Premier provides Red Lake update



    Shares Issued:  78,125,179

    THUNDER BAY, ON, May 26 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to provide an update with respect to the Rahill-Bonanza Property,
located in the heart of the Red Lake Mining District in Northwestern Ontario,
that is being explored under a joint venture with Red Lake Gold Mines Limited
("RLGM"), an affiliate of Goldcorp Inc. A summer drill program is being
initiated that will focus on testing prospective exploration targets, and
defining potentially significant resources, located in close proximity to
Goldcorp's Bruce Channel Deposit.
    This program will initially test several new target areas including the
main Wilmar Gold Mine system and the West Granodiorite Deposit, in addition to
the potential on-strike extension of the Bruce Channel Deposit that is located
immediately north of the joint venture property. Several holes were completed
during the winter season to test the potential up-dip extension of the Wilmar
deposit, highlighted by intersections of 9.13 grams per tonne (g/t) Au across
4.0 metres (m) and 10.2g/t Au across 0.5m.

    
    BRUCE CHANNEL DEPOSIT EXTENSION
    -------------------------------
    
    Recent work immediately north of the Rahill-Bonanza Project suggests that
the Bruce Channel Deposit is hosted within a North-South fault structure that
could cross onto the joint venture property. A new deep hole will be drilled
to test both the West Granodiorite Deposit (located on the JV property) and
the potential N-S fault structure on the northwestern portion of the property.
    The West Granodiorite Deposit ("WGD") is a large, near-surface,
bulk-tonnage deposit that could become part of the early mine planning in this
area. The WGD is host to a significant historical resource, 5,700,000 tons @
0.10-0.15 oz/ton (3.4-5.1g/t) Au, that is open both along strike and at depth
(a qualified person has not done sufficient work to verify the historical
resource, the company is not treating the historical resource as a current
resource and the historical resource should not be relied upon).
    The primary target will be testing a North-South fault structure along
strike from the Bruce Channel Deposit. This fault structure is believed to
host the Bruce Channel Deposit to the north of the joint venture property. Of
particular interest is a hole drilled due west from the 1300 foot Level
workings of the Wilmar Gold Mine that intersected two high-grade gold bearing
zones that assayed 10.29g/t Au across 0.6m and 23.31g/t Au across 0.2m up-dip
from the target area.

    
    PROLIFIC "MINE HORIZON" NEAR WILMAR GOLD MINE
    ---------------------------------------------
    
    Two of the targets are located in close proximity to 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 18.1 g/t Au over 2.0 m and 14.2g/t Au over 5.0 m. The
targets of the current program will include the Footwall Diorite Zone ("FDZ")
and the deep Wilmar target.
    Initial drilling will involve extending a surface hole that was stopped
short of its target. This hole will test the main Wilmar ultramafic system in
an area of little previous drilling, in addition to testing the FDZ in an area
where a lone historic hole returned high-grade gold assays up to 72g/t Au.
Pending a favourable intersection, wedge drilling is planned off this initial
hole.
    Additional drilling will involve extending a deeper hole to test for the
potential projection of the Wilmar gold system intersection with the main
"Mine Horizon" at depth. A deep hole drilled by the joint venture in 2008,
which veered away from its intended target, intersected what is interpreted to
represent the prolific "Mine Horizon" approximately 3 kilometres from the
western-most occurrence of this deformation corridor at the Red Lake Gold
Mines (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. This deformation system
was encountered over a core length of approximately 500 metres and has an
estimated true width of 300-350 metres. The potential intersection of the two
structures is considered to have the potential to host high-grade gold
mineralization.
    Pursuant to its press release dated May 7, 2009, Goldcorp announced
several major development initiatives that are being considered on and around
the Joint Venture Property. De-watering of the Cochenour (and Wilmar) mine
workings has started for the potential development of the Bruce Channel
Deposit. This de-watering will also provide underground access to the Wilmar
and West Granodiorite Zones located on the Joint Venture Property immediately
to the southeast. Additionally, Goldcorp is considering a high-speed tram
system to link Bruce Channel to the Red Lake Gold Mines complex. A straight
line from the RLGM complex would pass through the Joint Venture Property and
would provide exploration access to several kilometres of favourable,
untested, geology.
    A presentation providing an update of the Red Lake program is available
on the company's website, www.premiergoldmines.com. 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 Goldcorp's "Bruce
Channel" discovery to the west of the Joint Venture Property.

    
    To view Rahill-Bonanza JV map, please visit:
    http://files.newswire.ca/598/rahillbonanza.pdf
    

    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 has active drill programs at its Hardrock Project near
Geraldton, Ontario and PQ North Project that is strategically 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:
www.premiergoldmines.com


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