PARAMOUNT GOLD NEVADA: Dialogue and evaluation by administration of the monetary place and working outcomes. (type 10-Ok)

Overview

We're an organization engaged within the enterprise of buying, exploring and creating
valuable metallic tasks in the USA of America. Paramount owns superior
stage exploration tasks within the states of Nevada and Oregon. We improve the
worth of our tasks by implementing exploration and engineering applications that
are more likely to broaden and improve recognized mineralized materials to reserves. The
following dialogue updates our outlook and plan of operations for the
foreseeable future. It additionally analyzes our monetary situation and summarizes the
outcomes of our operations for the years ended June 30, 2021 and 2020 and
compares every year's outcomes to the outcomes of the prior yr.

Highlights of the operation:



In April 2021, Paramount bought 152 unpatented lode mining claims ("South
Sleeper Claims") situated two miles south of the Firm's Sleeper Gold
Venture. Paramount paid a complete consideration of $365,441 in a mix of
money and customary inventory of the Firm. The mining claims are topic to a mineral
manufacturing royalty primarily based on internet smelter returns of 1%. The South Sleeper Claims
are with out recognized mineral reserves.



Additionally, through the three-month interval ended March 31, 2021, Paramount continued to
progress its allowing actions at its Grassy Mountain Venture. As well as
to conducting a number of conferences with the State of Oregon to handle feedback
Paramount acquired on its preliminary Consolidated Mining Software, the Firm
acquired acceptance of its wildlife baseline information report for its proposed gold
mine in Malheur County. So far, 20 of twenty-two baseline information experiences have been
accepted by the state regulators.  The ultimate two experiences, floor water and
geochemistry, are anticipated to be filed upfront of submitting the revised
Consolidated Allow Software.



In September 2020, we introduced the outcomes of a Canadian NI 43-101 Feasibility
Examine ("FS") for our Grassy Mountain Venture in Oregon. The FS was accomplished by
a bunch of business main consulting companies led by Ausenco Engineering Canada
Inc. ("Ausenco") who managed the general examine and have been answerable for
processing and infrastructure design and oversaw metallurgical testing; Mine
Improvement Associates ("MDA") who up to date the mineral useful resource estimate and
accomplished the mine planning and reserves estimation; Golder Associates designed
the tailings storage facility; and EM Methods oversaw the environmental
elements of the FS.



This mining situation within the FS ends in a mean annual manufacturing of 47,000
ounces of gold and 55,000 ounces of silver for eight years. The metallic costs
used for the financial evaluation consists of $1,472 per ounce of gold bought and $16.64
per ounce of silver bought. The lifetime of mine common money working prices are
estimated to be $583 per gold ounce together with silver revenues as by product
credit score and the whole preliminary capital necessities are estimated to be $97.5
million leading to a internet current worth of $105 million utilizing a

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Low cost price of 5%. There may be no assurance that the above situation may be achieved or, if achieved, that it’ll generate the anticipated financial return. In October 2020, we filed the finished FE on SEDAR, as required by Canadian securities legal guidelines.



In July 2020, the Firm introduced that the Oregon Water Useful resource Division
("OWRD") had reviewed and accredited the plans and specs for the tailings
dam proposed for the Grassy Mountain mine and acknowledged that from a security
perspective the plans are development prepared. The OWRD reviewed the info inside
the Consolidated Allow Software which Paramount submitted in November 2019
and which included all tailings design drawings, security evaluation, subject information
collected and laboratory testing. The OWRD and its engineering crew are required
to overview and consider the info and design, classify the hazard degree (excessive,
vital, or low hazard ranking) and consider readiness for development from
a dam security perspective. Contemplating the venture's distant geographic location,
low inhabitants density, arid nature with no rivers or everlasting streams in shut
proximity, seismic evaluation and all different information compiled, OWRD has rated the dam
as low hazard, its lowest danger degree. The approval for development is legitimate for
5 years with extensions potential on request.







.

Outlook and plan of operation:

We consider that traders will achieve a greater understanding of our firm if
they perceive how we measure and speak about our outcomes. As an exploration and
improvement firm, we acknowledge the significance of managing our liquidity and
capital assets. We pay shut consideration to non-discretionary money bills and
search for methods to reduce them when potential. We guarantee we've ample money
readily available to fulfill our annual land holding prices as the upkeep of mining
claims and leases are important to protect the worth of our mineral property
belongings.

