Premier Announces $10 Million Financing

August 26th, 2009
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THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

PREMIER GOLD MINES LIMITED (“Premier”) (TSX: PG) is pleased to announce that it has entered into an agreement with Thomas Weisel Partners Canada Inc., as lead agent on behalf of a syndicate of agents (collectively, the “Agents”) in connection with a best efforts private placement offering of “flow-through” common shares (the “Flow-Through Shares”) of Premier at a price of $3.65 per Flow-Through Share for aggregate gross proceeds of up to $10 million. The Flow-Through Shares will be offered by way of private placement to accredited investors in each of the provinces of Canada.

Premier plans to use the gross proceeds from the sale of the Flow-Through Shares for exploration programs to be conducted on the Hardrock project, Red Lake projects and PQ North project in Ontario. The private placement is expected to close on or about September 10, 2009 and is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

PREMIER is a Canadian based mineral exploration and development company focused primarily on discovering and developing gold deposits at its strategically-located Red Lake, Ontario joint venture properties. Premier continues to evaluate other high quality North American based gold projects with the strong belief that aggressive exploration in proven districts will repeatedly reward shareholders.


For further information, please contact:
Ewan Downie, President
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: info@premiergoldmines.com
Web Site: www.premiergoldmines.com

This press release contains “forward looking statements”, within the meaning of Canadian securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry, the risk of commodity price and foreign exchange rate fluctuations, the ability of Premier to complete the financing and fund the capital and operating expenses necessary to achieve the business objectives of Premier, as well as those risks described in public disclosure documents filed by Premier. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Premier should not place undue reliance on these forward-looking statements

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.