1342854--9/28/2009--PARAMOUNT_GOLD_&_SILVER

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Risks Related to our Business Operations It is possible investors may lose their entire investment in Paramount. We have a history of losses. Losses will likely continue in the future. We will require additional financing to continue drilling operations. There are no confirmed mineral deposits on any properties from which we may derive any financial benefit. We have no history as a mining company. If our exploration costs are higher than anticipated, then our profitability will be adversely affected. We have no ongoing mining operations. There may be insufficient mineral reserves to develop the property and our estimates may be inaccurate. We face fluctuating gold and mineral prices and currency volatility. Mining operations are hazardous, raise environmental concerns and raise insu Our estimates of resources are subject to uncertainty. If we are unable to obtain all of our required governmental permits, our operations could be negatively impacted. Our financial position and results are subject to fluctuations in foreign currency values. Our property interests in Mexico are subject to risks from instability in that country. There may be challenges to our title in our mining properties. Because of the speculative nature of exploration for gold and silver properties, there is substantial risk that our business will fail. The precious metals markets are volatile markets. This will have a direct impact on the Company s revenues and profits ( if any) and will probably affect whether the Company will be able to succeed. Government regulation or changes in such regulation may adversely affect the Company s business. We are in competition with companies that are larger, more established and better capitalized than we are. It is unlikely that we will be able to sustain profitability in the future. We have no proven reserves, no mining operations, and no operating income. Exploration for economic deposits of minerals is speculative. Exploratory and mining operations are subject to environmental risks. The mining industry is highly competitive and the success and future growth of our business depend upon our ability to remain competitive in identifying and developing mining properties with sufficient reserves for economic exploitation. The loss of key members of our senior management team could adversely affect the execution of our business strategy and our financial results. We operate in a regulated industry and changes in regulations or violations of regulations may result in increased costs or sanctions that could reduce our revenues and profitability. We rely on independent analysis to analyze our drilling results and planned exploration activities. We will require additional financing to continue our exploration activities. Risks Related to Our Common Stock Our stock price may be volatile. We have a large number of authorized but unissued shares of our common stock. The exercise of our outstanding options and warrants and vesting of restricted stock awards may depress our stock price. Regulatory actions by the SEC, any exchange on which our securities are traded, or companies providing stock clearance or transfer functions, may adversely affect the price of our common stock, the ability of stockholders to sell their shares and our ability to secure additional funding. We were the subject of a temporary trading halt in our common stock. We face possible litigation claims from stockholders. We may be required to initiate litigation against parties who were engaged in improper or negligent activities with respect to our common stock.

Full 10-K form ▸

1342854--9/28/2009--PARAMOUNT_GOLD_&_SILVER_CORP.