Premier discovers high grade gold at PQ-North; confirms Musselwhite model

    Shares Issued:  78,065,179

pleased to announce that potentially significant gold discoveries have been
made at the Company's 100%-owned PQ-North Project in Northwestern Ontario.
Based on the early success of this initial drill program, Premier will expand
the budget originally earmarked to the program such that drilling will
continue throughout the summer.
    The discoveries, based on assay results from only 7 holes, are located
along strike from Goldcorp's multi-million ounce Musselwhite Mine. Initial
drilling at PQ-North has identified mineralization and visible gold in
multiple structures including:

        1. Musselwhite-style mineralization grading up to 10.24 grams per
           tonne gold (g/t Au) across 5.1 metres (m) hosted in a structure
           not previously tested by diamond drilling and within 100 metres of

        2. Numerous drill intercepts grading greater than 1.0 g/t Au and up
           to 28.64 g/t Au within structures up to 4.0 metres in width.

        3. Widespread anomalous mineralization, including 0.94 g/t Au across
           24.9 m, with styles and intensity of alteration similar to those
           at Musselwhite.

        4. A mineralized shear zone proximal to the PQ-limb of the main iron
           formation. This unit hosts the primary gold zones at the adjacent
           Musselwhite Gold Mine - assays for this initial intersection are

    Ten holes have been drilled to date to test only three of the many target
areas at PQ-North. Gold mineralization has been intersected at every target.
The primary focus of the current program is to test major structures
interpreted to cross the Property and confirm they contain the Musselwhite
    The first hole drilled to test a magnetic anomaly identified as a target
from an airborne geophysical survey, is now interpreted to represent a
previously unknown "upper" iron formation. Hole PQ09006 has intersected a
broad biotite-garnet altered mineralized zone consisting of folded and
laminated iron formation containing pyrrhotite, chalcopyrite and visible gold.
This discovery hole returned an impressive 10.24g/t Au across 5.1m with a
higher grade core grading 21.33g/t Au across 2.1m. This near-surface
intersection is now being followed up by additional diamond drilling.
    Drilling performed by a previous operator identified a zone of gold
mineralization at the crest of the main PQ-Limb. This zone, which remains wide
open for expansion, has now been tested at 100m and 200m step-outs with
intersections of 2.42g/t Au across 4.5m in the 100m step-out and 28.64g/t Au
across 1.0m and 15.00g/t Au across 1.0m in the 200m step-out section.
    Deeper drilling is now underway to evaluate a 400m wide magnetic
disrupted zone (interpreted as a major structural break) that is expected to
intersect the main PQ-Limb at depth. This target is regarded as the primary
target on the Property and is located along strike from, and within the same
host rock as Goldcorp's Musselwhite Gold Mine. The first hole has intersected
a (greater than)3.0m wide mineralized shear zone that is strongly
biotite-garnet altered and contains pyrrhotite, chalcopyrite and visible gold
in addition to a mineralized zone contained within the PQ-Limb. Assays for
these zones are pending.
    A presentation of the PQ-North Project can be viewed on Premier's website
    "The early success of this program confirms management's belief that
significant gold zones, similar to those at Musselwhite, could exist on the
PQ-North Property," stated Tim Twomey, Regional Exploration Manager for
Premier. "The Upper discovery has a width similar to typical Musselwhite
zones, but has a grade nearly twice the average mine grade". "Given the
tremendous continuity of mineralized zones along strike at Musselwhite, and
our experience with similar mineralization at Premier's Hardrock Project in
Geraldton, these early results at PQ-North have to be regarded as
significant," Twomey concluded.
    Drill holes PQ09001 and 002 were drilled for geological purposes to
calibrate the down-dip orientation of the iron formation, PQ09003-005 tested
the known mineralized zone, and PQ09006 tested the "Upper" iron formation
target. The following table summarizes initial results obtained from drilling:

                    (utm)    (utm)   (deg) (deg) (m)     (m)    (m)    (m)
    PQ09001   SHR   5837777  675247    42   -45  392.0  382.4  382.9   0.5
    PQ09002   SHR   5837777  675247    42   -75  404.0  301.0  302.0   1.0
    PQ09003   SHR   5838264  675167    42   -45  422.0  187.4  189.0   1.6
               MA                                       373.9  398.8  24.9
    including                                           381.9  386.4   4.5
    PQ09004    MA   5838264  675167    42   -75  535.0  291.7  293.4   1.7
               MA                                       322.0  324.4   2.4
    PQ09005   SHR   5838354  675111    42   -55  504.0  248.8  250.1   1.3
              SHR                                       335.3  336.0   0.7
               MA                                       387.0  388.5   1.5
               MA                                       429.0  430.0   1.0
               MA                                       445.0  446.0   1.0
    PQ09006   UIF   5838336  675239    42   -52  374.0  215.0  220.1   5.1
    Including                                           218.0  220.1   2.1
               MA                                       364.0  366.0   2.0

               (g/tonne)  (ft)    (oz/t)
    PQ09001       4.17     1.6     0.12
    PQ09002       1.44     3.3     0.04
    PQ09003       5.36     5.2     0.16
                  0.98    88.2     0.03
    including     2.42    14.8     0.07
    PQ09004       1.63     5.6     0.05
                  2.32     7.9     0.07
    PQ09005       4.44     4.3     0.13
                  4.97     2.3     0.15
                  2.22     4.9     0.06
                 28.64     3.3     0.84
                 15.00     3.3     0.44
    PQ09006      10.24    16.7     0.30
    Including    21.33     6.9     0.62
                  3.44     6.6     0.10

    (*)    True widths estimated at 70-80% of intersection width
    (xx)   SHR - Shear zone west of Main Anticline UIF - Upper Iron Formation
           MA - Main Anticline

    The PQ-North Project is located within Goldcorp's Musselwhite Property
holdings and is strategically located along the PQ-Limb of the key iron
formation that is host to the majority of the ore zones at Musselwhite (in
2008, Musselwhite produced 210,500 ounces of gold at an average grade of
5.56g/t Au). The location of PQ-North, potentially down plunge from
Musselwhite, is particularly important when considering the following facts:

    -   The apparent mine grade at the Musselwhite Mine is increasing as
        mineralized zones are mined down-plunge to the north (toward PQ-

    -   The frequency of new discoveries (some closer to surface than current
        mining) at Musselwhite is increasing as exploration migrates to the
        north (toward PQ-North).

    -   The 2007 Goldcorp Annual Report confirmed, "Drilling on the North
        Shore (in close proximity to PQ-North).....indicate high potential
        for resource expansion. This strong potential has led to a study to
        test the economics of constructing a new shaft at Musselwhite."

    Premier previously announced that it had signed a Letter of Intent (LOI)
with the North Caribou Lake First Nation ("NCLFN") that paves the way for a
major exploration program on the PQ-North Property in Northwestern Ontario.
The LOI forms the basis of a cooperative relationship between Premier and
NCLFN that will guide the early phase of exploration on the property,
including line cutting, geophysics and diamond drilling, as well as lead to a
Memorandum of Understanding (MOU).
    In addition to PQ-North, Premier has three drills currently operating at
the Hardrock Property and one at the Rahill Bonanza Project in Red Lake which
is operated by Red Lake Gold Mines Limited, an affiliate of Goldcorp Inc.
    Matt Long, 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. The assay results presented are from split core samples
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. Presentations detailing the Company's activities
on its active projects are available on the Premier Gold Mines Limited website

    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 projects are operated in joint venture with Red Lake Gold
Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated
on a 100% basis. The company also owns a strategic project located on the main
Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock
Project, an advanced-stage gold project in the Geraldton area.

    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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