Highlights include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Increased Property Position

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

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

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

Updated Resource Estimate

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

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

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

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

Quality Assurance

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

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

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

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

Corporate Presentation
Hyatt Regency Vancouver
January 17, 2010
Wilf Struck
11:30 am – Workshop 2

Highlights Include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cross Section View PFR2009-10

Note:

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

2009 Drill Plan

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

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

Quality Assurance

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

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

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

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

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

Quality Assurance

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

The Phase-Two program will consist of 6 to 10 HQ core holes designed to intercept gold mineralization associated with the Shear Zone for up to an additional 560 meters (1837 ft) along strike. The Shear Zone is highlighted by the gold geochemical anomaly that is contiguous to and extends south along strike from the 531,890 oz Au inferred gold resource (NI 43-101) resource for a total of 1150 meters (351 ft).

Mr. Wilf Struck, P.Eng., CEO and Chairman, commented: ?With financing in place, we are excited to be drilling on our bulk-tonnage, multi-million ounce Friday-Petsite gold resource project target.The first hole of the Phase-Two 1,830 meter (6,000 ft) program has been completed and was drilled to a total depth of 488 meters (1,602 ft). This is the deepest hole drilled to date on the Friday-Petsite project, which is associated with the Orogrande Shear Zone in central Idaho.?

Step-out drilling will test strike length to the north and south including the gold geochemical anomaly that extends directly south of the resource and will test down dip to a maximum depth of 488 meters (1,602 ft).  The current resource is hosted in 350 meters (1148 ft) of strike and from surface to 150 meters (492 ft) of depth. 

The drill target is accessible year round, although winter drilling is slower and consequently more expensive. Premium is monitoring drilling costs on an on-going basis to minimize drilling down time over the winter months and maximize the footage drilled at acceptable costs. 

About Premium Exploration Inc.

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

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

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

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

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

Management Updates

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

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

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

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

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

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

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

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

About Premium Exploration Inc.

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

For More Information, Please Contact:

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

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

The proceeds from the private placement will be used to:

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

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

Ø  Advance ongoing production permitting on the Buffalo Gulch project;

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

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

Ø  Provide general working capital.

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

About Premium Exploration Inc.

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

For More Information Please Contact:

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

Highlights include:

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

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

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

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

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

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

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

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

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

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

About Premium Exploration Inc.

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

For More Information, Please Contact:

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

Del Steiner (President) states, ?This program continues to produce very encouraging results; it is confirming the continuity of gold mineralization along strike, down dip, and will expand the current bulk-tonnage resource. Excellent near-surface values continue to be intercepted in these shallow holes and they (PFR2009-01, PFR2009-02, PFR2009-05) terminated in mineralization, continuing to leave the deposit open at depth.

The broad zone of gold mineralization encountered in PFR2009-05 originally totaled 118.72 meters, but has been split into two discrete zones by the intrusion of a more recent unmineralized dike. This zone of mineralization is consistent with, and confirms, the grades of the existing resource originally calculated by Kinross Gold Corp.

The decrease in hole spacing has confirmed continuity of the low-grade bulk-tonnage mineralization which surrounds the high-grade zone and will result in an upgrade of a portion of the existing resources and likely increase the resource in total. The high-grade gold intercepts from Phase-One will also likely have a positive impact on the average grade of the resources.?

PFR2009-05 returned 1.20 g/t gold over 76.05 meters, including 3.76 g/t gold over 10.52 meters as well as 1.13 g/t gold over 42.67 meters, including 7.73 g/t gold over 4.57 meters.

There is a post mineralization dike, which has cut through the mineralization and split the previously continuous interval into two separate zones. The sieve analysis has been received for the two over-limit samples mentioned in the August 6^th release. The first over-limit sample is above the dike at 72.4 to 73.3 meters (0.91 meter intercept) grading 21.17 g/t and the second sample occurring below the dike at 98.8 to 100.3 meters (1.52 meter intercept) grading 15.95 g/t gold. PFR2009-5 is located between PC-10 to the south and PC-08 to the north confirming continuity of the high-grade gold zone and confirms that there is room for further resource growth of a lower grade envelope around the higher-grade gold core.

PFR2009-04 returned 0.88 g/t gold over 12.89 meters.

