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Company Achieves Commercial Gold Production Early, on Budget
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The details of this transition project in Nevada are discussed in a CIBC report.

In an Oct. 28 research note, CIBC analyst Bryce Adams reported that Premier Gold Mines Ltd.'s (PG:TSX) "first project at South Arturo, El Niño underground, has achieved commercial production ahead of schedule and on budget."

South Arturo is a joint venture project between Premier that owns 40% and Nevada Gold Mines, 60%. Previously, Premier was expected to attain commercial production at El Niño next year, in Q1.

With the early start, CIBC now expects gold production at South Arturo to exceed its forecast of 4,000 ounces (4 Koz) as well as Premier's 2019 guidance of 5–10 Koz. "We now model South Arturo year-end 2019 production of 11.1 Koz," Adams indicated.

When the South Arturo expansion is done, Adams pointed out, the operation will run at full capacity via the phase 1 open pit. Pre-stripping, which is ongoing, remains on schedule for commercial production in H2/20.

As for exploration potential at El Niño and nearby, recently returned drill results are "positive" and "bode well for future resource and mine plan updates," Adams highlighted. Gold intercepts included 24.4 meters (24.4m) at 20.6 grams per ton (20.6 g/t) at El Niño underground and 113m at 7.3 g/t in the proposed phase 3 pit, which hosts most of South Arturo's heap-leach material.

CIBC maintained its Outperformer rating and a CA$3.85 price target on Premier Gold "on the basis that 2019 is a transition year for South Arturo and the company overall," noted Adams. Premier is currently trading at around CA$1.97 per share.


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Disclosures from CIBC, Premier Gold Mines Ltd., October 28, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Premier Gold Mines Ltd. (PG)

· Premier Gold Mines Ltd. is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months.
· CIBC World Markets Inc. has received compensation for investment banking services from Premier Gold Mines Ltd. in the past 12 months.
· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Premier Gold Mines Ltd. in the next 3 months.

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