Paramount Gold Mining Corp.

COMPANY DATA | INTRODUCTION |  PROJECTS IN HAND |  MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

Paramount Gold Mining Corp. ("Paramount" or the "Company") is a precious metals exploration and development company, which seeks to acquire advanced-stage projects and/or producing mines in the most prolific precious metal districts throughout the world. Specifically, the portfolio will comprise: (i) advanced stage exploration projects with resources at economic grades and strong expansion potential; (ii) projects that can quickly be brought into production, with access to or including mining and/or milling facilities; (iii) former producing properties with significant untapped exploration potential.

The following is an overview of the Company's San Miguel and La Blanca projects in Mexico and its Linda project (a JV with Barrick Gold) in Peru.

PROJECTS IN HAND

(1) San Miguel Project - Mexico

On September 7, 2005, Paramount announced an agreement to acquire up to a 70% interest in the San Miguel project from Amermin S.A. de C.V. The San Miguel project is located in the Temoris mining district in Chihuahua, Mexico, which is part of the historic and prolific gold and silver belt of the Sierra Madre Occidental. San Miguel is currently comprised of 16 concessions covering an estimated 6 kilometers strike of silver and gold mineralization. San Miguel covers portions of three mineralized, subparallel fault zones known as Guazapares, Sangre de Cristo, and Batocegachic. Historically, all three structures have been mined for gold and silver on those portions covered by San Miguel, both by underground and open pit mining methods.

Within close proximity to San Miguel are numerous operating mines and recent substantial discoveries. Approximately 20 miles to the southeast is the 170,000 ounces/year El Sauzal mine, Glamis Gold's (NYSE:GLG) newest and largest gold mine. Gammon Lake Resource's (AMEX:GRS) Ocampo Gold-Silver Project is approximately 40 miles to the North, with 7.5 million gold-equivalent ounces and annual production to commence in 2006 at 270,000 ounces/year. Palmarejo (TSXV:PJO) is developing the nearby Palmarejo mine and has acquired ground around San Miguel. Palmarejo has announced an inferred resource of 3.1 million gold equivalent ounces on its property.

Paramount has identified 3 significant targets at San Miguel - the San Luis, San Jose, and San Miguel concessions.

San Luis - a former producing Gold mine with bonanza grades at depth. A 43-101 geological report was completed in October 2005 on San Miguel by independent geologist Jon Lehmann, the results of which highlighted the property's strong potential. A 15 meter long channel sample at the 300 foot level in the San Luis mine ran 85.2 grams gold and 339 grams silver across 15 meters, confirming the presence of a relatively wide zone of high grade gold and further supporting the reported, bonanza gold grades at depth in the currently flooded mine.

Paramount's objective is to re-activate this open-pit mine and prove-up a multi-million ounce gold-equivalent resource.

San Jose - there is a drilled-tested resource of close to 1 million tonnes of ore at 5 ounces of silver per tonne, which equals almost 5 million ounces of silver. The drilling was only done to 20 meters, so it is expected that this resource will be significantly expanded when deeper drilling commences in early 2006. The samples were never assayed for gold, but it is expected there is 1-2 gpt gold.

As reported in a press release dated December 8, 2005, Paramount mapped and collected rock chip samples over the San Jose zone on 6 sample lines spaced 40 meters apart with samples collected every 5 meters along each line. The sample program has identified a zone over a width of 50 meters and a strike length of 250 meters, with an average grade of 225 g/t Ag, and is open in both directions to the NNW and SSE. General strike of this structure N30W dipping 70 to 50 degrees toward NE.

San Miguel - Paramount holds 2 claims that cover this zone and between these 2 claims there was an open pit mine that operated in the 1980's that averaged 7 ounces per tonne silver and 1-2 grams per tonne gold. In the 43-101 report by Jon Lehmann, a channel sample was done across 12 meters that ran 1.09 gpt gold and 330 gpt silver.

(2) La Blanca Project - Mexico

On December 8, 2005, Paramount signed an agreement to acquire a 70% interest in the La Blanca property. La Blanca consists of 4 concessions totaling 140 hectares located in the municipality of Guazapares in Southwestern Chihuahua, Mexico. Access is by the Chihuahua-Pacific railway, or by gravel road from Chihuahua, or by light aircraft to the village of Tremoris.

