Premier completes CDN$32.0 million equity financing

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /

Shares Issued: 92,527,679

THUNDER BAY, ON, Feb. 2 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) (the "Company" or "Premier") is pleased to announce that it has completed its previously announced offering of Cdn$32.0 million of common shares, on a "bought deal" basis, at a price of Cdn$4.00 per common share (the "Offering"). The Offering was conducted by a syndicate of underwriters led by Canaccord Financial Ltd. and included Thomas Weisel Partners Canada Inc., RBC Capital Markets, Laurentian Bank Securities and Octagon Capital Corporation (collectively, the "Underwriters").

The Company has granted the Underwriters an option (the "Over-Allotment Option") to purchase additional common shares of Premier to raise additional gross proceeds of up to 15% of the Offering, on the same terms and conditions as the Offering, exercisable any time, in whole or in part, up to and including the date that is 30 days after the closing date of the Offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to Premier will be Cdn$36.8 million.

The net proceeds from the Offering are expected to be used for general corporate and working capital purposes and to fund the Company's share of the anticipated ongoing exploration and development activities at the Rahill-Bonanza project.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States , nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Premier Gold Mines Limited is a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico . In the Red Lake gold mining camp, two of the projects are operating in joint venture with Red Lake Gold Mines. The Company also owns a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area, and owns a strategic project located on the main Musselwhite Gold Mine trend.

The statements made in this Press Release may contain forward-looking information within the meaning of applicable Canadian securities laws and which is prospective in nature, requires the Company to make assumptions and is subject to inherent risks and uncertainties. In this Press Release, forward-looking information includes, among other things, the expected use of the net proceeds from the Offering. In connection with the forward-looking information contained in this Press Release, the Company has made certain assumptions about the Company's business, the economy and the mineral exploration industry in general and has also assumed, among other things, that plant and equipment work as anticipated, no unusual geological or technical problems occur, no material adverse change in the price of gold occurs and no significant events occur outside of the Company's normal course of business. Readers are cautioned not to place undue reliance on the forward-looking information in this Press Release because a number of factors, known and unknown, could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate. The following, among other things, are material factors that could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this Press Release: the possibility that future exploration, development or mining results will not be consistent with expectations, risks inherent to the mining industry, joint venture risk, environmental risks, economic uncertainties, the future price of gold, and other related matters. Although the Company has attempted to identify material factors that could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this Press Release, there may be other factors that could cause results to differ from what is anticipated, estimated or intended. Those factors are described or referred to in the Company's short form prospectus dated January 26, 2010 under the heading "Risk Factors". Except as required under applicable laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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