Premier - East Bay Red Lake JV Drilling Intersects High Grade Gold

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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that follow-up drilling to the “Footwall Zone” discovery at the East Bay Project in the Red Lake gold mining district of Ontario has intersected high-grade gold mineralization. The East Bay Project is located along the East Bay Trend to the north of, and on strike from, Rubicon Minerals Phoenix Gold Project (and F2 Zone discovery).

The East Bay Project is one of two joint ventures Premier holds in the heart of the prolific Red Lake gold mining district in partnership with Red Lake Gold Mines (“RLGM”), a partnership between Goldcorp Inc. and Goldcorp Canada Ltd. RLGM is the operator and manages the activities at both the East Bay and Rahill-Bonanza Projects. A portion of the East Bay Property, including the Footwall Zone discovery area, is held 35% by Premier and 65% by RLGM, while the “Rivard Block”, adjacent to the new discovery, is held 50/50 with RLGM. The Rahill-Bonanza joint venture Project (Premier 49%, 51% RLGM) is located between the world class Red Lake Gold Mines complex to the east, and the Cochenour (Bruce Channel) complex to the west.

During the winter of 2010, and based on the F2 Zone exploration model, drilling tested a major regional shear at the footwall of the East Bay Ultramafic Trend. This drilling discovered two zones of gold mineralization that assayed 51.04 grams per tonne gold (g/t Au) across 0.7 metres (m) or 1.49 oz/ton across 2.3 feet as well as 7.25 g/t Au across 2.8 m (0.21 oz/ton across 9.0 feet) in EBJV10174 . The current drill program consisted of step-out holes to the north of this discovery hole. Drill Hole EBJV10176 intersected the Footwall Zone target (East Bay Shear Zone) with assays of 297.61 g/t Au across 1.0 m (8.68 oz/ton across 3.3 feet), as well as the QV Zone of 14.17 g/t Au across 0.8 m (0.41 oz/ton across 2.6 feet) . Results in the discovery area are presented in Table 1 below:

Table 1: Summary of East Bay Drill Results

Hole-ID UTM Coordinates
(m) NAD 27
EBJV10174* 5667676 N
450845 E
-59/133 510.3 511.0 0.7 51.04 2.3 1.49 QV
565.65 568.4 2.8 7.25 9.0 0.21 EBSZ
EBJV10176 5667525 N
451435 E
-44/283 90.9 91.7 0.8 14.17 3.3 0.41 EBSZ
296.0 297.0 1.0 297.61 3.3 8.68 QV
EBJV10177 5667701 N
451610 E
-45/269 200.5 201.0 0.5 2.44 1.6 0.07 EBSZ
457.4 458.1 0.7 2.59 2.3 0.08 QV

* Previously released * True widths of new intercepts estimated at 40-60% of intersection width ** QV = Quartz Vein, EBSZ = East Bay Shear Zone

Rahill-Bonanza Project

In addition to the East Bay Project in Red Lake, Premier recently announced results from drilling at the Rahill-Bonanza Project in Red Lake, also a joint venture with RLGM (Premier holds 49% of Rahill-Bonanza). At Rahill-Bonanza, hole PG10082, that was drilled to test the extension of the “2E” Zone at the Wilmar Gold Mine (200 metres down-plunge of the historic workings), intersected bonanza mineralization of 68.87 g/t Au across 3.5 m (2.01 oz/t across 11.5 ft) contained within a wider “silica-carbonate breccia” interval of 8.50 g/t across 32.88 m (0.25 oz/ton across 107.8 feet). This intercept occurs 500 metres east of the recent PG70 Zone discovery (from Oct. 21, 2010, Press Release) .

Newman Madsen Project

Premier and Sabina Gold & Silver Corp (SBB:TSX) have also initiated the first of a two-phase exploration program on its Newman-Madsen Project. Newman-Madsen is one of the Company’s early stage exploration projects in Red Lake and is held in a 50/50 joint venture with operator Sabina. This exploration program is focused on testing the northeastern extension of Madsen Mine Trend stratigraphy at levels significantly deeper than previously explored. Historic exploration recognizes a marked similarity of the unconformity horizon to that of the Madsen Mine (>2.4 million ounces) setting, indicating that these horizons have the potential to host significant gold mineralization at depth.

In addition to the Red Lake projects, Premier has eleven drills active on the Hardrock Project (Premier holds a 70% interest) and is in the planning process to commence drilling at the Company’s 100% owned Saddle Gold Project located in the heart of the prolific Carlin Trend in Nevada.

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 Ancaster, Ontario, or to Accurassay 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, Nevada, and a joint venture in Mexico. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, an affiliate of Goldcorp Inc. The company also owns a strategic project located on the main Musselwhite Gold Mine trend, a 70% interest in the Hardrock Project, and recently announced the acquisition of Saddle Gold Inc. and now holds the Saddle Project on the prolific Carlin Trend, in Northeastern Nevada, and a royalty in Newmont’s Emigrant Springs Project.