The veins typically grade 10 ounces per tonne Ag, or better. Previous drilling has indicated a block of over 6 million tonnes that average 4.7 ounces per tonne Ag and 0.013 ounces per tonnes Au at a 2 ounces per tonnes Ag cut-off. Bench scale metallurgical testing has shown that recoveries of 90% are possible for both silver and gold using floatation.

A 2-phase reverse circulation drilling program totaling over 5,500 meters in 50 holes has shown that an area of economic interest, the River zone, that is characterized by a vein and stockwork system in intensely kaolinised rhyolite tuff is present beneath a cover of overburden. Three distinct zones have been identified, an upper zone of intense weathering, a water table and a lower zone of hypogene ore, all of which are mineralized.

Drilling has indicated that the veins are usually less than 1.5 meters wide and are vertical, strike east-west and are spaced an average of 5 meters apart horizontally. 

(3) Linda Project - Peru

On October 12, 2005, Paramount and its newly formed Peruvian subsidiary, Compania Minera Paramount SAC, announced an agreement with Minera ABX Exploraciones S.A., a subsidiary of Barrick Gold Corporation (NYSE: ABX), to acquire a minimum 51% interest in the Linda property. The Linda property, which is comprised of six mining concessions totaling 4,500 hectares, is located within a mining district in the Department of Ayacucho, South Peru.

This mining district is currently under exploration by several junior and major companies including Newmont Mining (NYSE: NEM) and Southern Peru, two of the most important exploration companies and mining operators in Peru. Detailed sampling (chip and channel) has been completed over an area covering approximately 1.5 kilometers x 1.0 kilometer. Outside of this area, the sediments are covered by young unaltered volcanic rocks.

To date, a total of 928 surface samples have been collected, of which 263 (28%) returned gold values greater than 300 ppb (0.3 g/t) Au. Of note, the arithmetic mean from these 263 samples was 0.93 g/t Au, which is comparable to other large mines in Peru. For example, Barrick's 9.1 million ounce Lagunas Norte mine and its 12.8 million ounce Veladero mine return approximately 1.2 and 1.0 g/t Au, respectively.

Newmont's largest mine, Yanacocha, with gold reserves of approximately 32 million ounces, returns on average between 0.8 to 0.9 g/t Au. There have only been eight holes drilled on the Company's Linda property, with the best results coming at 26 meters from hold #4 at 1.5 g/t Au. Paramount has a target in excess of 2 million ounces on the Linda property and will commence a drill program in early 2006.

MANAGEMENT

Paramount Gold Mining Corp. has a well management team with experience in different areas.

Chris Crupi, CA, Director, CEO & CFO
Mr. Crupi is a Chartered Accountant specializing in a host of financial advisory services including M&A, divestitures, and business valuations. Transaction experience spans several industries including mining, software, sports and entertainment and manufacturing. Over the past 10 years, Mr. Crupi has participated in deals totaling over $1 Billion, including such notable transactions as the sale of the Ottawa Senators Hockey Club and the sale of a division of the Canadian Red Cross to establish Canadian Blood Services.

In 2004, Mr. Crupi left PricewaterhouseCoopers where he held the position of Vice President to co-found EMT Capital. In addition to providing financial advisory services, he also acts for EMT clients as a CFO and director for publicly-traded companies in the United States where he is able to apply his knowledge and understanding of SEC regulations and corporate governance issues.

Charles W. (Bill) Reed, Director & Manager of Exploration in Mexico
Mr. Reed joined the Company in September 2005 bringing with him significant mining experience. From 1998 to 2004, Mr. Reed was the Chief Geologist in Mexico for Minera Hecla S.A. de C.V., a subsidiary of Hecla Mining (NYSE: HL). At Hecla, Mr. Reed supervised detailed exploration at the Noche Buena project, Sonora, and the San Sebastian silver and gold mine, Durango. He also discovered and drilled the Don Sergio vein that was later put into production. From 1993 to 1998, Mr. Reed was Regional Geologist in Mexico and Central America for Echo Bay Exploration. During his tenure with Echo Bay, Mr. Reed identified the potential of the Dolores mining district, Chihuahua, Mexico and identified and recommended acquisitions that resulted in the discovery of more than 44 million ounces of silver and 2.5 million ounces of gold.

Mr. Reed has a Bachelor of Science Degree, Mineralogy, University of Utah and is a Registered Professional Geologist in the State of Utah. He also completed an Intensive Spanish Program at Institute De Lengua Espanola, San Jose, Costa Rica.

