Name of the Project
Hardrock gold project.

Location
The project is located in Geraldton, Ontario, Canada.

Client
Greenstone Partnership Agreement – a 50:50 partnership between Premier Gold Mines and Centerra Gold. The managing partner of the partnership is Greenstone Gold Mines (GGM).

Project Description
The project has openpit probable mineral reserves estimated at 141.7-million tonnes grading 1.02 g/t gold using a cutoff grade of 0.33 g/t gold, which includes a 17.35% mining dilution.

The feasibility study on the project includes mineral reserves for only the openpit Hardrock deposit.

The study envisages the processing of 141.7-million tonnes at an average grade of 1.02 g/t gold, producing 4.2-million ounces of recovered gold over a 14.5-year mine life.

Gold production is expected to average 356 000 oz/y for the first four full years of production – 38-million tonnes milled, with an average head grade of 1.27 g/t gold.

The feasibility study proposes conventional openpit mining techniques with 10 m benches using hydraulic shovels. The openpit operation is planned to be owner operated, with outsourcing of certain support activities.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $709-million and internal rate of return  of 14.4% on a prefinance basis, with a payback of 4.5 years.

Value
The initial capital costs during the preproduction period are estimated at $1.25-billion and include all direct and indirect costs for the processing plant and related infrastructure, relocation of existing facilities, mining equipment, and mining during the preproduction period.

Duration
Not stated.

Latest Developments
The partnership has not yet made a development or construction decision on the project.

The partnership expects to evaluate programmes to minimise the risk profile of the project, including the advancement of permitting. First Nation discussions continue to advance. Matters under discussion include project financing, and completing and submitting the environmental assessments based on the feasibility study, which will incorporate comments already received from the agencies and affected stakeholders. Budgets for these programmes are being developed by GGM for review.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Premier Gold Mines manager of corporate development and investor relations Matthew Gollat, tel +1 807 346 1390, fax +1 888 346 1390 or email
mgollat@premiergoldmines.com.
Centerra Gold VP of investor relations John Pearson, tel +1 416 204 1953 or email john.pearson@centerragold.com.