Premium Exploration Inc.

FOR IMMEDIATE RELEASE OCTOBER 1, 2007

VANCOUVER, BRITISH COLUMBIA (Marketwire – October 1, 2007) Premium Exploration, Inc. (TSX-V:PEM) (“the Company”) is pleased to announce it has signed contracts for options to acquire 100% of the Rosamorada and Dos Amigos properties, located in Nayarit State, Mexico.

Rosamorada demonstrates good potential to host bulk tonnage gold-silver deposits amenable to low-cost open-pit mining methods. The Rosamorada project consists of 300 hectares at approximately 100m elevation, within two kilometers of the Pan American highway and less than one kilometer from an active rail line. A high-tension powerline crosses the property.

Geological mapping at Rosamorada by Premium revealed quartz veining and stockwork over low hills covering an area 1000m by 300m. Samples were collected from surface outcrops, sub-crops or were composite samples of representative locally-derived float where outcrop as not exposed. Outcrop exposure at Rosamorada represents less than 5% of the claim area. Twenty-five samples were collected from the stockwork zone, of which 13 returned greater than 200 ppb gold, and four returned greater than 20 ppm silver; 12 samples returned greater than 0.5 g/t gold equivalent, and eight samples returned greater than 0.7 g/t gold equivalent, using a 55:1 silver to gold ratio. Gold equivalent grades are calculated using a gold to silver ratio of 1:55 based on recent gold to silver ratios. One float sample, which contained visible sulfide minerals encapsulated in quartz, returned 2393 ppb gold and 437.5 ppm silver (9.7 g/t gold equivalent).  Silver values could be understated due to leaching and downward mobilization of silver from the surface.

Three samples of vuggy silica with hematite on fractures from a flat area approximately 500 meters southwest of the stockwork area contain anomalous amounts of barium, antimony, arsenic and tungsten, with weakly anomalous gold in one sample. This area of silicification may represent acid sulfate leaching forming a barren cap above precious metal mineralization, a common feature in the upper part of, or peripheral to, epithermal systems.

Forty samples of quartz veins 0.10 to 1.70 meters wide collected by the Consejo de Recursos Minerales (Geological Survey of Mexico) at Rosamorada in 1981 from historic workings on surface returned gold values from 0.25 g/t to 45 g/t, while silver ranged from 10 g/t to 294 g/t. Five samples taken by Premium from a vein in an existing trench northeast of the stockwork zone returned values of 59 to 200 ppb gold and 2.6 to 298 ppm silver, and a sample of material stockpiled from a small working returned 6132 ppb gold and 79 ppm silver.

The next phase of exploration at Rosamorada will be a trenching program, followed by drilling, if trenching results are favourable. Premium can earn a 100% interest in the Rosamorada property by making staged cash payments of $1,000,000 USD and work expenditures of $800,000 USD over three years, with an NSR of 1% which may be purchased for $1,000,000 USD.

Dos Amigos consists of 3230 hectares situated on moderate topography at approximately 600m elevation with road access in northeastern Nayarit State, and approximately eight kilometers from the Durango State border.

Epithermal veins are present at several locations within the claim area with widths up to two meters. Fifteen chip samples from veins returned from 95 to 2664 ppb gold and 0.3 to 258 ppm silver. An area of quartz-chalcedony stockwork approximately 500 by 400 meters was mapped and eight samples taken from sub-crop, and one from a one-meter-deep pre-existing pit. The pit sample returned anomalous values of 81 ppb gold and 6.8 ppm silver. This sample also contained weakly anomalous arsenic, manganese, antimony and tellurium. All samples returned weakly anomalous antimony values. The nature of the stockwork, with abundant banded chalcedony, indicates that it represents a high-level low temperature environment of formation, possibly overlying a deeper, precious metal mineralized part of the system.

The next phase of exploration at Dos Amigos will be a trenching program, followed by drilling, if trenching results are favourable. Premium can earn a 100% interest in the Dos Amigos property by making staged cash payments of $1,000,000 USD and work expenditures of $1,000,000 USD over three years, with an NSR of 1.5% which may be purchased for $1,500,000 USD.

Quality Control and Assurance

Samples were collected under the direct supervision of contract geologists in the employ of Premium and the samples were kept under direct control of the geologists until shipment to Inspectorate Labs in Durango, Mexico or ACME Laboratories of Guadalajara, Mexico for sample preparation. The sample pulps were then shipped to Inspectorate Labs in Sparks, Nevada / ACME Laboratories in Vancouver and analyzed utilizing industry standard procedures. For gold determinations, a 30 g split is used to perform a 1 AT (29.17 g) fire assay, with an Atomic Absorption finish. For trace level elements determinations for silver and base metals, a 0.5 g sub-sample is used to perform a 30 elements aqua regia digestion and ICP – AES (Inductively Coupled Plasma – Atomic Emission Spectrometer) analysis. Samples returning over detection limit for silver (100 ppm), and samples which returned greater than 1000 ppb gold were reanalyzed by fire assay.

Qualified Person

Ms. Nancy Reardon, M.Sc., P.Geol., Vice President Exploration of Premium Exploration, 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.

Ms. Lisa Maxwell

Corporate Secretary

(604) 682-0243

Email:

info@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.