Premier Gold Mines Limited (TSX: PG) (OTCPK: PIRGF) is pleased to announce an update on its 42,000 m core drilling program at the Company’s 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2019 drilling campaign is currently focused on delineating new mineral resources in the Lupita Extension, while exploration is still testing potential at Neo (Figure 1). Highlights from August and September include, in true thickness:

• 3.6 m of 7.18 g/t Au & 54.38 g/t Ag (L19-441D)
• 1.8 m of 24.24 g/t Au & 1.79.43 g/t Ag (L19-445D)
• 3.4 m of 10.47 g/t Au & 63.60 g/t Ag (L19-448D)
• 4.4 m of 8.86 g/t Au & 66.69 g/t Ag (L19-451D)
• 3.1 m of 13.65 g/t Au & 80.01 Ag g/t (L19-429D) at Neo, within a stockwork system similar to Diluvio

“Our Lupita Extension drilling is returning intercepts well in excess of average production grades,” commented Stephen McGibbon, Executive Vice-President. “Early results from the San Martin/Neo target area suggest that our 2020 campaign will confirm the potential for significant resource expansion as well”.

Lupita Extension

The Phase 2 infill program at Lupita Extension continues to increase potential resource mineralization by demonstrating the continuity of the vein to the west. Figure 1 presents the evolution of the grade thickness map from the beginning of 2019 to today. New results are enlarging the high-grade zones, as well as defining its limit, which will guide the focus of future drilling.

Drilling will delineate the mineralized footprint discovered in 2019 with a 30 m x 30 m grid over the area. In August and September, a total of 34 drill holes, representing 5,855 m of drilling, were completed. An additional 12 drill holes assay results are pending.

Neo Target

Neo represents a potentially new discovery at Mercedes, located 400 m north of San Martin. It was identified as a possible extension to the Diluvio system due to geological similarity. The first hole followed up an historical drill hole, L15-258D that contained 1.53 m @ 6.95 g/t Au & 4.00 g/t Ag. L19-429D, located 110 m to the east, successfully returned 3.1 m of 13.65 g/t Au & 80.01 g/t Ag. Two additional holes drilled to the east had low-grade results, one of which was hosted within 30 m of the same host rock as Diluvio. Drilling in 2020 will further test the potential to expand the mineralization up to 900 m east to Diluvio.

Table 1 – Highlight Intercepts from Lupita Extension

Julie-Anaïs Debreil, Ph.D., 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. Mercedes assay results are from core samples sent to ALS Chemex, an accredited mineral analysis laboratory in Lima (Peru) or Vancouver (Canada), for preparation and analysis utilizing both fire assay and ICP methods. For a complete description of Mercedes’s sample preparation, analytical methods and QA/QC procedures refer to the technical report for the Mercedes Mine dated April 18, 2018 (effective date December 31, 2017), entitled “Technical Report on the Mercedes Gold-Silver Mine, Sonora State, Mexico.”

Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier remains focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo and Mercedes, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and McCoy-Cove in Nevada.

Table 2 – Collar coordinates