Provides Trans-Canada Project Update - Focus on High Grade - Retains JDS for Preliminary Economic Assessment

Premier Gold Mines Limited (TSX-PG) is pleased to provide an exploration update for the Company's 100% owned Trans-Canada Project in Northwestern Ontario, and to announce that it has retained the services of JDS Energy & Mining Inc. to complete a Preliminary Economic Assessment (PEA). The PEA will consider a range of possible options available to Premier in assessing how best to optimize key assets in the Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits. The JDS team of experienced mining professionals will augment Premier's exploration expertise to provide, in 2012, a clear economic framework and vision to advance the project toward development.

While early 2011 exploration had a focus on in-fill and step-out drilling proximal to the main resource areas, the current program has three primary goals: to delineate previously discovered high-grade gold zones (HGN and F2); to expand new discoveries (TNS and North Shear); and delineating the Key Lake Deposit, with the intent of including it in Premier's next mineral resource update for Trans-Canada. Positive early results in these target areas include multiple intercepts containing appreciable visible gold. A presentation on the high-grade target zones is available on the Company's website: www.premiergoldmines.com.

Initial follow-up drilling has returned some of the highest recorded assays, resulting in multiple ounce intercepts in several of the target areas. These zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces gold produced at a grade of 31.5 g/t) Gold Mines located on the Trans-Canada Project. Highlights from recent drilling include:

• 251.0 grams per tonne gold (g/t Au) across 1.0 metres (m) or 7.32 ounces per ton (oz/t) across 3.3 feet (ft) in up-dip expansion drilling in the F2 Zone.

• 28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft) drilling down-plunge in the HGN Zone.

• 44.39 g/t Au across 5.3 m (1.29 oz/t across 17.4 ft) in the recently discovered TNS Zone.

• Veining and mineralization intersected in the North Shear discovery horizon (assays pending).

"The potential of the Trans-Canada project to host several different styles of mineralization including significant high-grade zones has been demonstrated since the acquisition of the Hardrock Property in 2008." stated Ewan Downie, President and CEO of Premier. "With our recent acquisition of Goldstone Resources, we now have more than 60 kilometres of favourable geology to explore outside of the three deposits that are the subject of current drilling."

F2 Zone

The F2 Zone is located in close proximity below the historic F-Zone mine workings. The results from drilling reflect the follow-up to a new discovery that was made on the bottom level of the historic Hardrock Mine just prior to closure in 1968. The F2 horizon is characterized by parallel narrow-vein zones with strong mineralization and frequent visible gold.

Initial drilling (2009) in this horizon returned intercepts of 7.21g/t Au across 3.0 m (0.21 oz/t across 9.8 ft) and 121.00 g/t Au across 1.5 m (3.53 oz/t across 4.9 ft) in hole MM051, and 17.70 g/t Au across 1.5 m (0.52 oz/t across 4.9 ft) and 8.25 g/t Au across 1.5 m (0.24 oz/t across 4.9 ft) in hole MM073. The first follow-up hole completed in 2011 (MM204) has returned multiple high-grade intercepts including 6.83 g/t Au across 3.5 m (0.20 oz/t across 11.5 ft) and 251.00 g/t Au across 1.0 m (7.32 oz/t across 3.3 ft). Table 1 provides a summary of significant results in the F2 Zone.

Table 1 -- F2 Zone Assay Results

Hole-ID	UTM Coordinates (m)	Dip/Azimuth (degrees)	From (m)	To (m)	Interval (m)	Grade (g/tonne)	Interval (ft)	Grade (oz/ton)	Zone
*MM051	5502600N 504049E	-66/360	540.0	546.0	6.0	5.41	19.7	0.16	F2
including			544.8	546.0	1.2	18.70	3.9	0.55	F2
and			621.4	624.0	2.6	8.30	8.5	0.24	F2
and			660.5	661.0	0.5	41.00	1.6	1.20	F2
and			680.0	681.5	1.5	121.00	4.9	3.53	F2
*MM073	5502600N 504000E	-47/360	684.0	685.5	1.5	17.70	4.9	0.52	F2
and			745.0	746.5	1.5	8.25	4.9	0.24	F2
MM204	5502660N 504094E	-65/360	499.0	502.5	3.5	6.83	11.5	0.20	F2
and			548.0	549.0	1.0	251.00	3.3	7.33	F2

* - Previously released hole
Note: True widths estimated at approximately 55-70% of intersection width

Figure 1 - Long Section of F2 Zone


HGN Zone

The High Grade North (HGN) Zone is located immediately north of the historic mine workings and was discovered in 2009 while drilling off the EP-Zone open pit. The discovery hole contained appreciable visible gold and returned an impressive 1,141.50 g/t Au across 2.0 m (33.29 oz/t across 6.6 ft).

