Paramount Gold and Silver Announces Location of Don Ese Mineralization

Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) said today it has reviewed the news release issued by Coeur d'Alene Mines Corporation on February 28, 2011 in which Coeur suggests that the Don Ese structure which Paramount successfully drilled on Paramount's San Miguel Project in northern Mexico in late 2010 may be located on Coeur's concessions.

As previously stated by Paramount, the Don Ese structure does trend onto Coeur's claims. However, Paramount states unequivocally that the Don Ese mineralization reported in Paramount's December 9, 2010 news release is exclusively on Paramount's claims.

Christopher Crupi, Paramount CEO stated that "our independent, professional surveyors from Hermosillo, Mexico have conclusively confirmed the location of our drill holes and that the Don Ese mineralization reported in our December 9, 2010 news release is exclusively on Paramount claims. One of our holes was inadvertently collared on Coeur ground but this hole crossed over the property boundary into our claims before mineralization was encountered. We would welcome a meeting with Coeur so that our technical teams can review the survey data and resolve this misunderstanding. We are providing Coeur with a detailed claim map with drill hole locations and projected intercepts using the government survey control points."