Xali Gold Corp. press release

Paramount Gold's Trenching Assays up to 1,300 g/t Silver and Extends Silver/Gold zone to 1,400 meters at the San Miguel project, Mexico

2006-10-19

TSXV - TSX Venture Exchange · Gold · Silver · Antimony · Canada

CHIHUAHUA, MEXICO, October 19 /CNW/ - Paramount Gold Mining Corp. (OTC:PGDP)(FWB:P6G)(WKN:A0HGKQ) is pleased to release the results of a trenching program in the central part of its San Miguel concession block near Temoris, Chihuahua, Mexico. The eight trenches reported are located in the San Antonio zone which is adjoining and to the north of the San Luis zone where Paramount reported drill results that included 35.5 g/t gold across 4.0 meters (see news release dated August 1 2006).

Trenches one through eight span approximately 450 meters along strike on the San Antonio zone. Trench ZSA-01 starts approximately 150 meters northwest from drill hole SL-06 (9.0 meters of 161 g/t silver) reported from the San Luis zone (see news release dated Sept. 14th 2006). Trench ZSA-02 is approximately 150 meters north of ZSA-01 while trenches ZSA-03 to ZSA-08 continue along strike to the north with approximately 50 to 75 meters between each trench.

Paramount's Manager of Exploration in Mexico, Bill Reed, commented: "Our drilling and trenching program has now identified the silver/gold zone along strike for approximately 1,400 meters which is made up of the San Jose and La Union zones to the south of San Luis and now San Antonio to the north of San Luis. The trench results at San Antonio compare very well with earlier trenches from the San Jose and La Union zones and we have used this trench data to direct the drill program in the San Antonio zone where the first set of drill assays are expected in the next 7 to 10 days."

<< The highlights of the trenching include:

ZSA-02 - 20.6 meters averaging 76.0 g/t silver, including 3.0 meters of 192 g/t silver ZSA-04 - 23.6 meters averaging 156.6 g/t silver, including 10.6 meters of 200 g/t silver ZSA-05 - 31.3 meters averaging 130.0 g/t silver, including 17.1 meters of 180 g/t silver ZSA-06 - 36.5 meters averaging 111.6 g/t silver, including 5.6 meters of 597 g/t silver ZSA-07 - 30.5 meters averaging 102.2 g/t silver, including 3.0 meters of 542 g/t silver ZSA-08 - 88.4 meters averaging 50.2 g/t silver, including 1.0 meters of 1,300 g/t silver >>

The trenches are excavated to a depth of 2-3 meters and extend from west to east across the quartz veins and stockwork quartz veins that host silver and gold mineralization in the Guazapares mining district. The trenches were cut through thin overburden to better define drill targets and spaced approximately 50 to 75 meters apart. The geology of the trenches is mapped in detail and continuous rock chip samples of no more than one meter in length are collected from the trench walls.

Drill holes have been completed on the San Antonio zone based on the trench assays listed below and the drill will continue to move north along the mineralized zone as defined by the trenches.

<< Area Trench From To Thickness Gold Silver (m) (m) (g/t) (g/t) San Antonio ZSA-01 NSV NSV note: this no no trench was significant significant excavated value value outside of the mineralize structure

San Antonio ZSA-02 6.00 15.00 9.00 0.00 68.00 15.00 20.00 5.00 0.00 35.00 20.00 23.00 3.00 0.00 192.00 23.00 26.60 3.60 0.00 56.00 Average 6.00 26.60 20.60 75.95

results pending for trench ZSA-03 San Antonio ZSA-03

San Antonio ZSA-04 8.00 16.00 8.00 0.00 197.00 21.00 31.60 10.60 0.00 200.00 31.60 40.10 8.50 0.00 36.00 Average 8.00 31.60 23.60 156.61

San Antonio ZSA-05 4.70 14.70 10.00 0.00 87.00 14.70 31.80 17.10 0.00 180.00 31.80 35.00 3.20 0.00 38.00 Average 4.70 35.00 31.30 130.02

San Antonio ZSA-06 4.00 12.30 8.30 0.00 32.00 17.00 34.90 17.90 0.00 26.00 34.90 40.50 5.60 0.00 597.00 Average 4.00 40.50 36.50 111.62

San Antonio ZSA-07 0.00 4.50 4.50 0.00 35.00 4.50 7.50 3.00 0.00 542.00 7.50 30.50 23.00 0.00 58.00 Average 0.00 30.50 30.50 102.21

San Antonio ZSA-08 14.65 17.65 3.00 0.00 135.00 17.65 43.65 26.00 0.00 16.00 43.65 49.65 6.00 0.00 56.00 49-65 50.65 1.00 0.00 1300.00 50.65 56.65 6.00 0.00 57.00 73.85 89.05 15.20 0.00 63.00 89.05 101.05 12.00 0.00 21.00 101.05 103.05 2.00 0.00 216.00 103.05 107.55 3.50 0.00 37.00 Average 14.65 103.05 88.4 50.23 >>

Quality Control Person

C.W. (Bill) Reed, B. Sc. Mineralogy, is acting as qualified person and has prepared the detail and review with respect to this news release.

<< Recent Paramount Gold Highlights:

10/13/06 Announces Above-Market $1 Million Financing at $2.60 Per Share 10/12/06 Drills 6.7 g/t Gold Equivalent over 17.6 Meters and 4.8 g/t Gold Equivalent over 16.4 Meters at San Miguel 10/10/06 Acquires an 80% Interest in over 6,000 Hectares Surrounding San Miguel Project in Mexico 09/27/06 Outlines a High Potential Gold-Silver Target at Santos, Peru 09/21/06 Drills silver intersects of 354 g/t (11.4 ozs) over 6.6 meters and 263 g/t (8.5 ozs) over 19.7 meters at San Miguel. 09/19/06 Trench Results at San Miguel, Mexico, Extend Silver/Gold Zone Another 250 Meters 09/14/06 Drills 874 g/t (28 ozs) silver over 5.2 meters and 553 g/t (17.8 ozs) over 6.5 meters at the San Jose zone, San Miguel 08/10/06 Hits gold in 4 of 5 drill holes at Linda property in Peru. 08/2/06 First drill results at San Miguel Project in Mexico include bonanza gold grade of 35.5 g/t gold over 4 meters 06/29/06 Recruits key geologists from Barrick Gold. 06/28/06 Identifies 5 High Priority Properties in Argentina and Chile 05/17/06 Creates the Andean Gold Alliance with Teck Cominco Limited covering 21 properties in Chile, Peru and Argentina. 05/12/06 Closes $1,500,000 financing (at) $4.25 with participation by Teck Cominco Limited for 117,500 shares. 05/03/06 Acquires 100,000 Hectares in Sierra Madre Gold-Silver Belt, Between the Guazapares and El Sauzel Mining District, Mexico 02/22/06 Channels 11.3 g/t gold across 25.8 meters at the San Luis zone, San Miguel project in Mexico >>

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 Guazapares 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 Tara Gold Resources, 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 the Andean Gold Alliance with TeckCominco in South America 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.