News Bureau

January 12, 2021

Premier Reports de-risking of the gold project

Premier Gold Mines announces the results of an updated and optimized Feasibility Study for the Hardrock Project in Northern Ontario. This update was prepared by G Mining Services Inc. with support of several other engineering consultants, summarizing significant optimization and de-risking of the Project.

The update is based on a revised mineral reserve, life of mine plan, advances in detailed engineering reflecting firm price bids for all major equipment including the processing plant, mobile fleet, power plant, and the water and sewage treatment plants. The updated study included the mineral resource update.

Highlights of the Study and updated life of mine Open Pit Mine Plan on a 100% basis include,

1: $1.05 Billion After-tax NPV5% based on a US$1,400/oz gold price,

2: 20.1 % After-tax Internal Rate of return, 3.2 year Payback Period,

3: 5.54 Moz of Proven & Probable mineral gold reserves averaging 1.27 g/t Au.

4: 5.05 Moz Total Gold Produced with a 91.2 % process recovery and 5.1 to 1 strip ratio 358,000 oz LOM average annual gold production,

5: 414,000 oz First Five years average production at an average head grade of 1.45 g/t Au,

6: $952 Million Initial capital cost and total LOM sustaining capital of $323 million, Study does not include upside opportunity from the Hardrock underground mineral resources, nor the Brook bank, Kailey and Key Lake deposits.

The 39,000 hectare Greenstone Gold Property is located approximately 275 kilometres northeast of Thunder Bay, Ontario, Canada and is host to a number of historic and recently discovered gold deposits near Geraldton. The Project update contemplates the construction of a 27,000- tonne per day processing facility and open-pit mining operation with production over a 14-year mine life.

Gold production during the first five years is expected to average 414,000 ounces per annum with an average head grade of 1.45 g/t gold. The Project timeline accounts for a 20-month pre-production period and a 4-month plant commissioning period.


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