Premium Exploration Inc.

FOR IMMEDIATE RELEASE FEBRUARY 27, 2007

VANCOUVER, BRITISH COLUMBIA (February 22, 2007) Premium Exploration, Inc. (TSX-V:PEM) (http://www.premiumexploration.com/) is pleased to report results from its recent Phase I exploration program at its San Pedro Analco Project located in Jalisco State, Mexico.  Preliminary sampling returned favourable grades and widths, including the following highlights:

• 1,390.7 g/t Ag and 0.085 g/t Au over 3.15 meters
• 534.5 g/t Ag and 0.787 g/t Au over 3.5 meters
• 535.3 g/t Ag and 0.195 g/t Au over 2.0 meters
• 316.1 g/t Ag and 3.44 g/t Au over 2.5 meters

San Pedro Analco hosts an extensive low sulphidation silver/gold epithermal system consisting of 1,136 hectares located within the Cinco Minas – San Pedro Analco mining district, 70 kilometers northwest of Guadalajara, Mexico’s second largest city. At least five vein structures are present on the property over a strike length of two kilometers. Silver and gold with lesser amounts of zinc and lead are associated with quartz-calcite, calcite and quartz veins.

San Pedro Analco is a past producer, reportedly operating as recently as 1988, with production from five underground mines. There appears to be extensive mining, but production data is unavailable. From observations made during the initial mapping by Premium geologists there is little indication of any mining activity covering the 700m between the historic mines to the north (Alpes, Tesoral, Espranza) and the historic mines to the south (Animas, Cerrillos), or that any historic exploration activity was conducted beyond the existing mine workings. Therefore, it appears that there is approximately 700 meters of undeveloped and unexplored potentially mineralized structure between the mines, as well as down dip extensions below the historic mines.

A preliminary sampling and mapping program was conducted in four of five of the larger mines.  A total of 1,600m of mine workings were mapped from which 71 chip samples and nine grab samples (from ore chutes) were collected from five mines.  For the four mines mapped, the results for samples with greater than 100 g/t Ag and/or 1.0 g/t Au are presented in the tables below. Thirty-seven of the 80 samples collected returned elevated gold and/or silver values.

Premium is currently rehabilitating roads to provide access to both surface and subsurface workings. The next phase of exploration will include mapping and surface sampling, underground sampling and mapping to prepare for a geophysical survey to map structures at depth, followed by drilling to test the extent of mineralization outward from the mines, as well as to test new areas.

The project has excellent infrastructure with road access, and a high voltage transmission line less than one kilometer from the property. Premium has an option to earn 100% of 1,136 hectares by making staged cash and share payments and exploration expenditures over three years.

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 for sample preparation. All analyses were completed by Inspectorate Labs of Sparks, Nevada, utilizing industry standard procedures. Inspectorate is a highly respected ISO 9002 Certified lab. 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 (200 ppm) were reanalyzed by fire assay.

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.

More information can be found on our website at http://www.premiumexploration.com/ or on the SEDAR website at http://www.sedar.com/.

Contact Information:

Ms. Lisa Maxwell

VP, Corporate Development

Premium Exploration, Inc.

(604) 682-0243

Email:

lmaxwelll@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.  Information contained in this news release includes information about adjacent properties on which we have no right to explore or mine. We advise investors in the United States that the SEC’s mining guidelines strictly prohibit information of this type in documents filed with the SEC. United States investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.