Mr. Ewan Downie reports

PREMIER PROVIDES YEAR-END EXPLORATION AND OPERATIONAL UPDATE

Premier Gold Mines Ltd. has provided an update of continuing exploration activities at several of the company's project sites.

Over all, 2013 has been an exceptional year for drilling success. Aggressive drill programs at Hardrock, Cove and Rahill-Bonanza have expanded mineral resources, revealed multiple new discoveries and continue to demonstrate the potential for future resource growth. To complement this success, the company has also bolstered its management team and board of directors with several key additions to support future growth.

Selected highlights from 2013 exploration and development programs, and expected milestones for 2014 include:

• Trans-Canada property in Ontario:
  • An updated mineral resource estimate for the Hardrock deposit released in the second half of 2013 confirmed an expanded open-pit scenario containing significant gold resources.
  • A new open-pit target (Twomey target) to the west of the Hardrock deposit has been identified and is currently being drill tested.
  • A final resource estimate for Hardrock deposit, which will include approximately 55,000 metres of additional drilling, is expected to be completed during 2014.
  • Preliminary economic assessments for the Hardrock deposit (open pit only) and the Brookbank deposit will be released in the first quarter of 2014.
• Cove gold project in Nevada:
  • Premier released an updated mineral resource estimate for the Helen zone deposit, which hosts significant high-grade gold resources.
  • New discoveries were made with initial drilling proximal to the historic Cove open-pit mine including:
    • 2201 polymetallic (gold-silver-zinc-lead) discovery beneath the Cove pit; recent step-out drilling has confirmed the extension of the 2201 zone with multiple intervals of massive, semi-massive and stringer sulphide mineralization (assays pending);
    • Cove North Deep (CND) discovery in a new target area to the north of the Cove pit; recent step-out drilling has confirmed favourable mineralization another 300 metres to the north (assays pending);
    • Extensions to the Cove South Deep (CSD) zone, proximal to and along strike from historic underground mining; recent step-out drilling has identified further extensions to this highly prospective horizon located within hundreds of metres of the open pit (assays pending);
    • Continued expansion drilling on the new discovery areas will continue throughout 2014.
• Rahill-Bonanza (Red Lake) joint venture project in Ontario:
  • Underground drilling has identified a new structure, immediately south of the tram, that is currently being tested by fan drilling. Strong veining and mineralization have been intersected, and assays will be released in the first quarter of 2014.
  • Initial drilling is testing the primary target on the property, the Wilmar Zone. After encountering some difficulties in reaching target depth due to the strongly altered structure, the target horizon was recently intersected with visually favourable mineralization. Initial assays are expected to be released in the first quarter of 2014.

"Premier has demonstrated with material success that 2013 need not be a year overshadowed by the difficult challenges felt within our industry," stated Ewan Downie, president and chief executive officer of Premier. "In 2014, we will continue with three active exploration and development projects in some of the world's most favourable mining jurisdictions. Maiden economic studies and expansion of recent discoveries in Nevada that confirm potentially substantial gold, silver and base metal mineralization will be near-term catalysts."

Chairman Ebe Scherkus said: "We have augmented our management team with the addition of highly experienced mine builders. This positions Premier to facilitate corporate growth and assess new opportunities that might arise in the current market conditions. Our strong cash position will allow us to continue to advance all core company projects without the need to pursue additional financing."

Trans-Canada property in Ontario

Material developments were realized during 2013 at the company's 100-per-cent-owned Hardrock project, where more than 130,000 metres of drilling were completed. An updated mineral resource estimate, based on a portion of this drilling, confirmed a significant open-pit resource (see attached table) that is the focus of the company's coming preliminary economic assessment.

                    HARDROCK MINERAL RESOURCE ESTIMATE

Cut-off                Resource         Tonnes    Au grade    Au ounces
category               category      (millions)       (g/t)   (millions)
   
Open pit              Indicated         50.228        1.46        2.352
(0.5 g/t Au)           Inferred         17.793         1.5        0.859
Underground           Indicated          5.522        5.01        0.889
(three g/t Au)         Inferred         16.919        5.38        2.925
Combined        Total indicated          55.75        1.87        3.241
                 Total inferred         34.712         3.5        3.784
Notes:
Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
In-pit results are presented undiluted within a Whittle-optimized 
pit shell, designed with a 30-metre buffer around lakes.

The independent and qualified persons for the mineral resource estimate, as defined by National Instrument 43-101, are Carl Pelletier, BSc, PGeo, and Karine Brousseau, PEng (InnovExplo Inc.), and the effective date of the estimate is Sept. 23, 2013.

In addition, drilling on a new open-pit target, the Twomey target, located approximately 10 kilometres west of the Hardrock deposit, is under way. Historic drilling near this target intersected a broad zone of veining and mineralization. Assays from new drilling will be released in the first quarter of 2014. If favourable, this target could represent an area for continued resource growth.

A more modest exploration program at Hardrock is planned for 2014, whereby approximately 12,000 metres of additional drilling and detailed historic underground mine void modelling will support the completion of a final resource estimate for the Hardrock open pit during 2014.

