KLONDEX MINES LTD.

Paramount Gold and Silver Corp. announced today that it has been advised by Klondex Mines Limited that the Klondex board of directors has withdrawn its support and therefore breached its binding letter agreement of July 20, 2009 in which it had agreed to support a combination of the two companies on the basis of 1.45 shares of common stock of Paramount for each common share of Klondex. According to Paramount's CEO Chris Crupi the decision by the Klondex board of directors to withdraw its support and breach the July 20, 2009 letter agreement between Paramount and Klondex triggers a break fee of US$2.85 million payable to Paramount as set out in this agreement. Paramount says it may also be entitled to significant damages resulting from the Klondex board of directors decision. Paramount is considering all options in connection with Klondex's decision.