Premier Gold drills deep at Hardrock; intersects high grade gold including
39.2g/t (1.14 oz/ton) gold over 4.8m (15.7 feet)

Shares Issued: 84,452,179

THUNDER BAY, ON, Dec. 1 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that deep drilling has intersected multiple high-grade gold zones below the bottom level of the historically mined North Zone at the Hardrock Project in Northwestern Ontario. Highlights include an intercept of 39.20 grams per tonne gold (g/t Au) across 4.8 metres (m) or 1.14 oz/ton across 15.7 feet (ft). This hole has confirmed that the North Zone deposit is wide open at depth, with intersections as deep as 40 metres below the historic workings. Additionally, final work is being done in advance of releasing an initial NI43-101 resource calculation for Hardrock on open pit style deposits.

    
    North Zone Deeps
    ----------------
    

The first hole drilled to test the down-dip potential of the mine, MM050, has intersected multiple zones of high-grade gold mineralization immediately below the mined portion of the North Zone. Significant intercepts include:

    
    -   39.20 g/t across 4.8 m (1.14 oz/ton across 15.7 ft) from 662.7 m to
        667.5 m

    -   3.65 g/t Au across 3.0 m (0.11 oz/ton across 9.8 ft) from 681.0 m to
        684.0 m

    -   4.03 g/t Au across 6.9 m (0.12 oz/ton across 22.6 ft) from 703.9m to
        710.8m

    -   Includes 7.90 g/t Au across 2.6 m (0.23 oz/ton across 8.5 ft) from
        703.9m to 706.5m
    

Additional drilling to test the extension of the North Zone continues to intersect multiple mineralized zones including a broad mineral-rich section down dip from hole MM050. Figure 1 below, a 3D longitudinal section of the Hardrock Project highlighting hole MM050.

The North Zone was previously mined to a depth of 2,000 feet (610 m) with production of 2.97 million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). Mining in the West Zone, a part of the North Zone horizon, resulted in the extraction of 532,254 tons with a recovered grade of 0.23 oz/ton (7.85 g/t Au). Premier has completed a second deep hole, MM079, from which several wedge holes are planned to further define the depth potential of the North Zone.

Ongoing work at Hardrock is testing both open pit and underground type targets. Several potential open pit zones have been delineated to be included into a NI43-101 compliant resource calculation which is expected to be completed in Q4 2009 (initial open pit resource). The focus of drilling has now shifted towards defining underground-style zones that will be included in an updated resource that is expected in Q3 2010.

Significant potential exists for developing resources in several areas including:

    
    -   Open pit-style mineralization in the main areas, the Tenacity, EP
        (includes NN) and Kailey Zones. Significant results to-date include:
        15.97g/t Au across 32.1 m and 4.13 g/t Au across 18.9 m in the
        Tenacity Zone; 5.2 g/t Au across 37.0 m and 19.0 g/t Au across 11.3 m
        in the EP Zone; 6.4g/t Au across 22.4 m and 52.9 g/t Au across 7.9 m
        in the NN Zone; and 1.47 g/t Au across 162.0 m and 2.16 g/t Au across
        92.2 m in the Kailey Zone.

    -   Underground-style mineralization in the SP Zone where drilling has
        returned numerous significant intercepts including 6.6 g/t Au across
        32.6 m and 9.7 g/t Au across 11.8 m.

    -   New high-grade vein targets, including the HGN discovery where recent
        drilling has intersected significant visible gold with intercepts
        that include 1,141.5 g/t Au (33.3 oz/ton) across 2.0 m and 49.8g/t Au
        across 6.0 m.

    -   Historical resource blocks that remain within the mine workings and
        the main mined zones which remain open below the 13th level (610 m
        below surface) as tested by hole MM050.

    Figure 1: 3D Longitudinal Section of Hardrock Project with MM050 drill-
    hole intercept.

    Please see URL for Figure 1:
    http://files.newswire.ca/598/Figure-1-Hardrock-Prjct.doc
    

The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from relatively shallow depths (600 metres) from 1938-1968. The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.

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, 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 active projects and deposits in Northwestern Ontario. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, an affiliate of Goldcorp Inc., and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.

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