Premier Announces Completion of $7.443 Million Non-Brokered Private Placement

Shares Issued: 52,253,514

October 6th, 2006
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PREMIER GOLD MINES LIMITED (PG:TSX) announces that it has completed its previously announced non-brokered private placement in the amount of $7,443,749.70 after exercising the over-allotment option.

Premier will issue an aggregate of 1,240,000 units at a price of $0.95 per unit for gross proceeds of $1,178,000.00. Each unit consists of one common share of Premier and one-half of one share purchase warrant. Each full share purchase warrant entitles the holder thereof to acquire one additional common share of Premier at a price of $1.20 for a period of 18 months after the date of issue of the warrants.Additionally, Premier will issue an aggregate of 5,448,478 Flow-Through Common Shares at a price of $1.15 per share for gross proceeds of $6,265,749.70.

Premier plans to use the gross proceeds from the sale of the Flow-Through Common Shares for exploration programs to be conducted on its gold properties located in Northwestern Ontario, Canada. The net proceeds from the sale of the Units will be used for general corporate purposes and for finders’ fees payable in respect to a portion of the private placement in accordance with the policies of the Toronto Stock Exchange.

Premier Gold Mines Limited is a Canadian based mineral exploration and development company with diverse property holdings that include several projects and deposits in Northwestern Ontario.These include several in the Red Lake gold mining camp, two of which are operated in joint venture with Goldcorp Inc. (TSX:G), and a strategic project located on the main Musselwhite Gold Mine trend (Goldcorp-Kinross).

For further information, please contact:

Ewan Downie, President
Phone: 807-346-1390
Fax: 807-345-0284
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.