Paramount Gold And Silver Corp. Provides Update on CDN$9,000,000 Equity Financing

OTTAWA, ONTARIO–(MARKET WIRE)–Mar 17, 2009 — Paramount Gold and Silver Corp. (Toronto:PZG.TO – News)(NYSE.A: PZG)(Frankfurt:P6G.F – News) (“Paramount” or the “Company”) announced last week (see release dated March 12, 2009) that it has executed definitive documents in connection with its previously announced C$9,000,000 equity financing. Paramount has now received approval of the NYSE Alternext and expects to close the financing prior to the end of March 2009.

The Company relies on the hardship exemption for TSX approval to list the securities on the Toronto Stock Exchange. As outlined in its notification issued March 16, 2009, the TSX has advised the Company that reliance on the hardship exemption has automatically resulted in a TSX de-listing review. Paramount believes the de-listing review is a routine procedure when using this exemption and currently complies with applicable TSX listing requirements and expects to continue to comply with such requirements following completion of the financing. The Company has advised the TSX of its intention to submit the required financial information subsequent to closing of the financing in order to provide the TSX with the information required to conclude its review.

Paramount believes the decrease in its share price which occurred on March 16, 2009 was due to investor misunderstanding surrounding the TSX market notification in the context of the current financing.

The TSX has reviewed this news release prior to issuance.