Click to access article_10032016065041.pdf

PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to announce that it has completed its acquisition of Yamana Gold Inc.’s (“Yamana”) 100% interest in the Mercedes Mine Property (the “Acquisition”), located some 60 kilometres southeast of Magdalena de Kino, in the Sonora State, Mexico. Pursuant to a share purchase agreement dated July 28, 2016, Premier has acquired all of the shares of Yamana’s indirect wholly-owned Mexican subsidiaries, which own a 100% interest in the Mercedes Mine, for total consideration consisting of: a) US$122.5 million in cash (the “Cash Purchase Price”); b) 6.0 million common shares to Yamana in the capital of Premier (each a “Common Share”); and c) 3.0 million warrants to Yamana (each a “Yamana Warrant”) to acquire up to 3.0 million Common Shares. Each Yamana Warrant entitles Yamana to purchase one Common Share upon the exercise thereof at the price of C$4.75 per Common Share until 5:00 p.m. (Toronto time) on September 30, 2018.