Premier Gold Mines : Increased Mineral Reserves and Resources at South Arturo with Strong Pre-Feasibility Study

Premier Gold Mines Reports Increased Mineral Reserves and Resources at South

Arturo with Strong Pre-Feasibility Study

Increases P+P reserves 27%, M+I resources 148% and Inferred resources 917%

ALL AMOUNTS DISCUSSED ARE DENOMINATED IN U.S. DOLLARS

Thunder Bay, January 19, 2021- Premier Gold Mines Limited ("Premier", the "Company") (TSX:PG) (OTCPK: PIRGF) is pleased to announce the results of a Preliminary Feasibility Study ("PFS" "Report"), with an effective date of December 1, 2020, for the South Arturo Project (the "Project") located in the heart of the Carlin Trend in Nevada. South Arturo is operated by the Company's joint venture partner Nevada Gold Mines (40% PG/60% NGM), which is itself a partnership between Barrick Gold and Newmont Mining.

The PFS was prepared by Practical Mining LLC and based on the current mineral reserves, utilizing drilling to November 2019 with a life of mine ("LOM") plan that includes the underground El Niño Mine and the proposed Phase 1 Open Pit. Mineral Reserves are reported only for material amenable to roasting from the Phase 1 pit and El Niño underground.

All PFS highlights below reflect only Premier's 40% ownership, unless otherwise stated.

PFS Highlights of the Report include:

• $78.1 Million After-tax NPV5% based on a US$1,400/oz gold price based solely on the El Niño Mine and the Phase 1 Pit
• Phase 1 Pit only - 50% After-tax Internal Rate of return ("IRR")
• Combined All-in Sustaining Costs (AISC) of $851 per oz
• An increase in Proven and Probable mineral reserves of +27%, Measured and Indicated mineral resources of +148% and Inferred mineral resources of +917% versus December 31, 2018.
• Proven and Probable mineral reserves of 350.5koz gold averaging 2.87 g/t Au1
• The PFS does not include the potential of the Phase 3 open pit, heap leach opportunity nor additional underground mining scenarios
• Also does not include the results from the 2020 drill program, targeting expansion of the El Niño underground mine and the potential upgrading of the near-surface mineralization

Premier anticipates that a new mineral resource estimate will be completed in 2021 following receipt of all 2020 drilling results. Following the mineral resource estimate, the Company believes an updated PFS would be justified and should include a trade-off study to determine the merits of developing the Phase 3 pit by underground and/or open-pit mining methods and further refinement of the heap leach opportunities at South Arturo.

1 Based upon variable cut-off grades that are dependent on recovery and processing methods.

1100 Russell Street, Suite 200 Thunder Bay, ON P7B 5N2

T. 807.346.1390 | F. 807.346.1381 | 1.888.346.1390 | www.premiergoldmines.com

Economic Analysis

The life-of-mine (LOM) after-tax cash flow attributable to Premier is estimated to be $463.4 Million, providing an after-tax NPV5 of $78.1 Million and an after-tax IRR of 50% for the Phase 1 Pit. Highlight financial statistics for the PFS can be found in Table 1.

Table 1: PFS Financial Statistics (*Attributable to Premier)

Parameter	El Niño UG	Phase 1 Pit	Combined
Gold price - base case (US$/oz)	$1,400	$1,400	$1,400
Silver price - base case (US$/oz)	$15	$15	$15
Mine life (years)	2.0	18	18
Mining Rate (tons/day)	600	135,000	NA
Strip Ratio (tons waste:ton ore)	NA	6.9	NA
Processed tons (ktons)	347	9,574	9,921
Average grade (oz/t Au)	0.180	0.081	0.084
Average gold recovery (roaster %)	88.5%	80.8%	81.4%
Average annual gold production (koz)*	12	15	16
Total recovered gold (koz)*	23.5	265.6	289.1
Capital (M$)*	$ -	$29.7	$29.7
Cash cost (US$/oz)1	$1,028	$616	$650
Processing Costs ($/ton)	19.66	20.22	20.20
All-in sustaining cost (US$/oz)1	$1,066	$832	$851
Project after-tax NPV5% (M$)*	$7.2	$70.8	$78.1
Project after-tax IRR	NA	50%	NA
Payback Period	NA	7.2	6.1

