Premium Exploration Inc.

FOR IMMEDIATE RELEASE OCTOBER 15, 2007

PREMIUM EXPLORATION ANNOUNCES DRILLING RESUMPTION IN MEXICO

VANCOUVER, BRITISH COLUMBIA (Marketwire – October 15, 2007) Premium Exploration, Inc. (TSX-V:PEM) is pleased to announce an update on the exploration of its Mexico properties.

Drilling at Premium’s Nueva Galicia property returned excellent initial results. Holes DDH-NG-01 and DDH-NG-02 encountered high-grade silver and gold mineralization including: 6.7 g/t gold and 473g/t silver (0.20 oz./t gold and 13.80 oz./t silver) over an estimated true width of 1.00m and 14.8 g/t gold and 1280 g/t silver (0.43 oz./t gold and 37.33 oz./t silver) over 0.73 meters at Buenos Aires- see Press Release Sept. 17, 2007.

The Buenos Aires structure is one of six sub-parallel and anatomizing mineralized structures which were mined in Spanish colonial times. Phase I drilling is testing part of over 8000 meters of mineralized structures mapped and sampled to date at Nueva Galicia. Premium will continue to test the Buenos Aires Zone to the North and South. Drilling at Nueva Galicia was suspended in July due to heavy rains which made access difficult and severely reduced productivity and increased costs. Drilling will resume on October 17th.

Drilling will also test the Cholita Zone, 250 meters south along the Buenos Aires structure, where surface sampling returned 219 g/t gold and 586 g/t silver over 1.50 meters, as well as the Tajitos Zone, 500 meters south of Buenos Aires along the Tajitos structure, where Spanish workings were developed over five levels covering 120 meters vertically and 130 meters along strike in the lowest level. Ninety-eight samples taken by the CRM at Tajitos returned grades of 0.1 to 22.4 g/t gold and 11.3 to 1300.0 g/t silver over widths from 0.8m to 1.7m along a strike length of 320m, a vertical distance of 145m, with an average grade of 7.95 g/t gold and 284 g/t silver over 0.80m.

San Pedro Analco is a past-producing silver mine which was operated by Peñoles and later by Asamera Minerals until the early 1990s, when silver prices dropped below $3.00USD/oz. A program of geological, alteration and structural mapping will be carried out in Q4 2007 and Q1 2008. The property has potential for locating additional high-grade mineralization, as well as bulk-tonnage deposits in extensive silver-bearing breccias.

Rosamorada is a bulk-tonnage gold and silver target with potential for deeper high-grade vein mineralization. Extensive stockwork with gold and silver mineralization is present at Rosamorada, with excellent geometry and infrastructure which would allow inexpensive extraction by open pit methods. Dos Amigos is also a bulk-tonnage gold-silver target. Detailed surface sampling will be carried out at Rosamorada in Q4 2007 and in Q1 2008 at Dos Amigos, followed by trenching of areas which return anomalous results and drilling if warranted.

Premium currently holds options to earn 100% of four precious metals properties totaling 22,791 hectares in Nayarit and Jalisco States. Premium is reviewing several precious metals opportunities in Mexico and North America and is well-positioned to carry out evaluations quickly, with eight experienced geologists consulting to the company. Premium owns a Hydracore 28 drill and has an experienced driller under contract, as well as access to several other drills in Mexico. Premium is actively pursuing joint ventures for several of its current projects.

Nancy Reardon M.Sc., P.Geol., 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:

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.