Highlights Include:

            PFR2010-1:       0.98 g/t gold over 203.0 meters including

                                    2.61 g/t gold over 21.03 meters

            PFR2010-2:       1.84 g/t gold over 274.9 meters including

                                    5.74 g/t gold over 76.2 meters including

                                    22.18 g/t gold over 14.94 meters

            PFR2010-3:       2.23 g/t gold over 157.9 meters including

                                    3.65 g/t gold over 74.37 meters

“Resource growth at the Friday-Petsite property should expand rapidly with the addition of 300 meters of strike length in the new “Lower Block” to the existing 350 meters of strike length in the 531,890 oz, “Upper Block”, inferred gold resource.  With mineralization open at depth and the high-grade aspect of the “Lower Block”, the potential for quickly adding ounces with two drills onsite is outstanding,” stated Michael Ostenson, Premium’s VP of Exploration.

The geometry of the deeper high-grade mineralization discovered in Phase-Two drilling led Premium’s geologists to propose a new “Lower Block”, offset horizontally and slightly vertically from the upper block, which hosts the 531,890 oz at-surface resource, by a shallow dipping thrust fault.  The existence of the new “Lower Block” has now been confirmed and is the target of development in the early stages of the 10,000 meter Phase-Three drill program.

Cross Section PFR2010 1-3

Strike Length & Section Plan

With the high-grade component of the newly discovered “Lower Block”, addition of ounces and overall resource growth at the Friday-Petsite inferred gold resource is expected to proceed at a rapid pace; PFR2010-11 was drilled 50 meters to the south of PFR2009-11 which returned 2.94 g/t gold over 73.5 meters, including 10.57 g/t gold over 17.2 meters in Phase-Two, and encountered similar alteration and mineralization, adding 50 meters of the “Lower Block’s” strike length south. An additional five drill holes have been drilled along 150 meters of strike to the north of PFR2009-10 and have encountered similar alteration and mineralization as encountered in PFR2010-3 and PFR2009-10 increasing the “Lower Block’s” total strike length by 200% within Premium’s patented claim boundary.

A second drill is now onsite and is currently drilling PFR2010-12, a step-out hole in the “Lower Block” 50 meters along strike to the south of PFR2009-11.  The second rig will drill along strike to the south and be utilized for a limited number of infill definition holes while the first drill will continue to explore north along strike.

Drill-1 has completed 3,452 meters of drilling and Drill-2 has completed 533 meters of drilling for a total of 3,985 meters of HQ size core drilled in 12 holes.   To date, PFR2010-11 is the deepest hole drilled in the Phase-Three program, reaching 430 meters.

Drill Plan & Mag Geophysics Map

The first two holes of the program, PFR2010-1 and PFR2010-2, were vertical holes designed to intercept key structural and geological features crucial to the efficient development and expansion of the “Lower Block”.  The holes provide essential three dimensional data such as the orientation of the thrust fault, extent of offset, and the “Friday Fault” contact, being the main bounding fault of mineralization to the east.

Hole three, PFR2010-3, was drilled 25 meters north and on the same direction and dip as PFR2009-10 drilled during Phase-Two.  PFR2009-10 returned 2.66 g/t gold over 198.4 meters (including 3.81 g/t gold over 121.1 meters, including 9.16 g/t gold over 25.3 meters, and 30.60 g/t gold over 1.8 meters.

PFR2010-3 is the first step-out to the north of PFR2009-10 and was specifically designed to test continuity of mineralization along strike in the newly discovered “Lower Block” to the north.

* The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections.

* True Widths are estimated to be between 50% and 75% of the drilled interval.

PFR2010-1 returned 0.98 g/t gold over 203.0 meters, including 2.61 g/t gold over 21.0 meters.

PFR2010-1 was a 219 meter vertical hole located 100 meters west and 15 meters north from PFR2009-10. PFR2010-1 encountered identical sulphides and geology as encountered in PFR2009-10; altered quartz monzonite and muscovite schist with moderate to intense sericite alteration and bottomed in 16.1 meters of Trachyte, a post-mineral dike. Hole one of Phase-Three was located slightly too far east and intercepted a limited portion of the “Lower Block”.

PFR2010-2 returned 1.84 g/t gold over 274.9 meters, including 5.74 g/t gold over 76.2 meters, including 22.18 g/t gold over 14.94 meters.

This hole was a 349.3 meter vertical hole located 120 meters west and 20 meters north of PFR2009-10. PFR2010-2 also encountered identical sulphides and geology as encountered in PFR2009-10. The collar location for this hole was accurately placed to intercept the thrust fault, drill through a large portion of the high-grade mineralization, locate the position of the offset Dacite Dike at depth and finally pass through the “Friday Fault” and terminate in un-mineralized country rock.

PFR2010-3 returned 2.23 g/t gold over 157.9 meters, including 3.65 g/t gold over 74.4 meters.

The collar for this hole is located 25 meters along strike to the north of PFR2009-10 and was drilled to the west at a -65 degree dip, the identical direction and dip to PFR2009-10.  PFR2010-3 was a 392.9 meter hole that also encountered identical sulphides and geology as encountered in PFR2009-10 and terminated in mineralization. With the structural and geological data provided by PFR2010-1&2 this hole was successful in expanding the strike of the “Lower Block” to the north by 25 meters.

The existing Friday-Petsite 531,890 oz inferred gold resource is hosted in 15.17 million tones averaging 1.1 g/t gold at a cut-off grade of 0.5 g/t.

Airborne Geophysics and Drill Plan

Due to the presence of sulfides, magnetite, and hematite in the mineralized Shear Zone, a limited ground magnetic geophysical program has been conducted on the Friday-Petsite property. 

Magnetic data correlates exceptionally well with soil geochemistry and effectively delineates the Shear Zone and specifically, the location of the Friday Fault along the eastern boundary of the Shear Zone. A sharp magnetic high/low signature is present along the Friday Fault, being the main bounding fault between mineralization and un-mineralized country rock (see map).  This sharp high/low signature exists along strike to the north and to the south which will benefit in drill-hole placement where soil geochemistry is absent or unobtainable and suggests ~3,000 meters of potential additional strike length, open for immediate exploration. 

The success of the ground magnetic geophysics has also led Premium geologists to plan a large helicopter born Magnetic/EM survey along the entire length of the Orogrande Shear Zone.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company’s News Releases of July 9th, 2009 and December 29^th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold.

Qualified Person

The 2010 Phase-Three exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. and a Qualified Person as defined by NI 43-101. Mr. Ostenson prepared, and approves of the content in this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an the Friday-Petsite NI 43-101 inferred gold resource hosted in 15.17 million tones averaging 1.1 g/t gold at a cut-off grade of 0.5 g/t, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Premium also announces the resignation of Barney G. L. Portillo from its Board of Directors.  “We would like to thank Mr. Portillo for his years of service to Premium’s shareholders, and wish him much success in his future endeavours”, stated Del Steiner, President. 

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact: 

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Mr. Jones is the Executive Vice-President of Dundee Resources Limited and has 30 years experience as a mining, exploration and consulting geologist.  He is responsible for sourcing investment opportunities globally in exploration and development companies as well as management of associated technical evaluation and due diligence programs.  In addition, he acts as a technical consultant to a number of investee companies and monitors development progress of these companies.

Mr. Jones has worked on all continents for producing mines, as part of feasibility teams and as an explorationist for a number of companies including BP Minerals, Anglo American and Freeport MacMoran.  As a Consultant, he has managed large exploration and due diligence projects, and has undertaken numerous bankable technical audits, technical valuations, independent expert reports and due diligence studies worldwide, most of which were on behalf of major international resource financing institutions and banks.

