EQT Corporation press release

Paramount Gold Receives Drilling Permit and Hires Experienced Drilling Contractor Bradley-MDH to Conduct 2000 Meter Drill Program at Linda Property, Peru

2006-03-02

NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · United States

LIMA, Peru, March 1 /CNW Telbec/ - Paramount Gold Mining Corp. (OTC:PGDP, Frankfurt:P6G) is pleased to announce that they have received the environmental permit to commence drilling at their Linda project in Peru. In addition, they have signed a contract for a 2000 meter drill program with Bradley-MDH, a subsidiary of Bradley Group Ltd, one of the largest and most respected drilling companies in the world. Paramount recently signed a definitive agreement on the Linda property with Minera ABX Exploraciones S.A., a subsidiary of Barrick Gold Corporation (NYSE:ABX), to acquire a minimum 51% interest in the property by completing 6,000 meters of drilling. Alain Vachon, Manager of Exploration, South America, commented: "I am very excited to begin drilling given the positive results that we have obtained from our geological and geophysical surveys to-date. I am also very satisfied to count on Bradley-MDH to perform the drilling given their worldwide reputation. Since their debut in Peru, they have drilled more than 781,000 meters of core drilling for more than 50 clients, including all of the major mining companies. Bradley has extensive experience in Peru and is ensuring its clients that drilling will be performed in order to obtain a maximum of core recovery, which in the case of a low grade large volume deposit becomes a key factor in the economic valuation of the property. I really trust that we will obtain the very best from them". The 2000 meter drill program will commence in mid-March, or sooner, depending on the weather condition given that it is currently rainy season in Peru. The drill program will test the moderate to high resistivity anomaly that underlies the surface Au geochemical anomaly. The program will consist of approximately 12 HQ sized angle holes probing the anomalous zone at a depth varying from 50 to 150 m, where the geophysical survey indicated a better zone of resistivity. Resistivity increases and is definitively better developed at depth forming a most uniform body measuring 500 m x 700 m. The targeted area is characterized by a marked gold enrichment (28% of all samples have returned gold values greater than 0.3 g/t Au; see press release Oct 2005) within scattered zones silicified limestones that coincide with low to moderate resistivity values. Diamond drill hole No. 4 drilled in 1998 returned 26 m (at) 1.5 g/t Au from the upper part of the hole where resistivity values were moderate. This hole is located on the edge of this anomaly close to the volcanic-limestone contact and gold mineralization is strictly associated with oxide mineralization. There is more than 500 m of prospective zone to be tested on this section.

About the Linda Property

The property is comprised of six mining concessions totalling 4,500 hectares in an area currently being explored by numerous junior and major companies. Previous work carried out on the Property led to the discovery of a kilometric low grade gold system within Cretaceous sedimentary rocks including more particularly limestone and calcareous siltstone. In Paramount's view, the system may be suitable for hosting a low grade, large tonnage heap leached deposit. Previously detailed sampling conducted by ABX and Horschild (chip and channel) was completed over an area covering approximately 1.5 km x 1.0 km. A total of 928 surface samples have been collected, of which 263 (28%) returned gold values greater than 300 ppb (0.3 g/t) Au, including 169 with values greater than 500 (0.5 g/t) and, 59 with values greater than 1000 ppb (1 g/t) Au. Of note, the arithmetic average of these 263 samples stands at 0.93 g/t Au. Paramount believes that this value compares very well with head grades of several large gold mines in Peru. A very limited drill program was completed in 1999, consisting of eight shallow holes on the property: Four holes cut oxide gold mineralization with a high value of 1.5 g/t Au over 26 m in hole No. four.

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).

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 market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.