Premier Reported PEA Results on the Cove Project

THUNDER BAY, ON - Premier Gold mines reported on the Preliminary Economic Assessment ("PEA") of its 100% owned Cove Project (the "Project") located near Battle Mountain, Nevada. Highlights of the PEA results and life-of-mine plan ("LOM") include: After-tax NPV5 of $143.0 million, and an after-tax internal rate of return ("IRR") of 48%;  Average operating costs of $199/ton, Cash Cost of $788/oz Au and All-in Sustaining Cost (AISC) of $897/oz Au; Indicated mineral resources of 1,045,000 tons at 0.327 oz/t Au and 0.861 oz/t Ag for 342,000 ounces of gold and 900,000 ounces of silver; Inferred mineral resources of 4,032,000 tons at 0.328 oz/t Au and 0.609 oz/t Ag for 1,322,000 ounces of gold and 2,457,000 ounces of silver; Metallurgical recoveries of 82.7% for gold and 21.6% for silver; LOM gold production of 740,000 ounces during 8 years of operations; Average LOM annual gold production of 92,400 ounces ; LOM capital cost of $114.4 million after pre-development costs of $25.8 million; Mine construction capital of $46.6 million; and After-tax payback period of 4 years

"This PEA sets the stage for the Company's planned advanced-exploration initiative at Cove," stated Ewan Downie, President and CEO of Premier Gold Mines.  "These results support our plan for the construction of an exploration ramp to further define and expand the deposits in advance of a future Feasibility Study."

The Project will process 2.93 million tons at an average grade of 0.305 oz/t Au producing 0.74 million ounces of gold over an 8-year period. The cost profile includes an All-in-Sustaining Cost of $897 (net of by-product credits) per ounce of gold sold and an average Cash Cost (net of by-product credits) of $788 per ounce of gold sold. Gold production will average 92,400 ounces per year over the 8-year mine life.  

The PEA assumes mining of mineral resources in the Helen and Gap deposits only.  Potential exists to increase mineral resources as the deposits remain open for expansion, as well as adding potential mineral resources from the Cove South Deep and 2201 zones following underground exploration and delineation drilling.  These opportunities will be reviewed during underground development and exploration drilling program.

Project after-tax NPV5 is estimated to be $143.0 million.  After-tax cash flows result in a 4-year payback from the commencement of commercial production with an after-tax IRR of 48%.

A total of $25.8 million in pre-development costs have been excluded from NPV and IRR calculations within the PEA.  These pre-development costs relate to advanced exploration, resource conversion, baseline studies and permitting activities to be completed prior to mine construction (estimated to occur in Q1-2021) and are considered sunk costs.

The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

The Cove Project covers 700 acres and is in the center of the McCoy-Cove Exploration joint venture, 32 miles south of the Town of Battle Mountain, in the Fish Creek Mountains of Lander County, Nevada. It is centered approximately at 40°22' N and 117°13' W and lies within the McCoy Mining District. The Property hosts an historical open pit mine (Cove Pit), operated by Echo Bay Mines Ltd. (Echo Bay) between 1987 and 2001, which produced 2.6 million ounces of gold and 100 million ounces of silver.