Drillcorp appointed to conduct diamond drilling program at the

   Drilling rig mobilises this week with drilling to commence at the end of the week

   4,000 metre program planned to in-fill existing Resource and extend strike and depth of mineralisation

Paramount Mining Corporation Limited (ASX: PCP, "Paramount, "Company")
is pleased to advise that it has appointed the Drill Corp Group of Companies
("Drillcorp") to carry out a 4,000m diamond drilling program at the Gunung
Rosa high grade gold, silver and base metals project in Indonesia.
Drillcorp is mobilising a diamond rig this week and the program is expected to commence early next week. The aim of the program is to increase the confidence in the existing 634koz gold Resource and to test the strike and depth extensions of the ore body to the north and south. At this point in time it is expected that the drilling program will be seventeen holes and will be completed over the next three to four months

Map 1: Map of total 2,410 ha exploration permit (IUP) held by 85% controlled subsidiary PT CKP with

proposed drilling on 900m of strike "boxed? and vein cluster discovered in 2012/13 highlighted as well as

extent of field exploration planned

The Company’s CEO and MD, Terry Holohan, said, "This drilling program will
raise the confidence in the Mineral Resource estimate needed to support the Preliminary and Definitive Feasibility Studies which are scheduled to start in October 2013. The exploratory drilling should also demonstrate the scope for
increasing the size of the Gunung Rosa project."

About Paramount: Paramount is an ASX-listed mining company focussing on precious and base metal deposits in Asia, and in particular Indonesia. The Gunung Rosa project is a high-grade gold, silver and base metals sulphide mine 125km south of Jakarta in West Java. The project is the flagship project for Paramount and the Company presently holds a controlling 72.25% equity interest.

The project has a 20 year Mining Permit (Operation/Production IUP), which was issued in 2010, and a Mineral Resource estimate of 634koz of Au (see ASX announcement of 09 October 2012). This poly-metallic mineralisation trending N-S extends under soil cover from surface to 240m depth, as an almost vertical, on average 2.26m wide, meso-thermal vein with a strike of
2.5km; it remains geologically open north, south and at depth.

Figure 1: Inferred Mineral Resource estimate of 09 October 2012

Cut-off grade of 1.5gpt Au

Following a "JORC 1992? Mineral Resource and Ore Reserve report
underpinning a positive Definitive Feasibility Study in the early 1990s, on only
900m of this strike, the project was extensively developed underground by a mining decline, vertical shafts and development drives on four levels up until the Asian Financial Crisis whereupon it was curtailed due to the lack of availability of debt financing. This development work was carried out by the
then operating company?s consultant Century Metals and Mining NL. The
project has not advanced since that time despite the significant increase in the value of gold in real terms.
The project, now under Paramount management at the operating level from late 2012, is presently in the pre-development phase with Project development scheduled to commence in 2014 and gold production expected within 18 months of the construction start.