Background Storyline to the “Arrangement”

December 2008, February & June 2009 share exchange discussions re “Geraldton Assets” (Hardrock/Key Lake) December 2009; Premier’s offer rejected 2 days prior to shareholder approval of RMK/ONT merger.

October 8, 2010; “First Proposal Letter” from Premier –review & discussion followed

March 24, 2010; “Second Proposal Letter” from Premier

March 31, 2011; “Third Proposal Letter” from Premier

April 7, 2011; Confidentiality Agreement, Premier expressed interest to only acquire “Geraldton Assets”

On May 7, 2011

Premier Gold $6.37 “PG” offered 1/7th (.1428) of a PG share for every Goldstone Resources “GRC” share, to be distributed to the GRC shareholders in consideration of the “Geraldton Properties” ONLY(Hardrock Gold Deposit & Key Lake).

PG @ $6.37 x .1428 = $0.90/share equivalent to GRC shareholders or $94,500,000 equivalent for 30% Hardrock interest &100% of Key Lake.

Pursuant to the May 7, 2011 proposal, GRC would continue to trade on the TSX and hold 100% interest in the following properties of merit;

1. Beardmore Area:

Brookbank Gold Deposit, Leitch/Sand River, Northern Empire properties & mill;

2. Timmins area: Deloro property

3. Val D’Or area: Bartec property

Guesstimate Value: $90 million/ $0.85 per sh.

Plus; GRC Additional Assets would include:

1. Cash: $6,000,000

2. Buildings, Equipment and Mill: $2,900,000

3. Deferred Exploration Expenditures (Tax Loss): $18,500,000 (40%) = $7,400,000

4. Marketable Securities: “PG” 400,000 shares @ $6.37 = $2,548,000

Total: $ 18,848,000 or $0.18 per share

May 13, 2011 “Fourth Proposal Letter”

June 9, 2011 “Fifth Proposal Letter”

June 22, 2011;News release:

Premier Gold to Acquire Goldstone Resources

The offer: 6.25 shs of GRC for 1 share of PG or .16 PG sh for +$0.0001 cash for one share of GRC.

Shareholders Meeting Date: Monday August 8, 2011; 10:00a.m.

Brookfield Place, Suite 4400, 181 Bay St. Toronto

“N.B.” -- Note Well: June 29, 2011

RBC Capital, “PG” Hardrock Deposit Update;

100% Target Resource Value: C$788,000,000 (AMC/oz.valuation basis)

GRC’s 30% interest = $236,400,000 / $2.25 GRC share;

Other Research Reports available include: Canaccord, Stonecap etc.