Premier expands high-grade zones at Hardrock - 1.45 oz/ton gold over 20 feet

Shares Issued: 82,657,779

THUNDER BAY, ON, Oct. 27 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling continues to delineate multiple high-grade gold zones at the Hardrock Project in Northwestern Ontario. Highlights from recent drilling include additional high-grade intersections in the High Grade North (HGN) Zone and the discovery of near-surface high-grade vein-style mineralization in the New North (NN) Zone:

    -   Drilling to follow-up intersections of up to 1,141.5g/t Au across
        2.0m in the HGN Zone continues to define high-grade vein-style
        mineralization with new intercepts of up to 49.81g/t Au across 6.0m.

    -   Drilling at the NN Zone has intersected near-surface high-grade vein-
        style mineralization with intersections of up to 39.15 g/t Au across
        3.6m in addition to further defining potentially open pit-style
        mineralization along strike from the EP Zone.

    -   Expansion drilling at the South Porphyry (SP) Zone continues to
        define high-grade mineralization with intersections of up to 15.68g/t
        Au across 3.4m.

Recent drilling has discovered high-grade gold mineralization (HGN Zone) in close proximity to existing mine workings below and north of the main EP Zone. Mineralization has been intersected over a plunge length of approximately 200 metres where it remains open up and down plunge. New intersections including 49.81g/t Au (1.45 oz/ton gold) across 6.0m (19.7 feet) in hole EP119 compliment previously released intersections of 1,141.54 g/t Au (33.33 oz/ton) across 2.0m (6.6 Feet) in hole EP105 within the HGN Zone, 8.84g/t Au (0.26 oz/ton) across 7.0m (23.0 feet) in hole EP105 within the NL Zone and 12.5g/t Au (0.36 oz/ton) across 6.7m (22.0 feet) in hole OR007 within the NL Zone. New drill results from the HGN Zone are contained in Table 1.

Recent near-surface holes drilled in the NN Zone, located along strike (and west of) from the EP Zone, suggest the potential for defining open-pit resources with intersections up to 6.42g/t Au (0.24 oz/ton) across 22.4m (73.5 feet). Follow-up drilling continues to define broad zones of near-surface mineralization in addition to a new high-grade vein zone that has returned 39.15g/t Au (1.14 oz/ton gold) across 3.6m (11.8 feet) in hole MM048. New drill results from the NN Zone are contained in Table 1.

"This is a very significant discovery for the Hardrock Project" says Ewan Downie, President. "The NN Zone mineralization appears to be continuous with EP Zone mineralization and has the potential to expand the EP Zone open pit-type mineralization to the west, from 700-metre strike length to more than 1,100 metres in strike length."

Drilling in the SP Zone has returned multiple intersections of high-grade gold mineralization over a plunge length of approximately 900 metres with new results of up to 15.68g/t Au (0.46 oz/ton) across 3.4m (11.2 feet) intersected in MM048, when following-up previously announced intercepts of 6.60g/t Au (0.19 oz/ton) across 32.6m (107.0 feet) in hole MM014, 17.14g/t Au (0.50 oz/ton) across 7.0m (23.0 feet) in hole MM005, and 9.70g/t Au (0.28 oz/ton) across 11.8m (38.7 feet) in hole MM024 down-plunge from the historically mined SP Zone. 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). New drill results from the SP Zone are contained in Table 1.

