Paramount Gold and Silver Corp. Update on Strategic Alliance With Mexoro Minerals

Paramount Gold and Silver Corp. Update on Strategic Alliance With Mexoro Minerals

Saturday, August 16th 2008

Paramount Gold and Silver Corp.advises that certain provisions of its Strategic Alliance with Mexoro Minerals have recently lapsed, including Paramount’s right of first refusal on financings. As Paramount holds convertible debentures in the amount of $1,370,000 resulting from advances made to Mexoro Minerals to fund exploration under the Strategic Alliance, Paramount has agreed to defer interest payments on the advances until September 10, 2008, during which the parties will continue discussions to restructure certain terms of the agreement.

The loans to Mexoro are secured by all of their US and Mexican assets. The parties also continue to collaborate in exploration in the Guazapares and Cieneguita project areas. If the convertible debenture was converted into common shares of Mexoro Minerals, Paramount would hold a 13.3% in Mexoro Minerals Ltd.

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