Paramount Gold Mining Corp. Completes US$21.7 Million Financing

Paramount Gold Mining Corp.
(OTCBB:PGDP)(Frankfurt:P6G)(WKN:A0HGKQ) (the "Company" or "Paramount
Gold") is pleased to announce that on March 30, 2007, it closed a
US$21.7 Million private placement. Approximately US$20.6 Million of
the financing was secured through brokered selling agents (the
"Brokered Offering") and the remaining balance was secured separately
by the Company. In connection with the financing, the Company issued a
total of 10,398,496 units ("Units"), including 319,710 Units issued
upon exercise of an over-allotment option, at a price of US$2.10 per
Unit for gross proceeds of approximately US$21.7 Million. Each Unit is
comprised of one share of restricted common stock ("Common Share") and
one-half of one Common Share purchase warrant ("Warrant"). Each
Warrant is exercisable to acquire one Common Share at an exercise
price of US$2.90 on, or prior to, March 29, 2009. The Units were sold
to qualified and accredited investors located primarily in Canada and
the United States in reliance upon exemptions from registration and
prospectus requirements of applicable securities legislation. The
proceeds of the private placement were derived primarily from
institutional investors. Blackmont Capital Inc. acted as lead agent in
connection with the Brokered Offering and the syndicate included
Haywood Securities Inc., Canaccord Capital Corporation and Raymond
James Ltd. (collectively, the "Agents").

Proceeds from the private placement will be used to fund the
ongoing drill and exploration programs of Paramount Gold's properties
in Mexico and South America. Paramount Gold plans to drill a total of
50,000 meters in 2007 on its San Miguel project in Mexico, using a
combination of core and reverse circulation methods. Layne Christensen
has committed the drills required for this drill program.

About Paramount Gold

Paramount Gold is a precious metals exploration company quoted on
the OTCBB under the symbol PGDP and listed on the Frankfurt Stock
Exchange under the symbol P6G (WKN: A0HGKQ). The Company's objectives
are to explore and develop the San Miguel project, located in
Chihuahua, Mexico within the Sierra Madre Occidental gold/silver belt,
and fully develop the potential of the strategic alliance with Teck
Cominco Limited for gold exploration in South America. For more
information, please visit the Company's website at:
www.paramountgold.com (Available in English, German, French, Spanish,
and Mandarin).

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained herein which are not
historical are forward-looking statements that are subject to risks
and uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements, including, but
not limited to, certain delays beyond the company's control with
respect to commencement of drilling operations, concentration in
mineral deposits, delays in testing and evaluation of ore samples, and
other risks detailed from time to time in the Company's filings with
the United States Securities and Exchange Commission.