Premier continues to define high-grade gold at EP and SP Zone targets

           23.36 g/t Au across 5.4m within 6.60 g/t Au across 32.6m
           --------------------------------------------------------

    Shares Issued: 78,125,179

    THUNDER BAY, ON, July 22 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that drilling continues to define both open pit and
underground style gold mineralization within multiple subzones at the
Company's Hardrock Project in Northwestern Ontario. The current program,
consisting of delineation and exploration drilling, will continue throughout
2009 and is expected to result in an NI 43-101 compliant resource estimate by
year end.
    Drilling at the EP Zone is currently defining the limits of
mineralization within a high potential open pit zone. An update of results is
expected in the near future. Drilling in the South Porphyry ("SP") Zone
continues to demonstrate the potential of this area to host significant
high-grade, underground style, gold mineralization within multiple lenses.

    Highlights from recent drilling include:

    -  SP Zone: 6.60 g/t Au across 32.6 metres including 23.36g/t Au across
       5.4 metres within the SP Zone underground target

    Premier holds a 70% interest in the Hardrock Project, which is operated
under a joint venture with Roxmark Mines Limited (TSX-V:RMK). The Hardrock
Project is host to several past-producing mines which collectively produced
nearly 3.0 Million ounces of gold within 600 metres of surface from 1938-1968.
Early drilling in 2009 focused on open pit-style mineralization and is now
targeting the huge potential to expand higher grade mineralization amenable to
efficient underground mining methods.

    SP Zone
    -------

    Several highly prospective target areas, with the potential to host new
underground mineral resources, have been identified. Initial drilling to test
the potential of the SP Zone has returned multiple intersections of high-grade
gold mineralization. Historic work, including mining, in the SP Zone has
identified 3 lenses of mineralization that converge at the fold nose of the
main porphyry rock unit at Hardrock. The SP Zone was partially mined in the
upper levels of the mine with 264,354 tonnes (291,428 tons) of ore mined at an
average grade of 8.37g/t Au (0.244 oz/t). Intermittent historic drilling that
tested the unmined down-plunge extension of the SP Zone suggests the potential
to outline mineralization over a plunge length of nearly 3.0 kilometres (8,500
feet).

    Highlights from new drilling include 6.60g/t Au across 32.6m in hole
MM014 which is located approximately 150 metres down-plunge from a previous
intersection of 6.63 g/t Au across 28.1 m in hole MM05. SP Zone results
correlate very well with previous surface and underground drilling results,
all of which will be included in the Company's upcoming NI-43101 compliant
resource that is expected by year-end. Holes MM04 to MM06 were previously
released and are included to demonstrate the potential of this zone.

    Table 2    New Sub-Zone Intercepts within the SP Zone Target Area
    -------------------------------------------------------------------------
                UTM       Dip/                       Grade         Grade
            Coordinates Azimuth  From   To  Interval  (g/  Interval (oz/
    Hole-ID     (m)    (degrees)  (m)   (m)   (m)    tonne)  (ft)   ton) Zone
    -------------------------------------------------------------------------
    MM004(*) 5502718 N  -55/360  208.1  210.0   1.9   5.88    6.2   0.17   SP
              504306 E          ---------------------------------------------
                                 219.0  223.4   4.4   6.36   14.4   0.19   SP
                                ---------------------------------------------
                                 240.5  242.1   1.6   8.35    5.2   0.24   SP
                                ---------------------------------------------
                                 334.0  336.0   2.0   8.42    6.6   0.25    F
    -------------------------------------------------------------------------
    MM005(*) 5502703 N  -55/360  230.8  258.9  28.1   6.63   92.2   0.19   SP
              504257 E          ---------------------------------------------
    including                    252.9  258.9   6.0  17.14   19.7   0.50   SP
                                ---------------------------------------------
                                 272.3  273.5   1.2  10.92    3.9   0.32   SP
                                ---------------------------------------------
                                 297.5  300.5   3.0   4.57    9.8   0.13   SP
    -------------------------------------------------------------------------
    MM006(*) 5502694 N  -55/360  244.0  251.0   7.0   6.74   23.0   0.20   SP
              504199 E          ---------------------------------------------
                                 314.5  316.0   1.5   4.80    4.9   0.14    F
                                ---------------------------------------------
                                 371.0  373.2   2.2  36.22    7.2   1.06  HGV
    -------------------------------------------------------------------------
    MM007    5502649 N  -50/360  296.8  301.7   4.9   3.24   16.1   0.09   SP
              504147 E          ---------------------------------------------
                                 347.3  353.8   6.5   3.35   21.3    0.1    F
                                ---------------------------------------------
                                 367.9  369.2   1.3   8.40    4.3   0.25  HGV
    -------------------------------------------------------------------------
    MM008    5502720 N  -55/360  301.5  302.5   1.0   8.25    3.3   0.24    F
              504199 E          ---------------------------------------------
                                 357.0  359.0   2.0   4.05    6.6   0.12  HGV
    -------------------------------------------------------------------------
    MM009    5502649 N  -55/360  387.0  395.8   8.8   4.12   28.9   0.12   SP
              504200 E          ---------------------------------------------
    including                    393.0  395.8   2.8   7.36    9.2   0.21   SP
    -------------------------------------------------------------------------
    MM012    5502675 N
              504099 E  -55/360  hole abandoned
    -------------------------------------------------------------------------
    MM014    5502674 N  -55/360  285.7  318.3  32.6   6.60  106.9   0.19   SP
              504102 E          ---------------------------------------------
    including                    285.7  291.1   5.4  23.36   17.7   0.68   SP
                                ---------------------------------------------
    including                    286.7  287.8   1.1  93.40    3.6   2.73   SP
                                ---------------------------------------------
    including                    301.2  308.0   6.8   5.61   22.3   0.16   SP
                                ---------------------------------------------
    including                    315.5  318.3   2.8  10.40    9.2   0.30   SP
    -------------------------------------------------------------------------
    MM015    5502660 N  -50/360  342.5  344.0   1.5   5.17    4.9   0.15   SP
              504000 E          ---------------------------------------------
                                 353.0  356.0   3.0   6.51    9.8   0.19   SP
    -------------------------------------------------------------------------
    MM017    5502680 N
              503900 E  -55/360  assays pending
    -------------------------------------------------------------------------
    (*) Previously Released
    True widths estimated at approximately 70% of intersection widths