For the subsequent fiscal yr, we intend to take the next actions:

Grassy Mountain Venture: Paramount expects to answer the State of Oregon's
CPA completeness overview ("Evaluate") acquired in February 2019. The Evaluate
offered included proposed resolutions and extra data required by
the Firm and can help the Firm in submitting a revised CPA. The Firm
expects the revised CPA to handle all of the feedback and requests for extra
data with the target of submitting an entire revised CPA that enables
the State of Oregon to find out whether or not to situation a state mining allow for the
Grassy Mountain Venture. Along with the State of Oregon allowing
actions, Paramount expects to answer BLM feedback it acquired on its
PoO. As soon as all of the feedback have been addressed, the BLM will register a Discover
within the Federal Register as soon as the appliance is deemed full. The Discover
initiates the EIS course of beneath the Nationwide Environmental Coverage Act.  To
full these actions Paramount will have interaction specialised mining consulting
companies, work with State and Federal contracted third events and work instantly
with each state and federal allowing companies.

Sleeper Gold Venture:

Throughout our fiscal year-ended June 30, 2021, Paramount initiated a number of focused
applications together with metallurgical testing to boost the worth of the Sleeper
Gold Venture. On account of a overview of all geological, geochemical and
geophysical information, the Firm has recognized a number of targets for exploration
drilling. The aim of an exploration drill on the Sleeper Gold Venture is to
find further higher-grade mineralization within the shut proximity of the
authentic Sleeper pit or within the giant mining declare package deal owned by the Firm
and to facilitate additional metallurgical testing. This graduation of this
exploration program is topic to having ample capital readily available.

Frost Venture:

The Firm will implement an preliminary reverse circulation drilling program to check historic drill outcomes and extra selective targets.

Comparability of working outcomes for the yr ended June 30, 2021 in comparison with
June 30, 2020

Outcomes of Operations

We didn't earn any income from mining operations for the years ended June 30,
2021 and 2020. In the course of the yr ended June 30, 2021, we accomplished varied
actions and milestones as described above in working highlights. Different
regular course of enterprise actions included submitting annual mining declare charges
with the BLM, reclamation work on the Sleeper mine website and on-going evaluations of
its mining claims have been accomplished.

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Web loss

Our internet loss for the yr ended June 30, 2021 was $5,903,618 in comparison with a internet
lack of $6,430,141 within the earlier yr. The lower of roughly 8%  is
absolutely described under. We'll proceed to incur losses for the foreseeable
future as we proceed with our deliberate exploration and improvement applications.

Bills

Land exploration, reclamation and holding prices

For the yr ended June 30, 2021, exploration bills have been $2,816,685 in contrast
to $4,201,138 within the prior yr. This represents a lower of 33% or $1,384,453
primarily as a result of Firm not incurring comparable prices as within the earlier
fiscal yr to finish its feasibility examine on the Grassy Mountain Venture and
incurring the next degree of allowing prices to arrange and submit its CPA with
the State of Oregon. The feasibility examine for the Grassy Mountain Venture was
commenced in July 2019 and accomplished in October 2020.   For the year-ended June
30, 2021, the Firm was targeted on working with the State of Oregon to handle
data requests required to advance the allowing course of and submit a
revised consolidated allow software. Complete exploration bills at Grassy
Mountain through the yr have been $1,949,753 .

Included, for the year-ended June 30, 2021, have been bills of $324,516 (2020 -
$723,279) associated to the Firm's reclamation actions on the Sleeper
Venture. Reclamation work continues to concentrate on reclaiming the previous mine
operation assortment ponds and continued monitoring as required by the State of
Nevada and the BLM. These reclamation bills are reimbursed from funds held in
a commutation account as a part of the Firm's insurance coverage program for excellent
reclamation and environmental obligations on the Sleeper Gold Venture.

For the yr ended June 30, 2020, the Firm submitted the consolidated mining
allow software with the State of Oregon and submitted a revised POO for its
Grassy Mountain Venture. It additionally continued to work on its feasibility examine for
the Grassy Mountain venture.

For the yr ended June 30, 2021, land fees have decreased by 9% or
$ 52,577 from the earlier yr to $ 540,401. The lower is especially attributable to the absence of rental prices for non-core mining claims leased to 3rd events.



