Premium Exploration Inc.

Wilf Struck Memorial - Vancouver
Bars of precious metals

Premium Exploration Inc., Announces Grant of Stock Options

October 25, 2007

FOR IMMEDIATE RELEASE OCTOBER 25, 2007

PREMIUM EXPLORATION ANNOUNCES GRANT OF STOCK OPTIONS

VANCOUVER, BRITISH COLUMBIA (Marketwire – October 25, 2007) – Premium Exploration, Inc. (TSX-V:PEM) (“Premium” or the “Company”) is pleased to announce that it has granted 1,400,000 stock options to certain directors, officers and consultants.  The options are exercisable at a price of $0.35 for five years.

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/.

Premium Exploration’s Projects

Project

Location

Commodity

Land Position

Targets

Highlights

Chrome Mountain

Montana

USA

Pt-Pd-Rh

 

970 hectares

(2,397 acres)

100% owned

Platinum, palladium and rhodium within chromitite layers of the Stillwater Complex & shear-hosted gold and PGM One km from producing platinum and palladium mine. Drilling underway funded by US$5,000,000 joint venture with Beartooth Platinum.

Nueva Galicia

Nayarit

México

Au-Ag

18,125 hectares

(44,780 acres)

Option to earn 100%

High grade veins and breccias. Over four km of veins mapped to date. Phase I 2000 meter drill program underway.  Initial results:

  • 7.84 g/t Au & 814 g/t Ag over 2.60 meters true width
  • 2.32 g/t Au & 226 g/t Ag over 4.00 meters true width

San Pedro Analco

Jalisco

México

Ag

1,136 hectares

(2,800 acres)

Option to earn 100%

High-grade veins and bulk-tonnage breccias Phase I exploration highlights:

  • 1,390.7 g/t Ag over 3.15 meters true width
  • 534.5 g/t Ag and 0.787 g/t Au over 3.5 meters true width

Dos Amigos

Nayarit

México

Au-Ag

3,230 hectares

(7,985 acres)

Option to earn 100%

Veins and bulk-tonnage gold/silver Quartz stockwork mapped over 500m x 400m

Rosamorada

Nayarit

México

Au-Ag

300 hectares

(740 acres)

Option to earn 100%

Bulk-tonnage gold/silver Quartz stockwork mapped over 1000m x 300m

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.