Alain Vachon, P.Eng, Geologist, Manager of Exploration, South America and General Manager of Compania Minera Paramount SAC
Mr. Vachon has more than 30 years of experience in precious metals mining and exploration. Since 2002, Mr. Vachon has been an independent consulting geologist and exploration manager to a variety of companies and properties. From 1997 to 2001, he served as Exploration Manager for Sulliden Exploration, where his work on the Mario property in 2000 led to the nomination for the prestigious "Prospector of the Year" award in Peru.

Prior to these accomplishments, Mr. Vachon was a Senior Geologist for both Barrick Gold (NYSE: ABX) and the recently renamed Noranda Falconbridge (NYSE: FAL). Over the last 30 years, Mr. Vachon has managed all aspects of a diverse set of exploration programs, including planning, supervision of field work, preparation of technical reports (43-101), property evaluation, and negotiation of option terms.

He has managed and evaluated exploration and development projects in Canada, Peru, Zaire, Cuba and Republic Dominica, focusing on gold and base metals in geological settings such as volcanogenic massive sulphides, lode gold, epithermal, porphyry copper-gold and skarn-carbonate replacement.

John Simons, Geologist, Senior Advisor
Mr. Simons obtained a B.S. Mining Engineer from Mackay School of Mines, University of Nevada, Reno in 1948 and is also a graduate of courses in mining geology from the University of California, Berkeley, California. He is a Registered Professional Geologist from Wyoming with more than fifty years experience in mineral exploration, mineral property evaluation, and development.

Currently, Mr. Simons is President, Simons Associates, Inc., Mineral Consultants and is a Member of the Advisory Board: Wyoming State Geological Survey. He is a partner in a number of private corporations that own developed mining deposits and producing mines in Mexico and the western United States.

Previous to this his past experience includes Senior Mining Geologist, Union Pacific Corp., Natural Resources Division, Laramie, as Mining Geologist, Southern Pacific Land Co., San Francisco, CA and Mining Engineer, Kennecott Copper Corporation. He conducted mineral exploration and training of geologists in a joint venture of the United Nations and the CNNR of Mexico (Mexican Geological Survey). In 1964, Mr. Simons initiated exploration work at an undeveloped prospect which later became the La Caridad copper-molybdenum deposit, now the largest mining and smelting operation in Mexico, with more than 4,000 employees.

NEWS UPDATE

On February 07, 2007 Mr. Chris Crupi, president of Paramount Gold Mining Corp. will be featured live on Market News (www.mn1.com) for an exclusive interview with Market News First's Saul Albom in an on-air interview on February 08, 2007 at 12:30p.m. CST.

On February 01, 2007 Paramount Gold Mining Corp. and its Peruvian subsidiary, Compania Minera Paramount SAC announced that they have signed a Letter of Intent with a private owner to acquire 100% interest in the Cotaruse property, located in the Department of Apurimac, Southern Peru.

On January 30, 2007 Paramount Gold Mining Corp. released the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The results are four drill holes completed in the San Antonia area and are in fill holes between drill holes SA-01 to SA-09 reported on December 14, 2006. These four drill holes span a distance along strike of about 325 meters.

On January 26, 2007 Paramount Gold Mining Corp. reported the results of an NI43-101 technical report completed on their San Miguel Project. The report was completed by Dana Durgin of Delve Consultants LLC., Sparks, Nevada, USA.

On January 2, 2007, Paramount Gold Mining Corp. announced the results of a trenching program in the central part of its San Miguel concession block in Mexico. The five trenches reported are located in the San Antonio - Carmen zone. Trench ZSA-09 returns 61.9 metres averaging 79 g/t silver, including 2.1 metres of 625 g/t Ag with 1.24% lead, and 1 metres of 887 g/t silver with 5.59% lead.

On December 06, 2006 Paramount Gold Mining Corp. announced that the full trading has commenced on the NASDAQ OTCBB following a 30-day quiet period which expired November 27, 2006. The company also announced that it has retained the services of Dana Durgin of Delve Consultants to complete a National Instrument 43-101 technical report on the San Miguel Project near Temoris, Chihuahua, Mexico. The technical report will include a review of exploration work carried out by Paramount during 2006 and a compilation of these results.

On November 08, 2006 Paramount Gold Mining Corp. released the most recently report assays from its ongoing drill program at the San Miguel project near Temoris, Chihuahua, Mexico. 