Previously drilled holes in the EP-Zone are being extended to test the down-plunge extension of this horizon. The first three holes drilled during the current program (OR015, EP149 and EP152) have all returned visible gold. Assay results have been received for two of these holes with composite intervals of 17.80 g/t Au across 1.0 m (0.52 oz/t across 3.3 ft) in OR015 and 28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft) in EP149 -- assays for additional holes remain outstanding. Table 2 provides a summary of significant results in the HGN Zone.

Table 2 -- HGN Zone Assay Results

Hole-ID	UTM Coordinates (m)	Dip/Azimuth (degrees)	From (m)	To (m)	Interval (m)	Grade (g/tonne)	Interval (ft)	Grade (oz/ton)	Zone
*EP064	5503025N 504653E	-60/360	316.3	317.0	0.7	20.10	2.3	0.59	HGN
*EP105	5502939N 504700E	-60/360	382.1	384.1	2.0	1141.50	6.6	33.33	HGN
*EP118	5502910N 504725E	-61/360	364.5	370.5	6.0	49.81	19.7	1.45	HGN
including			364.5	366.0	1.5	194.00	4.9	5.66	HGN
EP149	5502840N 504450E	-65/360	513.5	517.0	3.5	28.78	11.5	0.84	HGN
EP152	5502815N 504400E	-67/360	Assays pending
EP153	5502800N 504350E	-65/360	Assays pending
*OR001	5502920N 504649E	-60/360	412.4	414.0	1.6	6.30	5.2	0.18	HGN
*OR002	5502864 N 504648 E	-60/360	469.5	471.0	1.5	10.60	4.9	0.31	HGN
*OR005	5502917N 504701E	-60/360	414.5	416.0	1.5	12.99	4.9	0.38	HGN
*OR007	5502868N 504601E	-60/360	464.4	468.0	3.6	6.40	11.8	0.19	HGN
*OR014	5502898N 504500E	-66/360	491.0	492.0	1.0	8.94	3.3	0.26	HGN
OR015	5502835N 504590E	-60/360	504.0	505.0	1.0	17.80	3.3	0.52	HGN
*PIT022	5502766N 504551E	-55/260	552.9	553.2	0.3	17.80	1.0	0.52	HGN

* - Previously released hole
Note: True widths estimated at approximately 55-70% of intersection width

Figure 2 -- Long Section of HGN Zone


TNS Zone

The Tenacity South (TNS) Zone was discovered in 2011 while exploring for potential gold zones parallel to the historic mine workings. A mineralized shear zone was discovered to the south of Hardrock containing high-grade intercepts including 37.49 g/t Au across 2.1 m (1.09 oz/t across 6.9 ft) in HR053 and 10.89 g/t Au across 10.0 m (0.32 oz/t across 32.8 ft) in HR054.

Follow-up drilling has defined pods of high-grade mineralization within this target horizon with results that include 44.39 g/t Au across 5.3 m (1.29 oz/t across 17.4 ft) in HR058, the highest grade intercept to-date in this horizon. Table 3 provides a summary of significant results in the TNS Zone.

