Premier provides Red Lake update - Drilling intersects high grade gold (21.78g/t Au across 3.0 metres and prolific "Mine Horizon" corridor



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    THUNDER BAY, ON, July 22 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that drilling on the Rahill-Bonanza Joint Venture Property
in Red Lake has intersected significant gold grades down-dip from the Bonanza
Deposit, and a geologically important discoveries have been made on the west
end of the project area, and adjacent to the Red Lake Gold Mines complex. The
Rahill-Bonanza Property is located in the heart of the Red Lake Mining
District in Northwestern Ontario and is being explored under a joint venture
with Red Lake Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc.

    BONANZA DEPOSIT DEPTH EXTENSION
    -------------------------------
    Drilling in the current phase of exploration at the Rahill-Bonanza
Project, operated by RLGM, is testing several key target areas with 4 drills.
At the Bonanza deposit, which is host to a resource exceeding 900,000 ounces
of gold, extension drilling at depth continues to intersect the horizon with
initial results that include 6.56g/t Au across 5.0 metres and 21.78g/t Au
across 3.0 metres in hole PG08046. Additional drilling has intersected this
horizon further at depth and the on-strike CP-Zone where visible gold has been
noted in several holes (assays pending). The current program consists of
in-fill drilling, in support of potential "advanced" underground exploration
in the future, and extension drilling aimed at growing the current gold
resource at Bonanza.

    PROLIFIC "MINE HORIZON" NEAR WILMAR GOLD MINE
    ---------------------------------------------
    At Wilmar, drilling is testing below, and in the vicinity of the workings
of the past-producing Wilmar Gold Mine where, over a period of four years,
203,256 tons of ore was mined at an average grade of 0.30 oz/ton Au (10.3g/t
Au). The deposit remained open at depth when the mine shutdown and drilling
performed down-dip of the mine workings by the joint venture in 2007 returned
numerous significant intersections including 18.1g/t Au over 2.0 metres and
14.2g/t Au over 5.0 metres.
    A recent deep hole that veered away from its intended target, the Wilmar
Mine host horizon at depth, has made a significant geological discovery. This
hole has intersected the prolific "Mine Horizon" approximately 3 kilometres
from the western-most occurrence of this deformation corridor at the RLGM
complex. The RLGM has produced more than 18 Million ounces of gold, discovered
nearly 10 Million additional ounces of resources, and is widely considered to
be the world's richest gold mine. The "Mine Horizon" consists of a series of
variably deformed, altered and veined rocks. This deformation was encountered
over a core length of approximately 500 metres and has an estimated true width
of 300-350 metres. Several intensely veined intervals hosting minor amounts of
pyrite and pyrrhotite, with traces of arsenopyrite and chalcopyrite were
intersected returning highly anomalous gold values. A wedge hole has again
intersected this horizon with assays pending.
    This discovery suggests that this deformation corridor is untested at
depth for several kilometres towards the Red Lake Gold Mines complex and has
the potential to host significant deposits. Wedging off of the initial hole
has been completed to provide additional information regarding the character
and geometry of this horizon. Additional drilling will be performed, aimed at
intersecting potential cross-cutting structures that could host high-grade
gold mineralization.

    41 LEVEL DRILLING
    -----------------
    Drilling onto the Joint Venture project from the Campbell Complex of Red
Lake Gold Mines, which is located immediately east of the property, has now
been completed. This hole, collared on the 41 Level (some 1875 metres or 6150
feet below surface) of the Red Lake Gold Mines complex, successfully
intersected the primary target opening up significant exploration potential
along strike from the mine onto the joint venture project. An important "black
line fault" was identified followed by altered mafic and ultramafic rock
units, identical to those that host the main zones at the mine. Assays are
pending for this zone, however prior to reaching the main target area, a
narrow gold-bearing zone was intersected returning an assay of 6.80 gpt Au
(0.20 oz/ton) over 1.0 metre. Drilling at the mine is now being completed to
test the area between the mine zones and this intersection.
    The Rahill-Bonanza Project covers several kilometres of the main Red Lake
"Mine Trend" that is host to the world class Red Lake Gold Mines to the east,
and Gold Eagle's "Bruce Channel" discovery to the west of the Joint Venture
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. Core from Rahill-Bonanza is sent to Accurassay
Laboratories, an accredited mineral analysis laboratory in Thunder Bay,
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 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 Red Lake Gold
Mines. The company also owns a strategic project located on the main
Musselwhite Gold Mine trend.

    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) 346-0100, E-mail: info@premiergoldmines.com, Web Site:
http://www.premiergoldmines.com


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