Champion Iron Limited press release

Paramount Gold reports 11.31 grams/tonne gold and 87 grams/tonne silver across 25.8 meters at the San Luis zone, San Miguel project in Mexico

2006-02-23

TSX - Toronto Stock Exchange · Iron · Aluminium · Manganese · Copper · Zinc · Australia

CHIHUAHUA, Mexico, Feb. 23 /CNW Telbec/ - Paramount Gold Mining Corp. (OTC:PGDP, Frankfurt:P6G) is pleased to announce the start of a trenching program and further assay results from its continuing sampling program at its San Miguel project located near Temoris, Chihuahua, Mexico. The highlight of these latest assays results is a detailed channel sample across the San Luis zone that assayed 11.31 g/t gold and 87 g/t silver over 25.8 meters. The strong potential of this high grade gold zone was first reported on October 2005 in a 43-101 technical report completed by Jon Lehmann, L.P.G. Mr. Lehmann reported a channel sample that assayed 85.2 g/t gold and 339 g/t silver across 15 meters at the 300 foot level in the San Luis mine. Commenting on the results, Bill Reed, Manager of Exploration, Mexico stated, "There appears to be a significant amount of high grade gold mineralization left within the San Luis mine, however the extent and size of the mineralized zone is unknown. One goal of the upcoming trenching program will be to locate this zone on surface to help identify the three dimensional shape ahead of a drill program, which will commence by late March." Paramount Gold recently completed a geologic mapping and channel sampling program of the 300 foot level of the San Luis Mine which was operated between 1958 and 1962 by the Alaska Juneau Company. Detailed 1 meter channel samples cut from the mine walls averaged 11.3 grams per tonne gold and 87 grams per tonne silver over a length of 25.8 meters. The mineralized zone is an oval shaped pipe-like body located at the intersection of regional N6W and NW trending fault and fracture zones. This fault and fracture zone is also the contact between Tertiary age strongly altered andesite and rhyolite flows which have been intruded by a dacite dike and cut by stockwork quartz veins and veinlets. The axis of this pipe-like cylinder strikes NE and dips approximately 70 degrees that direction. The central core of this pipe was partially mined out earlier to the 815 foot level. The old mine workings are flooded below the 300 level, and the accessibility of any workings above the 300 level is unknown. In early March, Paramount Gold will begin a surface trenching program across mineralized fracture zones known at depth in the San Luis mine workings. Trenching is also planned north and south of the La Union mine along the N to NNW striking silver bearing zone south of the San Jose silver zone. Six trenches approximately 75 meters in length and spaced 80 meters apart will be excavated in two zones nearly 300 meters long between the San Jose zone (100 meters by 250 meters, averaging 225 g/t Ag, reported in Dec. 8th 2005 news release) and La Union zone (average of 1.24 g/t gold and 203 g/t silver, reported in Jan. 30 2006 news release), and south of the La Union Mine area where limited outcrops do not allow detailed mapping and rock chip channel sampling. These trenches will be excavated with a small backhoe equipped with a bucket and hydraulic hammer. Trenches will be cut into bedrock for approximately 1/2 to 1 meter to exposed fresh surfaces for structural mapping and detailed channel sampling. The trenches will be spaced at 80 meter intervals across the N to NNW striking zone of 1-1.5 meter wide silver bearing quartz veins separated by zones of silver bearing stockwork quartz veinlets. The trenching results will be used to target reverse circulation drill holes planned for late March. The assaying of samples was conducted by ALS Chemex labs in Vancouver. The qualified person in charge of the San Miguel project and the person who prepared the technical data in this release is Charles W. (Bill) Reed, BSc, Mineralogy (Utah).

About San Miguel

San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Temoris mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of American Stellar Energy Inc., to acquire a 70% interest in the San Miguel project.

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 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". For more information, please visit the Company's web site at: www.paramountgold.com (now available in the following languages: English, German, French, Spanish, and Mandarin).