PARAMOUNT MINING CORPORATION LTD

ABN 73 102 426 175

100 Parry Street, Perth WA 6000
Tel +61 (08) 9328 5600 Fax +61 (08) 9328 4430
Email: info@paramountmining.com
Website: www.paramountmining.com

20th October 2009

PARAMOUNT ACQUIRES HIGH GRADE GOLD-SILVER PROJECT IN

WEST JAVA, INDONESIA
Agreement signed by Paramount to acquire the Gunung Julang high grade gold-silver
project in West Java, Indonesia
Samples of epithermal quartz vein and breccia material from Paramounts first-pass due
diligence site work include:

Sample No. Gold Silver

GJ001 25.5 g/t Au 389 g/t Ag
GJ002 23.2 g/t Au 376 g/t Ag
GJ013 34.8 g/t Au 19 g/t Ag
GJ015 178.0 g/t Au 896 g/t Ag
GJ016 42.7 g/t Au 40 g/t Ag
GJ018 48.0 g/t Au 37 g/t Ag

Five individual steeply dipping quartz veins; up to 3 kilometres total strike length with
individual veins up to 1.5 kilometres strike length and up to 3 metres wide
Drill-ready targets and excellent potential to develop a mineable high grade gold-silver
resource
Located near world class Pongkor gold-silver mine with excellent potential for discovery
of further veins within the license

Paramount Mining Corporation Limited (ASX:PCP) is pleased to announce that its Indonesian
subsidiary, PT Paramindo, has reached an agreement to acquire a 90% interest in the 1,000
hectare Gunung Julang gold-silver license (KP) from PT Sumber Alam Cipta Nusantara (SACN).
Paramounts Chairman, Mr. Mo Munshi said, The acquisition of the Gunung Julang project gives
Paramount the opportunity to develop a potentially world class high grade gold-silver project in
Indonesia.

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Samples taken by Paramounts geologists during a site visit in August 2009 have returned excellent
high grade gold and silver results. The project is not known to have been drilled.

Figure 1: Gunung Julang Location Plan

Project Geology
The 1,000 Ha Gunung Julang KP is located approximately 20 kilometres west of PT Aneka
Tambangs multi-million ounce Pongkor epithermal gold silver deposit and 100 kilometres south-
west of Jakarta, in Banten Province.
The KP contains an epithermal vein array comprising five individual en echelon, sub-parallel,
auriferous quartz vein zones. The epithermal veins within the Gunung Julang project appear to be
hosted largely in massive to crudely flow-banded, and locally well-banded, dacite sub-volcanic
intrusions.
Multiple porphyritic dacite intrusions appear to form a very large dome complex throughout the KP
and broader district termed the Bayah Dome Complex. This essentially massive, coherent lithology
typically provides an excellent brittle host-rock for a substantial epithermal vein system.
The Cisampai and Cisoka Veins have been delineated largely by artisanal mine workings over a
cumulative strike length of at least 1.5 kilometres, along the east flanks of two ridges on both sides
of the Cisoka river.
Veins and hydrothermally altered and mineralised wall rock breccias and related hanging wall
stockwork zones dip steeply to the east and east-northeast between 75 and 80.
Individual structural zones appear to comprise a series of sub-parallel narrow veins (30
centimetres) within breccia zones which coalesce to form a more coherent, thicker vein set (1.5
metres to 3 metres) at depths between 30 and 60 metres below surface, the limit of exposure in
existing small scale mine openings. Most of the material currently being mined by the artisanal
miners is the brecciated mineralized wall rock. It is possible that the veins thicken to even greater
widths at depths below the mine workings.

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 Figure 2: Gunung Julang KP and the 5 known veins

The mineralogy, vein form, alteration and sample geochemistry appear consistent with the veins
being shallowly eroded. Topographic relief change along the strike of the veins is about 400 m from
550 m ASL in the north rising to over 960 m ASL in the south.
Paramounts due diligence will include surface and underground mapping and sampling, where
access is available, and a ground magnetic survey to assist in defining alteration zones.

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 Figure 3: Artisanal workings (adits circled) developed on epithermal quartz veins at Gunung Julang

Diamond drilling will test the continuity of the high grade vein below the current workings to a depth
of 500 metres as well as testing the width of the combined vein plus brecciated mineralized wallrock
with a target width of at least five metres mineable zone.
Paramounts Joint Venture partner, PT Dana and the vendors of the project are working with the
relevant authorities to resolve any issues with future mining inside the boundary of the National
Park as shown on Figure 2. In the meantime Paramount can complete exploration work inside the
boundaries of the Agricultural Enclave and on other parts of the license not covered by National
Park. The southern part of the Cisoka vein outcrops on the boundary of the National Park on the
west bank of the stream but dips to the east and the proposed drilling will target this down dip
extension. All other veins are accessible for exploration work.

