Premier Red Lake drilling to test primary target resumes assay summary for Bonanza drilling



    Shares Issued: 69,348,742

    THUNDER BAY, ON, Oct. 30 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that deep drilling on the Rahill-Bonanza Joint Venture
Property in Red Lake will resume to test the recently intersected "Mine Trend"
horizon as it trends towards the Wilmar Gold Mine area and then towards the
Bruce Channel discovery. Additionally, results from drilling at the Bonanza
Deposit and the CP Zone continue to demonstrate the near-surface potential of
this area. 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.

    
    WILMAR GOLD MINE
    ----------------
    

    The focus of current drilling is to test what Premier deems to be the
primary target on the property - where the known mineralized zones at the
Wilmar Gold Mine intersect a recently discovered deformation corridor,
interpreted to represent the "Mine Horizon" and consisting of a series of
variably deformed, altered and veined rocks similar to those that host the
high-grade zones currently being mined at the RLGM complex. This deformation
zone was encountered over a core length of approximately 500 metres and has an
estimated true width of 300-350 metres and is located 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 target, where the Wilmar
gold system intersects the more favourable host for extremely high-grade gold
mineralization, is essentially identical to the setting at the Bruce Channel
discovery. In September of 2008, Goldcorp acquired Gold Eagle Mines, the
discoverer of the Bruce Channel discovery, for approximately $1.2 Billion. The
Rahill-Bonanza Properties is strategically located between the former Gold
Eagle Property and the RLGM complex.
    To view a map of the Red Lake Project please visit:
http://files.newswire.ca/598/RedLake.doc.
    The past-producing Wilmar Gold Mine is located on the Rahill-Bonanza
Property and from which, 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.

    
    BONANZA DEPOSIT - CP ZONE
    -------------------------

    Drilling also tested the Bonanza deposit that is host to a gold resource
exceeding 900,000 ounces including the CP Zone that is located along strike
from the Bonanza Deposit. This drilling has returned several significant
intersections highlighted by the following (core lengths):

    1)  Extension drilling at the Bonanza Deposit continues to demonstrate
        the potential to expand mineralization at depth with intersections
        that include 9.7 g/t Au across 3.0 metres and 21.8g/t Au across
        3.0 metres in hole PG08046, and 5.4 g/t Au across 5.0 metres in hole
        PG08047.

    2)  In-fill drilling was completed in support of potential "advanced"
        underground exploration in the future. This drilling is to further
        define higher grade "shoots" within the deposit that would be the
        primary targets of an underground program. Highlights from this
        drilling include 7.3g/t Au across 4.0 metres and 9.8g/t Au across
        6.0 metres in hole PG08044, and 11.0g/t Au across 5.0 metres plus
        mineralization in the final three metres of the bottom of hole
        PG08048 which assayed 5.8g/t Au - this hole will be extended to fully
        test this potentially new zone at Bonanza.

    3)  Drilling to test the CP Zone, located on strike from the Bonanza
        Deposit, has returned intersections of 7.2g/t Au across 3.0 metres in
        hole PG08051, 6.8g/t Au across 4.0 metres in hole PG08052, and 5.5g/t
        Au across 4.0 metres in hole PG08054. Several other holes were
        terminated short of the target due to hole deviation.
    

    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 the "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 and recently signed an agreement to acquire
mineral properties in the Geraldton area from Barrick Gold.

    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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