Drill hole LU-09 and LU-11 intersected 100 meters plus of polymetallics while other drill holes continue to intersect high grade silver of 1,235g/t across 0.40 meters in drill hole LU-12 and 189g/t silver across 17.5 meters in hole LU-07. The best intersect was 2.84g/t across 14.6 meters in hole LU-06, while drill hole LU-11 cut 13.5 meters from 105.0 to 118.5 of 7.07% zinc, 2.38% lead, 36g/t silver with 0.36g/t gold.

On October 30, 2006, Paramount Gold Mining Corp. reported that it will commence trading on the OTC Bulletin Board on that day under the stock symbol "PGDP". In addition to trading on OTC Bulletin Board, Paramount also trades in Europe on the Frankfurt Exchange under the stock symbol "P6G".

On October 19, 2006, Paramount Gold Mining Corp. announced that its trenching assays up to 1,300 g/t silver and extends silver/gold zone to 1,400 metres at the San Miguel project, Mexico.

On October 13, 2006, Paramount Gold Mining Corp. announced a US$1,000,000 private placement financing of restricted stock at US$2.60 per share. There are no warrants attached and no finder fees were paid. Paramount will use the funds from this financing to add a second drill rig at their San Miguel project in Mexico, and in preparation for the commencement of drilling in the next 45 days at the Santos property in Peru.

On October 12, 2006, Paramount Gold Mining Corp. announced the most recently reported assays from its ongoing drill program at the San Miguel project in Mexico. Paramount Gold drills 6.7 g/t gold equivalent over 17.6 metres and 4.8 g/t gold equivalent over 16.4 metres.

On October 10, 2006, Paramount Gold Mining Corp. announced that it has signed a letter of intent setting out the terms of an option to acquire an 80% interest in over 6,000 hectares of property from Garibaldi Resources Corp. (TSX-V: GGI). The additional property surrounds Paramount's San Miguel project and adjoins Paramount's Andrea concession to the east of San Miguel.

On September 27, 2006, Paramount Gold Mining Corp. provided the results of the preliminary exploration work carried out at their Santos project in Peru. Paramount outlines a high potential gold-silver target at Santos. Paramount's sampling (131 rock samples) yielded the following results: 1.99 g/t Au and 315 g/t Ag.

On September 21, 2006, Paramount Gold Mining Corp. released the most recently reported assays from its ongoing drill program at the San Miguel Project, Mexico. Paramount Gold drills additional silver intersects, including 354 g/t (11.4 oz) silver over 6.6 metres and 263 g/t (8.5 oz) silver over 19.7 metres.

On September 19, 2006, Paramount Gold Mining Corp. released the results of a trenching program in the south and central part of its San Miguel Project, Mexico, which extend silver/gold zone another 250 metres. 

On September 14, 2006, Paramount Gold Mining Corp. reported that multiple high-grade silver intercepts from nine drill holes on its ongoing drill program at the San Miguel project located in Chihuahua, Mexico. Ten silver intercepts ranged from 105 g/t silver to 874 g/t across lengths ranging between 2 and 47 metres. The results from four of these drill holes represent the initial testing on the San Jose zone which is located immediately adjacent to the south side of the San Luis Mine zone where Paramount previously reported 35.5 g/t gold with 17 g/t silver over 4.0 metres in drill hole SL-02 (see news release dated August 2, 2006).

Paramount's Manager of Exploration, Mexico, Bill Reed, commented, "I am gaining increased confidence in the potential at San Miguel as we have intersected significant silver in all nine of the drill holes reported today. We have encountered some very high grades over significant widths of 29 and 47 metres at the San Jose zone and have only tested 150 metres of strike thus far."

On August 9, 2006, Paramount Gold Mining Corp. and its Peruvian subsidiary, Compania Minera Paramount SAC disclosed the results of its first round of drilling on the Linda property, located in the Department of Ayacucho, South Peru. Paramount recently completed five holes totaling 1,139 metres in order to test a geochemical anomaly measuring 700 m x 500 m. Four of the five holes drilled on the property returned grades that are within the range of the target sought by Paramount with the best value being 2.75 g/t Au over 12.70 m in hole LI-06-03.

On August 2, 2006, Paramount Gold Mining Corp. announced that John Carden, Ph.D.(Geology) has agreed to joint the Board of Directors and that Nancy Reardon, M.Sc.(Geology) has been appointed Senior Project Geologist, Mexico, this strengthens the Company's geological team in Mexico.