Table 3 -- TNS Zone Assay Results

Hole-ID	UTM Coordinates (m)	Dip/Azimuth (degrees)	From (m)	To (m)	Interval (m)	Grade (g/tonne)	Interval (ft)	Grade (oz/ton)	Zone
*HR053	5502370 N 504950 E	-55/360	149.9	152.0	2.1	37.49	6.9	1.09	TNS
*HR054	5502320 N 504950 E	-55/360	268.2	285.0	16.8	6.81	55.1	0.20	TNS
including			275.0	285.0	10.0	10.89	32.8	0.32	TNS
including			276.0	278.0	2.0	45.40	6.6	1.33	TNS
*HR056	5502270 N 504950 E	-55/360	338.7	346.7	8.0	5.49	26.2	0.16	TNS
including			340.1	343.6	3.5	8.03	11.5	0.23	TNS
HR058	5502320 N 505000 E	-55/360	298.1	303.4	5.3	44.39	17.4	1.30	TNS
including			298.1	301.8	3.7	62.89	12.1	1.84	TNS
HR059	5502267 N 504850E	-55/360	382.1	383.0	0.9	6.60	2.95	0.19	TNS
HR060	5502217 N 504950 E	-55/360	384.0	385.5	1.5	2.30	4.92	0.07	TNS
HR061	5502664 N 505010 E	-55/180	282.9	283.9	1.0	5.82	3.3	0.17	TNS
HR062	5502317 N 505199E	-55/360	NSV
HR063	5502214 N 504850 E	-55/360	517.8	519.2	1.4	2.75	4.59	0.08	TNS
HR064	5502318 N 505099 E	-55/360	NSV
HR065	5502270 N 505000 E	-55/360	395.0	396.0	1.0	17.10	3.3	0.50	TNS
HR066	5502319 N 505050 E	-55/360	301.3	302.3	1.0	3.87	3.28	0.11	TNS
HR067	5502368 N 505100E	-55/360	292.8	293.6	0.8	4.63	2.62	0.14	TNS
HR068	5502500 N 505000 E	-55/360	NSV
HR069	5502396N 505001E	-55/360	NSV
HR070	5502368N 504800E	-55/360	Assays pending
HR071	5502448N 504898E	-55/360	210.0	211.5	1.5	2.18	4.9	0.06	TNS
HR072	5502300 N 504700E	-55/360	532.0	536.4	4.4	9.00	14.4	0.26	TNS
including			535.4	536.4	1.0	32.10	3.3	0.94	TNS

* - Previously released hole
Note: True widths estimated at approximately 55-70% of intersection width

North Shear Horizon

The North Shear Horizon was discovered while drilling a previously untested area between the Hardrock and Little Long Lac Mines on the Property. A strong looking, mineralized, shear structure was intersected in holes drilled 250 metres apart and that assayed 6.15 g/t Au across 2.8 m (0.18 oz/t across 9.2 ft) and 4.30 g/t Au across 2.3 m (0.13 oz/t across 7.5 ft). Follow-up drilling is now underway to examine the potential of this horizon to host resources.

The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths within 600 metres of surface between 1938 and 1968, and several deposits that are being explored by Premier including the Hardrock Deposit. The Hardrock Deposit is host to a NI43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. The estimate is based on drilling completed up to February 28, 2011 on multiple near surface and deeper zones, many of which remain open for expansion and are the subject of the ongoing drill program. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project site. Significant services and a skilled labour pool exist with several local communities.

Highlights of the Hardrock Project mineral resource estimate are set out in Table 4 below. They have been subdivided into potentially underground or open pit mineable resources and reported using different cut-off grades.

Table 4 - Hardrock Project Indicated & Inferred Mineral Resources

Material	Classification	Cutoff (Au g/t)	Grade Estimate (Au g/t)	Resource Tonnes	Contained Au Ozs
Open Pit	Measured	0.83	2.446	6,865,000	540,000
Open Pit	Indicated	0.83	2.280	5,833,000	427,500
Open Pit	Measured + Indicated	0.83	2.370	12,698,000	967,500
Open Pit	Inferred	0.83	2.483	615,000	49,200
Underground	Measured	2.80	5.993	2,312,000	445,800
Underground	Indicated	2.80	5.827	5,757,000	1,078,500
Underground	Measured + Indicated	2.80	5.875	8,069,000	1,524,300
Underground	Inferred	2.80	5.397	6,187,000	1,073,500
OP + UG	Measured	---	3.340	9,177,000	985,800
OP + UG	Indicated	---	4.042	11,590,000	1,506,000
OP + UG	Measured + Indicated	---	3.732	20,767,000	2,491,800
OP + UG	Inferred	---	5.133	6,802,000	1,122,700

(i) Resources estimated using inverse distance cubed
(ii) Figures may not sum due to rounding

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
2. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
3. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council November 27, 2010.

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 one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: 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.