Premier-Goldcorp Red Lake update - drilling intersects additional High-grade mineralization



    Shares Issued: 68,189,742

    THUNDER BAY, ON, Oct. 22 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that ongoing drilling at the Rahill-Bonanza Project has
intersected high-grade mineralization in the West Granodiorite Zone and that
drilling has now started to test the West Mine target. The "Rahill-Bonanza
Project" is being operated under a 50/50 exploration joint venture between
Premier and Red Lake Gold Mines (RLGM), an affiliate of GOLDCORP INC. (TSX:G,
NYSE:  GG).
    The West Granodiorite Zone ('WGZ") is located west of, and along strike
from the Wilmar Zone, and was historically viewed as a bulk-tonnage (2-3g/t
Au) target. The current program, consisting of 6 holes, was designed to
attempt to identify higher-grade mineralization within the core of the WGZ.
This drilling has successfully returned several significant high-grade
intersections including 29.9 g/t Au across 0.8 meters and 12.2 g/t Au across
2.9 meters.

    
    -------------------------------------------------------------------------
    HOLE NO.   INTERSECTION (m)    WIDTH (m)    ASSAY (g/t Gold)        Zone
    --------   ----------------    ---------    ----------------        ----
    -------------------------------------------------------------------------
    PG07019     426.00-429.00        3.0        3.0 (0.09 oz/ton)        WGZ
    -------------------------------------------------------------------------
    PG07019     439.60-443.00        3.6        3.4 (0.11 oz/ton)        WGZ
    -------------------------------------------------------------------------
    PG07020     552.00-552.80        0.8       29.9 (0.96 oz/ton)        WGZ
    -------------------------------------------------------------------------
    PG07020W1   574.10-577.00        2.9       12.2 (0.39 oz/ton)        WGZ
    -------------------------------------------------------------------------
    Inc.        574.10-575.00        0.9       18.5 (0.59 oz/ton)        WGZ
    -------------------------------------------------------------------------
    Inc.        576.00-577.00        1.0       16.7 (0.54 oz/ton)        WGZ
    -------------------------------------------------------------------------
    NOTE: True widths estimated at approximately 65% of intersection width
    

    Drilling has been activated on the "Mine West" target, located
immediately west of, and along strike from, the RLGM complex. A fourth drill
has been mobilized to begin deep drilling at the Bonanza deposit. The Mine
West drilling is designed to test the western extension of the ultramafic rock
unit that is host at Red Lake Gold Mines and the on-strike extension of the 
"S and F Zones" at the mine. Drilling planned at Bonanza will target 1000m
below the deepest intercepts to date with the intent of demonstrating
continuity of mineralization to 1600m below surface. Additional drilling at
Bonanza will consist of in-fill and expansion drilling to further define the
Bonanza deposit, discovered in 2004, where previous drilling has returned
numerous significant intersections to depths of less than 400 meters including
13.27 g/t Au across 19.00 meters, 8.66 g/t Au across 22.0 meters and 5.05 g/t
Au across 34.95 meters. A NI 43-101 compliant mineral resource estimate is
planned for Bonanza in early 2008.
    Drilling also continues at the Wilmar Mine area and from the RLGM
complex. Drilling at Wilmar has intersected multiple gold horizons including a
new zone discovered in the hanging wall of the Wilmar Horizon. Drilling toward
the Joint Venture project from the Mine complex continues with a hole collared
on the 41 Level (approximately 1,875 meters or 6,150 feet below surface) of
the Campbell Complex (formerly Campbell Mine) of Red Lake Gold Mines. The
following table provides a summary from the first two holes that have
intersected the Wilmar target horizon from the current program, additional
assays are expected in the near future:

    
    -------------------------------------------------------------------------
    HOLE NO.   INTERSECTION (m)  WIDTH (m)  ASSAY (g/t Gold)       Zone
    --------   ----------------  ---------  ----------------       ----
    -------------------------------------------------------------------------
    PG07015W4  1273.00-1274.00     1.0    49.00 (1.43 oz/ton) New - Qtz Carb

    -------------------------------------------------------------------------
    PG07018W1    905.00-910.00     5.0    14.19 (0.41 oz/ton) New - Qtz Carb
    -------------------------------------------------------------------------
    Incl.        905.00-906.00     1.0    59.09 (1.72 oz/ton)       "
    -------------------------------------------------------------------------
                 995.00-996.00     1.0     8.81 (0.26 oz/ton) South Breccia
    -------------------------------------------------------------------------
    NOTE: True widths estimated at approximately 65% of intersection width
    

    The Rahill-Bonanza Project is strategically located along the main Red
Lake "Mine Trend" between the Red Lake Gold Mines to the east and the
Cochenour Gold Mine and Bruce Channel discovery to the west (See Figure 1 &
2). The geological setting at Wilmar shares many similarities to the Red Lake
Gold Mines, located in the same suite of rocks to the east, and the Cochenour
Mine-Bruce Channel discovery to the northwest. The current drilling is part of
a major, two year, exploration program ($5 Million budgeted for 2007) that
will test several prospective targets on the Property. A presentation with
more detailed slides can be viewed at the Company's web site:
www.premiergoldmines.com.

    Figure 1. - To view this Figure, please visit <a href="http://www.premiergoldmines.com">www.premiergoldmines.com</a>

    Figure 2 - To view this Figure, please visit www.premiergoldmines.com

    Matt Long, Project Manager of Premier, 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. Core is sent to Accurasay
Laboratories in Thunder Bay for assay.

    Ewan Downie, President & CEO will be giving a presentation today at
12:00pm EST in Workshop 3 at the 2007 Toronto Resource Investment Conference
being held at the Metro Toronto Convention Centre, South Building, 222 Bremner
Blvd. Toronto, ON. You are also invited to visit Premier Gold Mines Limited at
booth No.414. For more information on this or other shows hosted by Cambridge
House International Inc., visit www.goldshow.ca.

    Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with diverse property holdings that include several
projects and deposits in Northwestern Ontario and a joint venture in Mexico.
In the Red Lake gold mining camp, two of these are operated in joint venture
with Goldcorp Inc. (TSX:G). A strategic project is also located on the main
Musselwhite Gold Mine trend (Goldcorp Inc.).

    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




For further information:

For further information: Ewan Downie, President & CEO, Phone: (807)
346-1390, Fax: (807) 345-0284, E-mail: info@premiergoldmines.com, Web Site:
http://www.premiergoldmines.com


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