    Table 1   New Sub Zone Intercepts from Hardrock

    -------------------------------------------------------------------------
                  UTM       Dip/             Inter- Grade          Grade
              Coordinates Azimuth  From  To   val   (g/   Interval (oz/
    Hole-ID       (m)    (degrees) (m)   (m)  (m)  tonne)   (ft)   ton) Zone
    -------------------------------------------------------------------------
    EP117      5502940 N  -60/360 286.5 300.4 13.9   0.90    45.6  0.03  NLB
                504675 E
    -------------------------------------------------------------------------
                                  305.7 322.6 16.9   1.80    55.4  0.05  NLC
    -------------------------------------------------------------------------
                                  374.0 374.4  0.4   9.59     1.3  0.28  HGN
    -------------------------------------------------------------------------
    EP118      5502910 N  -60/360 364.5 370.5  6.0  49.81    19.7  1.45  NLC
                504725 E
    -------------------------------------------------------------------------
    including                     364.5 366.0  1.5 291.00     4.9  8.50  NLC
    -------------------------------------------------------------------------
    MM047      5502968 N  -45/360  66.0  86.0 20.0   1.54    65.6  0.04  NN
                504297 E
    -------------------------------------------------------------------------
    MM048      5502968 N  -45/360  26.8  30.4  3.6  39.16    11.8  1.14  HGV
                504352 E
    -------------------------------------------------------------------------
                                  106.9 112.2  5.3   3.09    17.4  0.09  NN
    -------------------------------------------------------------------------
    EP119      5502925 N  -50/360 139.5 142.5  3.0   1.20     9.8  0.04  NN
                504401 E
    -------------------------------------------------------------------------
                                  208.8 219.0 10.2   5.67    33.5  0.17  SLA
    -------------------------------------------------------------------------
                                  337.8 339.6  1.8   9.40     5.9  0.27   x
    -------------------------------------------------------------------------
                                  346.2 355.4  9.2   1.80    30.2  0.05  HGN
    -------------------------------------------------------------------------
    including                     353.5 355.4  1.9   3.95     6.2  0.12  HGN
    -------------------------------------------------------------------------
    EP120      5502994 N  -45/360  47.5  49.0  1.5   1.79     4.9  0.05  NN
                504402 E
    -------------------------------------------------------------------------
    MM041      5502675 N  -50/360 264.5 267.3  2.8   4.74     9.2  0.14  SP
                504150 E
    -------------------------------------------------------------------------
                                  330.5 334.5  4.0   4.47    13.1  0.13   F
    -------------------------------------------------------------------------
    including                     330.5 331.0  0.5  24.60     1.6  0.72   F
    -------------------------------------------------------------------------
    MM042      5502676 N  -55/360 285.7 286.7  1.0   3.84     3.3  0.11  SP
                503950 E
    -------------------------------------------------------------------------
                                  369.6 384.5 14.9   1.50    48.9  0.04   F
    -------------------------------------------------------------------------
                                  394.0 399.9  5.9   3.23    19.4  0.09   F
    -------------------------------------------------------------------------
    MM043      5502630 N  -55/360 338.0 375.4 37.4   3.73   122.7  0.11  SP
                504000 E
    -------------------------------------------------------------------------
    including                     348.2 352.0  3.8   9.49    12.5  0.28  SP
    -------------------------------------------------------------------------
    including                     362.5 365.2  2.7  10.43     8.9  0.30  SP
    -------------------------------------------------------------------------
    including                     372.0 375.4  3.4  15.68    11.2  0.46  SP
    -------------------------------------------------------------------------
    MM044      5502689 N  -60/360 352.5 381.0 28.5   3.39    93.5  0.10  SP
                503842 E
    -------------------------------------------------------------------------
    including                     363.5 369.9  6.4   6.48    21.0  0.19  SP
    -------------------------------------------------------------------------
    including                     374.0 381.0  7.0   6.75    23.0  0.20  SP
    -------------------------------------------------------------------------
                                  409.0 417.0  8.0   8.57    26.2  0.25   F
    -------------------------------------------------------------------------
    MM045      5502676 N  -60/360    Assays
                503751 E            pending
                                  -------------------------------------------

    -------------------------------------------------------------------------
    MM046      5502652 N  -60/360    Assays
                503749 E            pending
                                  -------------------------------------------

    -------------------------------------------------------------------------
    PIT022     5502765 N  -55/360  60.5    80 19.5   1.85   63.96  0.05  PIT
                504550 E
                                     97 146.5 49.5   0.87  162.36  0.03  SP
    -------------------------------------------------------------------------
    including                        97   101    4   5.75   13.12  0.17  SPA
                                  -------------------------------------------
                                  213.7 247.5 33.8   0.69 110.864  0.02  PIT
                                  -------------------------------------------
                                    490   491    1   7.27    3.28  0.21   X
                                  -------------------------------------------
                                  552.9 553.2  0.3   17.8   0.984  0.52  HGN
    -------------------------------------------------------------------------
    True widths estimated at approximately 70% of intersection widths
    SL - South Limb EP Zone               NL - North Limb EP Zone
    HGN - High Grade North Zone           HGV - High Grade Vein
    NN - New North Zone                   SP - South Porphyry Zone
    PIT - Porphyry Hill

Ongoing work at Hardrock is testing both open pit and underground type targets. The EP and NN Zones are two of several potential open pit zones that are being detailed in preparation for the completion of a NI43-101 compliant resource calculation which is expected to be completed in Q4 2009 (initial open pit resource).

Significant potential exists for developing resources in several areas including:

    -   Open pit-style mineralization at sites where historic resources were
        partially delineated by previous operators, in addition to newly
        defined mineralization at the Tenacity, EP and Kailey Zones;
    -   Numerous surface and historic high-grade gold intercepts throughout
        the large property package that have received little to no follow-up;
    -   Historic resource blocks reported to remain within the mine workings,
        including high-grade vein targets; and,
    -   The main mined zones which remain open below the 600m Level.

The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier holds a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from relatively shallow depths (600 metres) from 1938-1968. A recent hole to test the North Zone horizon below the bottom mine level at Hardrock has intersected several mineralized zones further demonstrating the potential for the project to host a multi-million ounce resource. This hole is the first deep hole completed by the joint venture. 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 Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is a well-financed Canadian-based mineral exploration and development company with several active projects and deposits in Northwestern Ontario. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a 100% interest in the PQ-North Project, located along strike from Goldcorp's Musselwhite Gold Mine.

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: www.premiergoldmines.com