More intercepts for Mexoro (August 25, 2008)

VANCOUVER — Thanks to an infusion of cash from Paramount Gold and Silver(PZG-T, PZG-X)this spring, Mexoro Minerals (MXOM-O) continues to announce good near-surface intercepts from its 42-hole drill program at its Cieneguita property in Mexico’s Sierra Madre gold belt.

Mexoro announced assays for an additional three holes, bringing the number of drill-hole results to 33.

Starting from surface, hole 30 returned 154 metres grading 0.88 gram gold per tonne, 58.34 grams silver, 0.61% lead and 0.93% zinc. Hole 35 saw 103 metres grading 0.75 gram gold, 63.64 grams silver, 0.39% lead and 0.52% zinc that included 31 metres grading 1.72 grams gold.

Looking for the mineralized area in the northwest of the site, hole 33 did not return any significant results. So far, Mexoro and previous owners have outlined a 200-metre-wide by 1000-metre-long mineralized area that is open at depth.

Paramount Gold made it possible for Mexoro to keep its drills turning by giving Mexoro US$500,000 in convertible debentures May 12 as part of Paramount Gold’s larger US$4-6 million investment in Mexoro.

In a statement, Mexoro said Paramount would invest between US$4 and US$6 million in the company at a share price of 50. Each unit consists of a common share and half a warrant that allows Paramount Gold to buy an additional share at 75 over four years.

Mexoro says Glamis Gold (which Goldcorp [G-T, GG-N] acquired in 2006) mined 198,000 tonnes grading 2.33 grams gold at Cieneguita between 1995 and 1998 but gave up its operations because of poor gold prices.

Mexoro acquired Sierra Minerals and Mining in May 2004 through a share exchange and gained its assets, including an option on Cieneguita from Cooperative Minero. Under the terms of the option, Mexoro must pay Cooperative Minero US$2 million over 14 years starting in 2006. At least US$410,000 of that amount has been paid.