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 Replacement mineralised vein silica

Cisoka Vein zone with sulphide stringers

Samples from Paramounts first-pass due diligence site work in August 2009

Transaction Summary
Paramount Mining Corporation through its 85% owned subsidiary PT Paramindo has reached
agreement with PT Dana Mitra Utama (Dana) to acquire a 90% interest in PT Sumber Alam Cipta
Nusantara (SACN) which owns the Gunung Julang project. This transaction is subject to a full due
diligence which will include systematic geological sampling, ground magnetic geophysical surveys
and drilling of five vein systems which will be conducted over the next six months.
The deal is structured in the following parts. An initial cash payment of US$50,000 on signing of the
Agreement followed by the issue to PT Dana of 10 million fully paid ordinary shares in Paramount
Mining Corporation Ltd by 30 November 2009 following the first stage of the technical due diligence.
A further US$150,000 and 10 million fully paid ordinary shares in Paramount Mining Corporation
Ltd (Tranche 1), subject to approvals where required is due within six months for 51% of the shares
in PT SACN following due diligence by Paramount.
A further US$250,000 and 10 million fully paid ordinary shares in Paramount Mining Corporation Ltd
(Tranche 2), subject to approvals where required is due within six months of Tranche 1 for a further
39% of the shares in PT SACN. There is no minimum expenditure requirement and the remaining
10% interest in PT SACN will be a free carried interest.
The shares in PT SACN will be held in a Joint Venture company which is being established
between PT Paramindo (90%) and PT Dana (10%). Through this structure Paramount Mining
Corporation Ltd will hold a 68.9% interest in the Gunung Julang gold silver project.

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Sampling
Eighteen samples were taken from varying RLs at the working face accessed through adits and
mine dump material along the Cisampai (GJ001 012) and Cisoka (GJ013-GJ018) Veins. Gold and
silver results returned from this sampling are outlined in the full table of sample results below. Gold
analysis was undertaken by Intertek Jakarta by fire assay analysis. Most of the samples collected
are mineralised wall rock with the central vein largely mined out in the shallow workings.

For further information please contact the undersigned on (08) 9328 5600.

Mo Munshi
Chairman
Mobile +86 139 1017 5192

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Full table of sample results collected by Paramount in August 2009
Sample Northing Easting Gold Silver Location/Vein Sample Type
No. (g/t) (g/t)
GJ001 9264239 655800 25.5 389 Cisampi wallrock Composite sample across
working face
GJ002 9264239 655800 23.2 376 Cisampi wallrock Composite sample across
working face
GJ003 9264239 655800 0.8 18 Cisampi wallrock Composite sample across
working face
GJ004 9264239 655800 4.5 14 Cisampi wallrock Composite sample across
working face
GJ005 9264239 655800 2.3 23 Cisampi wallrock Composite sample across
working face
GJ006 9264239 655800 1.0 31 Cisampi wallrock Composite sample across
working face
GJ007 9264239 655800 0.2 9 Cisampi wallrock Composite sample across
working face
GJ008 9264239 655800 10.8 19 Cisampi wallrock Composite sample across
working face
GJ009 9264239 655800 14.8 25 Cisampi wallrock Composite sample across
working face
GJ010 9264239 655800 11.8 98 Cisampi wallrock Composite sample across
working face
GJ011 9264239 655800 1.1 7 Cisampi wallrock Grab sample from shaft

GJ013 9264900 655350 34.8 19 Cisoka wallrock Grab sample from producing
face
GJ014 9264900 655350 0.1 0.1 Cisoka Wallrock Grab sample from producing
face
GJ015 9265000 655310 178.0 896 Cisoka vein and Composite sample across
wallrock working face
GJ016 9265000 655310 42.7 40 Cisoka vein and Composite sample across
wallrock working face
GJ017 9265000 655310 12.7 10 Cisoka vein and Composite sample across
wallrock working face
GJ018 9265000 655310 48.0 37 Cisoka vein and Composite sample across
wallrock working face

Datum WGS84 Zone 48 M Northing and Easting values mark the position of access adits to artisanal mine
workings

Information in this announcement that relates to Exploration Results is based on information compiled by Michael Ivey,
Principal of M Ivey Pty Ltd trading as MetalsEx Capital, who is a Member of The Australasian Institute of Mining and
Metallurgy. Michael Ivey is a permanent employee of MetalsEx Capital and has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 JORC Code. Michael Ivey consents to the inclusion in the announcement
of the matters based on the information in the form and context in which it appears.