Premier Continues to Define High-Grade Gold at EP Zone Target 17.16 g/t Au across 9.5

July 29th, 2009
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce results from drilling in the EP Zone target that continues to define significant high-grade gold mineralization in multiple zones at the Company’s Hardrock Project in Northwestern Ontario. The current program, consisting of delineation and exploration drilling, will continue throughout 2009 and is expected to result in an NI 43-101 compliant resource estimate by year end.

The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier holds a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold, primarily from relatively shallow depths (600 metres) between 1938 and 1968. Importantly, the Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario’s major gold mines including: open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo); broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite); and narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake). The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.

Drilling for the balance of the year will focus on defining both open pit and underground mineralization such that the Property can be moved towards advanced exploration and feasibility. Drilling at the EP Zone target continues to exceed expectations with drilling now having intersected mineralization over a strike length of some 650 metres and to depths approaching 200 metres in the central portion of the deposit. Additionally, drilling continues to intersect mineralization in the South Porphyry Zone (“SP”) as drilling continues to define the zone down-plunge, returning high grade gold within multiple zones. Highlights from recent drilling (some previously released) include:

•EP Zone: 5.21 grams per tonne gold (g/t Au) across 37.0 metres (m) within the North Limb

6.51 g/t Au across 18.4 metres within the North Limb

19.03 g/t Au across 11.3 metres & 17.16 g/t Au across 9.5m in step-out South Limb drilling
•SP Zone: 6.63 g/t Au across 28.1 metres within the SP Zone underground target

6.60 g/t Au across 32.6 metres within the SP Zone

36.22 g/t Au (1.06 oz/ton) across 2.2 metres within the HGV Zone target

EP-Zone

The EP-Zone has been identified as a potential high-grade open pit target in the vicinity of the historic North Zone, from which 2.97 Million tonnes of ore was mined at a recovered grade of 7.54 g/t Au. Previous highlights that include 7.60 g/t Au across 20.5 m in hole EP044, 2.37 g/t Au across 62.7 m in hole EP026, 4.17 g/t Au across 29.0 m in hole EP053, 5.21 g/t Au across 37.0 m in hole EP079, and 19.03 g/t Au across 11.3 m in hole EP080 continue to define and expand mineralization within the confines of the target pit area at EP.

Table 1 summarizes highlights from new assay results at the EP-Zone. A complete table of results for the EP Zone can be found on the Company’s website, www.premiergoldmines.com.

Table 1 New Sub Zone Intercepts within the EP Zone Target Area

Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From (m) To (m) Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
EP081 5503001 N
504815 E
-60/360 17.0 26.0 9.0 2.17 29.52 0.06 PIT
188.5 203.5 15.0 2.76 49.2 0.08 SL
219.0 230.0 11.0 3.66 36.08 0.11 NL
264.5 268.0 3.5 17.94 11.5 0.52 NLB
EP082 5503000 N
504850 E
-60/360 134.1 136.5 2.4 1.66 7.9 0.05 SLB
167.5 183.1 15.6 1.05 51.2 0.03 SL
196.5 202.9 6.4 1.87 21.0 0.05 NL
206.9 210.5 3.6 7.47 11.8 0.22 x
EP083 5503011 N
504903 E
-60/360 37.5 39.4 1.9 12.54 6.2 0.37 SLC
88.5 96.0 7.5 1.66 24.6 0.05 SLB
131.2 137.2 6.0 8.45 19.7 0.25 SL
EP084 5503095 N
504915 E
-45/360 33.5 36.8 3.3 7.93 10.8 0.23 SLB
44.3 45.2 0.9 21.70 3.0 0.63 SL
EP085 5503162 N
504950 E
-45/180 7.3 29.8 22.5 4.15 73.8 0.12 NL
51.0 56.0 5.0 1.32 16.4 0.04 SL
EP086 5503228 N
505050 E
-50/180 134.5 140.5 6.0 1.35 19.7 0.04 NL
EP087 5503160 N
505052 E
-45/180 15.5 33.9 18.4 6.51 60.4 0.19 NL
45.4 46.9 1.5 3.50 4.9 0.10 SL
EP088 5503049 N
505052 E
-65/360 104.0 104.9 0.9 8.92 3.0 0.26 SL
EP089 5502999 N
505101 E
-45/360 111.0 114.0 3.0 1.60 9.8 0.05 SLB
EP090 5503100 N
504099 E
-45/360 21.0 40.0 19.0 2.43 62.3 0.07 SL
including 21.0 29.0 8.0 5.06 26.2 0.15 SL
including 26.6 27.7 1.1 20.70 3.6 0.60 SL
EP091 5503180 N
505098 E
-45/180


NSV


EP092 5503164 N
505149 E
-45/360


NSV


EP093 5503001 N
504815 E
-45/360 51.0 53.0 2.0 5.30 6.6 0.15 SLC
107.5 109.0 1.5 3.23 4.9 0.09 SL
EP094 5503124 N
505198 E
-45/360


NSV


EP095 5503075 N
505198 E
-45/360


NSV


EP096 5503024 N
505200 E
-45/360 115.5 118.5 3.0 1.56 9.8 0.05 SLB
128.5 129.5 1.0 26.10 3.3 0.76 SL
EP097 5503075 N
504500 E
-45/360 109.0 110.5 1.5 7.19 4.9 0.21 SL
118.2 120.7 2.5 3.80 8.2 0.11 NL
154.5 161.4 6.9 1.49 22.6 0.04 NLB
175.5 178.5 3.0 14.97 9.8 0.44 NLC
EP098 5503001 N
504450 E
-50/360 4.8 6.3 1.5 3.78 4.9 0.11 SLB
38.5 40.0 1.5 6.64 4.9 0.19 SL
211.9 251.9 40.0 1.13 131.2 0.03 NL
including 241.0 245.1 4.1 3.06 13.4 0.09 NLC

EP099

5503030 N
504450 E

-50/338




NSV




EP100

5502970 N
504450 E

-50/360

51.0

60.5

9.5

17.16

31.2

0.50

SLB

115.5

118.5

3.0

1.96

9.8

0.06

SL

152.0

154.5

2.5

8.20

8.2

0.24

NL

175.0

179.5

4.5

7.94

14.8

0.23

NLB

262.5

268.1

5.6

2.25

18.4

0.07

NLC


* True widths estimated at approximately 70% of intersection widths

SP Zone

At Hardrock, the SP Zone was partially mined in the upper Levels of the mine with 264,354 tonnes (291,428 Tons) of ore mined at an average grade of 8.37g/t Au (0.244 oz/t). Intermittent historic drilling that tested the un-mined down-plunge extension of the SP Zone suggests the potential to define mineralization over a plunge length of nearly 3.0 kilometres (8,500 feet). The initial holes drilled have now intersected mineralization over a minimum plunge length of 500 metres where it remains open. Highlights include 6.60 g/t Au across 32.6 m and 6.63 g/t Au across 28.1 m within the SP Zone, and 36.22 g/t Au across 2.2 m within the HGV Zone.

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. Assay results are from core samples sent to Activation 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 well financed Canadian-based mineral exploration and development company with 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 Red Lake Gold Mines. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently acquired mineral properties in Geraldton area from Barrick Gold.

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.