Premier acquires strategic Lennie Property at Red Lake; Rahill-Bonanza drilling underway

    Shares Issued: 78,065,179

pleased to announce that it has signed a Letter of Intent to secure a 100%
interest in ten key patented mining claims, the Lennie Property, contained
internal to Goldcorp's Red Lake Gold Mines (RLGM) land holdings, immediately
northeast of the world class Red Lake Gold Mines complex.

    Lennie Project
    The Lennie Project is strategically located northeast of the Red Lake
Gold Mines complex along the same geological contact that hosts the major gold
mines in Red Lake. It covers the important unconformity between the
ore-hosting Balmer volcanic rocks and the overlying sedimentary rocks. Folded
ultramafic rocks and conjugate fault structures, similar to those at the mine,
are interpreted to be located on the Lennie claims and will be the focus of an
exploration program that will begin immediately on the property, including
diamond drilling.
    The last exploration to occur on the Lennie property was a small, shallow
drill program in 1996. That program intersected faults containing mineralized
quartz-carbonate veins in Balmer rocks. It is anticipated that deep drilling
will begin in the spring to test these high-potential faults as well as other
targets, where they are interpreted to intersect Balmer-aged ultramafic rocks
in a setting similar to that which hosts Goldcorp's High-grade Zone. That zone
is considered to be one of the largest and highest grade gold deposits in the
    For this acquisition, Premier will pay $400,000 in cash payments over
three years and 160,000 shares of Premier, including $100,000 and 40,000
shares on signing. A 3.0% Net Smelter Return royalty ("NSR") is payable to the
vendor, of which one-third (1% NSR) can be purchased at any time for the sum
of $1.0 Million. A finders' fee is payable to an arm's length party in
relation to this transaction.

    Rahill-Bonanza Project
    The Rahill-Bonanza Project is located in the heart of the prolific Red
Lake district, within the core of RLGM's land holdings. The 2009 exploration
program will include a delineation drill program proximal to the workings of
the Wilmar Gold Mine, and deep exploration holes to test primary targets at
    The Wilmar Gold Mine is a near surface past-producer on the joint venture
property. During the final years of operations at Cochenour, some 203,000 tons
of ore was mined at a grade of 0.30 oz/ton Au (10.3 g/t). This Phase I Program
will provide support for both previously announced shaft de-watering and a
planned advanced-exploration program on several known deposits in the vicinity
of the workings of the Cochenour-Wilmar Gold Mines.
    At the time of closure in 1971, significant historical resources (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) were reported
to remain at Wilmar.
    According to a report completed by Wilmar Mines Limited in 1973 (authored
by D.A. Hutton), the deposit had the potential to host resources (Although
existing historical resources have been used as a basis for confirming target
potential, there is insufficient exploration data to define a mineral resource
and it is not certain that further exploration will result in discovery of a
mineral resource) as follows:

    -   431,000 tons @ 0.21 oz/ton (7.2 g/t) Au within the 1300-2050
        level workings.
    -   822,000 tons @ 0.24 oz/ton (8.2 g/t) Au - surface to the
        1300-foot level.
    -   5,700,000 tons @ 0.10-0.15 oz/ton (3.4-5.1 g/t) Au - Wilmar West

    This Phase I drill program will test several of these areas in addition
to potential down-plunge extensions.
    Additional drilling will test a target which passes through favourable
ultramafic rock units. This deep drilling is designed to test down-dip from
Wilmar where a major zone of deformation was previously intersected. This
deformation is interpreted to represent the RLGM "Mine Horizon", where rock
units similar to those at the RLGM complex and the Bruce Channel Zone were
    The Rahill-Bonanza Project covers several kilometres of the main Red Lake
"Mine Trend" and is strategically located between the world class Red Lake
Gold Mines to the east, and the "Bruce Channel" discovery to the west.
    Presentations detailing the Lennie and Rahill Bonanza projects are
available on the Premier Gold Mines Limited website at
    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.

    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 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

    %SEDAR: 00024152E

For further information:

For further information: Ewan Downie, President & CEO, Phone: (807)
346-1390, Fax: (807) 346-0100, e-mail:, Web Site:

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