Premier Gold to increase financing to $15-million

2009-08-28 13:29 ET - News Release

Mr. Ewan Downie reports

PREMIER INCREASES FINANCING

Premier Gold Mines Ltd., due to high demand, will increase the size of its previously announced private placement offering of flow-through common shares. Premier has decided to increase the gross proceeds to be raised in the offering to up to $15-million. As previously announced, the flow-through shares are being offered at a price of $3.65 per share.

"With this financing Premier will remain one of the industry's most active explorers," stated Ewan Downie, president of Premier. "The significant premium we have attained maintains our strong share structure and puts Premier in a dominant position to pursue possible future growth initiatives."

Thomas Weisel Partners Canada Inc. is acting as lead agent on behalf of a syndicate of agents including Canaccord Capital Corp., Laurentian Bank Securities, Octagon Capital Corp., Research Capital Corp. and Wellington West Capital Markets in connection with this best-efforts offering. The flow-through shares will be offered by way of private placement to accredited investors in each of the provinces of Canada.

Premier plans to use the gross proceeds from the sale of the flow-through shares for exploration programs to be conducted on the Hardrock project, Red Lake projects and PQ North project in Ontario. The private placement is expected to close on or about Sept. 10, 2009, and is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

We seek Safe Harbor.