Salaries and Advantages

For the yr ended June 30, 2021, wage and advantages elevated by 39% or by
$383,849 from the prior yr to $1,373,451.  Wage and advantages are comprised
of money and stock-based compensation of the Firm's government and company
administration groups. The rise in bills was primarily as a consequence of stock-based
compensation incurred for brand spanking new choice grants, in addition to bonuses awarded to the
Firm's workers. Included within the wage and advantages expense quantity for the
yr ended June 30, 2021 and 2020 was non-cash inventory primarily based compensation of
$332,786 and $132,286 respectively.

Remuneration of administrators

For the yr ended June 30, 2021, the remuneration of administrators elevated by 72% or
$ 66,640 of the earlier yr ended June 30, 2020. The rise is because of stock-based compensation acknowledged through the present yr June 30, 2021
in comparison with the earlier yr ended June 30, 2020.

Skilled and normal and administrative charges

For the yr ended June 30, 2021, skilled charges have been $174,039 in comparison with
$166,894 within the prior yr. This represents a enhance of 4% or $7,145.
Skilled charges included authorized, advisory and guide bills incurred on
company and operational actions being carried out by the Firm on a
period-by-period foundation.

For the yr ended June 30, 2021, normal and administration bills decreased
by 2% to $483,608 from $495,628 within the prior yr. Generally, these bills
remained secure from the prior yr comparable interval and any lower was due
to lowered journey associated bills as a consequence of restrictions ensuing from the
COVID-19 international pandemic.



Liquidity and capital assets

As an exploration and improvement firm, Paramount funds its operations,
reclamation actions and discretionary exploration applications with its money on
hand. At June 30, 2021, we had money and money equivalents of $3,113,064 in contrast
to $5,434,081 as at June

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30, 2020. In Could 2020, the Firm established an "on the market" fairness
providing program ("ATM") with Cantor Fitzgerald & Co. and Canaccord Genuity LLC
to proactively enhance monetary flexibility. In the course of the fiscal yr ended June
30, 2021 the Firm issued 3.209,133 shares for internet proceeds of $3,722,554
beneath this system and subsequent to the yr -ended June 30, 2021 issued
2,189,936 shares for gross proceeds of $1,875,521. At June 30, 2021, the
Firm's pay as you go bills have been $1,152,396 in comparison with $442,596 for the
year-ended June 30, 2020. Included within the whole for the year-ended June 30, 2021
have been annual funds to carry the Firm's mining claims within the for all its
mineral properties of $548,127. The pay as you go bills additionally included quantities to
safe a drill rig for the Paramount's upcoming drill program on the Frost
venture. Drill rigs and associated providers have been in high-demand from an
business perspective because the US financial system re-opens from the restrictions positioned due
to the COVID-19 pandemic.

The principle makes use of of money consisted of the next vital quantities:

• Money used to finance our operations, together with normal and administrative prices

bills, land holding charges, exploration applications at our Grassy Mountain

of $ 5,956,071.

Along with money utilized in working actions, the Firm used and acquired money as follows:

• Cash used to purchase mining claims within the State of Nevada of $ 87,500;

• Money acquired from fairness financing of $ 3,722,554.

We forecast our money expenditure over twelve months for our yr ending
June 30, 2022 be as follows:

$ 2.3 million on normal and company bills

For discretionary exploration and allow applications, topic to obtainable liquidity and extra share issuances, we price range the next quantities:

$ 2.0 million on the Grassy mountain venture state and federal permits

        actions


  • $0.7 million on the Frost Venture exploration applications


  • $1.25 million on the Sleeper Gold Venture exploration applications


Our anticipated expenditures shall be funded by our money readily available and different
capital assets.  Traditionally, we and different comparable exploration and
improvement public corporations have accessed capital via fairness financing
preparations or by the sale of royalties on its mineral properties. If, nevertheless
we're unable to acquire further capital or financing, our exploration and
improvement actions shall be considerably adversely affected.

Contractual obligations

The next desk summarizes our obligations and commitments as of June 30,
2021 to make future funds beneath sure contracts, aggregated by class of
contractual obligation, for specified time intervals:



                              Funds due by interval
Contractual
Obligations                 Complete         Lower than 1 yr      1-3 years       4-5 years       Greater than 5 years
Accounts
Payable &
Accrued
Liabilities             $     638,950     $         638,950              -               -                       -
Asset
Retirement
Obligations             $   1,849,644     $         310,022     $  581,575$    44,892     $           913,156
Complete                   $   2,488,594     $         948,972     $  581,575$    44,892     $           913,156




Crucial Accounting Insurance policies

Administration considers the next insurance policies to be most important in understanding
the judgments which might be concerned in making ready the Firm's consolidated
monetary statements and the uncertainties that would impression the outcomes of
operations, monetary situation and money flows. Our monetary statements are
affected by the accounting insurance policies used and the estimates and assumptions made
by administration throughout their preparation. Administration believes the Firm's
important accounting insurance policies are these associated to mineral property acquisition
prices, exploration and improvement value, stock-based compensation, spinoff
accounting and international forex translation.

