31 October 2014

September 2014 Quarterly Report

Key Highlight

• Receipt of the AMDAL and Environmental Permits means that the Company is now authorised to start underground mining and ore processing at Gunung Rosa

GUNUNG ROSA HIGH GRADE GOLD, SILVER AND BASE METAL PROJECT, WEST JAVA PROVINCE, INDONESIA

AMDAL AND ENVIRONMENTAL PERMITS ISSUED

During the quarter, original AMDAL and Environmental Permit documents were received after approval by the Mines Department and the Bupati (Regent) of Cianjur Regency in West Java Province, Indonesia.
Receipt of these original documents completes the final regulatory step before reopening the high-grade
Gunung Rosa gold, silver and base metal mine.
With these permits in hand, and the Mines Department permits previously announced to the market on 17
April 2014, the Company is now authorised to start underground mining and ore processing at Gunung
Rosa.
This significant milestone achieved, the next key steps include upgrading to a JORC Indicated Resource, dewatering and rehabilitating the existing 2.5 kilometres of underground mine workings and starting the related engineering studies and construction activities.

Mining tenements held as at 30 September 2014

For further information please contact:

Mo Munshi Daniel Poller

Chairman CEO & Managing Director

+86 139 1017 5192 +62 8151 1102 180

Paramount Mining Corporation Ltd

Quarterly Report - 30 September 2014

About Paramount: Paramount is an ASX-listed mining company focussing on precious and base metal deposits in Asia, and in particular Indonesia. The Gunung Rosa project is a high-grade gold, silver and base metals sulphide mine 125km south of Jakarta in West Java which has the potential to be a low cost operation. The project is the flagship project for Paramount and the Company presently holds a controlling 72.25% equity interest with rights of first refusal on the remaining shareholding.

The project has a 20 year Mining Permit (Operation/Production IUP), which was issued in 2010 and has from late 2012 been under Paramount management at the operating level. It is presently in the pre- development phase with a drilling program imminent, which is designed to upgrade JORC Resources from Inferred to Indicated, and with gold production expected within 18 months of the construction start.
This poly-metallic mineralisation, trending N-S, is known to extend under soil cover from surface to 240m depth, as a sub-vertical, on average 2.26m wide, mesothermal vein with a drilled strike of approximately
900m with geological evidence of some 2.5km of strike; it remains geologically open to the north, south and to depth beyond the present limit of drilling.
The project was extensively developed underground on the 900m of strike, following a positive Definitive Feasibility Study in the early 1990s, by sinking a mining decline, vertical shafts and development drives on four levels up until the Asian Financial Crisis whereupon it was curtailed due to the lack of availability of debt financing. The project has not advanced since that time despite the significant increase in the value of gold in real terms.
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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Rule 5.5

Name of entity

Paramount Mining Corporation Limited

ABN Quarter ended ("current quarter")

73 102 426 175 30 September 2014

Consolidated statement of cash flows

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 36
1.24 Aggregate amount of loans to tfahe parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions
N/A

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
N/A

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
N/A

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities
3.2 Credit standby arrangements

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.12 Unsecured notes (totals only)

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2. This statement does /does not* (delete one) give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 31 October 2014 (Director/Company secretary)
Print name: ...GARRY TAYLOR...............................

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1
and 7.3 for fully paid securities.
4. The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources
and AASB 107: Statement of Cash Flows apply to this report.
5. Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==

+ See chapter 19 for defined terms.

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