Paramount Gold's Trenching Discovers New Santa Clara zone - 1,380 meters along strike to the South with Assays up to 282 g/t Silver, 1.2 g/t gold and 1.38%  lead/zinc at San Miguel, Mexico

Chihuahua, Mexico – (BUSINESS WIRE) – May 10, 2007 – Paramount Gold Mining Corp. (OTC: PGDP) (Frankfurt: P6G, WKN: A0HGKQ) is pleased to announce trenching results from its ongoing exploration program in the southern part of its San Miguel concession block near Temoris, Chihuahua, Mexico.  These ten trenches are located in the Santa Clara zone, which is adjoining and up to 1,380 meters along strike to the south of the La Union zone where Paramount reported drill results that included 105.35 meters averaging 1.45% zinc, 0.52% lead, 28 g/t silver and 0.26 g/t gold in hole LU-09 (see news release dated November 8th 2006).

Trenches 01 through 10 span approximately 375 meters and identified the Santa Clara zone on surface and along strike for approximately 300 meters. At the south end, trench ZSC-06  reported 5.7 meters of 1.24 g/t gold, 101 g/t silver with 0.42% combined lead/zinc and is located approximately 1,380 meters south  of and along strike from drill hole LU-09 in the La Union zone (one of the most southerly reported drill holes to date). ZSC-02 is approximately 20 meters north of ZSC-06 and reported 4.3 meters of 1.2 g/t gold, 282 g/t silver with 1.38% combined lead/zinc. Intersections of 3.0 to 4.0 meters continued to the north in ZSC-09, ZSC-08 and ZSC-04 until reaching ZSC-03 approximately 225 meters north of ZSC-2 where the zone widened to 12.1 meters averaging  0.2 g/t gold and 153 g/t silver, including 6.1 meters of 0.20 g/t gold and 224 g/t silver. Another 60 meters north of ZSC-03 is ZSC-10 the most northerly trench in this zone and reported 3.0 meters of 95 g/t silver. ZSC-10 is approximately 1,080 meters from La Union drill hole LU-09.  The trenches are exploratory in nature, through thin overburden and as such trenches 01, 05 and 07 missed the zone and reported no values.

Paramount's Manager of Exploration in Mexico, Bill Reed, commented: “I am very pleased that our trenching and drilling programs are consistently identifying mineralization along the entire strike length that we have explored thus far. These latest trench results at Santa Clara compare very well with earlier trenches from the La Veronica, San Antonio, San Jose and La Union zones, and constitute the discovery of another new mineralized zone. The surface expression at Santa Clara does not appear to be as wide as other zones, but more importantly, this could possibly extend the total strike length of the system about 1,380 meters to the south and it remains open in all directions.  Part of our exploration program this year will include drill testing the newly discovered Santa Clara zone."

The highlights of the trenching include:

ZSC-02 -   4.3 meters of 1.2 g/t Au, 282 g/t Ag with 1.38% combined lead/zinc

ZSC-03 - 12.1 meters averaging 0.2 g/t Au and 153 g/t Ag

including 6.1 meters of 0.20 g/t Au and 224 g/t Ag

ZSC-04 - 4.0 meters of 0.09 g/t Au and 49 g/t Ag

ZSC-06 - 5.7 meters of 1.24 g/t Au, 101 g/t Ag with 0.42% lead/zinc

ZSC-08 - 3.0 meters of 0.11 g/t Au, 68 g/t Ag with 0.39% lead/zinc

ZSC-09 - 4.0 meters of 0.13 g/t Au, 41 g/t Ag with 0.23% lead zinc

ZSC-10 - 3.0 meters of 95 g/t Ag with 0.08% lead/zinc

The trenches are excavated to a depth of 2-3 meters and extend from west to east across the quartz veins and stockwork quartz veins that host silver and gold mineralization in the Guazapares mining district.  The trenches were cut through thin overburden to better define drill targets and spaced approximately 50 to 75 meters apart.  The geology of the trenches is mapped in detail and continuous rock chip samples of no more than one meter in length are collected from the trench walls.

A location map of these trenches can be found on Paramount's web site

C.W. (Bill) Reed, B. Sc. Mineralogy, is the qualified person and has prepared the detail and review with respect to this news release.

About San Miguel

San Miguel is currently comprised of 16 concessions covering a +8 km long structural zone that hosts silver and gold mineralization.  The concessions also include other structural zones that host

mineralization but have not yet been tested.  It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount

signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, and has earned a 70% interest in the San Miguel project.

About Paramount Gold

Paramount Gold is a precious metals exploration company quoted on the OTCBB under the symbol PGDP and listed on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). 

The Company's objectives are to explore and develop the San Miguel project, located in Chihuahua, Mexico within the Sierra Madre Occidental gold/silver belt and fully develop the potential of the

strategic alliance with Teck Cominco for gold exploration in South America. For more information, please visit the Company's web site at: www.paramountgold.com (now available in the following

languages: English, German, French, Spanish, and Mandarin).

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks

and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control

with respect to commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of  ore samples, and other risks detailed from time to time in the Company's filings

with the Securities and Exchange Commission.

Contacts:

               Charles W. Reed, Exploration Manager, Mexico

               520-907-9986

               Chris Halkai, Corporate Relations

               Toll-free: 1-866-481-223

               613-226-9881

Chris Theodossiou

Corporate Development

Paramount Gold Mining Corp.

Tel:  613.226.9881  x 201

Cell: 613.266.9866

Fax:  613.226.5106

ctheo@paramountgold.com

www.paramountgold.com