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 field visits to Chile and Argentina, the Paramount team in South America have identified 5 high priority properties of which 3 are in Argentina and 2 are in Chile.

Alain Vachon, General Manager for Paramount in South America commented "Teck Cominco Limited is a top-tier major mining company and we feel very fortunate to be their strategic partner for gold exploration in South America. We have acquired a very good portfolio of properties with significant upside potential and are confident that one of them will become a major discovery. Our plan is to aggressively work the 5 high priority properties we have identified over the next 12 months with the objective of proving up a geological resource. We have a team of geologists with the expertise to face such a challenge and this will be the key to our success."

Below is a brief description of the 5 high priority properties:
Chile: Maduro property

The Maduro property shows evidences of Au-Ag High Sulphidation and Porphyry mineralization. The source of the high grade samples collected by Teck Cominco Limited in 2004-2005 have not been identified. Teck Cominco Limited reported values as high as 73.8 g/t Au on a rusty and siliceous float. The satellite imagery shows an important zone of alteration on the property that has to be investigated.
Chile: Conali property

The Conali property is located in a prime exploration area known as the Barrick Gold Chile-Argentina mining camp that hosts approximately 50 M oz of gold equivalent. This mining camp comprises the Pascua-Lama deposit, the Veladero deposit (currently in production) and the El Indio deposit (actually closed). Conali is located along the same NNE volcanic trend that links Veladero to El Indio approximately 10 km north of El Indio and 20 km south of Veladero. Conali was staked by Teck Cominco Limited following the interpretation of ASTER satellite imagery which shows an important zone of alteration associated to a WNW fault system. This is a pattern well known and recognized at Pascua and Veladero.
Argentina: Espota property

The Espota property hosts porphyry gold mineralization characterized by a halo of alteration measuring 3 km x 2 km centering on a 500m x 700m core where gold and copper values are associated with a nucleus of potassic and silica alteration. Teck Cominco Limited conducted detailed geology, extensive sampling, geophysics and drilled 6 RC holes. Drilling failed to intersect economic mineralization while surface samples returned anomalous values in gold, silver, copper, arsenic and bismuth. Of note, gold values to a maximum of 25.34 g/t Au were encountered.
Argentina: Fortuna property

The Fortuna property is characterized by the presence of replacement pyrite-jarosite-gold mineralization and by polymetallic veins interpreted to be of intermediate sulphidation type. Grab samples from veins that range from 2 to 4 metres wide show values up to 8.7 g/t Au, 167 g/t Ag, less than 1% Cu, 1% Pb and 0.56% Zn. Abundant and widespread green copper oxide staining on jointing in quartzite suggests that the property also has potential for porphyry Cu style mineralization.
Argentina: Castanos property

This property shows complex geology composed of volcanics and intrusives where intermediate sulphidation, high sulphidation and porphyry copper style alteration and mineralization has been outlined. Values up to 19.54 g/t Au and 1,653 g/t Ag have been obtained from a sampling program undertaken by Teck Cominco Limited.

All 5 of these high priority properties present key components, including size of the system, alteration pattern, known mineralization and attractive setting that compare favourably to existing mining operations in South America.
About Teck Cominco Limited

Teck Cominco Limited (TSX:TEK.B) is a $13 Billion diversified mining company, headquartered in Vancouver, Canada. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold and specialty metals.
About Paramount Gold

Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the Andean Gold Alliance with Teck Cominco in South America, the San Miguel and Linda projects in Mexico and Peru, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world. The Company trades on the OTC market under the symbol "PGDP" and on the Frankfurt Exchange under the symbol "P6G".