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Estimates

The Firm prepares its consolidated monetary statements and notes in
conformity to United States Usually Accepted Accounting Ideas ("U.S.
GAAP") and requires administration to make estimates and assumptions that have an effect on the
reported quantity of belongings and liabilities and the reported quantities of income
and bills through the reporting interval. On an ongoing foundation, administration
evaluates these estimates, together with these associated the adequacy of the Firm's
reclamation and environmental obligation, share primarily based compensation, valuation of
deferred tax asset and evaluation of impairment of mineral properties.
Administration bases these estimates on historic expertise and on varied different
assumptions which might be believed to be cheap beneath the circumstances, the
outcomes of which type the premise of constructing judgments in regards to the carrying worth of
belongings and liabilities that aren't readily obvious from different sources. Precise
outcomes could differ from these estimates beneath totally different assumptions or
circumstances.

Prices of buying mining properties

The Firm capitalizes the price of buying mineral properties and can
amortize these prices over the helpful lifetime of a property following the
graduation of manufacturing or expense these prices whether it is decided that the
mineral property has no future financial worth or the properties are bought or
deserted. Prices embody money consideration and the honest market worth of shares
issued on the acquisition of mineral properties. Properties acquired beneath
choice agreements, whereby funds are made on the sole discretion of the
Firm, are recorded within the accounts of the precise mineral property on the
time the funds are made.

Quantities acknowledged as mining properties mirror the precise prices incurred to amass the properties and don’t point out any current or future worth of economically recoverable reserves.

Exploration bills

We file exploration bills as incurred. Once we decide that valuable
metallic useful resource deposit may be economically and legally extracted or produced
primarily based on established confirmed and possible reserves, additional exploration bills
associated to such reserves incurred after such a dedication shall be
capitalized. So far, we've not established any confirmed or possible reserves
and can proceed to expense exploration prices as incurred.

Obligation to take out of service

The honest worth of the Firm's asset retirement obligation ("ARO") is measured
by discounting the anticipated money flows utilizing a reduction issue that displays the
credit-adjusted danger free price of curiosity, whereas bearing in mind the
inflation price. The Firm prepares estimates of the timing and quantities of
anticipated money flows and ongoing reclamation expenditures are charged in opposition to the
ARO as incurred to the extent they relate to the ARO. Vital judgments and
estimates are made when estimating the honest worth of ARO.

Inventory-based compensation

For inventory choice grants with market circumstances that have an effect on vesting, the Firm
makes use of a lattice strategy incorporating a Monte Carlo simulation to worth inventory
choices granted.

Possibility awards are usually granted with an train value equal to the market
value of Paramount's inventory on the date of grant and have contractual lives of 5
years. To higher align the pursuits of its key executives, worker and
administrators with these of its shareholders a good portion of these share
choice awards will vest contingent upon assembly sure inventory value appreciation
efficiency targets and different efficiency circumstances. Possibility and share awards
present for accelerated vesting if there's a change in management (as outlined in
the worker share choice plan). For inventory choice grants made within the fiscal
years ended June 30, 2021 and 2020, the Firm used the Black-Scholes choice
valuation mannequin to worth inventory choices granted. The Black-Scholes choice
valuation mannequin was developed to be used in estimating the honest worth of traded
choices that haven't any vesting restrictions and are absolutely transferable. The mannequin
requires administration to make estimates that are subjective and will not be
consultant of precise outcomes. Modifications in assumptions can materially have an effect on
estimates of honest values. For functions of the calculation, the next
assumptions have been used for the fiscal years ended June 30, 2021 and 2020:



                                                     2021          2020
             WA Danger free rate of interest                .22%         1.60%
             WA Anticipated dividend yield                  0%            0%
             WA Anticipated inventory value volatility         60%           61%
             WA Anticipated lifetime of choices            5 years       5 years




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Off-balance sheet provisions

We aren't at present a celebration to, or in any other case concerned with, any off-balance
sheet preparations which have or are moderately more likely to have a present or
future materials impact on our monetary situation, adjustments in monetary
situation, revenues or bills, outcomes of operations, liquidity, or capital
assets.

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