Based on current geologic interpretation, this drill hole was collared slightly west of the main zone of mineralization. Similar to the other drill holes like PFR2009-03, this hole was drilled further west of the main zone and intersected mineralization near the top of the hole. These holes are delineating the western boundary of the bulk-tonnage deposit.  PFR2009-4 is located 50 meters to the south of BFD-29 which returned 0.63 g/t Au over 58.3 meters, including 13.5 meters of 1.01 g/t Au. *The mineralized intercepts for the BFD holes have been recalculated at a lower cutoff grade of 0.5 g/t to take into consideration the current gold price. The initial results reported for these holes utilized a cutoff grade of 1 g/t. The revised results are listed in the table below.

As with the first three holes, PFR2009-04 and PFR2009-05 confirm the broad zone of near-surface lower-grade gold mineralization along strike and continuity of the high-grade gold zone in the central portion of the deposit.

*True Widths are estimated to be between 65% and 75% of the drilled interval

Resource recalculation is currently underway incorporating the recent drill results. A total of 16 holes consisting of the seven Phase-One core holes, four BFD core holes from 2004, and the five core holes drilled by Canden Resources (for a total of 16 holes) will be included in a new resource estimate. These holes were drilled subsequent to the NI 43-101 resource calculation and consequently were not available for that calculation.

A preliminary statistical evaluation of the sieve analysis results based on seven samples greater than 5 g/t gold from Phase-One , indicates that there is coarse gold present and that special assay procedures were warranted. Gold assays utilizing sieve analysis procedures return values that average 18% higher than standard fire assay procedures. Of the seven samples, two samples were higher, one approximately the same and four were lower. This evaluation is based on a limited number of samples and additional research will be conducted to confirm these results.

As a result of this analysis, Premium?s geologists will be re-evaluating historic core assays which utilized standard fire assay procedures and may have under-reported gold values. Drill core from the historic holes is available and will be examined to determine the suitability of the core for metallic sieve analysis.

Taking into account the current gold price , Premium geologists recalculated (using a cutoff grade of 0.5 g/t) the intervals in the four core holes from the 2004 BFD program conducted by a previous operator.

Drill Results from the BFD Drill Program in 2004 Identifying the High-Grade Zone – Drilled to the East Assuming a Westerly Dip

*True Widths are estimated to be between 40% and 50% of the drilled interval

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

192 drill holes totaling 19,577 meters (64,213 ft) has been completed by previous operators. The drill results were used to design a preliminary pit design and calculate the resource estimate.

Once the results from the remaining two drill holes have been received and complied, the Phase-Two drill program will be designed and implemented.

The Nez Perce National Forest has approved the Plan of Operations for drill sites located north of the patented claims which were host to the Phase-One drilling. This will provide the Company with flexibility for ongoing delineation of the gold mineralization along strike to the north of the existing NI 43-101 resource.

Quality Assurance

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

About Premium Exploration Inc.

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

For More Information, Please Contact:

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

VANCOUVER, BRITISH COLUMBIA (August 20, 2009) – Premium Exploration Inc. (TSX-V:PEM) (?Premium? or the ?Company?) is issuing a black out period for all insiders, management and consultants of the Company in anticipation of the assay results from the Friday-Petsite project in Idaho.  The blackout period will remain in effect until 24 hours after the news is released.

About Premium Exploration Inc.

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

For More Information, Please Contact:

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

The proposed amendment would extend, by forty-five days (45), the time available to exercise the Year-1 $0.50 warrants; 3,400,166 warrants were originally issued on August 26, 2008 and were exercisable for a two year period at $0.50 per share in Year 1 (until August 26, 2009) and $0.75 in Year-2 (until August 26, 2010). 

The Year-1 pricing of $0.50 amended warrants will expire on October 10, 2009, rather than August 26, 2009 and the Year-2 year warrants will be exercisable at $0.75 from October 11, 2009 through August 26, 2010.

The warrant amendment is subject to TSX-V approval.

About Premium Exploration Inc.

