The Hardrock project is operated under a joint venture with Goldstone Resources Inc. “GRC” TSX (Premier Gold Mines “PG”TSX owns a 70-per-cent interest).

Jan. 5, 2010 - News Release Mr. Ewan Downie of Premier Gold reports

PREMIER GOLD - DEEP DRILLING AT HARDROCK INTERSECTS HIGH GRADE GOLD INCLUDING 10.05G/T (0.29 OZ/TON) GOLD OVER 24.2M (79.4 FEET)

Premier Gold Mines Ltd.'s multiple deep drill holes have intersected broad zones of high-grade gold mineralization below the bottom level of the historically mined North zone at the Hardrock project in Northwestern Ontario. Highlights include intercepts of 10.05 grams per tonne gold (g/t Au) across 24.2 metres or 0.29 ounce per ton across 79.4 feet; and 8.41 g/t Au across 22.9 metres, or 0.25 ounce per ton across 75.1 feet. This drilling confirms that the North zone deposit is wide open at depth.

North zone deeps All holes drilled to test the downdip potential of the mine have intersected multiple zones of gold mineralization to 100 metres below the mined portion of the North zone.

Significant intercepts include: 39.20 g/t Au across 4.8 metres (1.14 ounces per ton gold across 15.7 feet) in MM050; 18.86 g/t Au across 3.3 metres (0.55 ounce per ton across 10.8 feet) in MM050A; 21.90 g/t Au across 1.5 metres (0.64 ounce per ton across 4.9 feet) in MM079; 8.41 g/t Au across 22.9 metres (0.25 ounce per ton across 75.1 feet); 15.95 g/t Au across 8.1 metres (0.47 ounce per ton across 26.6 feet) in MM079A; 10.05 g/t Au across 24.2 metres (0.29 ounce per ton across 79.4 feet); 20.76 g/t Au across 5.4 metres (0.61 ounce per ton across 17.7 feet) in MM079B.

Stephen McGibbon, Premier's executive vice-president and chief operating officer, said: "Hardrock continues to exceed even our optimistic expectations. These solid results bode well for our forthcoming resource estimate and our ongoing aggressive drilling program. During 2010, we are eager to continue to further outline both the open-pit and underground potential of Hardrock." -------. A full presentation detailing the location of this deep drilling is available at the company's website.

Continuing 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 National Instrument-43-101-compliant resource estimate that is expected to be completed early in 2010 (initial open-pit resource).

The focus of drilling has now shifted toward defining underground-style zones that will be included in an updated resource that is expected in the third quarter of 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 15.97 g/t Au across 32.1 metres and 4.13 g/t Au across 18.9 metres in the Tenacity zone, 5.2 g/t Au across 37 metres and 19 g/t Au across 11.3 metres in the EP zone, 6.4 g/t Au across 22.4 metres and 52.9 g/t Au across 7.9 metres in the NN zone, and 1.47 g/t Au across 162 metres and 2.16 g/t Au across 92.2 metres 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 metres and 9.7 g/t Au across 11.8 metres;

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 ounces per ton) across two metres and 49.8 g/t Au across six metres;

Historical resource blocks that remain within the mine workings and the main mined zones which remain open below the 600-metre level as tested by holes MM050 and MM079.

The Hardrock project is operated under a joint venture with Goldstone Resources Inc. (Premier owns a 70-per-cent interest). Goldstone Resources is the product of a merger between Roxmark Mines Ltd., Premier's original Hardrock project joint venture partner, and Ontex Resources Ltd. The Hardrock project is host to several past-producing mines, which collectively produced nearly three million ounces of gold primarily from relatively shallow depths (600 metres) from 1938 to 1968. The Hardrock project benefits from development advantages with the Trans-Canada Highway, Trans-Canada pipeline and major power lines running through the centre of the property. -----.