Premier completes acquisition of Saddle Gold

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Shares Issued: 98,790,220

THUNDER BAY, ON, June 15 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) ("Premier") is pleased to announce that it has closed its previously announced acquisition (the "Saddle Gold Acquisition") of Saddle Gold Inc. ("Saddle Gold"). Saddle Gold owns, among other things, the mineral rights in respect of a majority portion of the Saddle Gold Deposit (the "Saddle Property") and a 1.5% production royalty (the "Emigrant Springs Royalty") on the Emigrant Springs Deposit, both located in Elko County, Nevada.

The aggregate purchase price paid by Premier for all of the outstanding securities of Saddle Gold was US$24 million, with Premier paying an aggregate of US$3.1 million in cash and issuing an aggregate of 5,442,357 common shares, at a deemed price of C$4.00 per share, to the stockholders of Saddle Gold.

The Saddle Acquisition was completed by way of a merger transaction whereby, among other things, a wholly-owned Delaware subsidiary of Premier merged with and into Saddle Gold pursuant to the applicable provisions of the Delaware General Corporation Law. Following the completion of the Saddle Acquisition, Premier holds all of the assets and liabilities of Saddle Gold, including outstanding debt (the "Saddle Debt") in the principal amount of US$12 million pursuant to a 5% promissory note issued by Saddle Gold, through its wholly-owned Delaware subsidiary, Premier Gold Mines USA, Inc. The Saddle Debt is secured against, among other things, the Saddle Property and the Emigrant Springs Royalty and is payable on a declining balance from August 5, 2009, with the last principal and accrued interest payment due on August 5, 2016.

The Saddle Property is located in the heart of the Carlin Trend and is host to the extension of the Rain Mine deposit that was previously mined by Newmont Mining Corporation ("Newmont") by open pit and underground methods. The Saddle Gold Deposit, the majority of which sits on the Saddle Property, is host to a significant historic gold resource and is in close proximity to Newmont's Emigrant Springs Deposit (see Premier's press release dated June 7, 2010).

Stonecap Securities acted as Premier's exclusive Financial Advisor with respect to the Saddle Gold acquisition.

Premier Gold Mines Limited is a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and Nevada and a joint venture in Mexico. In the Red Lake gold mining camp, two 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 holds a 70% interest in the Hardrock Project.

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.

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For further information: Ewan Downie, President & CEO, Phone: [phone], Fax: [phone], e-mail: [email protected], Web Site: www.premiergoldmines.com