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

For More Information, Please Contact:

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

Highlights include:

• PFR2009-01:     5.02 g/t gold over 17.92 meters including
                          13.78 g/t gold over 5.73 meters
                          35.55 g/t gold over 1.58 meters
  
• PFR2009-02:     1.77 g/t gold over 39.56 meters including
                          3.37 g/t gold over 8.17 meters
  
• PFR2009-03:     1.00 g/t gold over 8.95 meters including
                          1.49 g/t gold over 4.27 meters

The drill program consisted of 7 HQ core holes and assay results have been received for the first three drill-holes:  PFR2009-01, PFR2009-02, and PFR2009-03. Results have also been received for PFR2009-5 but two intervals are over-limit (greater than 10 g/t) by ?Fire Geochem? ACME Analytical Laboratories method 3B, and final results will be reported once the metallic screen/sieve analysis for coarse gold has been completed.

Del Steiner (President) stated that, ?Although all assays have not yet been received, I am very excited that the new high-grade gold model for the OSZ developed by Premium?s geologists has been confirmed by this first stage of drilling. Not only have the current results extended the strike length of the existing 531,890 ounce gold resource to the north and the south, excellent near-surface values have been intercepted and the mineralization remains open to depth. The additional geologic information confirms there is room for further resource growth.?

The current 531,890 oz inferred resource lies within a 1,000 foot (304 meter) gold in soil anomaly, while the contiguous gold in soil anomaly continues for an additional 4,000 feet (1220 meters) to the south greatly that is relatively unexplored, increasing the potential resource target. Please click here  for a map of the results and soil geochemical anomalies.

The program was designed to test continuity of the Orogrande Shear Zone (OSZ) along strike to the north and south of the existing resource and to provide minor in-fill drilling for information that will be used to re-assess the NI 43-101 compliant resource.

PFR2009-01 returned 5.02 g/t gold over 17.92 meters, including 13.78 g/t gold over 5.73 meters and 35.55 g/t gold over 1.58 meters. These intercepts contain two outstanding intercepts of 33.45 g/t gold over 0.4 meters and 153.71 g/t gold over 0.25 meters.  PFR2009-1 is located 25 meters to the north of the previously reported high-grade hole PC-08 which returned  7.33 g/t over 16.7 meters, including 52.05 g/t over 1.6 meters. 

PFR2009-02 returned 1.77 g/t gold over 39.56 meters, including 3.37 g/t gold over 8.17 meters. There is also a 0.4 meter over-limit intercept that assayed greater than 10 g/t for which the metallic screen/sieve analysis for coarse gold has not yet been received.  PFR2009-2 is located 25 meters to the north of PFR2009-1.

PFR2009-03 returned 1.00 g/t gold over 8.95 meters, including 1.49 g/t gold over 4.27 meters.  PFR2009-3 is located 25 meters to the north of PFR2009-2. This hole confirms the northern extension of the bulk tonnage gold mineralization associated with the OSZ.

The geologic model as developed by Premium geologists and consultants predicted continuity of the OSZ to the north and south with a steep easterly dip to the mineralization as opposed to a westerly dip inferred by previous operators. The results of the first three holes in Premium?s Phase 1 drill program have confirmed continuity of gold mineralization along strike to the north of the present resource by 75 meters with a steep easterly dip of -65 to -75 degrees.  Assays are pending for PFR2009-4, PFR2009-5, PFR2009-6, and PFR2009-7, all of which have been designed to test continuity of mineralization to the south save PFR2009-5, which is an-infill hole providing information for re-assessing the NI 43-101 compliant resource.

These results confirm the existence and continuity of a north-south striking high grade gold zone located within the bulk tonnage NI 43-101 compliant resource estimate of 531,890 troy ounces, contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.017 oz/ton). The current drilling extends the mineralization beyond the resource boundaries and once all of the assays are received the resource estimate will be re-calculated to incorporate the increase in strike length as well as to better define the high grade gold zone.

Quality Assurance

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

About Premium Exploration Inc.

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

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

The drill program consisted of seven HQ core holes drilled to a maximum down-hole depth of 153 meters (502 feet). The drill program was completed ahead of schedule, despite inclement weather and muddy conditions making drill moves difficult. Total footage drilled was 853.4 meters (2800 feet) which was an increase of 6.7 % (53.4 meters) over the original scheduled footage, while the direct drilling cost was 7.3% less than the budget estimate.

Premium commends West-Core Drilling, LLC of Elko, Nevada for their professional staff and high quality, well maintained equipment, which enabled the company to complete the program ahead of schedule and under budget.

