LONGUEUIL, QUEBEC -- (MARKET WIRE) -- 06/19/06 -- Palmarejo Silver and Gold Corporation (TSX VENTURE: PJO) is pleased to announce outstanding results from the deep drilling program beneath the 76 Clavo at its Palmarejo project in Chihuahua, Mexico.

A probable feeder flow path has been intersected in holes PMDH_583D and 586D some distance down plunge from the base of previously intersected high grade mineralization in the 76 Clavo.

PMDH583D intersected (bulked)

3.81 metres true thickness at 38.35 g/t Au and 2194 g/t Ag (72.1 g/t AuEq(i))

This bulked intercept included 0.45 metres down hole from 302.1m assaying 239 g/t Au and 13,373 g/t Ag (444.7 g/t AuEq(i)).

PMDH586D intersected (bulked)

13.5 metres true thickness at 4.83 g/t Au and 140 g/t Ag (7.0 g/t AuEq(i)).

This intercept included 3.5 metres from 362.15m at 12.57 g/t Au and 257 g/t Ag (16.5 g/t AuEq(i))

(i)AuEq = Au + Ag/65 based on a gold price of US$375 per ounce and a silver price of US$5.77 per ounce; no recovery factor used due to current metallurgical data)

As can be seen in the accompanying diagram, it is suggested that this feeder path to 76 Clavo may be linked to the 108 and Rosario Clavos. Further drilling is in progress on the 76 structure and will be resumed on the Rosario Deeps when road and drill pad access is completed. There are 5 holes remaining to be drilled on the 76 Clavo feeder structure in the current program following which further infill drilling adjacent to the clavo will be undertaken (see inset in diagram).

Details of PMDH583D and 586D are as follows:

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Hole      Easting  Northing  Elevation  Declination  Azimuth   Depth
                                    (m)    (degrees)(degrees)     (m)
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PMDH583D   756184   3031622       1147        -70.5      103   370.2
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PMDH586D   756117   3031532       1145        -58.5     85.5   422.4
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Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/AC program consistent with National Instrument 43-101 and using best industry practice. The QA/QC program is independently supervised by Keith Blair, Msc, PGeo of Applied Geoscience of Reno, Nevada.

Elements of the program include chain of custody of samples, standard and blank samples submitted to ALS Chemex, with each batch of samples, and a check assay program on a proportion of sample pulps with a second laboratory. Results from the QA/QC program have to date been satisfactory.

Qualified Person

The technical information contained in this release was compiled in accordance with the Listing Rules of the Australian Stock Exchange Limited, by a competent person who is a corporate member of the Australasian Institute of Mining and Metallurgy and who has consented to the inclusion of such technical information in the form in which it appears in this release. The competent person is Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL, the Company's majority shareholder. Mr. Phillips is a qualified person under Canadian Securities Administrators National Instrument 43-101 ("NI 43-101").

Forward looking statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond the Company's control, including statements regarding completion of work program and studies, potential mineralization, exploration results and future plans and objectives of the Company. Resource exploration, development, and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed throughout the Company's Annual Information Form dated May 25, 2006, and particularly in the section entitled "Risk Factors".

The Palmarejo Project and Trogan licence area is held by the Company's 100% owned Mexican subsidiary company, Planet Gold SA de CV. For more information about the Company's projects, please refer to the NI 43-101 Technical Report dated May 1, 2006 available on SEDAR (www.sedar.com) or via the Company's website at (www.palmarejogold.com).

A map is available on the CCCN Matthews website at the following address: http://www.ccnmatthews.com/docs/palmarejo_mapa.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contacts:
Palmarejo Silver and Gold Corporation
James Crombie
President & CEO
(450) 677-2253
(450) 677-2601 (FAX)
jcrombie@pjogold.com

Palmarejo Silver and Gold Corporation
Gerri Paxton
Manager, Investor Relations
(450) 677-2054
(450) 677-2601 (FAX)
gpaxton@pjogold.com
www.palmarejogold.com