Paramount Gold and Silver Corp. Acquires 100% of the San Miguel Project

CHIHUAHUA, MEXICO, Aug 27 (MARKET WIRE) --
Paramount Gold and Silver Corp. (AMEX: PZG)(TSX: PZG)(FRANKFURT:
P6G)(WKN: A0HGKQ) has signed an agreement to acquire 100% of its San
Miguel project in Chihuahua, Mexico. Paramount Gold and Silver Corp.
(Paramount) will purchase the remaining 30% of the San Miguel project
from Tara Gold Resources Corp. for all stock consideration of 7.35
million restricted common shares of Paramount. The transaction is
expected to close on September 10, 2008 and is subject to stock exchange
approvals and other conditions.

Christopher Crupi, CEO of Paramount Gold commented, "We are very excited
to acquire the entire San Miguel Project. As we complete our second major
round of drilling, we will be in a stronger position to build the
resource and to plan for the next stage of project development including
the future mining potential of the region."

The San Miguel Project hosts a National Instrument 43-101 compliant
silver-gold inferred resource of 108.5 million ounces of silver (Eq.) or
2.085 million ounces of gold (Eq.).

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

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