Xali Gold Corp. press release

Paramount Gold's Trenching Discovers Mineralized Zone 2,000 Meters along Strike to the North in the New La Veronica Zone with Assays up to 241 g/t Silver at San Miguel, Mexico

2007-04-11

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

CHIHUAHUA, MEXICO, April 11 /CNW/ - Paramount Gold Mining Corp. (OTC: PGDP) (Frankfurt: P6G, WKN: A0HGKQ) is pleased to announce trenching results from its ongoing exploration program in the central part of its San Miguel concession block near Temoris, Chihuahua, Mexico. These four trenches are located in the La Veronica zone, which is adjoining and up to 2,000 meters to the north of the San Antonio/El Carmen zone where Paramount reported drill results up to 1,162 g/t silver across 4.40 meters (see news release dated March 28th 2007).

Trenches 00 through 03 span approximately 225 meters along strike on the La Veronica zone. Trench ZLV-00 is located approximately 1,780 meters north of and along strike from drill hole SA-08 in the San Antonio zone, which is the most northerly reported drill hole to date. SA-08 reported 2.5 meters of 212 g/t silver with 0.78% combined lead/zinc and 12.8 meters of 84 g/t silver with 1.16% combined lead/zinc and 5.1 meters of 107 g/t silver with 1.25% combined lead/zinc (see news release dated Dec 14, 2006).

Trench ZLV-01 is just 10 meters north of and extends trench ZLV-00 while trenches ZLV-02 to ZLV-03 continue along strike to the northwest with approximately 110 meters between each trench.

Paramount's Manager of Exploration in Mexico, Bill Reed, commented: "The trench results at La Veronica compare very well with earlier trenches from the San Antonio, San Jose and La Union zones, and constitute the discovery of a new mineralized zone. Preliminary indications from surface sampling of sparse outcrops and old mine workings in the 1,780 meter gap between San Antonio and La Veronica suggest that the mineralization represented by the new La Veronica zone may extend for at least 1 km south, along strike, towards the San Antonio zone."

The highlights of the trenching include:

ZLV-00 - 12.0 meters averaging 134.0 g/t Ag, including 2.7 meters of 241 g/t Ag with 0.14 g/t Au and 3.0 meters of 222 g/t Ag with 0.10 g/t Au.

ZLV-01 - 45.0 meters averaging 121.0 g/t Ag, including 10.0 meters of 201 g/t Ag and 11.0 meters of 180 g/t Ag.

ZLV-02 - 30.8 meters averaging 82.0 g/t Ag, including 8.0 meters of 161 g/t.

ZLV-03 - 19.5 meters averaging 87.0 g/t Ag, including 8.0 meters of 128 g/t silver.

In the La Union zone, trench ZLU-07 was extended with trench ZLU-07A that reported 13.5 meters of 69 g/t Ag, which expands this trench (ZLU-07 + ZLU-07A) to 36.1 meters averaging 82 g/t Ag.

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 110 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 and the drill will continue to move north along the mineralized zone as defined by the trench assays defined below.

Area Trench From To Width Au Ag AuE Lead Zinc (m) (m) (m) (g/t) (g/t) (g/t) (%) (%) La Veronica ZLV-00 0.00 2.70 2.70 0.14 241.00 4.02 0.16 0.17 2.70 9.00 6.30 0.01 46.00 0.76 0.07 0.24 9.00 12.00 3.00 0.10 222.00 3.70 0.04 0.19 12.00 21.00 9.00 0.00 38.00 0.63 0.02 0.10

Average 0.00 12.00 12.00 0.06 134.00 2.23 0.08 0.21

La Veronica ZLV-01 0.00 10.00 10.00 0.04 201.00 3.35 0.07 0.06 10.00 16.50 6.50 0.00 28.00 0.47 0.03 0.06 16.50 20.40 3.90 0.00 145.00 2.41 0.02 0.08 20.40 34.00 13.60 0.00 54.00 0.89 0.10 0.14 34.00 45.00 11.00 0.02 180.00 2.99 0.16 0.33 45.00 54.00 9.00 0.06 25.00 0.42 0.05 0.20

Average 0.00 45.00 45.00 0.03 121.00 2.02 0.09 0.15

La Veronica ZLV-02 0.00 31.50 31.50 0.00 27.00 0.45 0.04 0.05 31.50 38.00 6.50 0.00 111.00 1.85 0.10 0.11 38.00 54.30 16.30 0.02 31.00 0.52 0.05 0.06 54.30 62.30 8.00 0.08 161.00 2.69 0.17 0.20

Average 31.50 62.30 30.80 0.03 82.00 1.36 0.09 0.11

La Veronica ZLV-03 2.00 10.00 8.00 0.03 128.00 2.13 0.04 0.06 10.00 16.00 6.00 0.00 28.00 0.47 0.01 0.03 16.00 21.50 5.50 0.00 93.00 1.54 0.04 0.08 35.50 39.50 4.00 0.04 86.00 1.43 0.07 0.10

Average 2.00 21.50 19.50 0.01 87.00 1.45 0.03 0.06 La Union ZLU-07 4.00 26.60 22.60 0.40 89.00 1.88 La Union ZLU-07-A 69.30 82.80 13.50 0.01 69.00 1.15 La Union ZLU-07 + 69.30 105.40 36.10 0.25 82.00 1.61 07A

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

About San Miguel

San Miguel is currently comprised of 16 concessions covering a +8 km long structural zone that hosts silver and gold mineralization. The concessions also include other structural zones that host mineralization but have not yet been tested. 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, and has earned a 70% interest in the San Miguel project.

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 for gold exploration in South America. 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 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 Securities and Exchange Commission.