Adelaide, Apr 11, 2006 (ABN Newswire) - ASX-listed Paramount Mining Corporation Limited (ASX: PCP) announced today that six diamonds so far have been recovered from weathered rock at the Osenase Project, Ghana.

"It is a major breakthrough to have already verified the occurrence of diamonds in a hard rock source within the concession area," Paramount's Chief Executive Officer, Ms Maureen Muggeridge, said today.

"Our geologists in the field have located a hard rock site within the Osenase concession area where diamonds had previously been reported," she said. "Washing of material from the first pit into hard rock material has only just commenced, with the first six diamonds being recovered from the most highly weathered rock closest to the surface."

Following the announcement on 4th April 2006, Paramount also reported today that a further 51 diamonds have been recovered from testing of alluvial gravels at Osenase, bringing the total recovered to date from alluvials to 80, for a total weight of over 3 carats.

Gold was also observed in the field concentrate of gravels from one of the pits tested. The Company will be reporting a final set of results from the current field operation soon.

The ususal size range for diamonds from the Birim Diamond Field is up to 2 carats. One of the alluvial diamonds recovered by Paramount weighs 0.56 carats. The field description of the diamond is clear white.

"Recovery of a larger stone at this early stage is a very promising sign for the Osenase concession area," Ms Muggeridge said. "This consolidates our confidence that the project area has outstanding potential to deliver a viable resource."

This ground is the subject of a recent joint venture with Leo Shield Exploration Ghana Limited ("Leo") where Paramount is earning an 85% interest. The Osenase concession is a Reconnaissance Licence, RL5/12, covering 330km sq within the Birim South and West Akim districts. It lies within the Birim Diamond Field, one of the largest economic alluvial diamond bearing provinces in the world, which has produced over 100 million carats.

Prepared by:
Maureen Muggeridge
Chairman / Chief Executive Officer

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Maureen Muggeridge, BSc, FAIG, Chairman and Chief Executive Officer of Paramount Mining Corporation Ltd. Ms Muggeridge is a full-time employee of the company. She has sufficient experience relevant to the style of mineralisation and type of deposits under consideration, and to the activity undertaken, to qualify as a competent person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Maureen Muggeridge consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.