Wed Apr 6, 2011

Premier Gold Mines Limited (TSX-PG) is very pleased to announce that an updated National Instrument (NI) 43-101 compliant mineral resource estimate has been completed by Micon International Limited for its 70%-owned Hardrock Project, located near Geraldton in Northwestern Ontario. The estimate reports a significant increase in all categories, including the use of a measured category for the first time and is summarized in Table 1. All final data available as of February 28, 2011 were used in completing the estimate. In 2010, there were 114,000 metres of drilling at Hardrock on multiple near surface and deeper zones. Many of these remain open for expansion and are the subject of an ongoing drill program in 2011.

Highlights of Micon's new mineral resource estimate include:

• A 269% increase in Measured and Indicated resources to 2.5 million ounces.
• A 164% increase in Inferred resources to 1.1 million ounces.
• A 30% increase in the "potential open pit" Measured and Indicated resource grade to 2.37 grams per tonne gold (g/t Au).
• A 37% increase in the "potential open pit" Inferred resource grade to 2.48 g/t Au.
• Some 40% of the Measured and Indicated resource ounces are categorized as "Measured."
• A "Whittle-Pit" analysis suggesting a strip ratio on potential open pit mineral resources of 2.1 to 1.
• The Kailey ("potential open pit") Deposit resource is included and contains 127,000 ounces of Measured and Indicated Resources at 1.57 g/t Au and 10,000 ounces of Inferred resources at 1.48 g/t Au.

Premier President & CEO, Ewan Downie states "This robust mineral resource estimate at Hardrock is the result of a great team effort and 24 months of aggressive exploration. This resource estimate is in line with our goal of developing a significant deposit, potentially capable of mid-tier gold production. With 8 drills currently active on the Property and several zones still open for expansion, we continue to see considerable upside in this resource."

In 2011, more than 70,000 metres of drilling is planned to continue to expand and upgrade these resources. Additionally, regional exploration in the search of the "next one" in the Hardrock area is underway. The near-term goal is to secure permits for Advanced Exploration, which will include de-watering of the historic mine workings and the construction of an Exploration Ramp. The ramp will allow underground drilling to be completed in support of a preliminary economic assessment to evaluate the potential for a future mining operation to be established at Hardrock. -----