The Gold Report

Paramount Gold and Silver Corp. TICKER: PZG:NYSE.MKT; PZG:TSX Paramount Gold and Silver Corp. is a U.S.-based exploration and development company with multimillion-ounce, advanced-stage precious metals projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded exploration and engineering programs are now in progress and these two core projects are expected to generate substantial additional value for shareholders. PEAs have been completed to define a clear economic path for each project. These reports encompass significant resource expansion, metallurgical testing, engineering and economic analysis—work that will increase the confidence level of the company's resources and move them towards 2P reserves, which typically receive a higher valuation in the marketplace.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Matthew Keevil, The Northern Miner (4/29/13) "Paramount Gold and Silver Corp.'s drilling at Sleeper continues to return results that could lead to another pit expansion and less waste in the company's mine plan and could improve operating economics. . .Paramount looks poised to move ahead at Sleeper this year, with a good cash balance and an exploration budget that should drive its economic studies."

The Gold Report Interview with Jeb Handwerger (4/1/13) "Keep a close eye on Paramount Gold and Silver Corp. It is really undervalued and a takeover target. Paramount owns the Sleeper project in Nevada. The company announced a positive PEA in July 2012 on Sleeper and it could be a major gold and silver producer in Nevada. Also look at Paramount's San Miguel project in Mexico surrounding Coeur d'Alene Mines Corp.'s Palmarejo mine. This area is hot with six new operating mines. The Palmarejo district in Mexico is gaining a lot of investor interest especially after the recent $750 million acquisition of AuRico Gold Inc. by billionaire Carlos Slim. Paramount recently released an excellent PEA on its San Miguel project, which showed impressive economics with relatively low startup costs. Because of the overall weak market, the PEA on San Miguel was ignored by investors. Paramount just announced a warrant exercise of over $8M, which should help 2013 programs to advance these projects. This company has a strong shareholder base and the financing to survive this downturn." More >

The Gold Report Interview with Peter Krauth (3/27/13) "My favorite development-stage play is Paramount Gold and Silver Corp. The company recently released a PEA on its San Miguel project in Mexico. The numbers look very attractive. Its initial capital requirements of $232M are pretty reasonable. The mine would actually produce about 57 Koz gold and more than 3 Moz silver annually for 14 years. If you were to convert the forecast silver production to gold, it would be more than 115 Koz Au eq produced annually. With the 5% discount rate that the company used to evaluate the project, the net present value (NPV) exceeds $707M, with an IRR around 32%. This single project at a $707M NPV is more than double the company's current market cap of $290M. On that basis alone, the stock should be twice its current $2.16/share trading price. Shares barely budged on the news of the San Miguel PEA. That is a ridiculous reaction, and a clear sign that sentiment is coloring everything gold-related. . .you buy Paramount for both San Miguel and Sleeper and get a lot for free.

"Paramount released PEA results on Sleeper in July 2012. The startup costs would be about $340M; production would be 172 Koz gold and 263 Koz silver annually. The average operating cost was $767/oz Au eq and the IRR was about 26%, at $1,384/oz gold price. If you were to bump up the gold price to $1,615/oz, the IRR shoots up to 40%. This makes Sleeper very attractive at the current gold price. Paramount prudently used lower gold and silver prices in its estimates. . .Paramount just had some warrants exercised, so it is cashed up to $18M. That should carry it through 18 to 24 months. I believe it will keep moving both projects forward. Both are attractive and could draw the interest of a major." More >

Sean Brodrick, Uncommon Wisdom (3/18/13) "Paramount Gold and Silver Corp.'s projects are advancing, and the Mexican project is right next to big neighbors—I could see a takeover here. Plus, the company is in a lot of gold-mining ETFs, which means it has a lot of institutional support."

Jay Taylor, Gold, Energy & Tech Stocks (3/15/13) "Paramount Gold and Silver Corp.'s reported and updated PEA this week on its San Miguel project in Chihuahua, Mexico, is simply outstanding. This, in addition to a prior PEA that was released last July 30 on the company's Sleeper mine in northwestern Nevada and the total number of ounces it is building on two very significant gold and silver properties, makes this a junior that stands out from most of its peers. . .I am upgrading the company to an A2. . .if you do not own shares of Paramount Gold & Silver, you may want to consider buying at this time of weakness."

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