Premier to Restart Safe Operations at Mercedes

THUNDER BAY, ON, May 20, 2020 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier", "the Company") (TSX:PG) (OTCPK: PIRGF) is pleased to announce the Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico, will begin a safe, phased restart of operations beginning June 1, 2020. This restart is following the Mexican Health Ministry's decree on May 13, 2020 that amends the March 30, 2020 decree to include mining as an essential service effective June 1, 2020. The Mercedes mine was placed on care and maintenance on April 1, 2020 in response to the Mexican federal government's mandate that all non-essential businesses temporarily suspend operations.

The management team has been developing a restart plan that will provide for a safe mine site environment that delivers cash flow from operations while working under the mandated sanitation measures required by government. On site manpower will be increased progressively as it is deemed safe, with the initial focus being the development of ramps in Lupita Extension and Diluvio West to access higher grade mineralization. Diamond drilling crews will be added in early June to resume delineation drilling programs. It is anticipated that by early July the mine will once again be fully operational.

This phased ramp-up of operations is expected to take 6 to 8 weeks and will ensure all required sanitation measures mandated by the government are met. The Company will continue to utilize protective measures for workers and neighboring communities including screening, physical distancing, deep-cleaning, and avoiding exposure for at-risk individuals.

"We are pleased to report no known cases of COVID-19 at the mine," stated Peter van Alphen, Chief Operating Officer at Premier. "Our focus remains the health and safety of our employees, contractors, their families and the neighboring communities during the restart. I would like to thank all our employees for their ongoing support during this difficult and unprecedented time."

Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier remains focused on creating a low cost, mid-tier gold producer through its two producing gold mines, South Arturo and Mercedes, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV), where permitting and development initiatives are ongoing and at the McCoy-Cove Project in Nevada.

This Press Release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, mineral resource and mineral reserve estimates and corporate and technical objectives. Forward-looking information is necessarily based upon a number of 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 inherent to the mining industry, adverse economic and market developments and 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. Premier 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.

SOURCE Premier Gold Mines Limited

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