Wolfden and Premier Announce their Guidance regarding the Computation of the Shareholders' Adjusted Cost Base for New Wolfden Common Shares and Premier Common Shares Issued in Connection with the Arrangement

August 22nd, 2006
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WOLFDEN RESOURCES INC. (TSX:WLF) and PREMIER GOLD MINES LIMITED (TSX:PG) announce their guidance regarding the computation of shareholders’ adjusted cost base for Canadian tax purposes in connection with the arrangement (the “Arrangement”) involving Wolfden and Premier which became effective on August 18, 2006, pursuant to which each shareholder of Wolfden received one new common share (“New Wolfden Common Share”) of Wolfden and 0.70 of a common share (“Premier Common Share”) of Premier for each common share (“Old Wolfden Common Share”) of Wolfden held by such shareholder immediately prior to the effective time of the Arrangement. In order to compute the adjusted cost base for Canadian tax purposes of the New Wolfden Common Shares and the Premier Common Shares received under the Arrangement, a shareholder should apportion the adjusted cost base of the Old Wolfden Common Shares immediately before the Arrangement on the following basis: 78.43% should be allocated to the New Wolfden Common Shares and 21.57% to the Premier Common Shares.

Pursuant to the Arrangement, Premier acquired the interest of Wolfden in the Bonanza and East Bay Projects as well as certain other mineral property interests of Wolfden in Ontario together with $2,000,000 in cash. A description of the Arrangement and of Wolfden and Premier upon completion of the Arrangement is set out in the management information circular dated May 29, 2006 of Wolfden which is available on SEDAR at www.sedar.com.

The New Wolfden Common Shares and the Premier Common Shares have commenced trading on the Toronto Stock Exchange under the symbols “WLF” and “PG”, respectively. The first financial year end for Wolfden and Premier subsequent to the completion of the Arrangement is December 31, 2006. Each of Wolfden and Premier will file interim financial statements for the interim period ending September 30, 2006 as well as annual financial statements for the year ending December 31, 2006.

Premier Gold Mines Limited is a new Canadian based mining and exploration company focussed on developing and acquiring high quality gold projects worldwide. Pursuant to an arrangement with Wolfden Resources Inc., which became effective on August 18, 2006, Premier acquired the interest of Wolfden in the Bonanza and East Bay Projects as well as certain other mineral property interests of Wolfden in Ontario together with $2,000,000 in cash and the shareholders of the Wolfden also became shareholders of Premier. It is expected that the common shares of Premier will commence trading on the Toronto Stock Exchange on Tuesday, August 22, 2006 under the symbol PG.

For further information, please contact:
John Seaman, CFO
Phone: 807-346-1668
Fax: 807-345-0284
e-mail: jseaman@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.