Premier announces $10 million financing



    
    /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
    AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    Shares Outstanding: 78,510,179
    

    THUNDER BAY, ON, Aug. 26 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier")
(TSX: PG) is pleased to announce that it has entered into an agreement with
Thomas Weisel Partners Canada Inc., as lead agent on behalf of a syndicate of
agents (collectively, the "Agents") in connection with a best efforts private
placement offering of "flow-through" common shares (the "Flow-Through Shares")
of Premier at a price of $3.65 per Flow-Through Share for aggregate gross
proceeds of up to $10 million. The Flow-Through Shares will be offered by way
of private placement to accredited investors in each of the provinces of
Canada.
    Premier plans to use the gross proceeds from the sale of the Flow-Through
Shares for exploration programs to be conducted on the Hardrock project, Red
Lake projects and PQ North project in Ontario. The private placement is
expected to close on or about September 10, 2009 and is subject to certain
conditions typical for a transaction of this nature and the receipt of all
necessary regulatory approvals including the approval of the Toronto Stock
Exchange.

    PREMIER is a Canadian based mineral exploration and development company
focussed primarily on discovering and developing gold deposits at its
strategically-located Red Lake, Ontario joint venture properties. Premier
continues to evaluate other high quality North American based gold projects
with the strong belief that aggressive exploration in proven districts will
repeatedly reward shareholders.

    This press release contains "forward looking statements", within the
meaning of Canadian securities legislation, which are based on the opinions
and estimates of management and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those projected in the forward looking statements. Such
risks and uncertainties include, but are not limited to, risks associated with
the mining industry, the risk of commodity price and foreign exchange rate
fluctuations, the ability of Premier to complete the financing and fund the
capital and operating expenses necessary to achieve the business objectives of
Premier, as well as those risks described in public disclosure documents filed
by Premier. Due to the risks, uncertainties and assumptions inherent in
forward-looking statements, prospective investors in securities of Premier
should not place undue reliance on these forward-looking statements.

    
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    %SEDAR: 00024152E




For further information:

For further information: Ewan Downie, President, Phone: (807) 346-1390,
Fax: (807) 346-0100, E-mail: info@premiergoldmines.com, Web Site:
www.premiergoldmines.com


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