PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that the haulage drift that is being constructed to link the Red Lake Gold Mines Complexes to the Cochenour Complex has intersected multiple mineralized quartz-carbonate vein structures since crossing onto the Rahill-Bonanza Joint Venture Project. ------------.

The haulage drift is being excavated from the 5400 foot Level of Red Lake Gold Mines and will intersect several kilometres of some of the highest potential and untested geology in the heart of the Red Lake camp. The drift has recently intersected a sequence of gold-bearing structures that are currently being core drill-tested.

Several narrow structures hosting favourable alteration and mineralization have recently returned, in muck and chip samples, encouraging gold grades from anomalous up to 16.46 grams per tonne gold (g/t Au) or 0.48 ounces per ton (oz/t Au). Additionally, a previously drilled pilot hole also returned elevated gold grades. The exploration drilling program from the drift on the Joint Venture Property is slated to commence in H2-2012. However, following the completion of the current pilot hole additional shorter holes are planned targeting an area where numerous gold-bearing structures were identified.

"A number of favourable structures have been intersected by the haulage drift on the Joint Venture Property. This continues to confirm the potential of this highly prospective, yet un-explored part of one of the world's premier high-grade gold camps" stated Stephen McGibbon, Executive Vice-President, Project and Corporate Development for Premier. "The fact that multiple structures have been identified in the first several hundred metres since crossing onto the JV speaks to the potential that could be realized from the drift. For the balance of 2012, all underground tram construction will be on the JV Property and regular updates are being received". --------------------------.