Premier Gold Announces Satisfaction of Escrow Release Condition for Bought Deal Private Placement

Premier Gold Mines Limited (“Premier” or the “Company”) (TSX:PG) is pleased to announce that the condition (the “Escrow Release Condition”) to release from escrow the net proceeds of its recently completed bought deal private placement offering of 1,600,000 flow-through subscription receipts (“FT Receipts”) and 4,875,000 subscription receipts (“Subscription Receipts”) in the capital of the Company has been satisfied. As announced earlier today, the Company entered into a formal Joint Venture Agreement, as of May 28, 2007, with Red Lake Gold Mines, a partnership formed by Goldcorp Inc. and Goldcorp Canada Ltd., to hold the properties comprising the Rahill-Bonanza Project.

Effective as of May 30, 2007, each receiptholder is automatically deemed to have exchanged its FT Receipts for Flow-Through Shares and it’s Subscription Receipts for Units. Each FT Receiptholder and Subscription Receiptholder will automatically receive, without payment of additional consideration or the undertaking of any further action (including the surrender of any Receipt certificates) by such Receiptholder, one Unit for each Subscription Receipt held, and one Flow-Through Share for each FT Receipt held.

As the Escrow Release Condition has now been satisfied, the Company’s transfer agent shall deliver, as soon as practical, certificates representing the Flow-Through Shares and the Units, as applicable, to the address specified for such Receiptholder in the transfer agent’s register kept at its principal office.

Approximately C$16,237,616.59 representing the aggregate gross proceeds of the offering and interest thereon, less the commission and expenses of the underwriters, will be released from escrow and delivered to the Company within two business days of the date hereof. These funds are expected to be used for exploration and development of current projects, acquisitions and general corporate purposes. The gross proceeds from the sale of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and will be renounced for the 2007 taxation year.

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-Kinross). Premier is debt free and has a strong treasury.