Paramount Gold and Silver Corp. NYSE Amex: PZG FRANKFURT: P6G TSX: PZG

OTTAWA, CANADA--(Marketwire - July 2, 2009) - Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) has entered into an amendment of its Property Option Agreement on its Morelos Project situated in the State of Chihuahua, Mexico. The Morelos Project was recently acquired by Paramount and is currently under option to Garibaldi Resources Corp. The amendment eliminates certain payments by Garibaldi and extends the due date for the US$2,000,000 balloon payment to be made by Garibaldi to Paramount. In consideration of the amendments, Garibaldi has agreed to make a one-time payment to Paramount of 400,000 common shares of Garibaldi.