Completion of $64 M Bought Deal Public Offering of Common Shares and Flow-Through Common Shares

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THUNDER BAY, ON, October 22, 2012 - Premier Gold Mines Limited (TSX:PG) (“Premier” or the “Company”) is pleased to announce that it has completed a previously announced bought deal public offering of 7,030,000 common shares (the “Common Shares”) at a price of $6.08 per Common Share and 3,004,950 flow-through common shares (the “Flow-Through Shares”) at a price of $7.08 per Flow-Through Share for aggregate gross proceeds of approximately $64 million (net proceeds of approximately $60.8 million) (the “Offering”) through a syndicate of underwriters led by RBC Capital Markets and including Canaccord Genuity Corp., CIBC World Markets Inc., Scotia Capital Inc., Cantor Fitzgerald Canada Corporation, Stonecap Securities Inc., Laurentian Bank Securities Inc. and Octagon Capital Corporation. The Offering included the issue of 450,000 Common Shares at the Common Share offering price and 391,950 Flow-Through Shares at the Flow-Through Share offering price upon the exercise of the over-allotment option granted by the Company to the Underwriters under the Offering. Pursuant to the over-allotment option, the Underwriters have the right to purchase up to an additional 537,000 Common Shares at the Common Share offering price, exercisable in whole or in part, at any time prior to November 21, 2012.

The net proceeds from the Common Shares sold under the Offering will be used to fund Premier’s exploration and development activities, repay indebtedness and for general corporate purposes, including working capital. The proceeds from the Flow-Through Shares sold under the Offering will be used by the Company to incur Canadian exploration expenses (“CEE”) prior to December 31, 2013 on Premier’s Canadian properties. The Company will renounce the CE444456E to subscribers of the Flow-Through Shares for the year ended December 31, 2012.

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 Battle Mountain and Carlin Trends in Nevada.

This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the use of proceeds from the Offering, strategic plans, future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports, mineral resource estimates and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier’s annual information form under the heading “Risk Factors”. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.