1. Net of by-product sales

"While the Pre-feasibility Study currently contemplates mining only a small portion of the overall resources contained on the property, it highlights the robust economics of the project", stated Ewan Downie, President and CEO of Premier Gold Mines. "Substantial increases in mineral reserves and resources support my belief that South Arturo has the potential to grow for years to come. There continues to be significant potential to increase the mine life by conversion of resources to reserves from the 2020 drilling for both El Niño and Phase 1, and continuing exploration as the deposits remain open for further expansion. Overall, the project economics reflect well on Nevada Gold Mines' discipline in developing and operating their projects".

Sensitivity Analysis

The South Arturo project is a producing mine with low capital requirements, operating costs and robust economics that include a breakeven gold price (at a 5% discount rate) of $811/oz. The project remains economic with up to 40% increases in capital or operating costs and is most sensitive to gold prices (see Table 2), operating and capital costs.

1100 Russell Street, Suite 200 Thunder Bay, ON P7B 5N2

T. 807.346.1390 | F. 807.346.1381 | 1.888.346.1390 | www.premiergoldmines.com

Table 2: Project Sensitivity Analysis

Gold Price ($/oz Au)	$1,120	$1,400	$1,680	$1,960
% change for sensitivity	-20%	0	20%	40%
NPV5 (millions)	$40.0	$78.1	$115.4	$152.4

Mineral Resources & Reserves

Mineral Reserves are reported only for material amenable to roasting from the Phase 1 pit and El Niño underground and summarized in Table 3.

Mineral Resources (exclusive of Mineral Reserves) as of December 1, 2020 are presented in Table 4 and include open-pit and stockpile mineralization, oxide mineralization amenable to CIL milling or heap leach processing, and refractory roaster material. Underground Mineral Resources are entirely refractory and require roasting. The underground mineral reserves and resources include all drill results up to November 20, 2019 and until September 12, 2019 for the open pit. Additional drilling was completed in 2020 focusing on expansion of the El Niño deposit at depth and proximal to the Phase 1 and Phase 3 deposits to better define near-surface mineralization, the results of which are not considered in this update.

Table 3: South Arturo Property Mineral Reserves (40% basis) as of December 1, 2020

Process	Tons		Tonnes		Au		Au	Ag		Ag		Au ozs		Ag ozs
(000's)		(000's)		(opt)		(g/t)	(opt)		(g/t)		(000's)		(000's)
							Proven
Open Pit	2,617		2,374		0.089		3.05	0.500		17.15		233		1,309
Stockpile	220	200	0.074	2.54	0.129	4.44	16	29
Underground	66		60		0.186		6.38	0.135		4.62		12		9
Total	2,904	2,634	0.090	3.09	0.464	15.90	262	1,347
							Probable
Open Pit	1,212	1,100	0.063	2.16	0.419	14.37	76.4	508
Stockpile	-		-		-		-	-		-		-		-
Underground	72	66	0.175	6.00	0.131	4.50	12.7	10
Total	1,285		1,166		0.069		2.38	0.403		13.81		89.1		518
						Proven and Probable
Open Pit	3,829		3,474		0.081		2.77	0.475		16.27		309.1		1,817
Stockpile	220	200	0.074	2.54	0.129	4.44	16.4	29
Underground	139		126		0.180		6.18	0.133		4.56		25.0		18
Total	4,189	3,800	0.084	2.87	0.445	15.23	350.5	1,864
Mineral Reserve Estimate Notes:

1. Mineral Reserves are stated as of December 1, 2020;
2. Mineral Reserves are estimated using variable cut-off grades that are dependent upon recovery and processing method;
3. Mineral Reserves have been estimated at a gold price of $1,200 per troy ounce and a silver price of $15 per ounce;
4. The base case economic analysis is presented at a gold price of $1,400 per ounce and a silver price of $15 per ounce;
5. Underground Mineral Reserves include modifying mill to model reconciliation factors of 1.14 and - 0.96 applied to tons and contained metal respectively; and,
6. Modifying factors for tons and contained metal have not been applied to open pit Mineral Reserves.

