Adelaide, July 4, 2006 (ABN Newswire) - New results from Paramount Mining Corporation (ASX: PCP) Limited's Ullawarra Project in Western Australia have confirmed a further three areas of key interest, bringing the total to 11 positive areas out of 30 follow-up subdivisions.

A number of samples collected in 2005 from Follow-Up Areas UL 25, UL 27 and UL 28 yielded possible kimberlite indicator minerals, including chromite. A large number of chromite grains analysed by electron microprobe showed characteristics consistent with a kimberlite origin.

The probe results therefore confirm that these three follow-up subdivisions are likely to host kimberlite bodies. Previous explorers had reported the presence of sills believed to be kimberlitic in nature within the UL 25 area.
The Company's programme at Ullawarra is focussed on the discovery of kimberlite pipes, a principal hard rock source of diamonds. Kimberlite pipes have not yet been reported in the area or elsewhere in the Pilbara.

"The Ullawarra Project lies on the flank of the Pilbara Craton, an ancient continental block, which is very similar geologically to the Kaapvaal Craton in southern Africa," Ms Maureen Muggeridge, Paramount's Chief Executive Officer said today. "The Kaapvaal Craton is famous for being host to a number of world's greatest diamond mines. It is therefore of great significance that diamonds, kimberlites and signs of their presence have been found in many parts of the Pilbara."

"The overprint of iron and silica in the heavily weathered surface environment in the Pilbara makes exploration for diamonds more challenging, but in no way reduces its prospectivity," she said. "Ullawarra stands out as a region of key interest because positive results are spread over a large part of the project area, showing that an extensive kimberlite province exists here. Importantly, it has already been shown to contain diamonds."