The “JV” deal:

Premier 70% interest

Goldstone 30% carried interest to production

Premier Gold Mines Limited acquired the right to earn up to a 70% interest in certain mineral claims in the Geraldton Hardrock Project pursuant to a letter of intent dated September 24, 2007 and amended on July 18, 2008, between Premier and Roxmark Mines Limited, a wholly-owned subsidiary of Goldstone Resources Inc.

In December 2008, Premier satisfied the Hardrock Earn-In Option Obligations, and as a result Premier and Roxmark/Goldstone hold a 70% interest and a 30% carried interest in the Hardrock Project, respectively. Premier is the operator and must decide to take the Hardrock Project to production within 5 years of the Hardrock $7million Earn–In completion (September 2016).

Premier will pay the costs associated with exploration and will pay mine development costs, in the event that Premier decides to take the Hardrock Project to production. Goldstone/Roxmark will then be required to reimburse the JV 30% of all capital costs incurred plus interest and management fees from the production cash flow.