2009-09-14 11:10 ET - News Release

Mr. Ewan Downie reports

PREMIER DISCOVERS HIGH-GRADE GOLD ZONE AT HARDROCK - 1141.54 G/T AU (33.33 OUNCES PER TON) ACROSS 2.0M

Premier Gold Mines Ltd. has intersected a new and potentially high-grade gold structure located in close proximity to the EP (open pit) zone at Hardrock. Several holes have intersected this new zone with grades up to 1,141.54 grams per tonne gold or 33.33 ounces per ton across 2.0 metres. Additionally, drilling at the New North (NN) zone continues to define higher-grade, underground style, gold mineralization.

High-grade intercept A new structure containing high-grade gold mineralization has recently been identified immediately north of the EP zone, and in close proximity to existing mine workings. This new intercept is marked by high-grade, narrow vein style, gold mineralization similar to several of the high-grade mines located in the Beardmore-Geraldton Greenstone belt, including the Little Long Lac and Magnet gold mines that are located on the Hardrock project.

Hole EP105 has returned one of the highest ever gold results from drilling in the entire district with an intersection of 1,141.54 grams per tonne gold (33.33 ounces per ton) across 2.0 metres (6.6 feet) including 2,535 grams per tonne gold (74.02 ounces per ton) across 0.9 metre (3.0 feet) (True widths estimated at approximately 70 per cent of intersection widths). Several additional holes are believed to have intersected this structure including OR005, which assayed 12.99 grams per tonne gold (0.38 ounce per ton) across 1.5 metres (4.9 feet), EP107 with assays pending, EP108 with assays pending, EP064 which assayed 20.10 grams per tonne gold (0.59 ounce per ton) over 0.7 metre (2.3 feet), and OR002 with assays pending. Detailed drilling of this new discovery is now under way.

"Intersecting such high-grade mineralization is always encouraging." stated Stephen McGibbon, Premier's executive vice-president and chief operating officer. "We know that this camp has a history of high-grade mineralization and an intercept like this can have important implications for us if we can confirm some continuity to this structure."

NN zone The NN zone is located along strike from, and within the same iron formation, that hosted the North and West zones at the historic mine. Numerous intercepts into the NN zone have now defined a zone displaying similar grades over a plunge length of approximately 350 metres with intersections up to 8.25 grams per tonne gold (0.24 ounce per ton) across 7.3 metres (23.9 feet).

During production, the North zone was mined to a depth of 610 metres (2,000 feet) resulting in the recovery of 2.97 million tons with a recovered grade of 0.22 ounce per ton (7.54 grams per tonne gold), while mining at the West zone resulted in the recovery of 532,254 tons with a recovered grade of 0.23 ounce per to (7.85 grams per tonne gold). ----.

Continuing work at Hardrock is testing both open pit and underground type targets. The SP zone is an underground target where recent drilling has returned intersections that include 6.60 grams per tonne gold across 32.6 metres and 6.63 grams per tonne gold across 28.1 metres. The EP zone is one of several potential open pit zones that is being detailed in preparation for the completion of a National Instrument-43-101 compliant resource calculation which is expected to be completed in fourth-quarter 2009 (initial open pit resource).

Significant potential exists for developing resources in several areas including:

• Open pit-style mineralization at sites where historic resources were partially delineated by previous operators, in addition to newly defined mineralization at the Tenacity, EP and Kailey zones;
• Numerous surface and historic high-grade gold intercepts throughout the large property package that have received little to no follow-up;
• Historic resource blocks reported to remain within the mine workings, including high-grade vein targets;
• The main mined zones which remain open below the 600 metre level.

Open pit style mineralization has been, and is being intersected in several areas including the Kailey zone where drilling has intersected up to 1.47 grams per tonne gold across 162.0 metres and 2.16 grams per tonne gold across 92.2 metres, the EP-zone where drilling has intersected up to 7.60 grams per tonne gold across 20.5 metres and 2.37 grams per tonne gold Au across 62.7 metres, and the Tenacity zone where drilling has intersected up to 15.97 grams per tonne gold across 32.1 metres and 4.13 grams per tonne gold across 18.9 metres.

Additional potential exists to define high-grade, narrow vein-style, gold zones similar to the EP105 intercept. Historic work indicates that a second high-grade, narrow vein style gold zone was identified in the mine, and intermittently delineated over a plunge length of some 1,100 metres (3,800 feet) with drill intercepts that include 112.5 grams per tonne gold (3.28 ounce per ton gold) across 1.2 metre and 88.5 grams per tonne gold (2.58 ounce per ton gold) across 1.5 metre. This style of mineralization is similar to that mined at two of the nearby mines that exist on the Hardrock property; the Little Long Lac mine (past production of more than 600,000 ounces of gold at an average milled grade of 11.66 grams per tonne gold) and the Magnet mine (past production of more than 150,000 ounces of gold at an average milled grade of 14.4 grams per tonne gold), and the Leitch mine (past production of more than 920,00 ounces of gold was recovered at an average milled grade of 31.54 grams per tonne gold (0.92 ounce per ton).

The Hardrock Project is operated under a joint venture with Roxmark Mines Ltd. The Hardrock project is host to several past producing mines which collectively produced nearly 3.0 million ounces of gold primarily from relatively shallow depths (600 metres) from 1938 to 1968. Importantly, the Hardrock project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario's major gold mines including open pit-style mineralization with grades exceeding 1.5 grams per tonne gold (Timmins, Hemlo) broad zones of mineralization with grades averaging 5.0 positive grams per tonne gold (Musselwhite), and narrow vein zones with higher gold grades often exceeding 7.0 grams per tonne (Red Lake, Pickle Lake). The Hardrock project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the centre of the property. ----.