Premium Exploration Inc.

Wilf Struck Memorial - Vancouver
Bars of precious metals

Premium Exploration Files 43-101 Report on Recently Acquired Friday Petsite Property

January 29, 2008

FOR IMMEDIATE RELEASE

VANCOUVER, BRITISH COLUMBIA-(Marketwire – January 29th, 2008) – Premium Exploration, Inc. (TSX-V:PEM) (“Premium” or the “Company”) (http://www.premiumexploration.com/) is pleased to announce that it has SEDAR filed the  “REVIEW OF THE FRIDAY-PETSITE, PROPERTIES, ELK CITY AREA, IDAHO, U.S.A.”  The report reviews the historical exploration work conducted on the Friday-Petsite property and has determined that the inferred resources comply with the definition of such resources as required by NI 43-101.

The report reviewed the extensive historical exploration work conducted on the South Orogrande Shear Zone over the past 20 years by Bema Gold Corporation, Cyprus Amax Minerals, and Kinross Gold Corporation.  Approximately US$3.25 million has been expended on exploration activities in the past and Wilf Struck, P.Eng. of CV Enterprises describes the Friday / Petsite property as an Advanced Exploration Property and further concluded that the past exploration has defined a medium-sized disseminated gold deposit that is open along strike and at depth and potentially expandable through additional exploration.

Mr. Struck has reviewed the resource as calculated by Kinross in 1999 and has concluded that this deposit has an “Inferred Resource” complying with NI 43-101 standards at the following tons and cut-off grades:

Cutoff Grade (oz/t Au)

Oxide Inferred Resource

Tons

Au oz/t

Contained

Au oz

0.000

11,978,000

0.0130

156,280

0.005

7,440,000

0.0195

145,060

0.010

4,606,000

0.0270

124,360

0.015

2,996,000

0.0349

104,430

0.020

2,133,000

0.0418

89,180

0.025

1,602,000

0.0484

77,460

Cutoff Grade (oz/t Au)

Sulphide & Mixed Inferred Resource

Tons

Au oz/t

Contained Au oz

0.000

58,706,000

0.0117

689,060

0.005

36,945,000

0.0172

635,460

0.010

21,291,000

0.0244

520,380

0.015

13,731,000

0.0311

427,460

0.020

9,299,000

0.0377

350,880

0.025

6,196,000

0.0455

281,960

Cutoff Grade (oz/t Au)

Total Inferred Resource

Tons

Au oz/t

Contained Au oz

0.000

70,684,000

0.0120

845,340

0.005

44,385,000

0.0176

780,520

0.010

25,897,000

0.0249

644,740

0.015

16,727,000

0.0318

531,890

0.020

11,432,000

0.0385

440,060

0.025

7,798,000

0.0461

359,420

The report recommends a staged exploration plan to determine if the Inferred Resource can be upgraded to that of mineral reserves.  The first phase recommended includes 4000 meters of core drilling, in addition to limited metallurgical testing and ground based geophysics for a budget of $1,460,470. The second phase, if warranted by the results from the first phase would include 8,000 meters of drilling and additional metallurgical testing for a budget of $2,774,640.

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 precious metals exploration company focused on exploration in North America, with an acquisitions focus on Mexico. Premium’s goal is to discover precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. Current holdings are in Mexico and the USA. To maximize the possibility of realizing this goal, Premium’s exploration team continues to review early-stage projects located within under-explored precious metal belts that host multi-million ounce deposits. By acquiring prospects internally and financing some of them through joint venture partners, Premium is able to maximize the potential for discovery while mitigating risk and increasing shareholder value.  Additional information may be found on our website at http://www.premiumexploration.com/.

Contact Information:

Premium Exploration, Inc.

Brett Delaney / Christine Kopr

Investor Relations

(604) 682-0243

Email:


ir@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 involve 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.