Premier Gold - Deep drilling at Hardrock intersects high grade gold including
10.05g/t (0.29 oz/ton) gold over 24.2m (79.4 feet)

Shares Issued: 84,452,179

THUNDER BAY, ON, Jan. 5 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) announced today that multiple deep drill holes have intersected broad zones of high-grade gold mineralization below the bottom level of the historically mined North Zone at the Hardrock Project in Northwestern Ontario. Highlights include intercepts of 10.05 grams per tonne gold (g/t Au) across 24.2 metres (m) or 0.29 oz/ton across 79.4 feet; and 8.41 g/t Au across 22.9 m, or 0.25 oz/ton across 75.1 feet. This drilling confirms that the North Zone deposit is wide open at depth.

    
    North Zone Deeps
    ----------------
    

All holes drilled to test the down-dip potential of the mine have intersected multiple zones of gold mineralization to 100 metres below the mined portion of the North Zone. Significant intercepts include:

    
    -   39.20 g/t Au across 4.8 m (1.14 oz/ton gold across 15.7 feet) in
        MM050

    -   18.86 g/t Au  across 3.3m (0.55 oz/ton across 10.8 feet) in MM050A

    -   21.90 g/t Au across 1.5m (0.64 oz/ton across 4.9 feet) in MM079

    -   8.41 g/t Au across 22.9m (0.25 oz/ton across 75.1 feet) including
        15.95 g/t Au across 8.1m (0.47 oz/ton across 26.6 feet) in MM079A

    -   10.05 g/t Au across 24.2m (0.29 oz/ton across 79.4 feet) including
        20.76 g/t Au across 5.4 m (0.61 oz/ton across 17.7 feet) in MM079B
    

Stephen McGibbon, Premier's Executive VP and COO, said, "Hardrock continues to exceed even our optimistic expectations. These solid results bode well for our forthcoming resource estimate and our ongoing aggressive drilling program. During 2010 we are eager to continue to further outline both the open pit and underground potential of Hardrock."

Table 1 below provides a full summary of significant results from the deep drill program received to date. Ongoing drilling will continue to step out down-plunge to the west in an effort to further define the potential of the North Zone deposit.

The longitudinal section in Figure 1 profiles the location of the new deep drill intersections in relation to the bottom (2000 foot) level of the mine. The North Zone was previously mined to a depth of 610 metres (2,000 feet) with production of 2.97 million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). This drilling demonstrates that this zone remains wide open for expansion at depth.

A full presentation detailing the location of this deep drilling is available at the Company's website www.premiergoldmines.com.

Figure 1

Please visit: http://files.newswire.ca/598/hardrocknorth.pdf

    
    Table 1
    -------------------------------------------------------------------------
    Hole-       UTM       Dip/               Inter- Grade Inter- Grade
     ID     Coordinates Azimuth  From    To    val   (g/    val  (oz/   Zone
                (m)    (degrees)  (m)    (m)   (m)  tonne) (ft)   ton)
    -------------------------------------------------------------------------
    MM050* 5503375 E  -73/180 662.7  667.5   4.8  39.20  15.7  1.14 North A
              503714 N          ---------------------------------------------
                                  681    684   3.0   3.64   9.8  0.11 North A
                                ---------------------------------------------
                                703.9  710.8   6.9   4.03  22.6  0.12 North B
                                ---------------------------------------------
    including                   703.9  706.5   2.6    7.9   8.5  0.23 North B
    -------------------------------------------------------------------------
    MM050A   5503375 E  -73/180 651.4  654.7   3.3  18.86  10.8  0.55 North A
    (wedge    503714 N          ---------------------------------------------
     hole)                      767.5  768.5   1.0   5.46   3.3  0.16    X
    -------------------------------------------------------------------------
    MM079    5503376 E  -78/180 716.0  717.0   1.0  21.30   3.3  0.62    X
              503714 N          ---------------------------------------------
                                728.0  729.4   1.4   7.58   4.6  0.22    X
                                ---------------------------------------------
                                740.0  753.8  13.8   3.16  45.3  0.09 North A
                                ---------------------------------------------
    including                   740.0  743.7   3.7   7.79  12.1  0.23 North A
                                ---------------------------------------------
                                782.5  784.0   1.5  21.90   4.9  0.64    X
    -------------------------------------------------------------------------
    MM079A   5503376 E  -78/180 676.6  699.5  22.9   8.41  75.1  0.25 North A
    (wedge    503714 N
     hole)                      ---------------------------------------------
    including                   687.4  695.5   8.1  15.95  26.6  0.47 North A
                                ---------------------------------------------
                                714.6  727.0  12.4   5.66  40.7  0.17 North B
                                ---------------------------------------------
                                733.0  746.0  13.0   3.68  42.6  0.11 North B
                                ---------------------------------------------
    including                   741.7  743.2   1.5  10.70   4.9  0.31 North C
    -------------------------------------------------------------------------
    MM079B   5503376 E  -78/180 679.1  703.3  24.2  10.05  79.4  0.29 North A
    (wedge    503714 N
     hole)                      ---------------------------------------------
    including                   679.1  681.3   2.2  39.69   7.2  1.16 North A
                                ---------------------------------------------
    including                   697.0  700.5   3.5  18.73  11.5  0.55 North A
                                ---------------------------------------------
                                712.5  717.2   4.7   4.79  15.4  0.14 North B
    -------------------------------------------------------------------------
    * Previously Announced Intersection
    - True widths estimated at 50-70% of intersection widths
    

Ongoing work at Hardrock is testing both open pit and underground type targets. Several potential open pit zones have been delineated to be included into a NI43-101 compliant resource estimate that is expected to be completed early in 2010 (initial open pit resource). The focus of drilling has now shifted towards defining underground-style zones that will be included in an updated resource that is expected in Q3 2010.

Significant potential exists for developing resources in several areas including:

    
    -   Open pit-style mineralization in the main areas, the Tenacity, EP
        (includes NN) and Kailey Zones. Significant results to-date include
        15.97g/t Au across 32.1m and 4.13g/t Au across 18.9m in the Tenacity
        Zone, 5.2g/t Au across 37.0m and 19.0g/t Au across 11.3m in the EP
        Zone, 6.4g/t Au across 22.4m and 52.9g/t Au across 7.9m in the NN
        Zone, and 1.47 g/t Au across 162.0 metres (m) and 2.16g/t Au across
        92.2m in the Kailey Zone;

    -   Underground-style mineralization in the SP Zone where drilling has
        returned numerous significant intercepts including 6.6g/t Au across
        32.6m and 9.7g/t Au across 11.8m;

    -   New high-grade vein targets, including the HGN discovery where recent
        drilling has intersected significant visible gold with intercepts
        that include 1,141.5g/t Au (33.3 oz/ton) across 2.0m and 49.8g/t Au
        across 6.0m; and,

    -   Historical resource blocks that remain within the mine workings and
        the main mined zones which remain open below the 600m Level as tested
        by holes MM050 and MM079.
    

The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier owns a 70% interest). Goldstone Resources is the product of a merger between Roxmark Mines Limited, Premier's original Hardrock Project Joint Venture Partner, and Ontex Resources Limited. 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 1938-1968. The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is a well-financed Canadian-based mineral exploration and development company with several active projects and deposits in Northwestern Ontario. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, an affiliate of Goldcorp Inc., and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

%SEDAR: 00024152E

SOURCE Premier Gold Mines Limited

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


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