On August 2, 2006, Paramount Gold Mining Corp. disclosed the first round of results from its ongoing drill program at the San Miguel project located near Temoris, Chihuahua, Mexico. These first nine drill holes represent initial testing on the San Luis, Montecristo and La Blanca zones, which are three of the over ten known mineralized zones located at San Miguel. Two of the three zones reported very significant intercepts of gold and silver mineralization and included bonanza gold of 35.5 g/t gold with 17 g/t silver over 4.0 metres in hole SL-02 at San Luis and 0.39 g/t gold and 80.62 g/t silver over 19.5 metres in hole MC-01 at Montecristo. Of significance, these intervals contain associated lead, zinc and copper sulphides, however due to backlogs at analytical laboratories, the analysis for these elements has yet to be completed.

On June 29, 2006, Paramount Gold Mining Corp. announced that their South American subsidiary, Cia Minera Paramount SAC, head office of the Andean Gold Alliance with Teck Cominco in South America, has recruited a full geological team which as commenced exploration on 5 key properties that have been identified as high potential. In addition to Alain Vachon and Mark Slauenwhite ( both former senior geologists at Barrick Gold ), Paramount's staff now consists of six experienced geologists with the requisite expertise for the comprehensive exploration work program planned for these 5 promising properties in Chile and Argentina.

On June 28, 2006, Paramount Gold Mining Corp. provided an update on their recently signed agreement with Teck Cominco Limited to create the Andean Gold Alliance in South America, a strategic partnership for the exploration of 22 properties in Chile, Argentina and Peru. Based on data provided by Teck Cominco Limited, as well as filed visits to Chile, Argentina, the Paramount team in South America have identified 5 high priority properties of which 3 are in Argentina ( Espota property, Fortuna property and Castanos property ) and 2 are in Chile ( Maduro property and Conali property ).

On June 09, 2006, Paramount Gold Mining Corp. announced that the payments of US$400,000 have been made ahead of schedule to complete the purchase of the San Miguel concession group located in the Guazapares Mining District, Chihuahua, Mexico. These 12 concessions cover old mines dating back to the 1620's and more recent mine working including the San Luis mine where the Alaska Juneau Gold Mining Company mined high grade gold and silver ore between 1858-1962, the San Jose silver zone and other bulk tonnage silver targets located along a 6 kilometer NNW trending zone of quartz and stockwork quartz veining.

Chris Crupi, President of Paramount Gold stated, " Given the results to-date of our work program at San Miguel, including surface, underground, trenching and rock chip sample results, we chose to accelerate the payment schedule for the San Miguel concessions in order to expedite our earn-in equity interest in the project."

On May 22, 2006, Paramount Gold Mining Corp. announced that its company information will be made available via Standard & Poor's Market Access Program, an information distribution service that enables subscribing publicly traded companies to have their company information disseminated to users of Standard & Poor's Advisor Insight.

On May 16, 2006, Paramount Gold Mining Corp. announced the signing of an agreement to create the Andean Gold Alliance ( AGA) with Teck Cominco Limited and its subsidiaries in Chile, Peru and Argentina. The AGA, initially consisting of 21 properties ( 10 in Argentina, 7 in Chile and 4 in Peru), creates a strategic alliance between Paramount and Teck Cominco for gold exploration in these three countries. The AGA also provide for a mutual Right of First Offer with respect to the divestiture of new and existing gold exploration properties over significant parts of Argentina, Chile and Peru.

On May 11, 2006, Paramount Gold Mining Corp. announced the closing of a US$1,000,000 financing of restricted stock at US$4.25 per share. There are no warrants attached and no finder fees were paid. Alpha Capital of London, England has invested an additional $1 million in Paramount, again at a premium to the current market price of the stock. Paramount will use the funds to expand their drilling programs at both their San Miguel project in Mexico and at their Linda project in Peru ( a partnership with Minera ABX Exploraciones, a subsidiary of Barrick Gold).

On March 30, 2006, Paramount Gold Mining Corp. announced that it has acquired the Montecristo III mining concession which is located adjacent to the San Miguel Project in the Sierra Madre Gold-Silver belt, Chihuahua, Mexico. This newly acquired concession is located north of the Montecristo concession group and the Sangre de Cristo concession that Paramount acquired earlier. A series of mineralized quartz latite dikes that has intruded the basal andesitic volcanic units is known to host silver mineralization over a wide zone that extends into the Montecristo III concession.

On March 20, 2006, Paramount Gold Mining Corp. announced the signing of a drilling contract with Layne de Mexico, to drill a minimum of 1,500 meters of core at its San Miguel Project in SW Chihuahua beginning that week.

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