Palmarejo Silver and Gold Corporation Requests Trading Halt

Palmarejo Silver and Gold Corporation (TSX VENTURE: PJO) (the "Company") announced today that it has requested that the TSX Venture Exchange halt trading in its common shares and warrants (PJO.WT) effective at the opening of trading on May 2, 2007. The Company confirms that it is in negotiations with respect to a potential business combination transaction. There can be no assurance that such negotiations will result in the announcement or consummation of a transaction.

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