PREMIER INTERSECTS HIGH-GRADE GOLD AT RED LAKE JOINT VENTURE PROJECT MULTIPLE INTERCEPTS INCLUDE 46.15 g/t Au ACROSS 4.5 METRES

THUNDER BAY, ON, May 18 /CNW/ --
Shares Issued: 104,360,658

THUNDER BAY, ON, May 18 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that follow-up drilling at the 'Wilmar 2E Zone'
target within the Rahill-Bonanza Project has intersected multiple
high-grade gold intercepts with composite assay results as high as 46.15 grams per tonne gold (g/t Au) across 4.5 metres (m) or 1.35 ounces
per short ton (oz/t) across 14.8 feet (ft).  Drill hole PG11090 was drilled to test the down-plunge potential of
the Wilmar 2E Zone and, when combined with drilling completed late in
2010, indicates excellent potential to define high-grade gold resources
proximal to the historic Wilmar Mine.

The Wilmar Mine is located in the eastern part of the Rahill-Bonanza
Project (PG:49%, 51%RLGM) which is strategically located in the heart
of the prolific Red Lake gold mining district and is being explored by
joint venture partner Red Lake Gold Mines Limited ('RLGM'), a
partnership between Goldcorp Inc and Goldcorp Canada Ltd. Wilmar was
developed via a drift that links it with the nearby Cochenour Mine
infrastructure being rehabilitated by Goldcorp for the development of
the nearby Cochenour Project. Past-production at Wilmar, over a period
of four years, resulted in 203,256 tons of ore being mined at an
average grade of 0.30 oz/ton Au (10.3g/t Au). The deposit remained open
at depth when the mine shutdown and previous drilling performed
down-dip of the mine workings by the joint venture in 2007 returned
numerous significant intersections including 18.1 g/t Au over 2.0 m and
14.2g/t Au over 5.0 m.

Late in 2010, hole PG10082 was drilled to test the down-plunge extension
of the historically mined 2E Zone at the Wilmar Mine.  This intercept,
approximately 250 metres down-plunge of the historic workings,
intersected bonanza grade gold with 68.87 g/t Au across 3.5 m (2.01
oz/t across 11.5 ft uncut) including 207.43 g/t Au across 1.15 m (6.06
oz/t across 3.8 ft). The first follow-up hole completed in 2011
(PG11090) has returned multiple high-grade intercepts mid-way between
PG10082 and the mine workings.  The 2E Zone remains open for
expansion.  Significant results include:

    --  42.59 g/t Au across 1.5 m (1.33 oz/t across 4.9 ft) from
        715.0-716.5 metres
    --  46.15 g/t Au across 4.5 m (1.35 oz/t across 14.8 ft) from
        719.0-723.5 metres
    --  12.77 g/t Au across 4.5 m (0.37 oz/t across 14.8 ft) from
        744.5-749.0 metres

The Rahill-Bonanza Project is host to several deposits having historical
and NI43-101 compliant mineral resources including the past-producing
Wilmar Mine. The Property covers approximately 4.5 kilometres of the
main Red Lake 'Mine Trend' between the world class Red Lake Gold Mines
complex to the east, and the Cochenour Project to the west.  An
underground tram to link the two operations is currently under
construction, and will provide an excellent exploration platform from
which to drill test at depth several kilometres of some of the
highest-potential untested ground in the Red Lake gold camp. The
Rahill-Bonanza Project represents the last piece of the main mine
horizon in Red Lake not 100% owned by Goldcorp.

'The grade of early results in the Wilmar 2E Zone reminds me of my
initial experience with the High-Grade Zone at the nearby Red Lake Gold
Mines complex.' said Stephen McGibbon, Executive Vice-President and
Chief Operating Officer of Premier. 'This zone is open for expansion
and limited drilling has been completed in this area.  We believe that
the potential to define significant high-grade resources in this area
are high'.

Table 1 - Rahill-Bonanza JV Results

                                                                                     

             UTM      Dip/Azimuth
 Hole-ID  Coordinates             From    To   Interval  Grade    Interval  Grade    Zone
                       (degrees)   (m)    (m)    (m)    (g/tonne)   (ft)   (oz/ton)
          (m) NAD 27

PG10082*                            757  760.5    3.5      68.87     11.5     2.01
           5656669 N
           443922 E                                                                 Wilmar
including                -77/330  759.35 760.5    1.15    207.43     3.8      6.06    2E

                                  644.0           1.0      6.17      3.3      0.18  Wilmar
                                         645.0                                        2E

                                  715.0  716.5    1.5      42.59     4.9      1.24  Wilmar
           5656609 N                                                                  2E
 PG11090   444119 E
                         -67/312  719.0  723.5    4.5      46.15     14.8     1.35  Wilmar
                                                                                      2E

                                  731.5  732.5    1.0      7.43      3.3      0.22  Wilmar
                                                                                      2E

                                  744.5  749.0    4.5      12.77     14.8     0.37  Wilmar
                                                                                      2E

* - Previously released hole


* True widths are estimated to be between 40% and 70% of intersection
width

Drilling completed from the ice of Red Lake in 2011 tested several other
targets including testing for extensions of the West Granodiorite Zone,
a bulk tonnage target, to define controls of mineralization within the
recently identified PG70 Zone, and drilling the Footwall Zone on the
East Bay Joint Venture Project (PG 35%).  The PG70 Zone is located
several hundred metres to the west of the Wilmar Mine and likely
represents the on-strike extension of mineralization, suggesting a
southwesterly plunge to the gold zones.  Additional results from
drilling on the East Bay Joint Venture Project are expected in the near
future where drilling is testing a high-grade vein zone along the East
Bay ultramafic trend.  Impressive high-grade gold has been intersected
in the recently discovered Footwall Zone over a strike length of 400
metres with assays that include 56.54 g/t Au across 0.9m (1.65 oz/ton across 3.0 ft), 44.82 g/t Au
across 1.5m (1.31 oz/ton across 4.9 ft), and 297.61 g/t Au across 1.0 m
(8.68 oz/ton across 3.3 feet) (see press release dated April 21, 2011).

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 Accurassay Laboratories, an accredited mineral analysis
laboratory in Thunder Bay, 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 projects and deposits in Northwestern Ontario and
a joint venture in Mexico. In the Red Lake gold mining camp, two are
operated in joint venture with Red Lake Gold Mines. The company also
owns strategic projects located in the heart of the Carlin Trend,
Nevada, on the main Musselwhite Gold Mine trend, and holds a 70%
interest in the Hardrock Project.

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.

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