1100 Russell Street, Suite 200 Thunder Bay, ON P7B 5N2

T. 807.346.1390 | F. 807.346.1381 | 1.888.346.1390 | www.premiergoldmines.com

Table 4: South Arturo Mineral Resources Estimate (40% basis, exclusive of Mineral Reserves) as of December 1, 2020

Process		Tons		Tonnes		Au		Au	Ag		Ag		Au ozs		Ag ozs
	(000's)		(000's)		(opt)		(g/t)	(opt)		(g/t)		(000's)		(000's)
								Measured
Open Pit		5,117		4,642		0.035		1.21	0.220		7.56		180.6		1,128
Stockpile	783	710	0.016	0.55	0.013	0.44	12.4	10
Underground		18		16		0.518		17.77	0.400		13.72		9.1		7
Total	5,917	5,368	0.034	1.17	0.193	6.63	200.2	1,145
								Indicated
Open Pit	16,073	14,581	0.034	1.17	0.176	6.02	548.6	2,824
Stockpile		-		-		-		-	-		-		-		-
Underground	47	43	0.374	12.83	0.168	5.77	17.5	8
Total		16,120		14,624		0.035		1.20	0.176		6.02		566.1		2,832
							Measured and Indicated
Open Pit		21,190		19,223		0.034		1.18	0.186		6.39		729.2		3,952
Stockpile	783	710	0.016	0.55	0.013	0.44	12.4	10
Underground		64		58		0.414		14.18	0.232		7.94		26.7		15
Total	22,037	19,992	0.035	1.20	0.180	6.19	768.3	3,977`
								Inferred
Open Pit	11,092	10,063	0.028	0.95	0.160	5.47	307.5	1,770
Stockpile		-		-		-		-	-		-		-		-
Underground	60	55	0.247	8.46	0.148	5.08	14.9	9
Total		11,153		10,117		0.029		0.99	0.159		5.47		322.4		1,779
Mineral Resource Estimate Notes:

1. Mineral Resources are exclusive of Mineral Reserves;
2. Mineral Recourses are stated as of December 1, 2020;
3. Mineral Resources are estimated using variable cutoff grades that are dependent upon recovery and processing method;
4. Open Pit Mineral Resources are constrained within a pit shell generated using a gold price of $1,500 per ounce and a silver price of $15 per ounce;
5. Underground Mineral Resources are constrained by Mine Stope Optimizer shapes generated using a gold price of $1,500 per ounce and a silver price of $15 per ounce;
6. Modifying mill to model factors for tons and contained metal have not been applied to the open pit Mineral Resources;
7. Underground Mineral Resources include modifying mill to model reconciliation factors of 1.025 and - 0.901 applied to tons and contained metal, respectively;
8. A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling; and,
9. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Qualified Person

Practical Mining LLC, under the supervision of Dagny Odell, P.E., Laura Symmes, SME, and Robert Raponi, P. Eng., each being Qualified Persons within the meaning National Instrument (NI) 43-101, was the lead consultant for the Project PFS. A technical report detailing the Project PFS will be filed within 45-days.

All abbreviations used in this press release are available by following this link (click here).

1100 Russell Street, Suite 200 Thunder Bay, ON P7B 5N2

T. 807.346.1390 | F. 807.346.1381 | 1.888.346.1390 | www.premiergoldmines.com