Premium Exploration Inc.

VANCOUVER, BRITISH COLUMBIA (January 15, 2009) ? Premium Exploration, Inc. (PEM:TSX-V) (?Premium?) has developed the first high-grade gold conduit and feeder model for the 28 km North-South trending Orogrande Shear Zone.

Utilizing a new model based on high-grade gold mineralization hosted in the sheared silicified gneiss, schist and quartz monzonite geology of the Shear Zone, Premium?s geologists are the first to interpret the numerous gold resources and targets along the Shear Zone, as being the result of this potential high-grade feeder model.

Premium is currently permitting for production, it?s most northern property, Buffalo Gulch, while Premium?s Friday-Petsite property, a 531,890 oz inferred gold resource (NI 43-101) on the Southern-end of the zone, hosts historic high-grade drill results, which support the potential high-grade conduit theory and are listed below: 

Historic high-grade HQ drilling by Cypres-Amax and Kinross Gold Corp., returned:

·         Core Hole PC008:               7.33 g/t gold over 16.7 meters including

52.05 g/t gold over 1.6 meters

·         Core Hole PC010:               4.58 g/t gold  over 68.6 meters including;

12.11 g/t gold over 19.8 meters

75.09 g/t gold over 1.5 meters

·         Visible gold identified in PC002, PC008 and PC010

The historic work noted above, was performed by previous operators Cypres-Amex and Kinross Gold Corp., in 1997 and audited by Beartooth Platinum Corp., in 2004.

Highlights of the historic audit drilling by Beartooth Platinum Corp., from the Shear Zone geology:

·         Core hole BFD-32: 3.54 g/t gold 25 meters  true width including:

9.29 g/t gold over 1.9m true width

9.75 g/t gold over 1.3 m true width

·         Core Hole BFD-30: 9.33 g/t gold over 2.9 meters true width

·         Core Hole BFD-31:             8.29 g/t gold over 13 meters true width

In addition to the numerous gold resources and targets along the Shear Zone, the drill holes demonstrate the potential tenor of mineralization of the 28 km strike length of the Shear Zone, which are also the only drill holes to have intercepted the Shear Zone geology to date.

Beartooth Platinum Corp., Premium?s predecessor at the Friday-Petsite, drilled the four HQ core holes to audit the previous high-grade drill results intersected by Cypres-Amax and Kinross Gold Corp., who were Beartooth Platinum?s predecessor on the property.

The Beartooth drilling targeted the Shear Zone geology, a strike length of 300 meters (1,000 ft) that crosses the large low-grade envelope of the Friday-Petsite and was identified by 24 drill holes with intercepts up to 74 g/t gold (see Friday-Petsite Property, Selected Core Drill Hole Composite Assays Drilled by Cypres-Amax and Kinross Table, below).

In total, there are four established gold mineralized zones with open-pit and heap leach potential hosted along the Shear Zone, including Premium?s Friday-Petsite property, but as the drill results above show, there are also numerous higher-grade gold occurrences hosted along the zone.

Worth noting, all previous operators, including Kinross, Cypress-Amex and Beartooth Platinum Corp, focused their exploration programs on developing the numerous individual low-grade targets, which fall along the Shear Zone.

Even though there are no drill holes intercepting the Shear Zone geology, at the three other gold targets, there are 13 historic underground mines on high-grade gold bearing cross-cutting quartz veins in fractures spaced along the entire length of the Shear Zone. Map of the Shear Zone

Additionally, all streams and drainages in the area are heavily placer mined, with regional production in Central Idaho amounting upwards of 4,000,000 oz of gold, historically.

Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person (?QP?) responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique precious metals explorer focused on Mexico and the USA. Listed on the TSX Venture Exchange (TSX-V:PEM), Premium has assembled an innovative and successful management and advisory team, committed to maximizing shareholder exposure to precious metal discovery, the most profitable stage of exploration. Premium?s portfolio holds Gold, Silver and Platinum Group Metals projects in various stages of exploration, from grassroots to near production. http://www.premiumexploration.com/.

All prospective and current shareholders of Premium Exploration are invited to join the Company?s official investment forum exclusively at Pinnacle Digest: http://www.pinnacledigest.com/company/pem:ca. The forum allows for investor-controlled discussion, questions, and progressive feedback from other shareholders and investors. Third party reports on the company are also available at http://www.pinnacledigest.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.  The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.