Paramount completed a total of nine vertical large diameter sonic drill holes to collect undisturbed samples for assay and metallurgical testing of the waste dump material. Paramount completed this work as part of its ongoing evaluation of historically mined materials that could be amenable to reprocessing. Drill holes were distributed across the three dumps and drilled to the base of the dump with total depths ranging between 16 meters and 43 meters and averaging 29 meters. Samples were collected on 1 meter intervals, with assays from these samples ranging up to 1.51 g/t Au. The North waste dump returned the most consistent results with drill hole 9 containing 19 meters of 0.60 g/t Au. (See the complete table of assay results below).

Drilling and sample collection were executed based on guidelines provided by Tetra Tech (www.TetraTech.com) and McClelland Laboratories (www.mettest.com). Tetra Tech, a leading international mining consulting firm, has been engaged to prepare a NI 43-101 compliant Preliminary Economic Assessment (PEA) of the Sleeper Gold Project for completion in early 2012. Sample preparation was performed by McClelland Laboratory and assays were conducted by ALS Chemex of Reno, Nevada. McClelland is now proceeding with metallurgical testing to determine how to process this material and to estimate precious metal recoveries. If this work is positive, further drilling is likely to establish a resource estimate for the dumps.

According to operation reports prepared by Amax Gold, the mine's original operator, a total of 66 million metric tonnes of waste material was extracted during the operation, of which approximately 54 million metric tonnes were placed on these three dumps.

Christopher Crupi, CEO commented that "the results from this sonic drilling program confirm the presence of potentially valuable gold grades within these sizeable and easily accessible waste dumps. With current gold prices, if recovery rates and processing costs are favorable, these dumps could significantly add to the resource inventory at the Sleeper Gold property. Testing of the old previously-leached heaps has not been as favorable and no further work on them is planned."

Paramount is currently employing two drill rigs at Sleeper to expand known mineral zones and to recover samples for metallurgical testing. Results from last year's drilling will be incorporated into an updated NI 43-101 compliant resource model being prepared by SRK (www.srk.com), a recognized international consulting firm, which is scheduled for completion in early September. SRK's resource model and metallurgical test work from the 2010 and 2011 drilling campaigns will be incorporated into the Tetra Tech PEA.

The current work program at Sleeper is consistent with Paramount's strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. Sleeper is a sizeable former high-grade gold producer located near low cost production in Nevada, where the infrastructure already exists for early, cost-effective exploitation. Exploration activities at Sleeper are being conducted by Paramount Gold under the supervision of Glen van Treek, exploration vice president of the company and Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101, who have both reviewed this press release. An ongoing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Samples are being assayed at ALS Chemex, Reno Nevada using fire assay atomic absorption methods for gold, and aqua regia digestion ICP methods at ALS Chemex Vancouver, Canada for other elements.

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms "measured and indicated resources" and "inferred resources". We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves", as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Safe Harbor for Forward-Looking Statements

This release and related documents may include "forward-looking statements" including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project and the expected results of this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. Paramount's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as "believes" "plans" "anticipates" "expects" "estimates" and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount's Annual Report on Form 10-K for the year ended June 30, 2010 and its most recent quarterly reports filed with the SEC. Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.