Premier gold Reports Production Results

THUNDER BAY, ON - Premier Gold Mines Ltd. reported its third quarter production results for 2018. Production Highlights: Mercedes Mine produced 17,465 ounces of gold, a 26% increase over Q2 2018; South Arturo produced 2,635 ounces of gold from Phase 2 stockpiles; and Total silver production of 89,512 ounces.

The increase in production from Mercedes quarter over quarter is consistent with the Company’s previous guidance, where production is weighted toward the second half of 2018. Production from South Arturo has exceeded annual guidance, benefitting from a decision to accelerate processing of the Phase 2 ore stockpile. The Company remains on-track to meet its 2018 consolidated guidance of 90,000-100,000 ounces of gold owing to increased production from South Arturo and decreased production expected from Mercedes.

“Overall gold production during the third quarter met expectations with additional ore being processed from stockpiles at the low-cost South Arturo mine,” stated John Begeman, Executive Chairman of Premier.“In addition, development and construction commenced on the next two production phases at South Arturo; the Phase 1 open pit and the El Nino underground mine”.

The South Arturo Mine in Nevada, a joint venture operated by Barrick Gold Corporation, has delivered exceptional results since achieving commercial production.Processing of ore stockpiled from the Phase 2 open pit will continue in limited quantities during the fourth quarter and production in 2018 has already exceeded guidance for the year.

Future production opportunities are being advanced with two additional developments underway at the Property.Both the Phase 1 open pit and the El Nino underground mine are now under construction with production expected in the second half of 2019.

The Mercedes Mine in Mexico remains focused on cost reduction and the development of new deposits to increase flexibility and productivity.Subtle changes to the mine plan at Diluvio have led to infrastructure adjustments including the addition of multiple sub-levels and added vertical stoping. In addition, a minor ground fall in September resulted in delayed production during the month. Production is now back to normal.Incremental costs associated with the infrastructure adjustments and increased definition drilling, combined with lower than forecasted year to date production, has resulted in higher costs at Mercedes when compared to 2017.

During the third quarter, construction to expand tailings capacity began. Additionally, development continued on a drift from the Lagunas mine to access the higher-grade Marianas deposit located along the main Mercedes mine trend.

For the year, production at Mercedes is weighted towards the second half as new headings and a modified mine plan for Diluvio are being implemented.Exploration and resource definition drilling continues to be a priority with both surface and underground programs underway.

The company’s address is 1100 Russell Street, Suite 200, Thunder Bay, ON P7B 5N2, 807.346.1390, email: [email protected].