Mr. Jones has a Bachelor of Science (Earth Sciences) from Massey University, NZ and is a Member of the Australasian Institute of Mining and Metallurgy.

”I am looking forward to working closely with the Premium Exploration Board and the project team.  The Idaho Gold Project has significant potential for the definition of substantial resources along the Orogrande Shear Zone, most of which has never been systematically explored.  Excellent results have been achieved by Premium from the Friday-Petsite zone to date and from the limited amount of shallow historical drilling done elsewhere along the shear.  Premium has a committed and highly competent crew on site and the expansion of the drilling program should allow rapid resource addition in the short term as well as facilitate evaluation of numerous other targets.”

“We are very pleased to have Mr. Jones join the Premium board.  He brings extensive exploration and technical experience with him and will greatly assist with the ongoing development of the Idaho Gold Projects,” stated Del Steiner, President & Acting CEO.

The Company is also pleased to announce Michael Ostenson, P. Geo., an experienced gold, platinum and palladium exploration geologist, as VP Exploration.  Mr. Ostenson has been with Premium since May 2009 as the head Project Geologist for the Company’s Idaho Gold projects and has been directly involved with the planning and execution of the Phase I, II and current drill programs.  He is quite familiar with the geology and surrounding area having worked on the Idaho Gold properties with previous operators since 2004 and having been an integral part of the team in the delineation of the current resource.

Mr. Ostenson also brings mining and mine development expertise from his experience as a platinum and palladium geologist for six years in the Stillwater Complex, Montana, USA, including experience with Stillwater Mining Company as an Ore Grade Control Geologist and a Gold Mine Geologist with AngloGold Corp at its Jerritt Canyon Mine in Elko, Nevada, USA.

“I am very pleased to accept the VP Exploration position, which is a reflection of the Company’s commitment to the success of the ongoing operation here in Elk City, Idaho.  The recent $10,000,000 private placement will advance the expansion of the Friday-Petsite resource and facilitate exploration and development of the Orogrande Shear Zone.  With the addition of a second drill, results will be received rapidly, making the next few weeks for Premium Exploration and shareholders alike, very exciting indeed,” stated Michael Ostenson.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Each Unit consists of one common share and one-half of a common share purchase warrant, each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing. The placement was led by Industrial Alliance Securities Inc., in a syndicate which included Dundee Securities Corporation and Byron Securities Limited.  The placement was previously announced on April 19, 2010 and amended June 9, 2010.

On July 2, 2010, Premium fulfilled its escrow closing conditions for the completion of its $10 million “Private Placement” and on July 5^th, 2010 the Company closed the first tranche of its Private Placement for gross total proceeds of $8,000,000 through the issuance of 32,000,000 at a price of $0.25 per Unit.  Upon completion of this final tranche, Premium will issue an aggregate of 40,000,000 Units for aggregate gross proceeds in the amount of $10,000,000.

The funds raised include a 7% cash commission payable upon closing and 7% broker’s warrants (issuable upon closing). Each broker’s warrant allows the holder thereof to purchase a Unit at an exercise price of $0.25 per Unit, exercisable for a period of 18 months after the closing date.  Each such Unit has the same terms and conditions as those offered under the private placement and is also each comprised of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing.  The securities issued are subject to a four-month hold period from the date of issuance and to final acceptance from the TSX Venture Exchange (the “Exchange”).  The Exchange has confirmed its final acceptance in respect of the Private Placement in its bulletin dated July 2, 2010.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Board of Directors, Employees, and Consultants of Premium would like to offer sincere condolences to Wilf’s wife Cathy, his family and friends. 

Mr. Del Steiner, President, said, “Both Premium and I have lost a great friend and colleague, the blow is personally overwhelming.  His passion, dedication, and desire was evident in his work, and it is now up to us to carry forward and sustain his vision. Our thoughts and prayers are with Wilf’s family at this time of great sorrow.” 

In the interim, Mr. Steiner will re-assume the role of Chief Executive Officer and Chairman of the Board.

Wilf’s passing is a loss not only to his family and many friends but also to the mineral exploration community. He will long be remembered.

Premium will post more details of services on the company website, as they come available.

ON BEHALF OF THE BOARD OF DIRECTORS

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Del Steiner, President commented, “I am pleased that the agents have been committed to the financing during the complex merger with Clearwater and we look forward to using the funds efficiently while advancing our gold projects through the ongoing drilling.”

Effective as of July 2, 2010, Premium fulfilled its escrow closing conditions for the completion of its $10 million brokered private placement (the “Private Placement”) and on July 5^th, 2010 it closed the first tranche of its Private Placement with the issuance of 32,000,000 Units at a price of $0.25 per Unit for gross total proceeds of $8,000,000.  Premium expects that the second tranche of 8,000,000 Units at a price of $0.25 per Unit for gross proceeds of $2,000,000 will close on or about July 6^th, 2010 after the holiday in the United States and the Company will issue a follow-up press release to confirm once that second tranche has closed.  Each Unit consists of one common share and one-half of a common share purchase warrant, each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing. The placement was led by Industrial Alliance Securities Inc., in a syndicate which included Dundee Securities Corporation and Byron Securities Limited.  The placement was previously announced on April 19, 2010 and amended June 9, 2010.

The funds raised include a 7% cash commission payable upon closing and 7% broker’s warrants (issuable upon closing). Each broker’s warrant allow the holder thereof to purchase a Unit at an exercise price of $0.25 per Unit, exercisable for a period of 18 months after the closing date.  Each such Unit has the same terms and conditions as those offered under the private placement and is also each comprised of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing.  The securities issued are subject to a four-month hold period from the date of issuance and to final acceptance from the TSX Venture Exchange (the “Exchange”).  The Exchange has confirmed its final acceptance in respect of the Private Placement in its bulletin dated July 2, 2010.

Proceeds from the private placement will be used for ongoing exploration and development of the Company’s projects, including the on-going Phase-Three drill program on the Friday/Petsite project, and for general working capital.

Concurrent with the Private Placement and effective as of July 2, 2010, Premium USA, a wholly owned subsidiary of Premium Exploration Inc., has taken over Clearwater via a Plan of Merger.  Clearwater is the 100% owner of three advanced gold projects: Buffalo Gulch, Friday-Petsite, Deadwood and one exploration stage project, Dixie Project, all located on the Orogrande Shear Zone in central Idaho.  Additional information about these properties is disclosed in the Company’s technical report dated January 22, 2008 and revised May 27, 2010, which was filed on SEDAR and is available at www.sedar.com.

In exchange for agreeing to merge Clearwater into Premium USA, the shareholders of Clearwater received an aggregate total of 3,000,000 common shares of the Company (subject to a 4-month hold period) along with a 1% Net Smelter Returns royalty (“NSR”) on the Friday-Petsite Project as well as 60 ounces of gold from initial production (the “Transaction”).  The NSR is payable quarterly on commencement of commercial production of gold from the Friday-Petsite Project up to a total of US$3,000,000 in royalty payments.  Since the completion of the Transaction, Premium USA continues as the sole surviving corporation of the merger.

As a condition of the approval for the merger, the Company has signed an undertaking to provide an updated independent Technical Report in compliance with National Instrument 43-101 and the policies of the Exchange, within two months after the Exchange issues its final acceptance of the Transaction.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Clearwater is the 100% owner of four gold prospects:  the Buffalo Gulch (held through Clearwater’s wholly-owned subsidiary Elk City Mining Company (“Elk City”)), Friday-Petsite, Deadwood and Dixie Projects, all located on the Orogrande Shear Zone in central Idaho.  The Buffalo Gulch Project is located near the north end of the Orogrande Shear Zone and is comprised of 107 unpatented quartz lode mining claims.  The Friday-Petsite Project is located near the south end of the Orogrande Shear Zone.  The Deadwood and Dixie Projects are early-stage gold exploration targets.  Additional information about these properties is disclosed in the Company’s technical report dated January 22, 2008 and revised May 27, 2010, which was filed on SEDAR and is available at www.sedar.com.

The parties to the Agreement are: Premium USA; Clearwater; Clearwater shareholders Rod Nicholls and Ellen Steiner; and the Company.

Under the Agreement, in exchange for agreeing to merge Clearwater into Premium USA, the shareholders of Clearwater will receive an aggregate total of 3,000,000 common shares of the Company (subject to a 4-month hold period) along with a 1% Net Smelter Returns royalty (“NSR”) on the Friday-Petsite Project.  The NSR is payable quarterly on commencement of commercial production of gold from the Friday-Petsite Project up to a total of US$3,000,000 in royalty payments.  No finder’s fees are payable for this merger.

Concurrent with the Transaction, the Company has also revised the royalty agreement with Kria Resources Ltd (“Kria”) and Valencia Ventures Inc. (“Valencia”) both headquartered in Toronto, Canada. The revised royalty agreement (the “Royalty Agreement”) replaces the 2007 agreement among Clearwater, Kria and Valencia governing the acquisition of the Buffalo Gulch Project. Under the Royalty Agreement, the Company is to pay Kria $585,000 (in cash or shares), $500,000 to Valencia (cash or shares) and a 0.75% NSR on the Buffalo Gulch Project each to Kria and Valencia upon commercial production.

Due to the fact that Ellen Steiner, wife of the Company’s Director and President Del Steiner, is a shareholder of Clearwater, the Transaction is a related party transaction.

The Transaction is being approved by all of the directors who are not interested parties in the Transaction and Del Steiner has disclosed to them his interest in the Transaction.  The Transaction is also exempt from formal valuation requirements and minority shareholder approval under Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions as the fair market value of the Transaction only represents less than 4.4% of the Company’s market capitalization, which is well below the 25% market capitalization threshold for such requirements.  This transaction is intended to qualify as a tax-free reorganization pursuant to the United States Internal Revenue Code.

In addition, the Company expects that the Transaction will be completed well within 21 days of the date of this news release to avoid delay in completion of the private placement previously announced on June 9, 2010 since the private placement is subject to completion of the Transaction.  The Company also intends to apply for a waiver from the requirement to provide certain filings to the TSXV in connection with the Transaction under the TSXV’s reviewable acquisition procedure as the Company believes it has satisfactory evidence of value and other documentation that would be satisfactory under the policies of the TSXV.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

“I’m very pleased that the quality of our projects and our exploration to date has attracted knowledgeable long term investors and led to increasing the previously announced private placement. The Company is currently drilling 10,000 meters in the Phase-Three drill program on the Friday-Petsite project and is looking forward to increasing shareholder value.” stated Wilf Struck, Premium’s CEO.

Premium has engaged Industrial Alliance Securities Inc. as lead agent, in a syndicate which also includes Dundee Securities Corporation, and Byron Securities Ltd.

The funds raised will include a 7% cash commission and 7% broker’s warrants (payable on upon closing).

Proceeds from the private placement will be used for ongoing exploration and development of the Company’s projects, including the on-going Phase-Three drill program, and for general working capital.  The private placement is subject to approval from the TSX Venture Exchange.

Following a technical disclosure review by the British Columbia Securities Commission, (the “BCSC”), the Company, at the request of the BCSC, has revised its January 22, 2008 Technical Report on the Friday-Petsite property. The revised technical report, written by Wilf Struck, P.Eng., and CEO of Premium Exploration, confirms that the inferred resource estimate of 16.73 million tons grading 0.032 oz/ton gold at a cut-off grade of 0.015 oz/ton gold previously announced on January 22, 2008, is a current inferred resource estimate. Please refer to the report as revised May 27, 2010 on SEDAR for additional details.

Due to other consulting commitments; effective May 31^st, 2010, Pro-edge Consultants, Inc. of Toronto will no longer be providing investor relation services to the Company. Pro-edge provided exposure for Premium during a difficult time in the market and Premium wishes them well on their future projects.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

VANCOUVER, BRITISH COLUMBIA (May 18^th, 2010) – Premium Exploration Inc. (TSX-V:PEM) (“Premium”)  is clarifying the historic resource on the Buffalo Gulch project which is located in central Idaho.

The Buffalo Gulch project is located near the north end of the Orogrande Shear zone and is defined by a north-south trending gold in soil geochem anomaly that has a length of 3200 meters (10,500 feet). The northern portion of the soil anomaly has undergone extensive reverse circulation drilling by a previous operator totaling 150 drill holes on lines spaced 30 meters apart (100 feet) and holes located 30 to 60 meters (100 to 200 feet) apart on the lines. The drilling defined a zone of mineralization hosted in intensely weathered and oxidized schists, gneisses and pegmatite’s down to a depth of approximately 90 meters (300 feet).

Extensive geological modeling, block modeling, engineering and metallurgical testwork has been conducted on the mineralized zone by previous operators and culminated in the definition of a resource that Premium considers a historic resource.

The historic resources as calculated by the Bema Gold subsidiary “Idaho Gold Corporation” were prepared prior to the introduction of NI43-101, but were carried out in accordance with established practice at that time.  

After the drilling conducted during the period 1986-1988, Idaho Gold estimated “proven and probable geologic reserves” of oxide material to a depth of 220 feet as 4.839 million short tons at a grade of 0.023 ounce/ton containing 110,759 troy ounces of gold*. The estimate was based on a tonnage factor of 16 cubic feet per ton and a three dimensional kriging software was employed using an indicator variable of 0.0125 oz/short (0.428 g/tonne) to predict the proportion of each block above the cutoff. Premium’s CEO, Wilf Struck, was employed by Idaho Gold during this period and was directly involved in the discovery and delineation of the zone of gold mineralization as well as the resource estimation and subsequent permitting for the proposed development of the Buffalo Gulch Mine

The resource estimate was reviewed by Micon International in 2004 on behalf of Beartooth Platinum Corporation and they concluded that the – Buffalo Gulch property has historical Mineral Resources of about 5 million tons averaging 0.023 oz/ton Au (4.5 million tonnes at 0.8 g/t Au), comparable to an indicated resource. No cutoff grade was provided.  Micon does state that the density factor of 16 cubic feet per ton was confirmed by “specific gravity measurements on material from Idaho Consolidated Metals Corporation’s (ICMC) 1996 core program.” ICMC is the predecessor company to Beartooth Platinum. Micon qualified the estimate by stating that “The estimations reported here were made prior to the introduction of NI 43-101 and were carried out in accordance with practice at the time. The information is reported as part of the historical data on the Buffalo Gulch property.” Golder Associates also reviewed the historical estimate in a 2006 report. The Micon and Golder reports do not qualify the historical estimate as a current mineral resource.

* Estimates of gold resources are historical in nature, predate and are noncompliant with NI 43-101. Premium is not treating the historical estimate as current mineral resources or reserves. Premium has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. The historical classes used by Idaho Gold are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.

Successful cyanide bottle roll extraction tests and column tests culminated in two pilot scale heap leach tests in the field and confirmed the favorable leaching parameters for the mineralized material. Based on the positive tests from these results; economic and production analysis were conducted by the Bema Gold subsidiary “Idaho Gold Corporation” in 1990; independent engineering group MRDI in 1991; independent engineering group MRDI in 1996; and independent engineering group Golder and Associates in 2006. The analysis by Idaho Gold and MRDI were prepared prior to the introduction of NI43-101, but were carried out in accordance with established practice at that time.

The prior economic analyses did not apply current parameters or assumptions, and they should not be relied on. Analyses done subsequent to the introduction of NI 43-101 were not based on a current resource estimate, as required by NI 43-101. The company previously disclosed basic economic parameters for Buffalo Gulch on its website; however, these were premature and should not be relied on.

Premium will conduct additional drilling on the Buffalo Gulch historic resource during the 2010 exploration season and will use the newly generated data in conjunction with the historic drill data to prepare a NI43-101 compliant resource estimate. A “preliminary assessment” will also be initiated, subsequent to the resource estimate, to develop an economic analysis of the potential viability of defined mineral resources.

“The ongoing drilling on the Friday-Petsite project near the south end of the Orogrande Shear Zone to follow up on the significant gold intercepts from last years drilling, coupled with the drilling and planned resource estimate on the Buffalo Gulch project represent an exciting time for the growth of Premium Exploration.” Stated Wilf Struck, CEO, Premium Exploration.

Qualified Person

Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101, has prepared and approves the content of this release.

 About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

“It is very exciting to have the first two holes of our first major exploration program intercept the same geology which returned the best grades encountered at the project to date. Encountering the target zones corroborates Premium’s geological model, confirms additional sulphide mineralization at depth and continues to demonstrate the Friday-Petsite’s robust mineralization potential. With 9,449 meters (31,000 ft) to go, this is an excellent start to an exciting and well designed exploration program,” stated Premium’s Chairman and CEO, Wilf Struck, P.Eng.

 Premium has drilled 568.3 meters (1,864.5 ft) in two holes and is currently drilling PFR2010-3.  A plan map of the location of the first three holes in Phase Three may be seen below.

PFR2010-1 was a 219 meters (718.5 ft) vertical hole located 100 meters (328.1 ft) west and 15 meters (49.2 ft) north from PFR2009-10. PFR2010-1 encountered identical sulphides and geology as encountered in PFR2009-10; altered quartz monzonite and muscovite schist with moderate to intense sericite alteration and bottomed in 16.1 meters (53 ft) of Trachyte, a post-mineral dike.

PFR2010-2 was a 349.3 meter (1,146 ft) vertical hole located 129 meters (423.2 ft) west and 20 meters (65.6 ft) north of PFR2009-10. PFR2010-2 has also encountered identical sulphides and geology as encountered in PFR2009-10.

PFR2010-3 is being drilled on the same azimuth and dip as PFR2009-10 (270° azimuth and -65 dip) but is located 5 meters (16.4 ft) west and 25 meters (82.0 ft) north of PFR2009-10. PFR2010-3 has reached a depth of 213.2 meters (700 ft) and is designed to continue until it exits the target zone or reaches target depth.

The Phase-Three drill program will consist of approximately 33 holes ranging in depth from 150 meters (500 ft) to 610 meters (2,000 ft) for a total of 10,000 meters (33,000 ft) of drilling.  The program is designed to delineate the target mineralization adjacent to the existing 549,000 oz inferred gold resource (15 million tonnes at an average grade of 1.13 g/t gold at a cutoff grade of 0.50 g/t gold) with the intent of increasing the size of the resource and upgrading some of the resource categories.

(The target tonnage and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  If the drilling intercepts the target mineralization, and sufficient information is acquired to support a resource estimate, these ounces would be an addition to the existing resource). 

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The closing of the offering will be completed in one tranche. The funds raised will include a 7% cash commission and 7% broker’s warrants (payable on closing).  Proceeds from the private placement will be used for ongoing exploration and development of the Company’s projects, including the Phase-Three drill program, and for general working capital.  The private placement is subject to approval from the TSX Venture Exchange.

Phase-Three drilling has commenced ahead of schedule on the Friday-Petsite project in central Idaho. As previously announced the program is designed to delineate the target mineralization adjacent the existing 549,000 oz gold resource (15 million tonnes at an average grade of 1.13 g/t at a cutoff grade of 0.50 g/t) with the goal of increasing the size of resource and upgrading the resource categories.

The Phase-Three drill program will consist of approximately 33 holes ranging in depth from 150 meters to 610 meters (500 ft to 2000 feet) for a total of 10,000 meters (33,000 feet) of drilling. It is designed to intersect the previously announced “target” which may contain 15,000,000 to 25,000,000 tonnes of mineralized material grading from 0.7 to 1.2 g/t Au and may contain 337,000 to 964,000 ounces if intercepted by the drilling.

(The target tonnage and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  If the drilling intercepts the target mineralization these ounces would be an addition to the existing resource).

Wilf Struck, CEO of Premium stated, “Premium has excellent drill results from its last two drill programs and I am looking forward to this Phase of drilling as the geologic target is well defined and the drilling will delineate the zone of mineralization.  The financing will be used to continue the orderly development of our Idaho projects and to advance the project to production in a timely fashion. Premium has an experienced geologic and corporate team which leads to efficient use of funding and will maximize shareholder value.”

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Due to the rigorous requirements for resource definition, the geologic potential is not reflected in the current inferred resource estimate of 549,000 ounces (17,000 kilograms) of gold in 15 million tonnes at an average grade of 1.13 g/t at a cutoff grade of 0.50 g/t hosted within 1,125 meters of strike length. Please click http://bit.ly/LongSection to see the long-section of Premium’s new conceptual 3D Block Model of the resource or visit http://bit.ly/PremiumExploration to view the video of the Model located on the homepage.

Long-section through Premium’s 3D block model; the conceptual target is highlighted in yellow:

*The target tonnage and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  If the drilling intercepts the target mineralization these ounces would be an addition to the existing resource.

The Phase-Three drill program will consist of approximately 33 holes ranging in depth from 150 meters (500 ft) to 610 meters (2,000 feet) for a total of 10,000 meters (33,000 feet) of drilling. It is designed to intersect the previously announced “target” which may contain 15,000,000 to 25,000,000 tonnes of mineralized material grading from 0.7 to 1.2 g/t Au and may contain 337,000 to 964,000 ounces if intercepted by the drilling*.

Therefore, this program will utilize two-thirds of the footage for resource definition within the immediate “target” zone while one-third will be used to step-out along strike to the north, south and down-dip below. Additionally, drilling will also provide data for the scoping (preliminary assessment) study announced March 23, 2010. Please click http://bit.ly/Phase3Plan for a map of the proposed drill plan.

“The Friday-Petsite project is advancing well and the Premium team has made excellent progress to date staying within budget, ahead of schedule and producing quality data and results. The geologic potential for mineralization to the north, south and at depth has been confirmed indicating the Friday-Petsite deposit remains open in those directions with no known geological constraints for the potential size of the resource which presents an exciting target for the next phase of drilling.

We look forward to an exciting field season: the next Phase of drilling is designed to intersect target mineralization directly adjacent to the existing resource and could expand the existing resource rapidly.   In light of the high gold prices this upcoming program at the Friday-Petsite is particularly attractive.” stated Wilf Struck, P.Eng., CEO of Premium Exploration.

Planning for the drilling has been completed and Premium’s geologic crew is mobilizing to the field. The drill contract has been finalized with Westcore Drilling of Elko, Nevada, the contractor used during Phase-One and Phase-Two drilling who provided a high quality of drilling service. Westcore completed both programs ahead of schedule, with excellent core recovery and an excellent safety and environmental record.

The drill will be mobilized to the project site as soon as it is released from its current project and drilling is expected to commence before the end of April.

An expanded Plan of Operations has been filed with the US Forest Service for additional drillsites north and south of the immediate project, for future drilling.

The existing NI43-101 inferred resource has been recently updated with the help of Snowden Resources to conform to the revised geological and structural model based on 2009 drilling. The updated resource was then 3D block modeled and a video of the model is available for viewing on the homepage of Premium’s website at www.premiumexploration.com. 

Mr. Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. is a Qualified Person as defined by NI 43-101 and prepared, and approves of the content of this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

This live presentation will be hosted by Wilf Struck, P.Eng, Chairman and CEO, as he walks you through the new 3D Block Model of the Friday-Petsite ore body and reviews the following material:

• The zones of mineralization included in the recently revised resource estimate of 549,000 oz Au at a 0.5 g/t Au cut off
• Premium’s upcoming drill plan to define additional ounces
• Friday-Petsite and the 28 km’s of the Orogrande Shear Zone’s district potential

*Please visit www.premiumexploration.com now to preview the 3D Block Model Video for the presentation

Del Steiner, J.D., President, will also be available to answer questions and provide investors with Premium’s 2010 Corporate Plan.  A Question and Answer period will be held after Wilf Struck’s presentation. Premium requests all interested parties to submit their questions in the space provided on the registration page of event (http://bit.ly/cZVnfL).

Please register now to ensure your questions are answered as space for viewing the video presentation is limited to the first 100 registrants. Space is unlimited via the Teleconference.

When:             09:00 am EST (06:00 am PST), April 1^st, 2010

Length:            Approximately 20 minutes

Register Now:   http://bit.ly/cZVnfL

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as PGM exploration project in Montana.  For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

Mr. Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. is a Qualified Person as defined by NI 43-101 and prepared, and approves of the content of this release.

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Highlights include:

“Drill holes PFR2009-08 and PFR2009-09 are particularly significant as they confirm gold mineralization in the OSZ, 425 meters south of the 43-101 compliant resource as indicated by the strong, contiguous, 1,150 meter gold in soil geochemical anomaly. This has doubled the strike length of the project and could significantly impact the size of the resource along strike with our upcoming work programs.

It is very rewarding to deliver increased shareholder value by achieving 100% of our objectives with every dollar spent on the exploration programs Premium has undertaken at this project. Our Phase-One program confirmed a new geologic model, while Phase-Two increased the strike length of the project over 120% and confirmed continuity of mineralization to a depth of 490 meters (1,608 feet), approximately 340 meters deeper than the bottom of the current resource.

Premium is excited about our upcoming and future drill programs as we have not encountered any geologic or structural conditions which would constrain or limit the size of the resource target.

In fact, the gold mineralization in the current resource is open to the south, open to the north, and open at depth. This, in addition to the historic drilling north of the resource, the confirmation of the strength of the OSZ, and the geologic model we have for the OSZ, has provided support to Premium’s conclusion that the OSZ is a major regional structure that has the potential to host significant gold resources. Therefore, we have increased our property position to control the majority of the OSZ and consequently, the Company will maximize the value to our shareholders by the logical development of this asset.” stated Wilf Struck, P.Eng, CEO of Premium.

The Phase-Two drill program consisted of six HQ core holes totaling 1969.9 meters (6,463 ft) and assay results have now been received for all of the drill holes from Phase-Two of the 2009 exploration program. Please see news release dated January 13^th for the results of the first three drill holes.

These Phase-Two drill holes were collared south of the main zone of mineralization on the east side of the geochemical anomaly; drilled to the west; and were designed to intersect the structurally prepared rocks associated with OSZ.

Interestingly, drill holes PFR2009-08 and 09 not only encountered altered host rocks, but returned significant gold values, despite their being shallow holes and their location higher in the mineralizing system where the gold mineralization is expected to be weaker.

PFR2009-08 returned 0.55 g/t gold over 124.86 meters (407.0 ft) including 0.84 g/t gold over 14.63 meters (48.0 ft) and terminated in anomalous gold mineralization.

PFR2009-09 returned 0.88 g/t gold over 6.4 meters (21.0 ft) and 2.39 g/t gold over 4.57 meters (15.0 ft) and 0.99 g/t gold over 11.58 meters (38.0 ft) and terminated in anomalous gold mineralization.

Both holes encountered the host rocks, altered quartz monzonite and muscovite schist, and were drilled from the same collar location which is located 590 meters south of PFR2009-10 which returned 2.66 g/t gold over 198.4 meters (650.9 ft), including 3.81 g/t gold over 121.1 meters (397.2 ft), including 9.16 g/t gold over 25.3 meters (83.0 ft), including 30.60 g/t gold over 1.8 meters (6.0 ft).

PFR2009-08 was drilled on an azimuth of 270 degrees at a dip of -45 to a depth of 218 meters (715 feet) while PFR2009-09 was drilled on an azimuth of 270 degrees at a dip of -70 to a depth of 173.74 meters (570 feet).

PFR2009-13 returned 1.25 g/t gold over 26.52 meters (87.0 ft) including 4.39 g/t gold over 5.49 meters (18.0 ft) and terminated in mineralization as it did not fully cross-cut the zone of gold mineralization.

PFR2009-13 was collared 290 meters south of PFR2009-10 directly south of Quartz Creek. Drill hole PFR2009-13 went to a depth of 350.52 meters (1,150 feet).

Note: The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections. True Widths are estimated to be between 65% and 75% of the drilled interval

Increased Property Position

Based on the current and historic drilling to the north, which confirms the strength of the Shear zone, Premium Exploration increased the size of its property along the OSZ by staking an additional 54 claims, totaling approximately 1,000 acres, and covers an additional 4.3 km’s of the OSZ. These claims are located directly to the north of the Friday-Petsite property along the projected strike of the OSZ and are contiguous to the company’s existing claims. These claims are 100 % owned by PEM with no underlying property payments or work commitments.

Historic core holes PC-20 and 21 located 430 meters north of PFR2009-10, returned significant gold intercepts as follows:

Note: The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections. Addition information is required to estimate True Widths

Updated Resource Estimate

Resource recalculation is currently underway incorporating the recent drill results. A total of 22 holes consisting of the seven Phase-One core holes, six Phase-Two holes, four BFD core holes from 2004, and the five core holes drilled by Canden Resources (for a total of 22 holes) will be included in a new resource estimate. These holes were drilled subsequent to the NI 43-101 resource calculation and consequently were not available for that calculation.

The Friday-Petsite claims are owned 100% by Premium Exploration and covers 5.8 km’s of the OSZ. The 531,890 oz inferred gold resource is located within patented claims, as is 60% of the contiguous soil geochemical anomaly that extends to the south of the resource.

The Friday-Petsite is a large and extensive zone of lower-grade mineralization surrounding a higher-grade zone and hosts an NI 43-101 inferred gold resource estimate of 16,544 kilograms of gold (531,890 troy ounces) contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.015 oz/ton), which is a potentially open-pittable heap-leachable disseminated gold resource.

The current bulk tonnage resource is hosted in 350 meters of strike length, calculated to a depth of approximately 150 meters (492 feet), while the current drilling confirms continuity of mineralization to a depth of 490.2 meters (1,608 feet) and remains open along strike and at depth.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described the Company’s News Releases of July 9th, 2009 and December 29^th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Two as with Phase-One, samples with gold values greater than 10 g/t were re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold. The 2009 exploration program was directed by Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101. Mr. Struck prepared, and approves of the content of this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company’s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

“These additions to Premium’s Board of Directors ensure that the Company will continue to benefit from a diversity of skills and experience. The depth of Mr. Sam Yue’s experience in international finance and Dr. Xu’s geological knowledge and technical expertise in exploration will be extremely valuable during the development of the Company and its assets. I am very pleased to welcome our new board members and look forward to their contributions to the Company during this exciting period of Premium’s development.

A substantial portion of Premium’s last private placement came from Ausmon Resources Limited of Australia and was based on a review of Premium’s assets by Mr. Sam Yue and Dr. Xu and recognition of the value of the gold properties and potential for growth of the resource base. Their confidence in Premium’s management and geologic team is appreciated and well founded as evidenced by the recently announced drill results from the Friday-Petsite property” stated Wilf Struck, CEO.

Mr. Sam Yue began his accounting career with Coopers & Lybrand (now Pricewaterhouse Coopers) in London and qualified as a Chartered Accountant in 1978. He gained valuable experience in international accounting and finance, working in the United Kingdom, Africa and Saudi Arabia. In 1985, he joined the finance industry in Sydney, Australia before moving on to the resource industry, oil and gas and mining. With over 20 years experience in financial and corporate management in Australia, Mr. Sam Yue has held senior financial executive and company secretarial positions with ASX listed companies; New Guinea Energy Ltd, Eastern Star Gas Limited, Sydney Gas Ltd, Minerals Corporation Limited, and Beach Petroleum Limited. He was a non-executive director of Jupiter Mines Limited (2007-2008) and an executive director of Ord River Resources Limited (2007-2009). He is presently a non-executive director of Gas2Grid Limited and provides services to small capitalization companies.

Mr. Sam Yue stated, “I am delighted to be associated with Premium which owns some very exciting and high potential assets waiting to be fully developed. I am also honoured to join the Board which consists of very experienced explorationists who are passionate about developing the assets. I look forward to working constructively with the team at Premium to create value for all shareholders.”

Dr. Xu has over 20 years of experience in Australia and the international mining industry. His experience includes technical and senior management roles with Queensland Mining Corporation, Xstrata, Sparton Resources and Queensland Epithermal Gold. He holds an MSc in Economic Geology from the China University of Geosciences and a PhD from James Cook University in Australia. A geologist with specialist IOCG, Mt Isa Style copper and Carlin gold skills, Dr. Xu has in-depth knowledge of exploration techniques and extensive experience in mineral resources in Australia, China and Papua New Guinea. He is a Member of the Australasian Institute of Mining and Metallurgy and Fellow of the Society of Economic Geologists, and a competent person as defined by the 2004 JORC Code.

“I have been very impressed by the results achieved to date by the technical team of Premium. The high quality of the assets and an experienced team is the recipe to get Premium to the next level of its development. 2010 will be an exciting year at Premium” stated Dr. Xu.

Premium also announces the resignation of Salvador Huerta and Vanessa Bachman from its Board of Directors. On behalf of the directors, shareholders and employees, we would like to thank Mr. Huerta and Mrs. Bachman for their valuable contributions while serving on Premium’s Board and wish them the best of luck as they pursue other endeavours.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM), is an explorer and developer of North American gold, silver, platinum and palladium. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Highlights Include:

PFR2009-10: 2.66 g/t gold over 198.4 meters (650.9 feet) including

3.81 g/t gold over 121.1 meters (397.2 feet) including

9.16 g/t gold over 25.3 meters (83.0 feet) including

30.60 g/t gold over 1.8 meters (6.0 feet)

PFR2009-11: 2.94 g/t gold over 73.5 meters (241.1 feet) including

10.57 g/t gold over 17.2 meters (56.4 feet) including

160.63 g/t gold over 0.9 meters (3.0 feet)

PFR2009-12: 1.00 g/t gold over 83.4 meters (273.6 feet) including

3.47 g/t gold over 2.2 meters (7.2 feet)

The drill program consisted of six HQ core holes totaling 1,969.9 meters (6,463 feet) and assay results have now been received for the first three drill holes from Phase-Two of the 2009 exploration program. Please see news release dated August 6th, 2009 for the results from the first phase of drilling.

“The successful Phase-Two drilling was completed on schedule, on budget and confirmed continuity of mineralization as predicted by the geologic model. These holes are the deepest holes drilled to date on the property and intercepted the mineralized zone up to 300 meters down-dip from the bottom of historic drill hole PC010. These results compare well to historic hole PC010 which returned grades of 3.81 g/t over 85.4 meters (including 10.8 g/t over 22.90 meters and 17.66 g/t over 10.7 meters).

The initial results from this program support the current understanding of the geologic and structural controls to mineralization and will be used in the upcoming revision to the inferred 43-101 resource; which will result in an upgrade of a portion of the existing resources and likely increase the resource in total. The high-grade gold intercepts from Phase-Two will also likely have a positive impact on the average grade of the resources.” stated Wilf Struck, P.Eng, CEO of Premium.

The Phase-Two drill holes were collared east of the Phase-One holes; drilled to the west; and were designed to intersect the zone of mineralization down-dip from the earlier drilling.

Interestingly, the post mineral dike encountered in previous shallower drilling was not intersected and, therefore, the mineralization in these deeper holes has not been split into two separate zones. A continuous zone of mineralization will have a positive impact on the revised resource calculation.

PFR2009-10 returned 2.66 g/t gold over 198.4 meters (650.9 feet), including 3.81 g/t gold over 121.1 meters (397.2 ft), including 9.16 g/t gold over 25.3 meters (83.0 feet), including 30.60 g/t gold over 1.8 meters (6.0 ft). The hole also contained a spectacular 0.4 meter (1.3 feet) intercept of 285.93 g/t gold at a down hole distance of 352.9 meters (1,158 feet).

The collar for this hole is located 130 meters east of PFR2009-01 which returned 5.02 g/t gold over 17.92 meters, including 13.78 g/t gold over 5.73 meters and 35.55 g/t gold over 1.58 meters. PFR2009-1 is located 25 meters to the north of the previously reported high-grade hole PC-08 which returned 7.33 g/t over 16.7 meters, including 52.05 g/t over 1.6 meters. Drill hole PFR2009-10 went to a depth of 372.0 meters (1,220 feet) and terminated in mineralization as it did not fully cross-cut the zone of gold mineralization.

PFR2009-11 returned 2.94 g/t gold over 73.5 meters (241.1 ft), including 10.57 g/t gold over 17.2 meters (56.4 ft), including 160.63 g/t gold over 0.9 meters (3.0 ft) and went to a total depth of 490.2 meters (1,608 feet). The collar for this hole is located 250 meters east of PC010 which returned grades of 3.81 g/t over 85.4 meters (including 10.8 g/t over 22.90 meters and 17.66 g/t over 10.7 meters).

PFR2009-12 returned 1.00 g/t gold over 83.4 meters (273.6 ft), including 3.47 g/t gold over 2.2 meters (7.2 ft). The collar for this hole is located 150 meters east of PFR2009-05 which contained 1.20 g/t gold over 76.05 meters, including 3.76 g/t gold over 10.52 meters as well as 1.13 g/t gold over 42.67 meters, including 7.73 g/t gold over 4.57 meters. Drill hole PFR2009-12 went to a depth of 365.9 meters (1,200 feet) and terminated in mineralization as it did not fully cross-cut the zone of gold mineralization. The bottom 2.93 meters (9.6 feet) of the hole averaged 2.74 g/t gold.

The Company is looking forward to reporting the other 3 holes in the program once the remaining assays have been received and compiled into the geologic database. Two drill holes are large step out holes to the South and are located 475 meters (1,558 feet) to the south of PFR2009-11. The holes are located on the geochem anomaly which trends to the South for 1,100 meters (3,608 feet) from the main zone of drilling. These shallow drill holes are located at a higher elevation, and as a result, are at a higher level in the mineralizing system and were designed to intersect the structure associated with the Orogrande Shear Zone. The drill holes successfully intersected altered quartz monzonite and muscovite schist associated with the Orogrande Shear Zone similar to the mineralized material encountered in the first three holes.

Cross Section View PFR2009-10

Note:

• The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections.
• True Widths are estimated to be between 65% and 75% of the drilled interval.

2009 Drill Plan

Resource recalculation is currently underway incorporating the recent drill results. A total of 22 holes consisting of the seven Phase-One core holes, six Phase-Two holes, four BFD core holes from 2004, and the five core holes drilled by Canden Resources (for a total of 22 holes) will be included in a new resource estimate. These holes were drilled subsequent to the NI 43-101 resource calculation and consequently were not available for that calculation.

The large and extensive zone of lower-grade mineralization hosts an NI 43-101 inferred gold resource estimate of 16,544 kilograms of gold (531,890 troy ounces) contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.015 oz/ton) which is a potentially open-pittable heap-leachable disseminated gold resource. This resource was calculated to a depth of approximately 150 meters (492 feet), while the current drilling confirms continuity of mineralization to a depth of 490.2 meters (1,608 feet).

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described the Company’s News Releases of July 9th, 2009 and December 29^th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Two as with Phase-One, samples with gold values greater than 10 g/t were re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold. The 2009 exploration program was directed by Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101. Mr. Struck prepared, and approves of the content of this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company’s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

“We are extremely pleased with the results of this program and are eager to receive assays, due to the significant impact it could have on the Friday-Petsite gold resource. This phase of drilling included three of the deepest holes drilled on the property and intercepted the mineralized zone 300 meters down-dip from the bottom of historic drill hole PC010. The current inferred resource of 531,890 ounces gold (NI 43-101) is hosted in 350 meters (1148 ft) of strike length and down to a depth of 150 meters (492 ft) from surface.

PC010 is an important drill hole in the existing resource; it returned grades of 3.81 g/t over 85.4 meters (including 10.8 g/t over 22.90 meters and 17.66 g/t over 10.7 meters) and terminated in mineralization. PFR2009-11, the first hole completed in this segment of the program, was successful in intercepting the down-dip extension of mineralization encountered in PC010, and was mineralized to a depth of 490 meters (1608 ft) which is triple the depth of PC010.

The results of this program have led to a better understanding of the geologic and structural controls of mineralization and will be used in the upcoming revision of the inferred 43-101 resource.” stated Wilf Struck, P.Eng, CEO of Premium.

Drilling was completed on schedule and totalled 1,969.9 meters (6,463 ft) in six HQ core holes. Four of the holes were located within the resource zone and two were drilled as a fan from the same collar, at a 400 meter (1312 ft) step-out south from the resource. The holes encountered the same geology, structures and mineralization as seen in the Phase-One program, and have extended the zone of alteration along strike to the south and down dip. Actual footage drilled was increased over the proposed footage due to the strength of mineralization at depth and the need for deeper holes.

The drilling to date has been very successful in defining geologic and structural controls to the mineralization and has confirmed that the resource remains open to the north, to the south and at depth. The mineralization encountered in the drill holes consists of a broad zone of lower grade gold mineralization associated with the shear zone, surrounding a higher grade gold core which has been intruded by a post mineral Dacite dike. The ongoing drilling was designed to provide additional data for the delineation of a large gold target associated with the Orogrande shear zone: the current 531,890 ounces gold (NI 43-101 compliant) resource is contained in 15.17 million tonnes at an average grade of 1.1 g/t Au, utilizing a cutoff of 0.5 g/t.

The entire core has been logged by the geologist, split and sent to the assay lab and results will be coming in through early February. Once all of the assay results have been received, complied and interpreted the next phase of drilling will be designed, with drilling to proceed in a logical fashion taking into consideration weather, drill availability and corporate development plans.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described the Company?s News Release of July 9th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). The ongoing 2009 exploration program is directed by Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101. Mr. Struck prepared, and approves of the content of this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Each Unit consists of one common share and one common share purchase warrant entitling the holder to acquire an additional share at $0.30 for 18 months from the closing date of the private placement.  The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date.  In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days notice to the Warrantholders.

The Company will issue 402,500 shares in finder?s fees in relation to this tranche of the private placement.  The securities issued are subject to a four-month hold period from the date of issuance. 

Proceeds from the private placement will be used to continue the development of Premium?s key projects and for general working capital purposes.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Each Unit consists of one common share and one common share purchase warrant entitling the holder to acquire an additional share at $0.30 for 18 months from the closing date of the private placement.  The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date.  In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days notice to the Warrantholders.

Premium closed the initial tranche for gross proceeds of $1,429,000 through the issuance of 7,145,000 Units (see press release dated October 26^th, 2009).  Upon completion of the second tranche, Premium will issue an aggregate of 13,520,000 Units for aggregate gross proceeds in the amount of $2,704,000. 

The Company will issue 402,500 shares in finder?s fees in relation to this tranche of the private placement.  The securities issued are subject to a four-month hold period from the date of issuance. 

Completion of the private placement is subject to final acceptance from the TSX Venture Exchange.  Proceeds from the private placement will be used to continue the development of Premium?s key projects and for general working capital purposes.

Management Updates

The Company has appointed Mr. Wilf Struck, P.Eng., CEO, to the Board of Directors where he will assume the position of Chairman of the Board of Directors. The Company welcomes Mr. Struck to the Board and will benefit from his experience serving as a director for other public companies as well as his operational and geological expertise developing the Idaho gold properties over the last 25 years. Mr. Struck has worked closely with Mr. Steiner for over 20 years and the addition of Mr. Struck to the Board and as Chairman is a key part of Premium?s business schematic. Mr. Del Steiner, President, will remain on the Board of Directors and but will step down as Chairman of the Board while continuing his role as the Company?s President.

?I look forward to being a key member of the Board of Directors and I am excited about guiding Premium Exploration through its next stage of development with the advancement of the gold projects in Idaho. With the close of the second tranche of financing, Premium has gained several significant shareholders that recognize the potential of the gold deposits along the Orogrande Shear Zone in central Idaho and all of our shareholders will be participating in and benefiting from the long-term orderly development of the Company?s projects.

This change will allow Mr. Steiner to focus his energy on his duties as President as Premium moves forward in its development and growth. The Board would like to thank Mr. Steiner for his contribution as Chairman of the Board and looks forward to working closely with him while we grow the Company to its full potential? stated Mr. Struck.

The Company is issuing 600,000 share purchase options to consultants and management at an exercise price of $0.25 per share purchase option.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date.  In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days notice to the Warrantholders.

The Company has issued 402,500 shares in finder?s fees in relation to this placement.  The securities issued are subject to a four-month hold period from the date of issuance. The Company expects to complete the balance of the private placement in the near future.  Completion of the private placement is subject to final acceptance of the TSX Venture Exchange.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Tracy Weslosky, Managing Partner of Pro-edge, commented: “We are substantially impressed with Premium’s CEO Wilf Struck’s professional mining engineering background and long term shareholder vision. Backed with the support of an equally impressive management team, Premium?s projects are located in historically productive areas.?

Pro-edge will receive a monthly stipend of $5,000.00 over the term of its contract. In addition, Pro-edge has been granted 300,000 stock options with a term of five years at an exercise price of $0.25. The stock option grant to Pro-edge is subject to approval by the TSX Venture Exchange.

Wilf Struck, CEO stated ?I am looking forward to working closely with Pro-edge Tracy Weslosky and Fred Cowans at Pro-edge and getting Premium?s story out to a broader audience.?

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date.  In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days? notice to the Warrantholders.

The closing of the offering will be completed in two tranches. The funds raised will include up to 7% finder?s fees in cash or shares.  The amendment of the private placement is subject to approval from the TSX Venture Exchange.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

The program is designed to intersect gold mineralization for an additional strike length of 560 meters: 185 meters north and 375 meters south of the existing resource as well as down dip to a depth of 275 meters (900 ft) below surface. The drill hole collars are positioned in order to upgrade existing inferred resources in addition to targeting contiguous mineralization to the resource with the intent of adding ounces to the 531,890 oz inferred gold resource (NI 43-101) contained in 15.17 million tonnes at an average grade of 1.1 g/t Au.

The strike length of the current resource is 350 meters and was increased by 175 meters, or by 50%, as a result of Premium?s recently completed Phase-One drill program.  Successful completion of Phase-Two drilling on the mineralized target, in addition to the Phase-One drilling; could increase the total strike length of the resource up to 735 meters, or by 210%.

Phase-Two is still in the planning phase but will likely consist of 11 HQ core holes: Two holes within the resource will test down-dip mineralization and provide infill drilling for upgrading of the resource. Seven holes will be located on the contiguous geochemical anomaly directly to the south of the resource, with the most southerly hole approximately 375 meters south of drill holes PFR2009-6 and PFR2009-7 and will delineate the southern extension of the zone. Two holes will test the northern extension of the mineralization and will be located approximately 185-meters north of PFR2009-3 (PFR2009-3 extended the strike length 75-meters to the north in the Phase-One program). Please click here for a map of the proposed drill program.

Road construction is underway to provide access for seven strategically located drill sites along 660-meters of soil gold anomaly that is within patented claims. The soil gold anomaly extends south 1150 meters from the resource and highlights the Orogrande Shear Zone. Gold mineralization which is responsible for the soil anomaly was intercepted in the first 100-meter step-out holes, PFR2009-6 and PFR2009-7. The Phase-Two drill holes will be designed to intersect mineralization associated with the shear zone and the soil anomaly, delineating gold mineralization along strike to the south of the existing resource.

Drilling to date defined geologic and structural controls to the mineralization and has confirmed that the resource remains open to the north, to the south and at depth. The mineralization encountered in the drill holes consists of a broad zone of lower grade gold mineralization associated with the shear zone, surrounding a higher grade gold core which has been intruded by a post mineral dacite dike (PFR2009-01 returned 5.02 g/t Au over 17.92 meters including 13.78 g/t gold over 5.73 meters, PFR2009-02 returned 1.77 g/t Au over 39.56 meters including 3.37 g/t Au over 8.17 meters and PFR2009-05 returned 1.20 g/t Au over 76.05 meters, including 3.76 g/t Au over 10.52 meters as well as 1.13 g/t Au over 42.67 meters, including 7.73 g/t Au over 4.57 meters. The ongoing drilling is designed to provide additional data for the delineation of a multi-million ounce gold target associated with the Orogrande Shear Zone.

The drill is currently on the property and the site is accessible year round, although winter drilling (Dec-April) is slower and more expensive. The program will commence upon financing.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information, Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 100% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date.  In this event, Premium may accelerate the expiry of the Warrants upon providing 30 days? notice to the Warrantholders.

The proceeds from the private placement will be used to:

Ø  Further exploration, including drilling, on Friday-Petsite?s (NI 43-101) 531,890 oz inferred gold resource;

The Phase I Drill Program successfully demonstrated continuity of this gold mineralized zone. The Phase II Drill Program is designed to delineate the gold mineralized zone to the north and south of the existing resource.  This program will further define the target which will have significant implications for the size potential of the mineralized envelope.

Ø  Advance ongoing production permitting on the Buffalo Gulch project;

Ø  Review exploration on the Chrome Mountain property in Montana in anticipation of a comprehensive  exploration program in 2010;

Ø  Conduct general exploration on the San Pedro Analco project in Mexico; and

Ø  Provide general working capital.

The funds raised will include up to 7% finder?s fees in cash or shares.  The private placement is subject to approval from the TSX Venture Exchange.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Highlights include:

• Extended gold mineralization 100 meters to the south
• PFR2009-06:  0.64 g/t gold over 45.29 meters (148.6 ft) including
                       1.06 g/t gold over 15.54 meters (50.0 ft)
  
• PFR2009-07: 0.61 g/t gold over 97.23 meters (318.0 ft) including
                      3.25 g/t gold over 4.42 meters (14.5 ft)  including
                      7.64 g/t gold over 1.58 meters (5.2 ft)

Del Steiner (President) states, ?These results confirm that the near surface gold mineralization associated with the Orogrande Shear Zone (OSZ) continues to the south and is a continuation of the current NI43-101 bulk-tonnage resource. Holes six and seven are located 75 meters south of hole PFR2009-4 and intersected strong gold mineralization. This is very exciting, as the gold in soil geochemical anomaly continues 1150 meters (3770 feet) to the south of holes six and seven and the drill results confirm that the gold in the soil samples reflects the gold in the bedrock.?

Drill holes PFR2009-6 and PFR2009-7 were drilled from the same collar location and are directly south of the NI 43-101 inferred gold resource and demonstrate continuity of the gold mineralization to the south across Quartz Creek. 

This is significant, as the drill holes intercepted gold mineralization coincident with a gold-in-soil geochemical anomaly. The soil anomaly is contiguous to the bulk-tonnage gold resource and continues south for 1150 meters. The current bulk-tonnage gold resource is hosted in 350 meters of strike length and also hosts 350 meters of contiguous soil geochemistry.  (Drilling now confirms that the southern 1150 meters of soil geochemistry is a continuation of the first 300 meters of gold-in soil mineralization.)

There are 660 meters of soil anomaly within the patented claim boundaries and drill roads are currently being constructed to provide access to drill sites within the patented claims.

PFR2009-07 was a vertical hole and terminated in mineralization. Interestingly this drill hole contained 0.73 meter intercept at 66.39 meters that assayed 14.33 g/t gold and 173 g/t silver. The higher silver content may reflect proximity to a Cretaceous Rhyolitic Quartz-Eye porphyry intrusion which is thought to be related to a second mineralizing event. The intrusion is located 1750 meters south-east of the bulk-tonnage gold resource and maybe on a splay to the Orogrande Shear Zone.

The target for the second phase of drilling will be the 1150 meters of soil gold geochemistry, which continues directly to the south of the existing resource. The defined resource estimate of 16,544 kilograms of gold (531,890 troy ounces) contained in 15.17 million tones, averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne, (0.015 oz/ton) is also open to the north and at depth. The drill sites recently approved by the Nez Perce National Forest will permit drill testing over a 400 meter strike length to the north of the existing resource.

As with the first five holes, PFR2009-06 and PFR2009-07 confirm the broad zone of near-surface lower-grade gold mineralization along strike and demonstrate continuity of the high-grade gold zone to the south, of the defined bulk tonnage gold deposit.

*True Widths are estimated to be between 70% and 100% of the drilled interval

The Phase-Two drill program is being designed and will be implemented once the financing is in place.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production.  The Company?s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

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This press release contains certain ?Forward-Looking Statements? within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the Company?s expectations are disclosed in the Company?s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.  All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.