Premier increases 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. 28 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier")
(TSX: PG) is pleased to announce that, due to high demand, the company will
increase the size of its previously announced private placement offering (the
"Offering") of "flow-through" common shares (the "Flow-Through Shares").
Premier has decided to increase the gross proceeds to be raised in the
Offering to up to $15 million. As previously announced, the Flow-Through
Shares are being offered at a price of $3.65 per share.
    "With this financing Premier will remain one of the industry's most
active explorers," stated Ewan Downie, President of Premier. "The significant
premium we have attained maintains our strong share structure and puts Premier
in a dominant position to pursue possible future growth initiatives."
    Thomas Weisel Partners Canada Inc. is acting as lead agent on behalf of a
syndicate of agents including Canaccord Capital Corporation, Laurentian Bank
Securities, Octagon Capital Corporation, Research Capital Corporation and
Wellington West Capital Markets (collectively, the "Agents") in connection
with this best efforts Offering. 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
focused 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 Offering 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
    %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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