    NN-Zone
    -------

    Ongoing exploration drilling is also testing additional prospective
targets that could host underground style mineralization similar to the West
Zone at Hardrock from which 532,254 tons of ore was mined at an average grade
of 7.85g/t Au (0.23 oz/t). The New North ('NN') Zone, a narrow vein target
area, has returned numerous significant intercepts within the first several
holes drilled to test this zone. These initial results are presented in the
following table.

    Table 3     New Sub-Zone Intercepts within the NN Zone Target Area
    -------------------------------------------------------------------------
                UTM       Dip/                       Grade         Grade
            Coordinates Azimuth  From   To  Interval  (g/  Interval (oz/
    Hole-ID     (m)    (degrees)  (m)   (m)   (m)    tonne)  (ft)   ton) Zone
    -------------------------------------------------------------------------
    MM010    5502940 N          105.0  109.5   4.5    4.66    14.8  0.14   NN
              504124 E  -45/360 ---------------------------------------------
                                129.5  131.0   1.5    8.56     4.9  0.25   NN
    -------------------------------------------------------------------------
    MM011    5502919 N
              504050 E  -45/360                        NSV
    -------------------------------------------------------------------------
    MM013    5502904 N
              503950 E  -50/360 171.4  174.5   3.1    7.08    10.2  0.21   NN
    -------------------------------------------------------------------------
    MM016    5502900 N
              503980 E  -50/360 172.8  175.0   2.2    5.59     7.2  0.16   NN
    -------------------------------------------------------------------------
    MM017                                  Results Pending
    -------------------------------------------------------------------------
    MM018    5502899 N
              503920 E  -52/360 177.5  182.0   4.5    7.56    14.8  0.22   NN
    -------------------------------------------------------------------------
    True widths estimated at approximately 70% of intersection widths

    The Hardrock Project has the potential for defining several styles of
mineralization capable of hosting resources, with grades and widths similar to
many of Ontario's major gold mines including Open pit-style mineralization
with grades exceeding 1.5 g/t Au (Timmins, Hemlo), broad zones of
mineralization with grades averaging 5.0+ g/t Au (Musselwhite), and narrow
vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle
Lake). 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 Thunder
Bay, Ontario, for preparation and analysis utilizing both fire assay and
screen metallic methods.

    Premier Gold Mines Limited is a well-financed mineral exploration and
development company based in Canada, with mineral interests and deposits in
Northwestern Ontario and a joint venture in Mexico. Premier has recently
earned a 70% interest in the Hardrock Project, an advanced-stage gold project
in the Geraldton area. In the Red Lake gold mining camp, two properties are
operated in joint venture with Red Lake Gold Mines. The company's 100%-owned
PQ North Property is a strategic project located on the main Musselwhite Gold
Mine trend.

    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.

    %SEDAR: 00024152E

For further information: Ewan Downie, President & CEO, Phone: (807)
346-1390, Fax: (807) 346-0100, E-mail: Info@premiergoldmines.com, Web Site: