Commensurate with the development of the Idaho Gold Project, Premium is realigning its team and Board of Directors to further the development of the property. In line with this strategy, Mr. Booth brings over 30 years of experience in mining and exploration, corporate finance, and the management of public companies. He has worked for two of Canada’s largest investment banks executing numerous equity financings for both junior and senior companies and was involved in a number of significant mergers and acquisitions.

While working with resource companies, Mr. Booth has held several positions including CEO and Vice-President of Corporate Development. In these roles he was instrumental in securing equity funding and negotiating property acquisitions, and joint ventures. He holds an MBA from St. Mary’s University and a Bachelor of Science in geology from Carleton University.  Mr. Booth is a Director of El Tigre Silver Corp. and Invenio Resources Corp., both companies are listed on the TSX Venture Exchange. 

Mr. Booth has been granted 150,000 stock options which are exercisable at a price of $0.25 for a period of three years from the date of the grant.  The options will vest according to the Company’s Stock Option Plan and the grant to Mr. Booth is subject to approval by the TSX Venture Exchange.

Concurrent with Mr. Booth’s appointment, Mr. Patrick Sam Yue has stepped down from the Board of Premium to pursue other mining interests in Australia.

 About Premium Exploration Inc.

 Premium Exploration Inc. (TSX-V:PEM; OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. 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.

November 28, 2011, Vancouver, British Columbia – Premium Exploration Inc. (“Premium” or the “Company”) (TSX-V:PEM; OTCQX:PMMEF) is pleased to announce that it has entered into a financing agreement with a group of agents led by Alliance Industrial Securities Inc. and Casimir Capital Ltd. (the “Agents”) for gross proceeds of up to $7.5 million through the sale of units (the “Units”).  The Units will be priced in the context of the market.

The Units will be offered by way of short form prospectus in Canada, and may be offered in such other jurisdictions outside of Canada, including the United States, which are agreed to by the Company and the Agents, where the Units can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements. 

The Units will be comprised of one common share in the capital of the Corporation and one-half of one common share purchase warrant (each whole warrant a “Warrant”).  Each Warrant entitles its holder to purchase one common share (each a “Warrant Share”) over a period of 18 months at: priced in the context of the market.

The offering is being undertaken on a fully marketed basis by the Agents.  The Agents will be paid a commission of 7.5% of the gross proceeds from the sale of Units.  Completion of the offering is subject to the Corporation and the Agents entering into a formal agency agreement as well as receipt of the approval of the TSX Venture Exchange and other customary closing conditions.

The Company will grant the Agents an option, exercisable at the negotiated issue price for a period of 30 days following the closing of this offering, to purchase Units for up to an additional 15% of the maximum offering to cover over-allotments, if any.

Premium intends to use the net proceeds from the offering to advance exploration on its projects and for general corporate purposes.

The offering is scheduled to close in late December 2011.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons or persons in the United States, absent U.S. registration or an applicable exemption from the U.S. registration requirements.  This news release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities.  Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM; OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 have more than doubled the mineralised footprint of the Friday Main Zone and acquired geotechnical information essential to future definition drilling which will define the true width and depth of mineralisation along the newly defined extension of the Friday Zone,” stated Michael Ostenson VP Exploration. “We have drilled for structure to locate the mineralised zone; the next step is drilling for grade and width for Friday-Petsite resource growth.”

 Key Points:

• With the Main Zone hosting (NI 43-101) 343,000 oz indicated in 11.8 Mt @ 0.90 g/t Au and 779,000 oz inferred in 22.5 @ 1.08 g/t Au in just 800m of strike, there is significant resource growth potential along the identified 1,700m gold bearing system
• The 900 m of additional strike length has been defined and targeted for infill drilling
• Drill hole PFR2011-18 returned:       1.8 g/t gold over 10.1 meters within
                                                          0.5 g/t gold over 124.7 meters
• Drill hole PFR2011-18 is the first 200m step-out along an additional 3,300m coincident geophysics and gold-in-soil anomaly outside known Friday Zone mineralisation
• Additional metallurgical test work to advance the Friday-Petsite resource has been initiated 
   
• To date assays from 6,270m (25%) of the planned drill program have been reported from a total of 10,600m drilled to date

 Phase-Four Drill Strategy:

The goal of Phase-Four drilling at the Friday Zone was to demonstrate the growth potential of the Friday-Petsite resource by drilling widely spaced step-out holes along strike. Premium has successfully demonstrated a 113% increase in the potential strike length of the deposit, which remains open.

The gold system was successfully located 150m north and 750m south of the 800m Main Zone with broad step-out geotechnical core holes. Drilling was oriented east to locate gold mineralisation associated with the west dipping Friday Fault. A comprehensive infill drill program is being planned to grow the Friday-Petsite resource using cost effective RC drilling. Drilling will be oriented to the west to determine the width and grade of the east dipping mineralized zone, which is located in hanging wall of the Friday Fault.. At least 5,000m of drilling will be conducted with the strategy of connecting the North, Main, and South Zones into one contiguous zone of mineralisation.

Drill Strategy	Friday Zone Drill Plan

In addition to infill drilling for resource growth along the current 1,700 meter footprint, step-out drilling will continue along the additional 3,300m coincident gold-in-soil and geophysical trend to the north and south.

 Drilling Summary:

Planned drill-holes PFR2011-15, 16, & 17 did not reach their target depth due to poor ground conditions and were abandoned.  These holes were collared on a 100m step-out location to the south of previously released drill-holes PFR2011-13 and 14 (see news release dated October 3^rd, 2011) and were designed to locate the Friday Fault structure, the main control to gold mineralisation along the Friday Zone.

 To maximize the potential strike length to the south, drill-hole PFR2011-18 was setup to drill south-east on an oblique angle to the north-south trending gold system to test the furthest extent to the south and increased the strike length footprint an additional 200m.  Drilling encountered gold mineralisation consistant with the Friday-Petsite resource and terminated in the Friday Fault. 

 *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 estimate to be 25-75% of the drilled interval.

 Sections and a Block Model are available at Corebox by clicking: http://bit.ly/CoreboxFP3DModel.

Exploration Drilling Update:Friday Zone:  A total of 4,374.2m have been completed in 18 drill-holes.  Drilling will continue to define the extent of the Friday Fault along strike to the north and south to determine the extent of the system.

Deadwood Zone:  A total of 5,917.9m of drilling have been completed in 9 drill-holes.  Favourable intervals of alteration and sulfide mineralisation associated with structures have been intercepted and assay results are expected in the near future.  Drilling will continue, testing numerous geochemical and structural targets.

The Company wishes to state that potential additional resources are conceptual in nature only, and that there has been insufficient exploration to define an increased mineral resource outside of the current NI 43-101 compliant resource.  Furthermore, it is uncertain if further exploration will result in additional mineral resources.  Estimates for potential additional resources are reported as exploration targets based on the presence of step-out mineralised drill holes, known mineralised zones open along strike and depth and geophysical trends along strike from data received by the Company.

For More Information Please Contact:

NI 43-101

Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011.

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralisation, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at www.premiumexploration.com.

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.

Key Points:

• Surface grab samples have returned encouraging grades from two different mineralised systems.  Premium’s primary focus is a lower grade, bulk-tonnage target; however a higher grade cross-cutting quartz vein system has been recognised, which represents an attractive secondary target.

• Drilling on the patented claims within the northern part of the Deadwood Zone has encountered similar alteration assemblages and sulphide mineralisation to those seen in grab samples.
• Deadwood drill-holes exhibit similar geological, structural, alteration, and sulphide mineralisation characteristics of the Friday Zone located 12 km to the south, which hosts the current NI 43-101 compliant resource.
• Deadwood is one of several mineralised zones along the 30 km Orogrande Shear Zone (OSZ) regional system; all mineralised zones are linked by the 30 km geophysical anomaly with co-incident 16 km gold-in-soil trends.

“Encountering Friday Zone material 12 km away within the Deadwood Zone, along with excellent outcrop results, and gold-in-soils, further suggests the potential for multiple gold deposits along the regional trend,” stated Michael Ostenson, P.Geo., VP Exploration.

Grab samples (972816-972819) are taken from a quartz vein system along 50 meters of strike length and all returned +10 g/t Au results from the fire assay analyses. The balance of the grab samples are taken from sheared and altered country rock with up to 5% pyrite occurring as disseminated and in veinlets.

Widely spaced drill-holes are drilled along a 400 metre portion of the 12 km gold-in-soil anomaly that trends through the Deadwood and Buffalo Gulch Zones and correlates with the 30 km OSZ structure.

First pass drilling is designed to discover bulk tonnage style mineralisation associated with the OSZ structure.  Alteration assemblages and sulphide mineralisation encountered in teh first three drill-holes on the Deadwood patented claims (SD2011-1, 2, & 3), are similar to those seen in the surface grab samples reported in this release.

Large structures have been defined in the first three drill-holes and will be used as a guide to outline the size and geometry of the potential mineralised system.  The structures are similar to those controlling mineralisation at the Friday-Petsite resource 12 km to the south.  The structures at Friday-Petsite have been successfully used as the primary guiding feature for resource expansion.

High-Grade Vein Prospects – Secondary Target

The northern part of the Deadwood Zone is interpreted to comprise two types of gold bearing systems; an east-west high-grade quartz vein system, and a north-south disseminated lower-grade bulk tonnage system. Premium’s primary focus is to define a bulk tonnage deposit.

The presence of the high-grade vein system has become a secondary drill target for Premium and the intersection of these two systems has the potential to host high-grade vein clusters within a large lower grade bulk tonnage deposit, thereby enhancing the overall grade.

There are at least 8 high-grade east-west vein systems along a 7 km segment of the +30 km OSZ within the Deadwood Zone with historically reported grades of over 1 oz/ton.  A large portion of the Deadwood Zone is therefore potentially open to new discoveries.

Veins can be up to a few metres in width and laterally extensive.  A number of these high-grade quartz veins have been historically mined.  Historical mining exploited the shallow oxide portions of the veins, leaving the sulphide portion of the vein open to depth.

Patented Claims Drilling Map

For a location map of the grab sample results, please click: http://bit.ly/DW_PatentedClaimsDrilling_Map.

The Deadwood Zone has Several Correlating Features:

• 12 km gold-in-soil trend with soil sample results over 1.0 g/t Au and a high of 4.0 g/t Au
• Surface outcrop sampling in excess of >10 g/t Au
• Alteration and sulphide mineralization in drilling consistent with Friday Zone 12 km to the south
• All mineralization and alteration coincides with the main regional structure (OSZ) that links all the known mineralised zones at the Idaho Gold Project, including the current NI 43-101 compliant Friday-Petsite resource of 343,000 indicated oz in 11.8 Mt @ 0.90 g/t Au and 879,000 inferred oz in 26.4 Mt @ 1.04 g/t Au (0.5 g/t Au cut-off)  at the Friday Zone.

NI 43-101

Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and a revised date of September 30, 2011.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. 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). Samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold are also analyzed using the metallic screen analysis, as are samples immediately preceding and following the sample with visible gold.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2011 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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, OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Exploration Inc. (TSX-V:PEM, OTCQX:PMMEF) (”Premium” or “the Company”) is pleased to announce that the latest results of step-out holes drilled as part of the ongoing 25,000m program have significantly increased the strike length of the Friday Main Zone by 284m to the south, for a total strike length of 1,500m. The Main Zone strike extent has been increased by 700m by the Phase-Four drilling program to date and remains open along trend.

Highlights Include:

• 88% increase in strike length of the Main Zone to 1,500m: Main Zone hosts 343,000 oz indicated in 11.8 Mt @ 0.90 g/t Au and 779,000 oz inferred in 22.5 Mt @ 1.08 g/t Au along 800m of strike (see press release dated March 28, 2011)
• PFR2011-14:                    1.1 g/t Au over 12.8m and 1.3 g/t Au over 11.3m within 0.4 g/t over 205.7m
  PFR2011-13:                    1.0 g/t Au over 14.6m within 0.5 g/t Au over 111.3m
  PFR2011-12:                    0.9 g/t Au over 7.3m within 0.5 g/t Au over 39.3m
  PFR2011-11:                    4.5 g/t Au over 1.8m and 0.9 g/t Au over 8.2 within 0.5 g/t Au over 24.7m
• Geophysics and gold-in-soils suggest that the Friday Zone may extend for an additional 3500m
• The Friday Zone is one of several known gold zones, including the Monday Zone (300m to the west of the Friday Zone) and the Deadwood Zone (5 – 10 km to the north of the Friday Zone). All mineralized zones are linked by coincident gold-in-soil and geophysical trends along the Orogrande Shear system – further exploration results are anticipated shortly
• To date assays from 5,315m (21%) of the planned drill program have been reported from a total of 10,292m drilled to date

“We are encouraged by the positive results; we have almost doubled the mineralized footprint of the Main Zone and acquired geotechnical information essential to future definition drilling designed to test the true width and depth of mineralization,” stated Michael Ostenson VP Exploration.“Step-out drilling continues along the 3500m potential extension of the gold-bearing structure that remains untested.”

Drill Summary

Drilling is focused on step-outs from the Main Zone of the Friday-Petsite resource along a 5 km gold-in-soil trend coincident with a gold-bearing structure known as the Friday Fault. Two holes per step were drilled as a fan to determine the exact location and orientation of the Friday Fault south along the trend.

All holes successfully intercepted mineralization before passing through the Friday Fault, and terminating in un-mineralized country rock. Gold grades to date are consistent with the current resource grade.

PFR2011-11 and PFR2011-12 were drilled as a fan and to the east on a 167 m step-out to the south of previously released holes PFR2011-7 and PFR2011-9. PFR2011-11 was drilled to a down-hole depth of 454.5 m and PFR2011-12 was drilled to a down-hole depth of 485.9 m.

PFR2011-13 and PFR2011-14 were drilled as a fan and to the east on a 284 m step-out to the south of previously released holes PFR2011-7 and PFR2011-9. PFR2011-13 was drilled to a down-hole depth of 447.8 m and PFR2011-14 was drilled to a down-hole depth of 414.8 m.

*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 estimate to be 25-75% of the drilled interval.

The majority of the Friday resource is contained within the Main Zone, the strike length of which has now been extended from 800m to 1,500 meters since the start of the 25,000 meter Phase Four drill program. This is an 88% increase to the strike length of the mineralized system: The 4 drill-holes reported here are an additional two major step-outs south of the Main Zone and extend the mineralized system for an additional 284m to the south. The Phase Four program to date has successfully extended the strike length of the Main Zone mineralisation by approximately 550m to the south and 150m to the north.

IGP Results Idaho Gold Project	Friay Petsite Zone Results Idaho Gold Project	PFR2011_11 & 12 Idaho Gold Project	PFR2011_13 & 14 Idaho Gold Project	Long Section – Looking East Idaho Gold Project

Exploration Drilling Update:

Friday Zone: A total of 4,374.2 meters have been completed in 17 drill-holes. Drilling will continue to define the extent of the Friday Fault along strike to the south and to the north in order to determine the extent of the system.

Deadwood Zone: A total of 5,917.9 meters of drilling have been completed in the Deadwood Zone in 9 drill-holes. Assay results for the Deadwood drilling are expected in the near future. Drilling will continue at Deadwood, testing numerous geochemical and structural targets.

The Deadwood Zone is located between the Buffalo Gulch Zone to the north and the Friday Zone to the south along the Idaho Gold Project. The drills have been targeting a 12 km gold-in-soil trend which extends through the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structure identified by geophysics.

*The Company wishes to state that potential additional resources are conceptual in nature only, and that there has been insufficient exploration to define an increased mineral resource outside of the current NI 43-101 compliant resource. Furthermore, it is uncertain if further exploration will result in additional mineral resources. Estimates for potential additional resources are reported as exploration targets based on the presence of step-out mineralized drill holes, known mineralized zones open along strike and depth, and geophysical trends along strike from data received by the Company.

NI 43-101

Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc. Mr. Pfau is an Independent Qualified Person as defined under NI 43-101. The technical report has an effective date of March 28, 2011 and a revised date of September 30, 2011.

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. ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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:

•  88% increase in strike length of the Main Zone to 1,500m: Main Zone hosts 343,000 oz indicated in 11.8 Mt @ 0.90 g/t Au and 779,000 oz inferred in 22.5 @ 1.08 g/t Au along 800m of strike (see press release dated March 28, 2011)
• PFR2011-14:           1.1 g/t Au over 12.8m and 1.3 g/t Au over 11.3m within 0.4 g/t over 205.7m
  PFR2011-13:           1.0 g/t Au over 14.6m within 0.5 g/t Au over 111.3m
  PFR2011-12:           0.9 g/t Au over 7.3m within 0.5 g/t Au over 93.3m
  PFR2011-11:           4.5 g/t Au over 1.8m and 0.9 g/t Au over 8.2 within 0.5 g/t Au over 24.7m
• Geophysics and gold-in-soils suggest that the Friday Zone may extend for an additional 3500m
• The Friday Zone is one of several known gold zones, including the Monday Zone (300m to the west of the Friday Zone) and the Deadwood Zone (5 – 10 km to the north of the Friday Zone).  All mineralized zones are linked  by coincident gold-in-soil and geophysical trends along the Orogrande Shear system – further exploration results are anticipated shortly  
• To date assays from 5,315m (21%) of the planned drill program have been reported from a total of 10,292m drilled to date 

“We are encouraged by the positive results; we have almost doubled the mineralized footprint of the Main Zone and acquired geotechnical information essential to future definition drilling designed to test the true width and depth of mineralization,” stated Michael Ostenson VP Exploration.“Step-out drilling continues along the 3500m potential extension of the gold-bearing structure that remains untested.” 

Drill Summary

Drilling is focused on step-outs from the Main Zone of the Friday-Petsite resource along a 5 km gold-in-soil trend coincident with a gold-bearing structure known as the Friday Fault. Two holes per step were drilled as a fan to determine the exact location and orientation of the Friday Fault south along the trend. 

All holes successfully intercepted mineralization before passing through the Friday Fault, and terminating in un-mineralized country rock.  Gold grades to date are consistent with the current resource grade.

PFR2011-11 and PFR2011-12 were drilled as a fan and to the east on a 167 m step-out to the south of previously released holes PFR2011-7 and PFR2011-9. PFR2011-11 was drilled to a down-hole depth of 454.5 m and PFR2011-12 was drilled to a down-hole depth of 485.9 m.

PFR2011-13 and PFR2011-14 were drilled as a fan and to the east on a 284 m step-out to the south of previously released holes PFR2011-7 and PFR2011-9.  PFR2011-13 was drilled to a down-hole depth of 447.8 m and PFR2011-14 was drilled to a down-hole depth of 414.8 m.

*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 estimate to be 25-75% of the drilled interval.

The majority of the Friday resource is contained within the Main Zone, the strike length of which has now been extended from 800m to 1,500 meters since the start of the 25,000 meter Phase Four drill program. This is an 88% increase to the strike length of the mineralized system: The 4 drill-holes reported here are an additional two major step-outs south of the Main Zone and extend the mineralized system for an additional 284m to the south.  The Phase Four program to date has successfully extended the strike length of the Main Zone mineralisation by approximately 550m to the south and 150m to the north.

IGP Results Idaho Gold Project	Friay Petsite Zone Results Idaho Gold Project	PFR2011_11 & 12 Idaho Gold Project	PFR2011_13 & 14 Idaho Gold Project	Long Section – Looking East Idaho Gold Project

Exploration Drilling Update:

 Friday Zone:  A total of 4,374.2 meters have been completed in 17 drill-holes.  Drilling will continue to define the extent of the Friday Fault along strike to the south and to the north in order to determine the extent of the system.

Deadwood Zone:  A total of 5,917.9 meters of drilling have been completed in the Deadwood Zone in 9 drill-holes.  Assay results for the Deadwood drilling are expected in the near future.  Drilling will continue at Deadwood, testing numerous geochemical and structural targets. 

The Deadwood Zone is located between the Buffalo Gulch Zone to the north and the Friday Zone to the south along the Idaho Gold Project.  The drills have been targeting a 12 km gold-in-soil trend which extends through the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structure identified by geophysics.

*The Company wishes to state that potential additional resources are conceptual in nature only, and that there has been insufficient exploration to define an increased mineral resource outside of the current NI 43-101 compliant resource.  Furthermore, it is uncertain if further exploration will result in additional mineral resources.  Estimates for potential additional resources are reported as exploration targets based on the presence of step-out mineralized drill holes, known mineralized zones open along strike and depth, and geophysical trends along strike from data received by the Company. 

NI 43-101

Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and a revised date of September 30, 2011. 

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Company has retained 100% ownership of Chrome Mountain after the expiry of a joint venture with its previous partner Beartooth Platinum Corp.

 In light of a strong long-term outlook for platinum, palladium, rhodium, and base metals, Premium is re-evaluating the Chrome Mountain Property and reviewing strategic alternatives for optimizing shareholder value while focusing on the successful exploration and development of its district-sized Idaho Gold Project.

The review and positioning of the property includes work highlighted below: 

• Claim status
• Plan of Operations for drilling
• Limited program of geological mapping, prospecting, and soil sampling program

 About Chrome Mountain

The Chrome Mountain project is a bulk tonnage platinum, palladium, rhodium, copper, and nickel target located approximately 1.0 km from the East Boulder Mine within the Stillwater Complex in Montana USA. The East Boulder mine is one of two mines in operation by the Stillwater Mining Company; the only primary PGM producer in North America mining the one of the highest grade PGM deposits in the world.

Limited drilling in 2007 on a 2.5 km x 1.0 km PGM-in-soil anomaly encountered high-grade reef style PGM mineralization associated with the AB Chromitite horizon within a thick envelope of previously un-encountered lower grade “disseminated” style of PGM mineralization. The disseminated mineralization appears to be similar to the Platreef style of mineralization found in South Africa

The AB Chromitite horizon is parallel to the richest PGM reef in the world; the JM Reef, which averages 15 – 21 g/t PGM and is mined by Stillwater Mining Company. The AB Chromitites are thought to model UG2 style of PGM mineralization found in South Africa.

Chrome Mountain is unique as it has the potential to develop into a source of PGM’s in a North American district.

Qualified Person

Mr. Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc., prepared, and approves of the content in this release. Mr. Ostenson is a Qualified Person as defined by NI 43-101.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM, OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this re-emerging gold district. 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 Company is pleased to announce the strategic acquisition of two parcels of private property that provide:

• Additional high-quality exploration targets within our overall footprint
• Substantial ability to simplify and expedite key permitting
• Excellent ground for infrastracture siting  

The parcels are located 4 km apart and include 13 highly prospective patented mining claims in the Deadwood Zone and a 640 acre block of private property in the Buffalo Gulch Zone. 

With the addition of these two parcels 11 km and 15 km north, respectively, of the 5 patented claims in the Friday Zone (100 Acres), Premium now owns three parcels of strategically located private property throughout the Idaho Gold Project.

Property Highlights:

• 13 Patented Mining Claims (Red Elk Group) within the Deadwood Zone (~220 Acres)
  • Exhibit the most intense alteration and abundant sulfide mineralization found on surface to date at the IGP
  • Host 1.0 km of the 12 km gold-in-soil anomaly that co-incides with 30 km’s of geophysics which trends through the Buffalo Gulch and Deadwood Zones
  • Provides approximately 220 Acres in the Deadwood Zone that does not require drill permitting
  • Highly prospective property with no known drilling
  • A drill was immediately mobilized to the property
  • Includes an Industrial Site along state Highway14 in the heart of the IGP (historic lumber mill)
  • Includes an Industrial Water Right
  • Substantial increase in strategically located property that provides the infrastructure to significantly expand Premium’s operation and exploration program
  • Provides the option for any future processing to occur on private property expediting and simplifying the mine permitting process
• 640 Acre Block of Private Property (Section 16) within the Buffalo Gulch Zone
  • Hosts the northern most 0.5 km of the 12 km gold-in-soil anomaly that co-incides with 30 km’s of geophysics which trends through the Buffalo Gulch and Deadwood Zones
  • Provides the Buffalo Gulch deposit room for growth should future drilling indicate the deposit extends north along the undrilled 0.5 km gold-in-soil anomaly
  • Provides 640 Acres in the Buffalo Gulch Zone that does not require drill permitting
  • Prospective property with no known drilling
  • Provides the option for any future processing to occur on private property expediting and simplifying mine permitting time lines

“The untapped potential of the Red Elk Group claims is huge.The signs of mineralization are everywhere, in trenches, road cuts, and prospect pits. In fact, a drill has already been mobilized,” stated Michael Ostenson, VP Exploration.  

 “The strategic location of the industrial site, water right, and Section 16, provide Premium with strong infrastructure to expand exploration and the land position to advance the Idaho Gold Project to a district scale gold camp,” stated Del Steiner, President & CEO.

Property Aquisition Map – Approximate Location Idaho Gold Project

Terms of the Transaction

By exercising the option of $142,000 USD, Premium is completing the purchase of the Red Elk Group and Section 16 properties for $1,000,000 USD payable in two equal, annual, non-interest bearing installments. The properties are being acquired from third party vendors who are at arm’s length from the Company.   

The property acquisitions will be conducted in accordance with the policies of the TSX Venture Exchange.

Qualified Person

The 2011 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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, OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this re-emerging gold district. 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 Company is pleased to announce that drill-hole PFR2011-10 intercepted 1.0 g/t gold over 117.4 m including 3.3 g/t gold over 4.9 metres upon stepping out 155 metres north along strike and at depth of the Main Zone of the Friday-Petsite NI 43-101 indicated gold resource of 11.8 Mt grading 0.90 g/t Au containing 343,000 oz gold and inferred gold resource of 22.5 Mt grading 1.08 g/t Au containing 779,000 gold oz,both at 0.5 g/t cut-off.

The 800 metre Main Zone which hosts the aforementioned resources has now been extended to 1,220 metres since the start of the 25,000 metre drill program. This is a 53% increase to the strike length of the mineralized zone and demonstrates the continued growth potential of the Friday-Pestsite bulk tonnage deposit. Drilling has been focused along a 5 km gold-in-soil and correlating structual target identified by geophysics.

“Nine of the ten step-out holes drilled to date have encountered near surface bulk-tonnage gold mineralization, extended the mineralized zone from 800 to 1,220 metres, and demonstrates the multi-million oz potential of the Friday-Petsite deposit,” stated Michael Ostenson, P.GEO., VP Exploration.“Upon defining the extent of the mineralized zone along strike, Premium can then begin development to potentially increase the resource. Until then, our plan is to continue stepping out to determine how large the zone really is.”

Three drills are active at the Idaho Gold Project; one at the Friday Zone and two in the highly prospective Deadwood Zone focused on making new discoveries. The Deadwood Zone covers approximately 35 km2, is located between the Buffalo Gulch and Friday Zones along the Idaho Gold Project, and exhibits intriguing structural complexity.

A 12 km gold-in-soil trend extends along the Buffalo Gulch and Deadwood Zones and correlates with the 30 Km Orogrande Shear Zone, a regional structural target identified by geophysics.  There are numerous, additional gold-in-soil anomalies that correlate with multiple cross-cutting structures, historic mines, and prospects throughout the 35 km2 Deadwood Zone.

Two of the four discoveries at the Idaho Gold Project have been made by drilling beneath gold-in-soil anomalies, while the balance were made by drilling geophysical targets which have not been soil sampled as yet. Premium has completed three drill holes at various targets in the Deadwood Zone and is awaiting results.

To date 3,512 metres (14%) of the 25,000 metre program have been report reported, and 7,644 metres drilled to date.

IGP Phase 4 Drilling Map	PFR2011-10 Drill Plan Map	PFR2011- 8 & 10	Long Section

Friday-Petsite Drilling North:

PFR2011-10 intercepted:

• 1.0 g/t gold over 117.4 metres including;
  3.3 g/t gold over 4.9 metres.

Drill-hole PFR2011-10 is an 85 metre step-out from previously reported PFR2011-8 which returned 1.0 g/t gold over 117.7 metres including 2.9 g/t gold over 9.1 metres, along the 5 Km gold-in-soil anomaly that correlates with the +5 km structural target identified by geophysics. The drilling extends the strike length of the Friday Main Zone 155 metres north, and mineralization between the North Zone and the Main Zone is now interpreted to be continuous.

The hole was drilled northwest starting in the footwall, intersected the Friday Fault structure, and drilled across the hanging wall mineralization, which is consistent with the Main Zone of the resource.

*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 estimate to be 25-75% of the drilled interval.

Sections and the Block Model are available at Corebox by clicking: http://bit.ly/CoreboxFP3DModel.
To view the Friday Zone Plan Map & Results, click: http://bit.ly/FridayPlan_08_10; Cross & Long Sections:  http://bit.ly/Xsection11_11,  http://bit.ly/Longsection11_11; Idaho Gold Project Phase-Four Drill Results, click:  http://bit.ly/IGPPlan_08_10.

Exploration Update

• Drill #1:  Friday Zone Step-out drill-hole PFR2011-14 in progress
• Drill #2:  Deadwood Zone drill-hole DW2011-4 in progress
• Drill #3:  Deadwood Zone drill-hole DW2011-5 in progress

DW2011-5 is drilling a structural target identified by geophysics with correlating gold-in-soils along strike to the south of the historic Deadwood deposit located in the central portion of the Deadwood Zone.

DW2011-4 is drilling a structural target identified by geophysics with correlating gold-in-soils near the historic Deadwood deposit located in the central portion of the Deadwood Zone.

PFR2011-14 is at the Friday Zone in progress on a 550 metre step-out to the south from the Main Zone of the Friday resource. Since Phase-Four, Premium has extended the strike length of the Friday mineralization by 53%.  The total strike length of the untested Friday gold-in-soil trend exceeds 3.0 km.

Premium’s strategy of drilling structures identified by geophysics with correlating gold-in-soil anomalies has led to four discoveries along the 30 km property in under 15,000 metres of drilling, and increased the Friday-Petsite resources from 549,000 Inferred oz in 15 Mt grading 1.1 g/t Au (0.5 g/t Au cut-off) to 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off) in 10,000 metres of drilling.

NI 43-101
Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011.

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 29th, 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.  ALS Chemex is the check laboratory for the program.

Qualified Person
The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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; OTCQX:PMMEF) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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.

Crews have collected 3,500 of the 10,000 soil samples across the unglaciated 172km2 property.

Priority targets include systematic grid sampling over last year’s newly identified 18 km Lucky Strike structural target, and a comprehensive first pass throughout the southern portion of the property in the area surrounding the Monday and “X” Zones. A plan map showing the proposed soil sample locations is available here:

2011 Phase IV Gold-in-Soil Sampling Idaho Gold Project

Gold mineralization at the Idaho Gold Project is associated with regional scale structures. To date:

• Approximately 20% of prospective structural targets have been systematically soil sampled, identifying 16 km of correlating gold-in-soil trends.
• Less than 1.5 km of the 16 km multiple gold-in-soil trends have been drill tested.
• 1.4 km of the sampled structural target hosts an NI 43-101 Indicated gold resource of 343,000 oz in 11.8 Mt averaging 0.90 g/t Au (0.5 g/t Au cut-off) and 879,000 Inferred oz Au in 26.4 Mt averaging 1.04 g/t Au (0.5 g/t Au cut-off).

The first area of focus for the 2011 soil sampling program is the “Lucky Strike Trend”; a consistent 1.0 km x 300 m zone of elevated gold-in-soil peaking at 265 ppb Au located approximately 5.0 km north of the known drill discoveries at the Idaho Gold Project.

The Lucky Strike Zone was discovered at the end of the 2010 season when geophysics revealed an 18 km long, potentially mineralized structure. Upon identifying the structure, Premium managed to sample a 1.0 km segment of the 18 km structure prior to winter conditions and is following up on the positive results.

The Lucky Strike has never been systematically explored, soil sampled, or drilled, and a 3.5 km portion of the 18 km structure was extensively dredged and heavily panned for gold in the late 1800’s to early 1990’s during the Great Idaho Gold Rush. Previous operators never identified the source of the mineralized system.

Pending favourable soil results along the 18 km long zone, the Company anticipates drilling the Lucky Strike in Phase-Four.

Lack of glaciation over the Idaho Gold Project has allowed in-situ soil-sampling to be employed as a highly effective, target refining tool. Two of Premium’s gold discoveries to date have been found by drilling beneath gold-in-soil anomalies.  The 14.5 km of untested soil anomalies along structural targets on the property warrant drill follow-up.

Drill Update
Presently, two diamond drills are located in the Deadwood Zone focusing on exploration and one drill is located in the Friday Zone conducting step-out drilling along strike to the south of the Friday-Petsite resource.

Drill #3 is drilling a structural target identified by geophysics with correlating gold-in-soil near the historic Deadwood deposit located in the central portion of the Deadwood Zone (drill-hole DW2011-4).

Drill #2 is located on the east side of the Deadwood Zone and is drilling a cross-cutting structural target that also hosts the historic Grangeville Mine (drill-hole DW2011-2).

Drill #1 is in the Friday Zone in progress on PFR2011-13, a 550 meter step-out to the south from the Lower Block of the Friday resource. Since the start of Phase-Four, Premium has extended the strike length of the Friday mineralization by 45%.  The total strike length of the untested Friday gold-in-soil trend exceeds 3.0 km.

The current resources within 800 meters of the Friday gold-in-soil include 343,000 Indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 780,000 Inferred oz in 22.5 Mt grading 1.08 g/t Au (0.5 g/t cut-off).

Qualified Person
The 2011 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration within its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Company is pleased to announce results and highlights from the 25,000 m drill program currently underway:

• Increased the mineralized strike length of the Main Zone/Lower Block Zone 85 m north and 265 m south, for a total mineralized strike length of 1,150 m, a 44% increase since the start of Phase-Four
• Drill Highlights Include:
  

  PFR2011-8	1.0 g/t gold over 117.7 m including
  	2.9 g/t gold over 9.1 m

• Three drills are active on the property; one at the Friday Zone and two in the highly prospective Deadwood Zone
• 3,209.3 m (13%) of the 25,000 m program is now reported, with 6,220.6 m (25%) drilled to date

“The 44% increase in the strike length of the Main Zone to the north and south demonstrates the additional size potential of the Friday Deposit along strike,” stated Michael Ostenson, P.GEO., VP Exploration.

This provides the Company with a framework to return with tighter spaced infill drill-holes, where we can drill to the west across mineralization in an effort to delineate the width of the mineralization.”

Friday-Petsite Drilling North:

PFR2011-8 intercepted	1.0 g/t gold over 117.7 m including
	2.9 g/t gold over 9.1 m

Drill-hole PFR2011-8 was drilled 85 meters along strike to the north of the Main Zone.  It was drilled northwest starting in the footwall, intersected the Friday Fault, and drilled across mineralization of the hanging wall which is consistent with the Main Zone.

This drilling extends the strike length of the Main Zone/Lower Block 85 meters north, a 10% increase, and mineralization between the North Zone and the Main Zone is now interpreted to be continuous. Step-out drilling is continuing along the north-northwest trend of the zone.

* The gold grade calculation is a weighted mean with no top cut and no bottom cut.  The grade claculation includes internal waste and low grade sections.  True widths are estimate to be 65 – 75% of the drilled interval.

Friday-Petsite Drilling South:

Step-out drilling is designed to locate the Friday Fault along strike to the south in order to demonstrate the size potential of the deposit.  The Friday Fault is the eastern bounding fault of the Orogrande Shear Zone, which hosts the bulk of the mineraliastion defined on the project to date.   At this time Premium is drilling to the east in order to locate the Friday Fault along strike to the south of the current resource area. Infill drilling between the step-outs is planned.

These infill holes will be drilled to the west, across mineralization, in an effort to delineate the overall width of the mineralization.

• PFR2011-7 intercepted 0.5 g/t gold over 40.8 m as well as 0.5 g/t gold over 19.2 m
• PFR2011-9 intercepted 1.0 g/t gold over 10.1 m within 0.5 g/t gold over 48.5 m

Both drill-holes were step-outs drilled east as a fan from the same collar (-55 and -75). Both encountered gold mineralization consistent with the Friday-Petsite resource, intersected the Friday Fault, and terminated in country rock.  PFR2011-7 was drilled to a depth of 334.1 m and PFR2011-9 to a depth of 235.3 m.

This drilling extends the strike length of the Main Zone/Lower Block 265 meters south and mineralization between South Zone and the Main Zone is now interpreted to be continuous.  Combined with the 85 meter extension north, this gives the total Lower Block strike length an increase of 44% and demonstrates the additional size potential of the deposit along strike.

The Main Zone of the Friday-Petsite NI 43-101 resource contains;  343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 779,000 inferred oz in 22.5 Mt grading 1.08 g/t Au (0.5 g/t cut-off). Mineralization is associated with the Friday Fault.

Long Section	Phase 4 IGP Drilling	PFR2011 7 & 9	PFR2011-8	Phase 4 Friday Zone Drill  Results to Date

To view Sections, please click: http://bit.ly/LongSectionSolids_Jul, http://bit.ly/PFR2011_7-9, http://bit.ly/PF2011_8 or visit Corebox by clicking: http://bit.ly/CoreboxFP3DModel.

Plan view maps can be viewed at: http://bit.ly/Phase4FP_Jul18ResultsToDate (Friday Zone),  http://bit.ly/Phase4FP_Jul19ResultsToDate (Idaho Gold Project).

Exploration Update:

• Drill #1: Friday Zone Step-out drill-hole PFR2011-13 in progress
• Drill #2: Deadwood Zone drill-hole DW2011-3 in progress
• Drill #3: Deadwood Zone drill-hole DW2011-2 in progress

One drill is conducting step-out drilling along the Friday Fault in the Friday-Petsite Resource Zone.  This drilling is being done to demonstrate the size potential of the Friday-Petsite resource along strike to the north and south.

The most efficient and cost effective way to demonstrate this is a two-hole fan drilled to the east along strike to define the location of the Friday Fault and associated gold mineralization.  Follow up drilling with holes drilled to the west and across mineralization are planned for the future.

Two drills are located in the Deadwood Zone focused on making new discoveries.  The Deadwood Zone is located between the Buffalo Gulch Zone to the north and the Friday Zone to the south along the Idaho Gold Project.

A 12 km gold-in-soil trend extends along the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structure identified by geophysics.  There are numerous additional gold-in-soil anomaliest that correlate with numerous cross-cutting structures, historic mines, and prospects throughout the 35 km2 Deadwood Zone.

DW2011-3 is located along the western side of the Orogrande Shear Zone structure interpreted by airborne geophysics and correlating gold-in-soil anomalies. There also a historic mine known as the Black Lady located 500 m southwest of DW2011-3 along the regional structure.

DW2011-2 is located on the east side of the Deadwood Zone and is targeted on a cross-cutting structure interpreted by airborne geophysics and also hosts the historic Grangeville Mine.

Premium’s strategy of drilling structures identified by geophysics with correlating gold-in-soil anomalies has led to:

• Four discoveries along the 30 km property in under 15,000 meters of drilling
• An increase in the Friday-Petsite resource from 549,000 inferred oz in 15 Mt grading 1.1 g/t Au (0.5 g/t Au cut-off) to 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off) in 10,000 meters of drilling

NI 43-101
Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011.

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 29th, 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.  ALS Chemex is the check laboratory for the program.

Qualified Person
The 2011 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district.  For additional information, please visit us at www.premiumexploration.com.

Premium would like to inform its shareholders that the Company was placed on the Defaulting Issuers List on June 21, 2011 for non-compliant technical disclosure – please see release dated June 27, 2011 – Premium Exploration Clarifies Technical Disclosure.

The Company corrected and clarified its disclosure, and a request was submitted by the BC Securities Commission for the Company to be removed from the List on June 29, 2011.

Premium was removed from the List on July 7, 2011.

Phase-Four 25,000 m Exploration Program is moving forward with success:

• The Main Zone/Lower Block of the Friday-Petsite Deposit has been extended to the south by 115m, a 15% increase since the start of Phase-Four, demonstrating the growth potential of the deposit along strike.
• Successful location of the Friday Fault trending north-northwest of the Main Zone/Lower Block, guiding step-outs along strike.
• All step-out drilling along the Friday-Petsite deposit has encountered the target to date.
• Drill highlights to date include PFR2011_5:   1.0 g/t gold over 40.5 m within 0.4 g/t gold over 267.0 m starting at surface (0.0 meters).
• Three drills are active on the property; two drills in the highly prospective Deadwood Zone.
• Only 2,348.8 m (9%) of the 25,000 m drill program have been reported while 5,445.9 m (22%) have been drilled to date.

The Company welcomes the opportunity to connect with our shareholders and appreciates your ongoing support.

Qualified Person
The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 following corrects previous news release dated May 31, 2011.  Drill-holes PFR2011-1 and PFR2011-2 were reported to be drilled 100 m along strike south of the Lower Block of the Main Zone.  The correct distance is 25 m.

The Company is pleased to announce the following highlights of the 25,000 m Drill Program:

• Extended the Main Zone/Lower Block strike length south, by 115 m to 915 m, a 15% increase since Phase-Four
• Friday Fault located at the north-end of the Main Zone, guiding step-outs north along strike
• Drill highlights include PFR2011_5:   1.0 g/t gold over 40.5 m within 0.4 g/t gold over 267.0 m
• Three drills are active on the property; two drills in the highly prospective Deadwood Zone
• 2,348.8 m (9%) have been reported while 5,445.9 m (22%) have been drilled to date of the 25,000 m program

“343,000 indicated gold oz and 780,000 inferred gold oz are hosted within the 800 meter strike length of the Main Resource Zone. The 15% increase in the strike length of the Main Zone to the south and the successful location of the target to guide step-outs to the north, demonstrates the additional size potential of the deposit along strike,” stated Michael Ostenson, P.GEO., VP Exploration.

“Two drills led to four discoveries in Phase-Three: The expansion to three drills along the 30 km gold district increases Premium’s ability to aggressively pursue making more new discoveries while step-out drilling along the Friday deposit.”

PFR2011-3_6	PFR2011-4_5	IGP - FP Zone - Long Section	Phase 4 Friday Drilling	IGP Phase 4 Drilling

Friday-Petsite Step-Out Drilling South – Main Resource Zone:

• PFR2011-4 intersected 1.0 g/t gold over 10.0 m within 0.4 g/t gold over 77.1 m
• PFR2011-5 intersected 1.0 g/t gold over 40.5 m within 0.4 g/t gold over 267.0 m

Both drill-holes were step-outs drilled east as a fan from the same collar. Both encountered gold mineralization consistent with the Friday-Petsite resource, intersected the Friday Fault, and terminated in country rock. PFR2011-4 was drilled to a depth of 286.82 m and PFR2011-5 to a depth of 320.04 m.

This drilling extends the strike length of the Main Zone/Lower Block 115 meters south, for a total Lower Block strike length of 915 m, a 15% increase, and demonstrates the additional size potential of the deposit along strike.

The results also exhibit mineralization along the first 115 m of the 2.5 km of potential additional strike length identified by geophysics and gold-in-soils. Premium is currently taking broad step-outs to the north and south to test this potential and delineate the true mineralized footprint of the Friday-Petsite deposit as it remains open along strike and depth.

The Main Zone of the Friday-Petsite NI 43-101 resource contains;  343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 780,000 inferred oz in 22.5 Mt grading 1.08 g/t Au (0.5 g/t cut-off) and is associated with the Friday Fault.

*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 estimate to be 50-75% of the drilled interval.

Friday-Petsite Drilling North – Main Resource Zone:

Both PFR2011-3 and PFR2011-6 were exploration holes drilled from the same collar at the north-end of the Main Zone/Lower Block. PFR2011-3 was drilled east and PFR2011-6 was drilled west to investigate the direction of the Friday Fault structure north to see if  it continued north along the Crooked River and/or splayed north-northwest towards the historic Orogrande Frisco Pit*.

Mineralization associated with the North Zone was previously interpreted to be a splay. Results from both PFR2011-3 and 6 revealed the main Friday Fault structure trends north-northwest toward the historic Orogrande Frisco Pit* and remains open along strike and depth.

• PFR2011-6 intercepted 1.1 g/t gold over 12.2 m within of 0.8 g/t gold over 28.4 m
• PFR2011-3 did not encounter significant mineralization

PFR2011-6 was drilled to a depth of 341.4 meters and successfully located the Friday Fault and encountered gold mineralization consistent with the Main Zone. These results were used to guide step-out drill-holes PFR2011-8 and PFR2011-10 north-northwest along strike beneath the North Zone.

PFR2011-3 was drilled to a depth of 422.9 meters and did not encounter the Friday Fault or significant mineralization, demonstrating the Friday Fault does not continue north and trends north-northwest.

*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 estimate to be 20-30% of the drilled interval.

Sections and the 3D Model can be viewed at visit Corebox by clicking: http:/bit.ly/CoreboxFP3DModel.

* All 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.

 Exploration Update – Drilling Commences in Deadwood Zone:

• Third drill in operation
• Drill #1: Step-out drill-hole PFR2011-12 in progress
• Drill #2: Drill-hole DW2011-1 in progress
• Drill #3: Drill-hole DW2011-2 in progress
• 2,348.8 m (9%) has been reported and 5,445.9 m (22%) has been drilled to date of the 25,000 m program

The third drill has arrived and two drills are located in the Deadwood Zone. The Deadwood Zone is located between the Buffalo Gulch Zone and the Friday and Monday Zone to the south along the Idaho Gold Project.

A 12 km gold-in-soil trend extends along the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structure identified by geophysics.  There are numerous additional gold-in-soil anomalies that correlate with numerous cross-cutting structures, historic mines, and prospects throughout the 35 km2 Deadwood Zone.

DW2011-1 is located along the western side of the Orogrande Shear Zone structure interpreted by airborne geophysics and correlating gold-in-soil anomalies. There also a historic mine known as the Black Lady located 500 m southwest of DW2011-1 along the regional structure.

DW2011-2 is located on the east side of the Deadwood Zone and is targeted on a cross-cutting structure interpreted by airborne geophysics and also hosts the historic Grangeville Mine.

Premium’s strategy of drilling structures identified by geophysics with correlating gold-in-soil anomalies has led to:

• Four discoveries along the 30 km property in under 15,000 meters of drilling
• Increased the Friday-Petsite resource from 549,000 inferred oz in 15 Mt grading 1.1 g/t Au (0.5 g/t Au cut-off) to 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off) in 10,000 meters of drilling

NI 43-101

Premium’s current NI 43-101 on the Friday-Petsite Zone along the Company’s Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc.  Mr. Pfau is an Independent Qualified Person as defined under NI 43-101.  The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011.

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Company is pleased to announce drill results and the 4^th gold discovery. The discovery is 20 km along strike to the north from the initial discoveries on the Idaho Gold Project.

Highlights

• Gold mineralization encountered in two zones 20 km apart along a 30 km regional gold trend utilizing the same geological model & exploration strategy
• Both mineralized zones are interpreted to be associated with the 30 km regional gold trend
• Buffalo Gulch Zone comprises 4 km of a 12 km gold-in-soil trend that correlates with the 30 km regional gold trend
• Drilling at Buffalo Gulch intercepted a new target in addition to previously defined mineralization consistent with the oxide portion of the historic deposit
• Step-out drilling at the Friday Zone extended mineralization 100 meters south along strike
• Drilling to commence soon at the Deadwood Zone utilizing the same exploration strategy

“We are in the right place for making multiple discoveries; there are over 20 historic workings, 18 km of historic placer mining, 15 km of gold-in-soils and existing deposits along the main 30 km structure identified by geophysics. This is the size of the systems being discovered in the Yukon.” stated Michael Ostenson, P.GEO & VP Exploration. “When we drill structures we make discoveries and Premium has over 100 drill sites permitted along +60 km of structure.”

Buffalo Gulch Zone Drilling:

Drill-hole BG2011-1 intersected 0.5 g/t gold over 26.2 meters of oxide mineralization consistent with the historic 111,000 oz indicated resource (4.8 Mt grading 0.8 g/t Au @ 0.4 g/t cut-off). It demonstrates the continued growth potential of the deposit.

It also intersected 1.3 g/t gold over 4.6 meters within the sulphides. It intersected an interpreted mineralized structure identified by IP Dipole-Dipole geophysics and is considered secondary to a much larger structure nearby. More drilling is required.   BG2011-1 was drilled vertically to a total depth of 266.7 meters and terminated in anomalous mineralization.

*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 for BG2011-1 are estimated to be 65-75% of the drilled interval from 77.4m to 103.6m and the unknown for the interval from 88.1m to 92.7m.  The True width for the drilled interval in BG2011-2 is estimated to be 20-30%.

Intersecting an interpreted gold mineralized structure in the sulphides precisely where it was identified by geophysics, supports the new geological model at the Buffalo Gulch Zone.

With structurally controlled mineralization and grades improving with depth, the potential for a sulphide system similar to the Friday-Zone exists at depth.

Drill-hole BG2011-2 intersected 0.5 g/t gold over 21.3 meters within the oxide portion of the Buffalo Gulch historic resource. It did not reach the structural target identified by the IP geophysics as it was halted due to weather conditions.  This hole was drilled to the east at a -60 degree dip to a total depth of 65.8 meters terminating in mineralization.

Due to the heavy rain and snow the BLM requested Premium Exploration to suspend drilling until conditions improve.  At this time conditions have improved and the drill will be returning soon to complete this hole and test other promising targets along the Buffalo Gulch Zone.

The target zone at Buffalo Gulch comprises 4 km of the 12 km correlating gold-in-soil and airborne geophysical anomalies along the 30 km trend. Previous operators defined the historic resource drilling 0.5 km of strike along the gold-in-soil trend. They defined the deposit via shallow, vertical RC drilling and did not investigate potential high-grade structural mineralization at depth or along strike.

Friday Zone Drilling:

Step-out drilling encountered gold mineralization 100 meters south along strike of the Main Zone of the the Friday-Petsite resource. It demonstrates the continued growth potential of the current NI 43-101 estimate: 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off).

* 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 40% and 60% of the drilled interval.

Drill-holes PFR2011-1 and PFR2011-2 were drilled as a fan to confirm the orientation and depth of mineralization.  Both holes were drilled from the same collar to the east with PFR2011-1 at a -60 degree dip and PFR2011-2 at a -80 degree dip.  The orientation and depth of mineralization is consistent with the Friday-Petsite resource and is considered to be continuous with the Friday-Petsite resource.

Disclaimer: All estimates of historic 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 Corporation, a subsidiary of Bema Gold, are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes. Previous operators defined the historic resource drilling 0.5 km of the gold-in-soil trend. They defined the deposit via shallow, vertical RC drilling and did not investigate potential high-grade structural mineralization at depth.

Buffalo Gulch Zone - BG2011 – 1, 2	Friday Zone – PFR2011 – 1, 2	Long Section

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Company is pleased to announce the start of the 2011 exploration field season; gold-in-soil sampling underway, claims staking, and drilling in progress.

District-Wide Phase-Four Exploration Program Highlights:

• 3,091 Meters of the +25,000 Meter Drill Program
• 9 drill holes have encountered alteration & sulphide mineralization
• 550 Gold-in-Soil samples of the +10,000 sample campaign
• 30% increase in land position to 172.6 km²

“We are pleased with the progress of Phase-Four Exploration; drilling has intersected favourable zones, gold-in-soil sampling is underway, and additional claims have been staked making our property package one of the largest in Idaho.” Stated Michael Ostenson, P.Geo., VP Exploration of Premium Exploration.  “Drills will be mobilized shortly to the promising Deadwood Zone to begin another year of making new discoveries.”

Premium’s strategy of drilling structures identified by geophysics and gold-in soil trends has led to 3 gold discoveries and significant resource development; 343,000 indicated and 779,000 inferred gold ounces are hosted in just 0.8 km of structure at the Idaho Gold Project to date. This represents less than 1% of the +60 km of parallel and cross-cutting structures identified on the property.

Drilling Update:

Buffalo Gulch Zone

• 2 drill-holes in 332.5 meters
• Both holes encountered alteration & sulphide mineralization consistent with the “OSZ”
• Drill to return once weather conditions improve

The target zone at Buffalo Gulch is 4 km of the 12 km correlating Gold-in-Soil and Airborne Geophysical anomalies along the main 30 km trend.

Drilling at Buffalo Gulch is designed to test the same geological model tested at the Friday Zone, 20 km south along the 30 km trend, which resulted in 100% success in drilling and increased the Friday-Petsite deposit from 549,000 oz inferred to 880,000 inferred and 343,000 oz indicated gold in Phase-Three.

A historic indicated resource of 110,000 oz gold in 4.8 Mt at 0.8 g/t with 0.4 g/t Au cut-off is hosted along 0.5 km of the 4 km trend and remains open. The last operator in the 1990’s focused on defining near-surface oxide mineralization. Targeting gold-in-soil anomalies, they defined the near-surface oxide deposit via shallow, vertical RC drilling and did not investigate potential high-grade structural mineralization at depth; Premium’s new geological model.

Friday Zone

• 7 drill-holes in 2,758.3 meters
• All drill-holes encountered alteration & sulphide mineralization consistent with the “OSZ”
• 2 drill-holes in progress:
  • 1 located along the Friday Fault to the south of the Friday-Petsite resource zone
  • 1 located along the Friday Fault to the north of the Friday-Petsite resource zone

Drilling is designed to locate and intersect the Friday Fault at depth, along strike to the north and south to test 5km of potential strike length identified by gold-in-soils and geophysics.

The first 7 holes are located within the current Friday-Petsite resource footprint. Upon successfully locating the Friday Fault at depth (Lower Block), Premium intends to continue stepping out along strike, out of the resource footprint.

343,000 oz gold Indicated (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 oz gold Inferred (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) are hosted along 1.4 km of structure to date;   343,000 oz gold Indicated and 779,000 oz inferred in just 0.8 km.

Field Season Update:

Gold-in-Soil Sampling:

A total of 550 gold-in-soil samples in the +10,000 sampling program have been taken along the western portion of the Deadwood Zone to further refine drill targets planned for the Phase-Four drill program.

This first stage of sampling is focused on the new “Lucky Strike Structure” previously announced March 29^th 2011.  The second stage of the gold-in-soil sampling program will be focused to the west and south of the Friday-Petsite resource following the OSZ south to the X Zone.

In-situ gold-in-soil sampling along the Idaho Gold Project has been shown to be a key exploration tool and an excellent representation of the underlying bedrock as the region is un-glaciated.

Buffalo Gulch Zone – 2011 Drilling	Friday Zone – Phase 4 Drilling	IGP Gold-in-Soils Claim Map

Claim Staking:

 A total of 623 new claims have been staked bringing the Idaho Gold Project land position to 2,127 un-patented lode claims and 5 patented claims for a total of 2,132 claims.  The total area has been increased by 30% to 172.6 square km.

Disclaimer: All estimates of historic 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 Corporation, a subsidiary of Bema Gold, are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 high silver values represent a unique characteristic of the Monday Zone. This is a significant discovery and will be followed up during the 25,000 meter drill program currently underway”, stated Michael Ostenson, P.Geo., VP Exploration of Premium Exploration.

PFR2010_22 returned: 2.1 g/t Au over 20.1 meters including 5.5 g/t Au over 6.4 meters,153 g/t Ag over 1.0 meter, 100 g/t Ag over 0.9 meters and 91 g/t Au over 0.9 meters.

It was the second discovery drill-hole to intersect the structure called the “Monday Fault”.  The drill hole drilled west at a -55 dip, successfully intercepting the new Monday Fault along the same geophysical-structural anomaly as previously released PFR2010-19 which returned 1.4 g/t Au over 38.6 meters. PFR2010_22 was completed at 818.5 meters down-hole depth terminating in anomalous gold mineralization.

PFR2010-22 is located 900 meters south of PFR2010-19, and collectively, the two holes exhibit similar alteration, mineralization, and geochemistry, demonstrating 900 meters of potential continuity along the Monday Fault Zone.

The Monday Zone remains open in all directions and is defined by a 5 km geophysical anomaly. To date, geophysical anomalies drilled by Premium have encountered significant mineralization.

The silver along the Monday Zone is a new discovery at the Idaho Gold Project.  Follow up drilling on the Monday Zone is planned in the Phase-Four 2011 drill program. 

Cross sections and Block Model can be viewed at www.corebox.com. Please click http://bitly.com/PFR2010_19_22 for the PFR2010_22 cross section and http://bitly.com/MondaySilver for a Plan View Map of the Monday Zone.

PFR2010 19 & 22	Monday Zone

 PFR2010-22 Highlights:

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.  ALS Chemex is the check laboratory for the program.

 Qualified Person
The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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.

“343,000 indicated and 780,000 inferred gold ounces are hosted in 800 meters of structure at the Idaho Gold Project. This represents less than 1% of the +30 km of structure present on the property demonstrating tremendous potential for our shareholders. The $1,912,500 provides additional capital to unlock shareholder value for the +25,000 drill program currently underway.” stated President Del Steiner.

The warrants were issued in connection with a private placement offering in September 2009 which closed in two tranches.  The first tranche closed October 23, 2009 and the second tranche closed November 12, 2009. All warrants from the first tranche have been exercised.

The proceeds from the warrant exercise will supplement the Company’s current working capital position and will be used to fund exploration work on Premium’s flagship property, the Idaho Gold Project.

The Idaho Gold Project hosts 343,000 Indicated oz Au (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 Inferred oz Au (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) resources along the Friday Zone and remains open along strike and depth.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at www.premiumexploration.com.

For More Information Please Contact:

“The warrant exercise completes the funding for the $7,000,000, Phase-Four Exploration Program, which includes the first district-wide +25,000 meter drill program along the Idaho Gold Project” stated President Del Steiner.

“Two drills are active, utilizing Premium’s “Proven Exploration Strategy” to discover multiple near-surface gold resources along the +30 km trend, and ultimately developing this emerging gold district in Idaho.”

The warrants were issued in connection with a private placement offering in September 2009 which closed in two tranches.  The first tranche closed October 23, 2009 and the second tranche closed November 12, 2009. All warrants from the first tranche have been exercised.

The proceeds from the warrant exercise will supplement the Company’s current working capital position and will be used to fund exploration work on Premium’s flagship property, the Idaho Gold Project.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V:PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 primary focus of the Phase-Four drill program is to demonstrate the district size potential of the Idaho Gold Project by discovering and delineating new zones of mineralization: the Friday Zone currently hosts a resource of 343,000 Indicated and 879,000 oz Inferred ounces*. In addition, the Buffalo Gulch, Deadwood, Monday, and “X” Zones and the newly identified 15 km structure demonstrate the potential for additional deposits.

Key Objectives for Phase-Four Exploration Include:

• + 25,000 meters of diamond drilling with a two-fold strategy:
  • 15,000 m:
    • Discover new gold zones at Buffalo Gulch, Deadwood, and “X” Zones by drill testing defined coincident geophysical and geochemical anomalies;
    • Expand and define the geometry of the Monday Discovery
  •  10,000 m:
    • Step-out drilling to expand and define the geometry of the Friday-Petsite deposit;
    • Infill drilling for resource expansion and category upgrade
• Gradient array IP geophysics to refine drill targets over key areas
• Up to 10,000 soil samples to further refine geophysical anomalies
• +100 drill sites proposed and permitted along the 30 km for maximum flexibility

“Our goal is to ultimately develop a district with multiple near-surface gold resources along our +30 km property,” stated Del Steiner, President & CEO.

“Our strategy of drilling structures identified by geophysics has led to 3 gold discoveries and significant resource development. With less than 1% of the geophysical anomalies on the property being systematically drilled to date, Phase-Four offers an excellent opportunity to potentially create significant shareholder value in 2011.”

One drill is located at the Friday Zone where major step-out with some infill drilling is planned. The second drill is at the Buffalo Gulch Zone testing an extraordinary anomaly at depth identified by the IP geophysics.

Idaho Gold Project Phase Four Proposed Drill Plan	Friday-Petsite and Monday Zones Proposed Drill Plan	Buffalo Gulch and Deadwood Zones Proposed Drill Plan

Two additional drills are contracted to arrive in June when the majority of the drill permits are anticipated to be received. Drilling will target numerous coincident geophysical and gold-in-soil anomalies along the Idaho Gold Project in an effort to discover and delineate new discoveries.

New 15Km Structure

Additional airborne geophysics reveals another 15 km geophysical anomaly potentially outlining 15 km of mineralized structure.  Premium previously announced staking an additional 328 claims to control the priority zone when the 2010 soil sampling revealed coincident gold mineralization along 1.0 km of the structure and will be followed up with drilling in Phase-Four.

Idaho Gold Project – Zone Map

The Phase-Four budget is currently $7.0M for the 25,000 meter program.  Premium believes that sufficient resources are available to complete the Phase-Four drill program.

*The Friday-Petsite deposit hosts 343,000 Indicated oz Au (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 Inferred oz (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) and remains open.

For an updated Block Model of the recently released resource estimate on www.Corebox.Net, please click http://bit.ly/Corebox_Block_Model_FP.

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.  ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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 Friday-Petsite resource resides within 1.4 km of strike along the 30 km Orogrande Shear Zone and is comprised of three zones for which geophysics has shown to be contiguous:

Highlights:

• Main Zone Hosts:                                               343,000 Indicated oz
  (800 m of 1.4 km strike length)                           780,000 Inferred oz

• North & South Zones Host:                                 100,000 Inferred oz

• Significant category upgrade of  343,000 oz to Indicated
• 60% increase of Inferred oz to 879,000
• Deposit remains open along strike and at depth within and outside the resource zone
• Premium anticipates the new resource will positively impact the Preliminary Assessment
• The deposit is open for expansion in +25,000 meter Phase-Four drilling

Part of the Phase-Four drill program, the north, main, and south zones will be tied together in one homogenous zone.

Long Section	Map of Resource Update

“With just over 10,000 meters of drilling, Premium not only doubled the overall ounces at the project, it  also moved 343,000 ounces of the previous 549,000 inferred ounces into the indicated category,” stated Michael Ostenson, VP Exploration. ”The strength of our geologic model and the ability to target the mineralizing structure using geophysics has allowed us to intersect mineralization in every drill hole at the Friday and Monday Zones.”

“We are very excited for the Phase-Four drill program; the geologic model indicates that the three resource zones are contiguous along the 1.4 km of strike and the deposit remains open along strike to the north, south and at depth outside of the resource zone. Phase-Four will consist of major step-out drilling with some infill at the Friday-Petsite deposit while a majority of the footage will focus on exploration drilling along the OSZ.  Using our proven Exploration Strategy and Geological Model the focus will be +15 km north along the Deadwood and Buffalo Gulch Zones in an effort to make new discoveries.”

The estimates were performed on material with similar geologic, alteration, and mineralogical characteristics.  A search ellipsoid of 91 m X 73 m 32 m was utilized for grade interpolation into 20 m X 20 m X 10 m blocks. As required under section 4.2 (5) (a) of NI-43-101, a technical report detailing this resource will be posted to SEDAR within 45 days of this announcement.

The mineral resource of this project is an Inferred and Indicated resource, consistent with the CIM definition of an Inferred and Indicated resource as referenced in NI-43-101.   The effective date of this resource is March 28, 2011.

Independent Qualified Person
Mr. Mark I. Pfau, P.G., of Tellurian Exploration, Inc., is the independent qualified person under NI-43-101 and the senior author of this mineral resource estimate.  Ms. Yenlai Chee, project manager for Premium Exploration, performed the resource calculations using Gemcom® modeling software.  Mr. Pfau has reviewed and approved of this press release for release on March 28th, 2011.

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.  ALS Chemex is the check laboratory for the program.

About Premium Exploration Inc.
Premium Exploration Inc. (TSX-V:PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at http://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.

IP Dipole-Dipole Highlights:

• High chargeability/resistivity indicates a potentially mineralized structure from surface to 300m depth
• Buffalo Gulch and Deadwood exhibit similar geologic model and westerly dipping structural orientation to Friday Zone mineralization
• IP results correlate with airborne geophysics and gold-in-soil anomalies

“The IP anomalies display potentially mineralized structures at depth in the Buffalo Gulch and Deadwood Zones which will be drill tested in the 2011 Phase-4 drill program,” stated Mike Ostenson, VP Exploration of Premium Exploration. “This is very significant as the anomalies share similarities with the Friday-Petsite deposit where high-grade structurally controlled mineralization was discovered at depth. We have only scratched the surface of this project’s growth potential; it’s going to be an exciting and prospective year for our shareholders.”

IP Plan View Along the OSZ & Airborne	IP Plan View Along the OSZ & Gold-in-Soil

Buffalo Gulch IP Section	Deadwood IP Section

2010 Idaho Gold Project Geophysics Summary

During the 2010 field season, Premium Exploration acquired three different types of geophysical data at the Idaho Gold Project, including 114 line km ground magnetics, 30 km x 5 km Dighem Airborne, and 8.4 line km Dipole-Dipole Array Induced Polarization (IP) surveys.

Ground Magnetics

•  Ground magnetic surveys were done at the Buffalo Gulch, Deadwood, and Friday Zones. Advanced processing of the ground magnetic data provided high resolution of the fault systems.  All surveys showed the presence of fault structures within each zone, confirming geophysics was an effective tool for identifying potential mineralized structures, culminating in the regional Airborne Survey.

Airborne Survey

•  The Dighem airborne survey EM data outlined the Orogrande Shear Zone (OSZ) as a 30 km conductive anomaly, delineated fault structures, and identified priority targets. These correlate with gold-in-soil anomalies and drill intercepts along the OSZ suggesting the various mineralized zones are a part of main mineralizing system. 

Induced Polarization

• Targets were followed up with three lines of induced polarization at the Buffalo Gulch Zone and three lines at the Deadwood Zone for a total of 8.4 km.  The resistivity and chargeability results show prominent westerly dipping anomalies in both zones, similar to the Friday Fault, indicating the presence of large potentially mineralized structures.
• High chargeability and resistivity typically indicate the presence of sulphides and silicification, both of which are associated with gold mineralization at the Idaho Gold Project.

“Collectively, the different geophysical surveys indicate and delineate fault structures, alteration, and sulfide mineralization indicating the best targets for potential gold mineralization.  When correlated with gold-in-soils, past drilling, and mapping, Premium has the tools in hand for making multiple new discoveries in its Phase-Four drilling and exploration program,” stated Mike Ostenson.

Historic Resources

• Deadwood Zone hosts a historic deposit of 57,500 oz in 2.6 Mt @ 0.8 g/t Au with a 0.4 g/t Au cut-off (see disclaimer). The historic deposit is located within 1.0 km of 8 km gold-in-soil and geophysics anomalies and remains open along strike and depth.
• Buffalo Gulch Zone hosts a historic 111,000 oz indicated gold resource in 4.8 Mt @ 0.8 g/t Au with a 0.4 g/t Au cut-off (see disclaimer). The historic resource is located within 0.5 km of 4.0 km of soil & geophysical anomalies and remains open along strike and depth.

Disclaimer: All estimates of historic 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 Corporation, a subsidiary of Bema Gold, are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.

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 samples with visible gold.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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.

New Deadwood Gold in Soil Trend:

• New Deadwood gold-in-soil trend of >20ppb Au is 8 km in length and up to 1 km in width.  The anomaly clearly outlines the western margin of the NNE trending Orogrande Shear Zone in an area of multiple NNW trending splay structures.
• Gold-in-soil results up to 2.0 g/t  and comparable to the gold-in-soil anomalies at the Friday and Buffalo Gulch Zones, both of which correlate very well with known mineralization along the Orogrande Shear Zone.
• Deadwood  gold-in-soil anomaly is located:
  • 5 Km north along strike from Friday-Petsite deposit of 549,000 oz inferred gold resource(15 Mt @ 1.13 g/t Au with a 0.5 g/t cut-off)
  • 3 Km south along strike from Buffalo Gulch historic 111,000 oz indicated gold resource * (4 Mt @ 0.8 g/t Au with a 0.4 g/t cut-off)
• New gold-in-soil anomaly correlates with airborne geophysics, thus providing clear targets for the Phase-Four drill program

“Drilling based on gold-in-soils combined with geophysics is the most effective exploration strategy at the Idaho Gold Project, proven with 100% drill success at the Friday Zone,” stated Mike Ostenson, VP Exploration of Premium Exploration. “The new Deadwood Zone gold-in-soil results correlate with potential mineralized fault structures identified by geophysics giving Premium numerous high-priority targets along the new 8 Km trend”.

 Gold in Soil Anomalies – Idaho Gold Project

2010 Soil Sampling Program

The gold-in-soil sampling program was targeted on the complex structural corridor revealed by the airborne geophysics in the Deadwood Zone and was designed to refine drill targets for the upcoming Phase-Four drill program scheduled to begin March 21, 2011.

The survey was conducted on a grid with 200 meter north-south spacing and 25 meter east-west spacing.  The soil samples were submitted for multi-element analysis’ providing Premium with potential pathfinder elements.  As a result of the strong anomaly, Premium increased its land position by 328 claims in the Deadwood Zone.

Phase-Four Exploration

Premium has received IP Di-Pole Di-Pole geophysics conducted in Q4 2010 and anticipates releasing results as soon as they have been analysed. With the new IP data, drill targets are being refined and prioritized for the upcoming Phase-Four program scheduled to begin late March 2011 and drill-site permitting is currently on track for +25,000 meters of drilling.  The exploration program will also include up to 10,000 soil samples with additional geophysics.

The Friday-Petsite resource will also continue to be developed focusing on demonstrating the potential footprint along strike with large +250 meter step-outs to the north and south.

Further exploration on the new Monday Fault Zone discovery will be followed up with a combination of soil sampling, geophysics, and drilling.

*Buffalo Gulch Historic Resource

The Buffalo Gulch resource estimate by Idaho Gold Corp in was reviewed by Micon International in 2004, and they concluded that the Buffalo Gulch property had 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 cut-off grade was provided. 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.

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 samples with visible gold.

Qualified Person

The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (“OSZ”) in North-Central Idaho, USA; the 4th largest gold producing country in the world. The “OSZ” is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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.

November 23rd, 2010, Vancouver, British Columbia: Premium Exploration Inc. (TSX-V:PEM) is pleased to announce that the 1.5-km Ground Magnetic Geophysical Survey at the Buffalo Gulch Project identified an anomaly that correlates with a north-south trending 4.0-km soil geochemical anomaly, historic shallow drilling defining 110,000 oz historic indicated gold resource*, and the recent 30-km MAG & EM Airborne Survey conducted over the entire length of the Orogrande Shear Zone (“OSZ”). This correlating methodology has resulted in 100% drill target intercept success in the ongoing 10,000 meter Phase-Three drill program at the Friday-Petsite Project located 16-Km south of Buffalo Gulch along the 30-km OSZ in Idaho, under Premium’s control.

Premium geologists interpret the high/low ground magnetic signature to correlate with the 56k EM Airborne Survey representing the west-bounding fault of the Orogrande Shear Zone, known as the Monday Fault at the Friday-Petsite Project.

Both the Buffalo Gulch and Friday-Petsite Projects have ground magnetic anomalies that correlate with the zone of conductivity revealed in the airborne survey, gold in soil anomalies, and drilling.  Premium intends to apply this new concept at the Buffalo Gulch Project to indentify structures which could result in the discovery of similar structurally controlled, high-grade sulphide mineralization at depth.

Buffalo Gulch Comparision Map

Orogrande Shear Zone Comparison Map

Friday-Petsite Correlation Map

Successful drilling at BG utilizing correlating methodology would make a substantial positive impact towards endorsing the geological model linking mineralization at Buffalo Gulch 16-km north of the Friday-Petsite and district development.

Due to the this correlation along the OSZ in multiple zones, Premium has followed up  with a 3-km Dipole-Dipole Geophysical Survey at the Buffalo Gulch and Deadwood projects in order to help refine drill targets for the upcoming Phase-Four drill program in 2011. Results are anticipated early 2011.

Buffalo Gulch Project:

• Defined by a 4 km north-south trending gold-in-soil geochemical anomaly with only a small portion of the geochemical anomaly being drill tested by previous operators
  
• 1.5 km’s of IP and 1.5 km’s of Ground Magnetic Geophysics reveal a potential structure interpreted as the OSZ
  
• The existing oxide deposit, as delineated by previous operators, is open along strike, depth, and  into sulphide mineralization
  
• To date, no drilling at depth beyond 150 meters has been conducted to test high-grade sulphide potential
  
• Both the soil geochemical and geophysical anomalies correlate with the recently released airborne geophysical image
  
• Historically fully permitted as an open-pit mine for Bema Gold in 1991 but did not reach production

Buffalo Gulch is the most northern project along the 30-km Orogrande Shear Zone in central Idaho under Premium’s control and hosts a historic 110,000 oz indicated gold resource* that was once fully permitted for open-pit production in 1991 by Bema Gold Inc.

*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. 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 resource estimate was reviewed by Micon International in 2004, and they concluded that the Buffalo Gulch property had 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 cut-off grade was provided.

* 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.

Orogrande Shear Zone District Development Overview:

Development is ongoing at the bulk-tonnage Friday-Petsite Project, the most advanced of several known mineralized zones located at the southern end of the 30 km of the OSZ and represents 4% of the OSZ under Premium’s control while the Buffalo Gulch project is the northernmost project located 16 Km‘s north of the Friday-Petsite.

The Friday-Petsite Zone is located along the east-bounding fault of the OSZ. Drilling at the Friday-Petsite is co-incident with a 3.0 km long by 800 meter wide gold-in-soil anomaly and a correlating ground magnetic geophysical survey outlining 3.0-Km’s of immediate local structure.

Premium has had 100% drill target intercept success in conjunction with ground-magnetic geophysics and soil sampling at the Friday-Petsite Project. Intercepts have ranged from lows of 0.5 g/t Au to highs of 2.6 g/t Au, in some cases over +100 meter intervals, as with PFR2009_10: 2.6 g/t Au over 198 meters including 3.8 g/t Au over 121 meters and 5 g/t over 75 meters.

Premium intends to utilize the same methodology to refine targets for a much larger Phase-Four exploration program along the Orogrande Shear Zone in Q1-2011.

Qualified Person

The 2010 Phase-Three exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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 is focused on the exploration and development of its district-sized Orogrande Shear Zone “OSZ” to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of gold mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite Project, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium’s control. 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.

To date the Company has:

• Completed a 1.5-km Ground Magnetic Geophysical Survey over the Buffalo Gulch Project – interpretation is anticipated shortly
• Completed two 1.5 km IP Dipole-Dipole Surveys over priority targets in the Deadwood and Buffalo Gulch Projects – interpretations anticipated early Q1-2011
• Initiated a 7,500 Soil Sampling Campaign with the intent of taking 5,000 samples before the snow flies at priority targets in the Deadwood and Aurum Projects with 1,500 samples (30%) completed to date – results anticipated early Q1-2011
• Initiated the complete interpretation of the Magnetic and all three EM frequencies of the Airborne Geophysical Survey – results anticipated Q1-2011
• Initiated Drill-Site Permitting for up to 75 drill sites along the entire length of Premium controlled OSZ
• Secured commitment of four drills for the Phase-Four program, anticipated to begin by the end of Q1-2011 (the Company is well funded to get Phase-Four underway)

The Company is systematically applying its methodology along the OSZ in preparation for its Phase-Four program. Premium will employ the methodology which has drill-validated 1-km of the mineralized target, the east bounding fault of the OSZ known as the Friday Fault, along the balance of the 30-km’s of the OSZ under Premium’s control.

Premium’s exploration methodology has resulted in 100% drill-target intercept success in the Phase-One, Two, and Three drill programs at the Friday-Petsite. Upon the release of the airborne geophysical image, geologists observed that the airborne geophysical anomaly correlates with the 3.0-km gold-in-soil anomaly, 3.0-km ground magnetic geophysical anomaly, and the 1.0-km of drilling along the Friday Fault at the Friday-Petsite project, and may well outline 30 km’s of structure along the Orogrande Shear Zone for immediate exploration and Phase-Four drilling. 

Friday Fault Correlating Geochem, Ground Mag & Airborne Geophysics

Important to note is the existing historic soil geochemical and geophysical work already completed along the Orogrande Shear Zone between the Buffalo Gulch and Friday-Petsite projects. The historic data correlates with the recently released Airborne Geophysical Image, which Premium will utilize when refining drill targets early in Q1-2010. The details of the Phase-Four program will be announced upon obtaining results of Premium’s current expanded exploration program.

Buffalo Gulch (Northern-Most Project):  

• Defined by a 4 km north-south trending gold in historic soil geochemical anomaly with only a small portion of the geochemical anomaly being drill tested by previous operators
• 1.5 km’s and 1.5 km’s of IP and Ground Magnetic Geophysics reveal a potential structure interpreted to be the OSZ
• The existing oxide deposit, as delineated by previous operators, is open along strike and at depth into sulphide mineralization
• To date, no drilling at depth beyond 150 meters has been conducted to test high-grade sulphide potential
• Both the soil geochemical and geophysical anomalies correlate with the recently released airborne geophysical image 

Deadwood Project:

• Defined by a 5,000 meter geochemical soil anomaly along strike 
• Premium has recently acquired a historic geophysical IP survey that is currently undergoing interpretation 
• Limited historic shallow RC  drilling (down to 30 meters) encountered oxide mineralization, however, just as at the Buffalo Gulch and Friday-Petsite project, previous drill programs were not designed to target high-grade sufide potential at depth 
• Both the soil geochemical and geophysical anomalies correlate with the recently released airborne geophysical image 

Aurum Project:

• Is a grassroots project along the OSZ. Although no modern exploration has been conducted over Aurum, 3.5-km of the Crooked River aligns with the entire Aurum project from north to south and was extensively placer mined in the early 1900’s utilizing a Bucket-Line Dredge. Dredging concluded at the northern end of the Friday-Petsite project, a few meters from where Premium is drilling today. Dredging was a major operation for that period of time.  

Correlating Geochem, Placer, Geophysics & Airborne OSZ

Friday-Petsite Phase-Three Drill Program Update:

Drilling is designed to develop the Lower Block mineralization directly beneath the initial modeled deposit at the Friday-Petsite while stepping out and developing both the initial modeled deposit (North and Main Zones) and Lower Block, along strike.

PFR2010_22: Is the first step-out outside the initial deposit model and could extend the 1.0-km drill-validated strike length by 200 meters south. It is located 200 meters south of the South Zone and PFR2010_20. It is being drilled west at a -55 degree to test for down-dip mineralization of the Lower Block and is the most southern drill-hole in Phase-Three to date.

PFR2010_24: Is being drilled west at a -80 dip to test mineralization interpreted to be contiguous to mineralization encountered by PFR2010_11 & PFR2010_12 and beneath the initial deposit model by locating the Friday Fault at depth, further developing the Lower Block in the southern-end of the Main Zone. It is located 50 meters south of previously released drill-holes PFR2010_11 & 12 and could increase the strike length of the Lower Block by 50 meters to 550 meters.

Drill Holes Pending Assays:

• PFR2010_15 is an infill drillhole that was drilled from the same collar of recently released PFR2010_14 in the southern end of the Main Zone. It was drilled east at a -65 dip to test for mineralization beneath and contiguous to mineralization encountered by PFR2009_11 & 12 by locating the Friday Fault at depth. The total down-hole depth was 378.9 metres and visually encountered favourable alteration/sulphide mineralization.
• PFR2010_18 is an infill hole drilled steeply to the west at a -75 dip to provide structural information and to test mineralization located directly beneath the initial deposit model. The total down-hole depth is 545 meters and encountered sulphide mineralization/alteration characteristic of the OSZ.
• PFR2010_19 was drilled to the west and is Premium’s first pure exploration hole in 2010. It is a 649 meter drill-hole designed to intercept the inferred west-bounding fault of the OSZ known as the Monday Fault. Encountering gold mineralization in PFR2010_19 would make it a discovery hole, expanding the potential east-west width of the Main Zone by 200 meters and opening up the western side of the OSZ for additional exploration. PFR2010_19 visually encountered sulphide mineralization/ alteration characteristic of the OSZ. 
• PFR2010_20 is a step-out south, located 150 meters south of PFR2009_8 & 9 in the South Zone, which returned 0.6 g/t Au over 124.1 m and 1.0 g/t Au over 11.6 m, respectively. This drill hole is designed to test for interpreted contiguous mineralization encountered by PFR2009_8 & 9, at depth. The total down-hole depth is 698 meters and intercepted sulphide mineralization/alteration characteristic of the OSZ.
• PFR2010_21 is a infill hole drilled east at a -80 dip designed to test for mineralization interpreted to be contiguous to PFR2010_4 and PFR2009_3 at depth, developing the Lower Block in the northern-end of the Main Zone. It is located 25 meters north of PFR2010_4 and 25 meters south of PFR2009_3.  The total down-hole depth is 425 metres and visually encountered favourable alteration/sulphide mineralization.
• PFR2010_23 is an infill hole drilled west at a -70 dip to test for mineralization interpreted to be contiguous to PFR2009_12 and PFR2009_10, developing the Lower Block in the southern-end of the Main Zone. It is located 25 meters north of PFR2009_12 and 40 meters south of PFR2009-10. The drill-hole was completed at 359 meters down-hole depth and visually encountered characteristic mineralization/sulphide alteration.

Planned Drilling for Phase-Three:

PFR2010_25 to PFR2010_28 are designed to delineate the remaining 200 meters between the Main and North Zones while developing the Upper and Lower Blocks and confirming continuity of mineralization.

• PFR2010_25 will be a step-out north and could extend Premium’s current mineralized 1.0-km meter strike length an additional 200 meters. It is 50 meters north of historic Kinross core holes PC-20 and PC-21. This hole will be drilled west to test for down-dip mineralization in the Lower Block. It is the furthest drill hole permitted to the north at this time.  
• PFR2010_26 will be located and drilled directly beneath historic Kinross core holes PC-20/PC-21 and drilled to the west to test the down-dip mineralization potential.
• PFR2010-27 will be located 50 meters south of historic Kinross core holes PC-20/PC-21 to tie the mineralization of the North and Main Zones together.
   
• PFR2010-28 will be located 100 meters south of historic Kinross core holes PC-20/PC-21 and will also be targeted to tie the mineralization of the North and Main Zones together.

 
Friday Petsite:  Updated Drill Plan Map

District Development

The 30-km Airborne Geophysical Image reveals the strong regional extent of the zone of conductivity interpreted to represent the Orogrande Shear Zone, linking all five contiguous projects and the two known gold deposits located at either end, which resulted in Premium increasing its land position by 200%.

Since the exploration and development began along the OSZ on June 14^th 2009, Premium focused on the Friday-Petsite, the largest and most advanced asset along the OSZ, the company has;

Competed an 850-meter Phase-One Drill Program (June-09 to July-09);  

• Confirmed the new geological model: mineralization is associated with the Friday Fault of the OSZ and dips east
• Phase-One drill highlight:  5. g/t Au over 17.92 meters with mineralization starting at surface

Completed an 1830 meter Phase-Two Drill Program (Oct-09 to Dec-09);

• Discovered high-grade mineralization double the down dip extent (Lower Block) directly beneath existing modeled deposit (Upper Block)
• Increased the strike length of the existing modeled deposit (Upper Block) by 120%  to 775 meters 

Initiated the 10,000 meter Phase-Three Drill Program (April 2010 – Present) to potentially double the existing deposit model by connecting the Main and North Zones, initiated metallurgical test work and successfully identified new target zones for exploration & development along the Orogrande Shear Zone: 

• All released drill holes (Phase-1, 2, & 3 = 27 holes) have encountered gold mineralization to date
• Drilling has increased the Mineralized Strike Length of the  Friday-Petsite to 1,000 meters (PFR2010_17 on the north and PFR2010_20 to the south), has reached depths up to 300 meters, reached a minimum mineralization width of a 100 meters, and remains open along strike and at depth
• Lower Block development has reached 500 meters of strike length between PFR2010_17 and previously released drill hole PFR2010_12, potentially doubling the down dip extend of the initial modeled deposit
• 22 of ~28 planned drill holes are completed in 9,167 meters with assays pending for 6 of the completed holes
• Initiated metallurgical test work – results are pending and anticipated by early December-2010

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.  Mr. Ostenson is 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 is focused on the exploration and development of its district-sized Orogrande Shear Zone “OSZ” to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite Project, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium’s control. 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. 

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.

To view the Geophysics & 3D Model Google Earth Video, please click: http://bit.ly/PEMGeophysics3DVideo

The airborne geophysical image displays a zone of conductivity interpreted as the Orogrande Shear Zone and is intersected by numerous secondary structures.

The strong regional extent of the zone of conductivity correlates with known zones of gold mineralization at the Buffalo Gulch, Deadwood, and Friday-Petsite projects through soil geochemistry, current and historic drilling, links all five contiguous projects and the two known gold deposits located at either end of the Shear Zone.

“The geophysical image verifies the tremendous length and continuity of the OSZ; Phase-4 drill-planning for Q1-2011 is underway,” states Michael Ostenson, P.Geo., VP Exploration.

In combination; the geophysical, geochemical, and geological data pinpoint superior drill targets and permitting is in progress for these locations.

Qualified Person

The 2010 Phase-Three exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.  Mr. Ostenson is 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 is focused on the exploration and development of its district-sized Orogrande Shear Zone “OSZ” to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite Project, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium’s control. For additional information, please visit us at www.premiumexploration.com.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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.