Premier Gold Mines Provides Red Lake Results

THUNDER BAY – MINING – Premier Gold Mines Limited (TSX-PG) is pleased to provide results from the remainder of the 2016 surface drilling program and metallurgical test work completed on the Company’s 100%-owned Hasaga Project (the Property) in the Red Lake gold mining district of Northwestern Ontario. The program was primarily focused on the in-fill drilling of near surface mineralization in key target areas in advance of a maiden mineral resource estimate that is expected to be released early in Q1 2017.

Premier’s largest 2016 exploration program was completed at Hasaga that included 50,000 metres of drilling. The resource estimate that will focus on the open pit potential of the Hasaga, Central and Buffalo Zones will also include an additional 60,000 metres of drilling that was completed in 2015.

Highlights from the final batch of the 2016 drill hole results include the following:

• HMP141 intersected 2.87 g/t Au across 46.0 m beginning at 185.0 m, including 4.28 g/t Au across 28.0 m

• HMP145 intersected 1.67 g/t Au across 70.0 m beginning at 89.0 m

• HMP147 intersected 2.22 g/t Au across 42.0 m beginning at 142.0 m

• HLD073 intersected 3.88 g/t Au across 32.0 m beginning at 308.0 m, including 55.70 g/t Au across 2.0 m

• Metallurgical results demonstrate gold recoveries of between 94% and 97%

All abbreviations used in this press release are available by following this link (click here).

The Hasaga Property (See Figure 1) is host to the past-producing Hasaga, Buffalo and Gold Shore Mines and is being evaluated for the potential for both lower grade open-pit mining scenarios and higher grade mineralization that may occur at depth. Premier regards Hasaga as having exploration potential similar to other historic mining camps in Ontario, where gold resources have been discovered at the site of past-producing mines. Open pit mining has not made a significant contribution to the Red Lake area’s past production however, Premier believes this is an opportunity that has largely been overlooked.

“Having acquired the majority of the Hasaga land package through an exchange of some non-core assets, the drilling has been able to demonstrate a significant increase in value from organic growth in our portfolio,” commented Stephen McGibbon, Premier’s Executive Vice-President on the Company’s C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). “These final drill results are the culmination of an aggressive two year exploration campaign at Hasaga and the maiden mineral resource estimate is expected to reflect some of that value addition.”

Figure 1: Plan view showing recent assay highlights on Hasaga Property

Central Zone

The drill hole intercepts of HLD069 through to HLD075 (See Table 1 and Figure 2) represent new results from the infill drill program within the Central Zone that was undertaken to demonstrate continuity of mineralization. The Central Zone is characterized by widespread persistent mineralization associated with silicification, weakly disseminated sulphides and variably distributed quartz veinlets within the Dome Stock that begins at surface and remains open at depth. The additional drilling conducted at this target has validated results reported in earlier campaigns and helped provide better understanding of the internal variability of higher grade material and its continuity. The Central Zone remains open at depth and west of the property boundary.

During 2017, Premier may conduct a limited amount of additional drilling on the margins of the deposit to further evaluate its extent. Follow up drilling on the high grade intercept of hole HLD073 and other holes will target intersecting structures that also controlled the ore mined at Gold Shore Mine.

Table 1: Highlight results from recent drilling at the Central Zone target

UTM NAD83, Zone 15, – True widths are estimated to be 35 to 60% of core length

Figure 2: Plan view of primary drill target areas at Hasaga Central Zone

Buffalo Zone

The Buffalo Mine target occurs within the Dome Stock at surface and remains open at depth. The Buffalo Zone characterized by widespread persistent mineralization associated with silicification, weakly disseminated sulphides and variably distributed quartz veinlets containing tourmaline and visible gold. Drilling conducted at this target has validated historic results and helped provide better understanding of the internal variability of higher grade material and its continuity. Hole HMP 141, which returned 46.0 metres of 2.87 g/t Au, was the deepest planned hole that confirms mineralization is open at a depth exceeding 200 metres down plunge. Figure 3 is plan view of the Buffalo Zone showing the new intercepts. The geology on Figure 3 is simplified and does not show the complexity of mafic volcanics-granodiorite contact.

During 1980-82, Wilanour Resources completed 6,600 metres of surface drilling at Buffalo and processed a bulk sample consisting of some 29,000 tonnes (31,986 short tons) of mineralization from an open pit and underground ramp that graded 2.19 g/t Au (0.064 oz/ton Au). The Buffalo Mine area has largely remained idle since the Wilanour exploration and development campaign, which was limited in scope. Premier believes the evaluation of this target area remains incomplete.

During the upcoming 2017 exploration campaign, Premier anticipates further evaluation of the Buffalo target area as well as drilling at depth on the Hasaga Porphyry target, which occurs to the northeast of the Buffalo area (see Figure 1).

Table 2: Highlight results from recent drilling at the Buffalo Zone

UTM NAD83, Zone 15, – True widths are estimated to be 35 to 60% of core length

Figure 3: Plan view of primary drill target areas at Hasaga Buffalo Zone

Metallurgical Results

Premier has recently completed a metallurgical scoping program on samples from the Hasaga, Central and Buffalo Zones with the intent to characterize the lithological and mineralization domains of the project areas, and to complement the planned mineral resource estimates. Although bottle roll tests utilizing coarser crush sample composites (¼”, ½”, ¾” crush sizes) does not support the potential for heap leach processing, the baseline bottle roll cyanidation study indicated very good recoveries for all grade ranges (See Table 4) with metallurgical results of between 94% and 97% when grinding to 80% passing 200 mesh. The three zones sampled also appear to be amenable to gravity recovery with results ranging from 21.7% to 77.3%. Table 3 summarizes the sampling conditions for the bottle roll tests. Coarse crush cyanidation tests returned less than 50% recovery rates.

Table 3: Bottle roll test sampling conditions

Table 4: Detailed Metallurgical results (48 hour Leach time)

Premier remains focused on building its mining business towards mid-tier gold producer status. In addition to its two producing mines, South Arturo and Mercedes, the Company is beginning to plan for future operations with a potential underground plan for the 100%-owned McCoy-Cove Property in Nevada and the ongoing permitting for future development at Hardrock in Ontario (Trans-Canada JV). Premier also remains focused on organic growth initiatives in the company and is actively exploring several prospective projects.

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 either Accurassay Laboratories or Activation Labs, both accredited mineral analysis laboratories in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods. Metallurgical results are from core samples sent to SGS Minerals Services in Lakefield, accredited to the requirements of ISO/IEC 17025 for specific tests including Mineralogical Tests for QEMSCAN, XRD and Precious Metal Studies, Diamond and Indicator Mineral Studies as listed in their scope of accreditation.

Premier Gold Mines Limited is a gold producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-1381
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com

This Press Release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the completion of the Financing, strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives.. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier’s annual information form under the heading “Risk Factors”. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.