The program was designed to test continuity of the Orogrande Shear Zone (OSZ) along strike to the north and south of the existing resource and to provide minor in-fill drilling for information which will be used to re-assess the NI 43-101 compliant resource. The data from this program will likely upgrade a significant portion of the resource.

The geologic model as developed by Premium geologists and consultants predicted continuity of the OSZ to the north and south with a steep easterly dip to the mineralization as opposed to a westerly dip inferred by previous operators.

Drilling confirmed a steep easterly dip (approximately 65-75 degrees) and intersected the OSZ to the north of the main zone of mineralization in drill hole PFR2009-3 and most importantly intersected the OSZ south of Quartz Creek in holes PFR2009-6 & 7, which is south of the main zone of mineralization.

Drill hole location, azimuth, dip and total depth, are listed in the following table:

Drill holes PFR2009-6 and PFR2009-7 (located south of Quartz Creek) intersected intensely sheared and altered Muscovite-Sericite Schist with associated sulphides indicative of OSZ mineralization as found in the main zone of mineralization. The two drill holes were drilled in the same location with one having a -65 degree dip and the other a -90 degree dip. With this geometry, a true easterly dip of 75 degrees has been confirmed.

These two holes also extend the strike length of the OSZ by 100 meters to the south and are located on the north end of a1200 meter (4,000 foot) gold in soil geochemical anomaly. This confirms the probability that the anomaly is likely related to the continuation of the OSZ to the south. Additional drilling planned for Phase 2 will be designed to delineate the continuity of the mineralization associated with the OSZ to the south of the main zone.

PFR2009-3, the northern-most drill hole in the program, intersected shear zone material and has increased the strike length of the OSZ by 75 meters to the north.

Based on drilling by previous operators and core logging of the new core, gold mineralization occurs in two distinct forms; primary fine grained gold mineralization is associated with Pyrite, Arsenopyrite, and likely Lollingite (iron arsenide), and a second coarser gold phase which is likely associated with a post-mineral Dacite Dike remobilizing the primary gold. Additional investigations will be conducted to determine if there is any significance to the Lollingite-gold association which may be useful in future drilling programs.

The host rock in the shear zone is predominately Muscovite-Sericite Schist with sericite altered Quartz Monzonite to a lesser extent. Pyrite, Arsenopyrite and Lollingite are disseminated and also occur within quartz/carbonate veinlets.

The country rock near the OSZ bounding faults (Monday Fault on the west, Friday Fault on the east), is Quartz Monzonite and exhibits minor sulphide mineralization, however it is relatively un-mineralized with respect to gold.

The drill core from Phase 1 has been logged in its entirety by the onsite geologists and core cutting and sampling has been completed as of Thursday July 9th, 2009. A total of 685 core samples have been shipped to Acme Analytical Laboratories of Vancouver, B.C. to date, with the remaining samples slated for shipment early next week.

The drill program was designed to take advantage of HQ size core, which provides larger drill core for logging and sampling purposes and also reduces the potential for core loss in highly altered and sheared rocks. A Triple-Tube Core Barrel was also used to maximize recovery. Geotechnical data (RQD) is also being collected for future use in the assessment of the resource for the suitability of surface or underground mining methods.

Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008) has been selected to process and assay the core.

Assay results are expected by July 30^th and will be incorporated into the existing database. The data will then be utilized to design Phase 2 of the ongoing exploration and development of the company?s gold properties in Idaho.

QA/QC

The drill core is placed in numbered core boxes by the drilling contractor and transferred from the drill site to the core logging station by the project geologist and kept under direct control of Premium Exploration personnel. Once the core has been logged and sample intervals selected by the geologist, the core is split in half lengthwise with a diamond bladed

core saw by trained personnel. One half of the core is kept in the core box for future reference, while the second half is placed in numbered plastic (new) sample bags, sealed and placed in numbered sample boxes for shipment to the assay lab. The sample boxes are sealed and shipped via courier to Acme Labs.

Due to the presence of visible gold in some of the core, assay procedures have been discussed with the lab to ensure that the method selected would best represent the actual gold content and not over or under report grade. The majority of the core will be assayed utilizing standard one-assay ton, while samples with visible gold will be analyzed using a metallic screening and sieving method.