Premier-Goldcorp Red Lake Update - Drilling Intersects Additional High-Grade Mineralization

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October 22nd, 2007
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that ongoing drilling at the Rahill-Bonanza Project has intersected high-grade mineralization in the West Granodiorite Zone and that drilling has now started to test the West Mine target. The “Rahill-Bonanza Project” is being operated under a 50/50 exploration joint venture between Premier and Red Lake Gold Mines (RLGM), an affiliate of GOLDCORP INC. (TSX:G, NYSE:GG).

The West Granodiorite Zone (‘WGZ”) is located west of, and along strike from the Wilmar Zone, and was historically viewed as a bulk-tonnage (2-3g/t Au) target. The current program, consisting of 6 holes, was designed to attempt to identify higher-grade mineralization within the core of the WGZ. This drilling has successfully returned several significant high-grade intersections including 29.9 g/t Au across 0.8 meters and 12.2 g/t Au across 2.9 meters.

HOLE NO. INTERSECTION (m) WIDTH (m) ASSAY (g/t Gold) Zone
PG07019 426.00-429.00 3.0 3.0 (0.09 oz/ton) WGZ
PG07019 439.60-443.00 3.6 3.4 (0.11 oz/ton) WGZ
PG07020 552.00-552.80 0.8 29.9 (0.96 oz/ton) WGZ
PG07020W1 574.10-577.00 2.9 12.2 (0.39 oz/ton) WGZ
Inc. 574.10-575.00 0.9 18.5 (0.59 oz/ton) WGZ
Inc. 576.00-577.00 1.0 16.7 (0.54 oz/ton) WGZ

NOTE: True widths estimated at approximately 65% of intersection width

Drilling has been activated on the “Mine West” target, located immediately west of, and along strike from, the RLGM complex. A fourth drill has been mobilized to begin deep drilling at the Bonanza deposit. The Mine West drilling is designed to test the western extension of the ultramafic rock unit that is host at Red Lake Gold Mines and the on-strike extension of the “S and F Zones” at the mine. Drilling planned at Bonanza will target 1000m below the deepest intercepts to date with the intent of demonstrating continuity of mineralization to 1600m below surface. Additional drilling at Bonanza will consist of in-fill and expansion drilling to further define the Bonanza deposit, discovered in 2004, where previous drilling has returned numerous significant intersections to depths of less than 400 meters including 13.27 g/t Au across 19.00 meters, 8.66 g/t Au across 22.0 meters and 5.05 g/t Au across 34.95 meters. A NI 43-101 compliant mineral resource estimate is planned for Bonanza in early 2008.

Drilling also continues at the Wilmar Mine area and from the RLGM complex. Drilling at Wilmar has intersected multiple gold horizons including a new zone discovered in the hanging wall of the Wilmar Horizon. Drilling toward the Joint Venture project from the Mine complex continues with a hole collared on the 41 Level (approximately 1,875 meters or 6,150 feet below surface) of the Campbell Complex (formerly Campbell Mine) of Red Lake Gold Mines. The following table provides a summary from the first two holes that have intersected the Wilmar target horizon from the current program, additional assays are expected in the near future:

HOLE NO INTERSECTION (m) WIDTH (m) ASSAY (g/t Gold) Zone
PG07015W4 1273.00-1274.00 1.0 49.00 (1.43 oz/ton) New - Qtz Carb
PG07018W1 905.00-910.00 5.0 14.19 (0.41 oz/ton) New - Qtz Carb
Incl. 905.00-906.00 1.0 59.09 (1.72 oz/ton)

995.00-996.00 1.0 8.81 (0.26 oz/ton) South Breccia

NOTE: True widths estimated at approximately 65% of intersection width

The Rahill-Bonanza Project is strategically located along the main Red Lake “Mine Trend” between the Red Lake Gold Mines to the east and the Cochenour Gold Mine and Bruce Channel discovery to the west (See Figure 1 & 2). The geological setting at Wilmar shares many similarities to the Red Lake Gold Mines, located in the same suite of rocks to the east, and the Cochenour Mine-Bruce Channel discovery to the northwest. The current drilling is part of a major, two year, exploration program ($5 Million budgeted for 2007) that will test several prospective targets on the Property.

Figure 1(Click to Enlarge)

Figure 2(Click to Enlarge)

Matt Long, Project Manager of Premier, 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. Core is sent to Accurassay Laboratories in Thunder Bay for Assay.

Ewan Downie, President & CEO will be giving a presentation today at 12:00pm EST in Workshop 3 at the 2007 Toronto Resource Investment Conference being held at the Metro Toronto Convention Centre, South Building, 222 Bremner Blvd. Toronto, ON. You are also invited to visit Premier Gold Mines Limited at booth #414. For more information on this or other shows hosted by Cambridge House International Inc., visit www.goldshow.ca.

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 and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Goldcorp Inc. (TSX:G). A strategic project is also located on the main Musselwhite Gold Mine trend (Goldcorp Inc.).

For further information, please contact:
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-345-0284
E-mail: info@premiergoldmines.com Web Site: http://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.