Option Agreement Granted On The Goldbanks Project

THUNDER BAY, ON - Premier Gold Mines has entered into two separate and definitive agreements with Goldcorp Inc. and Kinross Gold Corporation to acquire highly prospective exploration projects in Nevada and Mexico. The projects have had recent exploration work that identified high-grade mineralization where both could represent significant new discoveries for Premier.

The Option Agreement with Kinross Gold USA, Inc., grants Premier the right to earn a 50% interest in the Goldbanks Project located in Pershing County, Nevada, 50 kilometers south of Winnemucca. Goldbanks is comprised of 875 Claims totaling approximately 16,000 acres with several significant targets on the property including the high-grade Golden Devil discovery and the Main Zone and KW open pit deposits.

The Golden Devil discovery is the primary target where drilling has already commenced to test a high grade epithermal vein discovery beneath the known low grade near surface deposits. Initial results are expected in early November. The discovery resulted from a new geological interpretation by Kinross in 2013 that resulted in the drilling of three deep holes that intersected gold mineralization including a high grade intercept of 192.00 g/t Au and 10,850.00 g/t Ag over 1.1m (5.61 oz/t Au and 316.46 oz/t Ag over 3.7 ft).

The geologic model at Goldbanks is interpreted to be similar to the Midas and Sleeper Mines in Nevada that both produced gold early in their production history from ore in excess of one ounce per ton. It is the believed that the Kinross drilling intersected "splay" veins proximal to a primary ore bearing structure and drilling will focus on stepping out along the high grade Golden Devil trend as well as testing the projected location of a highly prospective basin-bounding fault zone.

The high grade epithermal vein targets at depth are geologically connected to the property's near-surface deposits (90% oxide and 10% sulphide) that host an inferred mineral resource estimate of 556,700 ounces of gold contained within 25.7M tonnes @ 0.7 g/t Au (28.3M tons 0.02 oz/t Au). The estimate was completed in 2006 by Mine Development Associates of Reno, Nevada on behalf of Desert Gold Ventures Inc., an earlier partner on the project. Other prospective targets on the property will be prioritized for future programs.

To earn a 50% interest in the project, Premier is required to spend US$20 Million in exploration on the property over five years including a firm commitment of US$3.5 Million during the first 18 months. Premier will be the operator of exploration programs on the property. Kinross may elect to become the operator following Premier having earned a 50% interest.