FOR RELEASE AT 6:45 AM PST JUNE 5, 2007
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews – June 5, 2007) - Premium Exploration, Inc. (TSX-V:PEM) (“Premium”) (http://www.premiumexploration.com/) is pleased to announce a Joint Venture Agreement on its Chrome Mountain Platinum Group Metals project with Beartooth Platinum Corporation (“Beartooth”) (TSX-V:BTP). Premium’s Chrome Mountain PGM Project (“Project”) is located in the Stillwater Complex in the State of Montana, United States of America. Under the terms and conditions of the Joint Venture Agreement Premium will contribute its Chrome Mountain Project exclusive of the Pine Claim Gold Shear Zone to the Joint Venture, which Premium will retain and explore independently of the Joint Venture.
The new Joint Venture Agreement follows the successful completion of the 2006 exploration program. The 2006 work included 2,300 soil samples and documented a major Cu-Ni-PGM anomaly with soil grades up to 1.4 grams PGM from Premium’s property. (See Premium Exploration Press Release May 24, 2007).
For participating in the Joint Venture Premium will receive the following:
1) Reimbursement of 50% of its previously incurred exploration expenditures on the Chrome Mountain Project.
2) Upon Beartooth completing three million dollars (US$3,000,000) in exploration expenditures on the Project to vest its 50% interest in the project (“Initial BTP Vesting Expenditures”), Premium, can at its option maintain its 50% interest in the project by paying for its pro-rata share of exploration expenditures above the Initial BTP Vesting Expenditures If Premium declines the Participatory Option, Beartooth can earn an additional 30% by spending an additional US$2,000,000. Upon Beartooth’s completion of five million dollars (US$5,000,000) of cumulative exploration expenditures on the Project by January 1, 2011, Premium will retain a twenty percent (20%) carried interest in the Project and Beartooth will own an eighty percent (80%) participatory interest in the Project.
3) A one percent (1%) Net Smelter Royalty (“NSR”) on both Premium’s and Beartooth’s properties.
Mr. Del Steiner, President and CEO of Premium states, “Premium is very excited to be working with Beartooth Platinum Corporation. Along with Beartooth’s aggressive drill program they bring substantial Platinum Group Metals expertise and resources to our Chrome Mountain Project. We look forward to working with them to fully develop the potential of the Chrome Mountain Project.”
Mr. Michael D. Johnson, P.Geo, President and CEO, commented “This agreement is an important step in the exploration and development of the B-Chromitite PGM zone. The agreement increases the total strike length of the prospective horizon available for exploration by Beartooth to 20 kilometers, of which 15 kilometres has now been covered by soil geochemical surveys. The resultant soil anomaly is clearly reflective of continuous bedrock PGM mineralization, which we believe is associated with the B Chromitite. We are extremely excited by the results of last year’s work, and we look forward to this year’s drilling campaign where we will test this high quality target along much of its strike length and which we expect to commence at the end of June. Beartooth anticipates 20,000 feet of drilling which is double that accomplished in 2006.”
Overview of the Stillwater Complex and Chrome Mountain Project:
The Chrome Mountain Project is located in the Stillwater mafic intrusive complex 120 kilometres south of Billings, Montana. The property parallels the JM reef, currently being mined from two sites by the Stillwater Mining Company (NYSE:SWC) for approximately 8½ kilometers on the “B” Chromites. Stillwater Mining Company produced approximately 500,000 oz of PGM’s in 2006. The JM reef runs the entire 41 kilometre length of the Stillwater Complex, and models the Merensky reef in the Bushveld Complex in South Africa; the B Chromitites at Stillwater are thought to mimic the UG2 Chromitites, also in the Bushveld. The UG2 chromitites account for approximately 64% of the PGM production from the Bushveld.
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. specializes in precious metals exploration in North America; current holdings are in Montana, USA and Mexico. The Company has an aggressive program of project acquisition and resource definition in Mexico. Premium’s goal is to explore, discover and quickly advance precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. 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. More information can be found on our website at http://www.premiumexploration.com/.
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Premium Exploration’s Current Projects |
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Project |
Location |
Commodity |
Land Position |
Mineralization |
Snapshot |
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Chrome Mountain |
Montana, USA |
PGM – Pt,Pd,Rh
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970 hectares (2,397 acres) 50% owned |
Platinum, palladium and rhodium within chromitite layers of the Stillwater Complex | Located within the Stillwater Complex and host to the only producing primary platinum and palladium mine in the USA. Project in a US$5,000,000 Joint Venture with Beartooth Platinum Corporation. |
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Nueva Galicia |
Nayarit, México |
Ag/Au |
17,000 hectares (42,000 acres) Option to earn 100% |
High grade epithermal vein systems and breccias. | Epithermal vein systems aligned along a structural corridor over a distance of 10 km (6 mi.). Three parallel vein systems have been mapped in detail for a total of 4500 meters to date – the target of Phase I drill program scheduled for mid-May. |
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San Pedro Analco |
Jalisco, México |
Ag/Au/Zn |
1,136 hectares (2,800 acres) Option to earn 100% |
High-grade, epithermal vein systems and breccias | Phase I exploration program highlights:
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Dos Amigos |
Nayarit, México |
Ag/Au/Cu/Zn/Pb |
3,230 hectares (7,985 acres) Option to earn 100% |
Veins and bulk-tonnage gold/silver | Select grab sample returned 8.3 g/t gold and 15,276 g/t (445 oz./ton) silver as well as 7.2% copper, 4.5% lead and 17.2% zinc. |
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Rosamorada |
Nayarit, México |
Au/Ag |
300 hectares (740 acres) Option to earn 100% |
Veins and bulk-tonnage gold/silver | Preliminary results pending. |
Contact Information:
Premium Exploration, Inc.
Ms. Lisa Maxwell
V.P. – Corporate Development
(604) 682-0243
Email:
lmaxwell@premiumexploration.com
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.