PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling at the Magnet Gold Mine property in the Geraldton Camp, a resource property owned by Roxmark Mines Limited (TSX-V:RMK) and subject to an earn-in option by Premier, (the "Geraldton Project"), has discovered a new high-grade gold vein zone that has returned numerous significant intersections including 67.08 grams per tonne of gold (g/t Au) across 2.0 metres (m).

The new "Highway Zone" is located under the Trans-Canada Highway, immediately south of the historic Magnet Gold Mine which produced more than 150,000 ounces of gold at an average grade of 14.4g/t Au during the period from 1938 to 1951. In all, nine holes were drilled to test this target, with multiple zones being intersected over a minimum strike length of 100 metres. At least fifteen separate occurrences of visible gold were identified during the program. The zones remain open in all directions. Table 1 provides a summary of the significant results from drilling the Highway Zone area near Magnet:

Table 1 Significant Results from Highway Zone Drilling

True widths estimated at approximately 70% of the intersection width

NSA=No Significant Assays

In addition to the main target, recent drilling performed in the "Benedict Zone", a secondary target located proximal to the Magnet Mine, intersected gold mineralization including 10.22 grams per tonne gold (g/t Au; 0.30 opt) over 2.5m and 8.14g/t Au (0.23 opt) over 2.0m. The Geraldton Project is being operated by Premier under an option agreement with Roxmark.

The Magnet Mine is serviced with a shaft and winze to 2,640 feet depth. The property is equipped with headframe, production hoist, compressors, certain mining equipment, generator, hydro substation, shop, dry, office, etc.

The Geraldton Project is located in the heart of the Beardmore-Geraldton Greenstone Belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers several kilometres of some of the most strategic ground in the region and is host to past-producing mines and numerous exploration targets in a district that has more than 4.1 Million ounces of historic gold production.

Premier currently has 6 drills working on three of the company's core projects. In addition to Geraldton, a major exploration program has resumed on the Rahill-Bonanza joint venture project in Red Lake, operated under a 49-51 Joint Venture with Red Lake Gold Mines, an affiliate of GOLDCORP INC. (TSX:G, NYSE:GG)), and drilling is underway on the Santa Teresa Property in Mexico, a joint-venture project with Sutter Gold Mining Inc. (TSX-V:SGM).

Stephen McGibbon, P. Geo., Executive Vice-President 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. Core 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 fully-financed 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.. A strategic project is also located on the main Musselwhite Gold Mine trend (Goldcorp).

For further information, please contact:
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-345-0284
E-mail: info@premiergoldmines.com Web Site: http://www.premiergoldmines.com
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.