Premier Gold Announces completion of $33.4 Million Bought Deal Public Offering of Common Shares and Flow-Through Common Shares

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Shares Issued:  127,391,211

THUNDER BAY, ON, Oct. 31, 2011 /CNW/ - Premier Gold Mines Limited

('Premier' or the 'Company') is pleased to announce that it has completed a previously announced bought deal public offering of 2,000,000 common shares (the 'Common Shares') at a price of $5.50 per Common Share and 3,450,000 flow-through common shares (the 'Flow-Through Shares') at a price of $6.50 per Flow-Through Share for aggregate net proceeds of approximately $31.65 million (the 'Offering') through a syndicate of underwriters co-led by RBC Capital Markets and Canaccord Genuity Corp. and including Stonecap Securities Inc., Versant Partners Inc., Mackie Research Capital Corporation, Middlefield Capital Corporation and Octagon Capital Corporation. The Offering included the issue of 450,000 Flow-Through Shares at the Flow-Through Share offering price upon the exercise of the over-allotment option granted by the Company to the Underwriters under the Offering. Pursuant to the over-allotment option, the Underwriters have the right to purchase up to an additional 300,000 Common Shares at the Common Share offering price, exercisable in whole or in part, at any time prior to November 30, 2011.

The net proceeds from the Common Shares sold under the Offering will be used to fund Premier's exploration and development activities and for general corporate purposes, including working capital. The proceeds from the Flow-Through Shares sold under the Offering will be used by the Company to incur Canadian exploration expenses ('CEE') prior to December 31, 2012 on Premier's Canadian properties. The Company will renounce the CEE to subscribers of the Flow-Through Shares for the year ended December 31, 2011.

About Premier

Premier Gold Mines Limited is one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute 'forward-looking information' under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the use of proceeds from the Offering, strategic plans, spending commitments, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Premier's annual information form under the heading 'Risk Factors'. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Premier Gold Mines Limited

CONTACT:

Ewan Downie, President & CEO Phone: Fax: 807-346-0100

807-346-1390



e-mail: Info@premiergoldmines.com Web

Site: www.premiergoldmines.com