BHP-Utah Inc. and Noranda. He holds a degree in Geology from the University of Santiago, Chile, followed by post graduate studies in Geology at the University of California, Berkley.

The proceeds of the financing are to fund exploration in Mexico to advance Paramount's San Miguel project and the surrounding 140,000 hectares of mining concessions. Together with its resources on hand this financing provides funding for the next 30 months of business expenditures.

"This financing with FCMI will provide us with the strategic financial partner needed to realize the potential of our large San Miguel project including resource definition, economic evaluation and new discoveries. Our experienced new directors, Rudi Fronk and Eliseo Gonzalez-Urien, will help to drive a highly directed value enhancement process on behalf of all of our shareholders", stated Christopher Crupi CEO of Paramount Gold and Silver Corp.

Rudi Fronk, CEO of Seabridge Gold Inc. commented, "We are encouraged by the discoveries made by Paramount at the San Miguel project in Mexico which, we believe, represent an unusually good opportunity to create significant shareholder value in the current market environment and the potential for one or more significant gold discoveries."

The securities in the placement will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of that Act. This press release does not constitute an offer to subscribe for the securities in the United States.

Statements relating to the estimated or expected future production and operating results and costs and financial condition of Paramount Gold and Silver Corp., planned work at the Corporation's projects and the expected results of such work are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Corporation's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Corporation's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Annual Report Form 10K filed with the U.S. Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml).

Forward-looking statements are based on the beliefs, estimates and opinions of the Corporation's management or its independent professional consultants on the date the statements are made.

Contacts: Paramount Gold and Silver Corp. Christopher Crupi, CEO Chris Halkai, Investor Relations 866-481-2233 / 613-226-9881