In addition to significant exploration activity, extensive work was completed during the year to support the preparation of preliminary economic assessments for a potential open-pit mine and mill complex at Hardrock, and an independent underground mining operation at Brookbank. It is anticipated that these preliminary economic assessments will be released in the first quarter of 2014.

Cove gold project in Nevada

During 2013, Premier secured approval of a new plan of operations for the Cove gold project. This new plan of operations expands the allowable surface area disturbance, thereby allowing for a significant increase in exploration activity, including the testing of numerous targets proximal to the main feeder structures for mineralization in the historic Cove open-pit mine.

The Cove gold project is located within the Eureka/Battle Mountain trend that is host to a number of multimillion-ounce producing and past-producing mines. The Cove deposit was mined (primarily by open pit) between 1986 and 2001, producing approximately 2.6 million ounces of gold and more than 100 million ounces of silver. The target-rich 6,972-hectare property (17,252 acres) has been subject only to limited surface exploration outside of the Cove pit and the Helen zone deposit, and Premier believes that the property offers potential for the discovery of additional mineralized zones and horizons.

The Helen zone is a stratiform, Carlin-style deposit that remains open for expansion. A recently completed mineral resource estimate for the Helen zone is presented in the attached table. A technical report relating to the Helen zone mineral resource estimate, which was prepared in accordance with the Canadian securities administrators' NI 43-101, may be found on the company's website or under the company's profile (filed on Jan. 2, 2014) at SEDAR.

               2013 HELEN ZONE MINERAL RESOURCE ESTIMATE

                       Indicated resources          Inferred resources
Cut-off grade     Tonnes  Au grade  Au ounces   Tonnes  Au grade  Au ounces
Au (g/t)           (000s)     (g/t)     (000s)   (000s)     (g/t)     (000s)

3.43                 618      8.62      171.4    1,608      7.50      388.3
5.14                 469     10.00      151.0    1,068      9.07      311.7
5.83                 425     10.46      143.1      882      9.81      278.7
6.86                 360     11.20      129.6      675     10.88      236.5
8.57                 265     12.43      106.0      426     12.71      174.3
10.29                187     13.67       82.1      268     14.65      126.3

Notes: 
Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
Practical Mining LLC is not aware of any known environmental, 
permitting, legal, title-related, taxation, socio-political, 
marketing or other relevant issue that could materially affect 
the mineral resource estimate.

The independent and qualified persons for the mineral resource estimate, as defined by NI 43-101, are Mark Odell, PE (Nevada 13708), and Karl Swanson, PGeo (SME 4043076), and the effective date of the estimate is Sept. 30, 2013.

The independent report, dated Sept. 30, 2013, entitled "NI 43-101 Technical Report, Cove Exploration Report, Lander County, Nevada," was issued by Practical Mining LLC of Elko, Nev. The report provides detail to the disclosure contained in the company's news release issued on Nov. 19, 2013.

Since receipt of the plan of operations, drilling has started testing new targets at Cove, resulting in two new discoveries made in the first two target areas. These discoveries include both Carlin-style gold mineralization and polymetallic sulphide intercepts both beneath and to the north of the Cove pit. Continuing step-out drilling continues to intersect strong mineralization with additional results to be released in the first quarter of 2014.

The property is located in close proximity to excellent infrastructure (including paved roads and power) that allows for year-round exploration. Drilling at Cove is expected to be the largest exploration program for Premier in 2014.

Rahill-Bonanza joint venture in Red Lake, Ont.

The Rahill-Bonanza joint venture project (Premier -- 49 per cent), operated by Red Lake Gold Mines Ltd., a partnership between Goldcorp Inc. and Goldcorp Canada, is strategically located in the heart of the prolific Red Lake mine trend between the Red Lake Gold Mines complex to the east, and the Cochenour (Bruce Channel) complex to the west.

Drilling at this project is now testing the two primary exploration targets identified on the property. A newly identified structure intersected approximately 200 metres south of the tram, where a large fold/fault structure is associated with abundant quartz veining, mineralization and gold. Fan drilling is currently being performed on this structure. The primary target is the downdip extension of the past-producing Wilmar gold mine and is the focus of drilling with a second drill rig. Results are expected during the first quarter of 2014.

The underground drilling is being done from a tram that has been excavated from the 5,400-foot level of Red Lake Gold Mines to link it with the new Cochenour/Bruce Channel mine that is being brought into production.

Operational update

As the corporation prepares for future growth, important additions have been made to the company's management team. This industry-best management team has the ability to effectively advance company projects from exploration through to development. Premier will continue to look at opportunities to strengthen its team and assess opportunities to add to the company's project portfolio in the future.

Stephen McGibbon, PGeo, is the qualified person for the information contained in this press release and is a qualified person within the meaning of NI 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ont., or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ont., for preparation and analysis utilizing both fire assay and screen metallic methods. Assay results for the Cove gold project were sent to Inspectorate America Laboratories prep facility located in Elko, Nev., and analysis was performed at its analytical facility in Sparks, Nev., utilizing 30-gram fire assay with an AA finish for reverse circulation samples and 30-gram fire assay with AA finish and ICP-MS 30-element scan from four-acid digestion for core samples.

We seek Safe Harbor.