Premium Exploration Inc.

FOR IMMEDIATE RELEASE AUGUST 2, 2007

VANCOUVER, BRITISH COLUMBIA (Marketwire – August 2 , 2007)  Premium Exploration, Inc. (TSX-V:PEM) (the “Company”) (http://www.premiumexploration.com/) is pleased to announce its 2007 Fieldwork Program on the Pine Claim Shear Zone, an area located within the collective property package of the Company’s Chrome Mountain Project.  Premium’s Chrome Mountain Project is located within the Stillwater layered mafic intrusive complex in Montana, host to one of the richest known palladium deposits currently being exploited anywhere in the world, and one of the world’s leading producers of Platinum Group Metals (“PGM”).  The Company’s Chrome Mountain Project is comprised of the following two main exploration targets:

• The Pine Claim Shear Zone, hosting gold mineralization.
• The “B” Chromitite Zone, hosting a large PGM geochemical anomaly.

The Company entered into a Joint Venture (“JV”) with Beartooth Platinum Corporation (TSX-V:BTP) (“BTP”) for the exploration and development of the “B” Chromitite Zone (See Press Release Dated June 5, 2007), while retaining the gold rights to the Pine Claim Shear Zone to explore and develop independent of the Joint Venture with BTP.  Premium is simultaneously conducting a fieldwork program on the Pine Claim Shear Zone as BTP independently advances exploration on the “B” Chromitite Zone with a 6,100 metre drill program during the 2007 field season.  The JV property parallels the JM reef currently being mined by the Stillwater Mining Company which produces 450,000 ounces of palladium and platinum annually.

About the 2007 Pine Claim Shear Zone Exploration Program

The Pine Claim Shear Zone, which was specifically excluded from the JV, allows the Company to continue exploration on the high grade gold zone that is perpendicular to the strike of the PGM mineralization.  The shear zone is located south of the PGM soil geochemistry anomaly which has an 8.4 kilometre north-west/south-east strike on the joint venture property and is associated with the “B” Chromitite.  The Pine Claim Shear Zone hosts significant later occurring gold mineralization that is superimposed on the PGM mineralization.

Historic drilling on the Pine Claim Shear Zone provided the following gold results:

• PC-2 intersected 26.2 feet containing 16.9 grams/ton Au
• PC-3 intersected 3.5 feet of 10.3 grams/ton Au
• PC-5 intersected 8.6 feet of 29.7 grams/ton Au
• PC-6 intersected 4.5 feet of 11.9 grams/ton Au and a second intercept of 2.4 feet of 37.3 grams/ton Au

Premium’s exploration work to date has consisted of soil sampling and a short drilling program that has extended the Pine Claim Shear Zone both to the north and south.  The Pine Claim Shear Zone converges with the PGM soil anomaly to the northwest.  Based on the results of its 2006 sampling and mapping program in late 2006, the Company staked an additional 28 claims (the Bobcat Claims).  For its 2007 exploration program, Premium will conduct additional mapping and soil sampling to the south on the Pine Claim Shear Zone to coincide with BTP’s drill program.  Previous petrographic work from the Pine Claim Shear Zone and interpretation concluded that there might be a contact metamorphic overprint to the alteration which can be ascribed to a later occurring intrusive even which mobilized the gold, leading to enrichment along the shear zone.  Additional exploration work is required to further identify the gold and its source.

About the 2007 “B” Chromitite Zone Exploration Program

The 2007 “B” Chromitite Zone Exploration program that will be conducted by BTP will principally be focused on investigating the source of a major soil geochemical anomaly on the “B” Chromitite layer that overlies the lower part of the Stillwater Intrusive Complex.  To achieve this goal, BTP will complete a CDN$2,000,000 field program over the course of the summer and into the fall of 2007.  The program will include up to 6,100 meters of core drilling on its Iron Mountain property as well as on Premium’s JV Property located in the Chrome Mountain area.  The first drill is in operation on the property and the program is designed to intersect the “B” Chromitite and continue through the basal contact of the intrusion.  The drilling is designed to determine the extent of the mineralization of the “B” Chromitite layer and the basal zone sulphide layer which hosts anomalous nickel and copper mineralization.

Additionally a Nickel-Copper Platinum Group Metals (Ni-Cu-PGM) anomaly was identified, by Beartooth’s geologists, during the course of a 9,000-sample soil geochemical survey completed in 2006.  The Ni-Cu-PGM anomaly extends for a total strike length of 15 kilometres, and is coincident with the interpreted position of the “B” Chromitite layer in the basal part of the Stillwater Complex.  The anomaly is open to the northwest.  Drilling in 2006 encountered significant Gold (Au) + Platinum (Pt) + Palladium (Pd) + Rhodium (Rh) mineralization associated with the “B” Chromitite layer, including a high intersection of 21.7 g/t combined PGM over 0.55 metres and nickel copper mineralization including a high of 2.14% Ni, 0.13% Cu, and 1.3 g/6 Au + Pt + Pd over 0.18 meters.  The broad nature of the soil anomaly, particularly in the western part of the survey area on the un-drilled JV portion of the Chrome Mountain property, is thought to reflect PGM mineralization associated with the “B” Chromitite, as well as disseminated to massive Ni-Cu-PGM mineralization associated with disseminated to massive sulphide zones below the “B” Chromitite layer.  The central part of the Chrome Mountain PGM anomaly is 2,500 metres long by 1,000 metres wide with grades up to 1.34 g/t PGM in soils.

Mike Johnson, President & CEO of Beartooth Platinum stated, “We are convinced that this year’s field program will confirm the very strong economic potential for both styles of mineralization in the Stillwater Complex.”

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. The Company is listed on the TSX Venture Exchange and has assembled an innovative and experienced management and advisory team who are committed to the long-term success of the Company. 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, the company’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, the company 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 files 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.