Premier Enters Agreeent To Acquire Cove Gold Project

THUNDER BAY, ON - Premier Gold Mines Ltd. has entered into a letter of intent to acquire a 100% interest in the Cove Gold Project, located in the heart of the Battle Mountain-Eureka Trend in Nevada, from Victoria Gold Corp.

The acquisition of Cove furthers Premier's strategy to build its United States based project portfolio in proven, accessible and low-risk jurisdictions that offer opportunities for the discovery of high-grade gold deposits. The Cove Project represents a major opportunity for Premier with the potential to become a "flagship" property for a number of reasons including: The Helen Zone deposit is host to an inferred mineral resource of 231,300 ounces of gold at an average grade of 20.23 grams per tonne gold (g/t Au) or 0.59 ounces per ton (oz/t), and is currently being drill-tested for resource expansion; The Cove deposit was mined (primarily by open pit) between 1987 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of Gold, and 103 million ounces of silver; The 6,972 hectare property (17,252 acres) has seen only limited surface exploration away from the Cove pit;    Excellent infrastructure (including paved roads & power) with secure land tenure in mining-friendly Nevada; Advanced exploration permitting initiated by Victoria will continue under Premier's direction.

"The Cove Project is consistent with Premier's strategy to secure high-grade gold projects with significant upside potential and located in favourable mining jurisdictions" stated Ewan Downie, President and CEO. "Nevada ranks among the world's top mining districts and owing to the advanced state of permitting, Cove will rank among the most advanced projects within Premier's portfolio."

Premier's management team believes that the Cove Project represents one of the most under-explored core projects in Nevada. The project is located in the heart of the Battle Mountain-Eureka Trend that is host to a number of multi-million ounce producing and past-producing mines. Previous exploration at Cove focused in the known resource areas and a number of prime exploration targets remain untested.  The Helen Zone which carries a NI 43-101 compliant resource of 233,000oz Au as set out in technical report for Victoria titled "Preliminary Assessment on the Cove Project, Nevada, U.S.A." prepared for Victoria and dated May 5, 2011 is hosted in deeper rock units that were not previously recognized as a favourable host for gold, leaving the deeper units intact and virtually untested in the district . Like several other previous open pit mines in Nevada, the untested ground below the existing open pit serves as an attractive target to discover high grade gold deposits.

The Cove property could expand its high-grade resource by continued step-out drilling on the Helen Zone , a program that is currently underway. In addition, drilling below the Cove pit into the deeper mineralized rock formations remains a near-term priority. The intent is to demonstrate potential for a contiguous mineral resource to exist beneath the Cove pit to the Helen Zone 2,000 feet to the northwest. Premier will also immediately evaluate Cove's target-rich prospects by exploring favourable structural intersections along the Cove and other anticlines, follow-up on historic high-grade drill intercepts (>1.0 oz/t gold) at Windy Point , and test the Gold Dome Fault that was host to the historic Gold Dome Mine, whose production in the 1930's maintained grades between 0.25 oz/t and 2.00 oz/t gold.

The company's address is 401-1113 Jade Court, Thunder Bay, ON P7B 6M7, (807) 346-1390, fax: (807) 346-0100, email: [email protected].