Premier begins diamond drilling at high grade El Alamo District

    Shares Issued: 68,189,742

pleased to announce that it has begun diamond drilling in the historic and
high grade El Alamo District of Baja California Norte, Mexico. The Santa
Teresa Concession (STC) is accessible by road, located 10 kilometres (kms)
west of Highway 3, some 100 kms southeast of Ensenada and about 250 kms from
San Diego, California, USA.
    Premier has prepared an initial 14-hole diamond drill program of
3,650 metres on the STC in order to test the extent, continuity and grade of
known gold-bearing vein structures previously evaluated only within 20 metres
of surface.
    The STC is located adjacent to and on strike from the past-producing
Princessa Mine (the district's largest gold producer), whose orebody was known
to extend close to the STC boundary. Data suggests that potential extensions
of the Princessa Mine along strike and at depth have not been tested. The El
Alamo District's gold production halted at its peak owing to technological and
political circumstances early in the 20th century, thus presenting a unique
opportunity to the JV today.

    Premier is attracted to the El Alamo District because of a unique history
of high mined grades, but little modern exploration. The properties being
explored by Premier and its joint venture partner Sutter Gold Mining Inc

    -   Located within a proven (some 220,000 ounces of past production) gold
    -   Historical data indicates that mined grades within the district are
        between 1.00 and 2.00 ounces per ton (opt).
    -   The majority of district production occurred within 120 metres of
        surface, but remains open at depth.
    -   Has characteristics similar to the historic Mother Lode District of

    The upcoming initial phase of exploration on the STC will conclude late
in Q1 2008 and be followed up by a second phase that expands into the recently
acquired STC2 concessions.
    Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating
Officer of Premier, 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 Canadian-based mineral exploration and
development company with diverse property holdings that include 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 Goldcorp Inc. (TSX:G). A strategic project is also located on the main
Musselwhite Gold Mine trend (Goldcorp).

    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) 345-0284; E-mail:; Web Site:

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890