CHIHUAHUA, MEXICO--(MARKET WIRE)--Aug 15, 2008 -- Paramount Gold and Silver Corp. (PZG - News) (Toronto:PZG.TO - News) (Frankfurt:P6G.F - News) (WKN: A0HGKQ) 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.

"Safe-Harbor" Statement: This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially.

     Contacts:
     Paramount Gold and Silver Corp.
     Chris Halkai, Investor Relations
     613-226-9881
     866-481-2233