Premier Confirms Filing Of NI 43-101 Technical Report for the Preliminary Economic Assessment Studies for Hardrock & Brookbank Projects

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THUNDER BAY, ON, March 13, 2014 /CNW/ - Premier Gold Mines Ltd. ("Premier" or "The Company") (TSX:PG) is pleased to confirm that it has filed a technical report ("Report") prepared for the Hardrock and Brookbank Projects in accordance with Canadian Securities Administrators' National Instrument 43-101. The Report may be found on the Company website or under the Company's profile at www.sedar.com.

Highlights of the 2014 PEA Studies (all currency amounts in Canadian dollars unless otherwise stated) include:

Hardrock Project Estimates

• Average annual gold production during the first 8 years of 253,100 ounces with life of mine "LOM" (15 years) annual production of 202,700 ounces (including low-grade stockpiles).
• Average grade over the first 8 years of 1.50 grams per tonne gold "g/t Au" with a LOM average grade of 1.18 g/t Au (including low-grade stockpiles).
• Initial processing of 10,000 tonnes per day "tpd", expanding to 18,000 tpd in Year 3.
• Pre-production capital costs of $410.6 million including $83 million for contingency.
• Pre-tax net present value "NPV" (at a 5% discount rate) of $519 million at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
• Pre-tax internal rate of return "IRR" of 23.0% and a 3.5 year payback at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.

Brookbank Project Estimates

• Pre-tax NPV (at 5% discount rate) of $73.8 million and IRR of 30.1%, at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95, when rock is trucked to Hardrock versus stand-alone processing option. On an After-Tax basis, NPV (5%) is $49.9 million and IRR of 24.2%.
• Average annual gold production during LOM (7 years) of 48,700 ounces.

The independent report, dated March 13, 2014, entitled "Trans-Canada Property Hardrock and Brookbank Projects Preliminary Economic Assessment" was issued by Stantec - Mining in North Bay, Ontario. The Report provides detail to the disclosure contained in the Company's news release issued on January 28, 2014.

Readers are advised that the PEA for Brookbank that was filed on Sedar includes a minor adjustment to cash outflows to reflect the 1% NSR payable on gold revenues after the recovery of Capital Costs. The impact of this adjustment on After-Tax NPV is $1,657,000, a 0.524% reduction in IRR.

The Hardrock and Brookbank Projects, a part of the Trans-Canada Property, are located in the historic Geraldton/Beardmore mining district, in North West Ontario, along the Trans-Canada Highway. The Hardrock Deposit, which resides on patented claims, is currently being evaluated by a Feasibility Study expected to be released during H1 2015. Premier is well-financed to advance the Trans-Canada Property with a treasury of cash and securities that exceeds $70 million.

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.

Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.

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.

SOURCE Premier Gold Mines Ltd.