Premier to initiate major exploration program at PQ-North

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(TSX:PG) is pleased to announce that it has signed a Letter of Intent (LOI)
with the North Caribou Lake First Nation that paves the way for a major
exploration program to begin immediately on the PQ North Property in
Northwestern Ontario. The PQ North Property is strategically located on the PQ
limb of the key iron formation that is host to Goldcorp's Musselwhite Gold
    The North Caribou Lake First Nation (NCLFN) is broadly defined as
including the community of Weagamow Lake, Chief and Council, trappers and the
traditional territory. 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 the near future. Key aspects
of the LOI include:

    -  Contributions by Premier to the Community of Weagamow during each
       calendar year that exploration is active at PQ North.

    -  Premier will seek individuals from the Community for employment in its
       exploration programs.

    -  The employment of a Liaison and Environmental Communications person
       from the Community.

    -  A commitment by Premier to utilize goods and services from the

    Premier confirms that the agreement with NCLFN is the culmination of
several months of ongoing discussion and relationship-building. "We regard
Northwestern Ontario as our home turf and recognize that being successful
here, or anywhere else, requires developing strong long term relationships
with all parties having a vested interest in the region" commented Ewan
Downie, Premier's President and CEO. "This LOI marks a milestone achievement
for Premier with respect to its goal of working closely with local communities
that might be positively affected by mine development" he added. "The PQ North
Property comprises a second strategic land position that Premier holds
immediately adjacent to Goldcorp's major North American gold mines. Based on
previous drilling and surface exploration, the PQ Property is believed to have
excellent potential to host gold zones similar to those being mined at
    The PQ North Property encompasses a major fold structure along strike
from and within the main rock unit (Northern Banded Iron Formation) that hosts
the gold-bearing ore zones at Musselwhite. Previous drilling has returned
several significant intersections and has identified structural units similar
to those at the mine (See Figure 1). Of particular interest are a series of
quartz veins, in places tens of meters wide, hosted within volcanic rocks in
the southern portion of the PQ North Property. It is believed that these
(low-grade) veins could be related to structures that may cut the main iron
formation unit at depth, and potentially become significant gold-bearing
zones. Similar veins on surface on the Musselwhite Property are located up-dip
from the main gold zones currently being mined. To date, the Musselwhite Mine
has produced more than 2.0 million ounces of gold and has reserves and
resources totalling in excess of 3.30 Million ounces at the end of 2007.
    Recently, Goldcorp has indicated that gold mineralization within the mine
horizon is estimated to have increased from 1.0 million to 2.0 million ounces
per kilometre as far as 6 kilometres north along strike of the main mine
facilities. Results include a drill intercept of 15.5 grams per tonne (gpt)
gold across a true width of 4.5 metres (m) in hole 07-NSD-005. Premier's PQ
North property is located in close proximity to, and along strike from this
    Premier holds the right to earn a 100% interest in the PQ North Property
subject to a 2% Net Smelter Returns Royalty of which Premier retains the right
to acquire 1% by paying to the vendor $1 Million.

    To view an image of PQ North Property, please click here:

    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 fully 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. A strategic project is also located on the main Musselwhite Gold Mine

    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:

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