Premium Exploration Inc.

FOR IMMEDIATE RELEASE FEBRUARY 21, 2007

VANCOUVER, BRITISH COLUMBIA (February 21, 2007) Premium Exploration, Inc. (TSX-V:PEM) (http://www.premiumexploration.com/) is pleased to announce preliminary results for the Dos Amigos project, which the Company is evaluating under a letter of intent, and that Premium has signed a two-year exclusive contract with Ingeniería de Recursos Minerales, S.A. de C.V. (IRM), which specializes in the consolidation and acquisition of mineral exploration and mining projects in Mexico.

Premium Samples 7.27 g/t Au and 25.5 g/t Ag over 1.8m at Dos Amigos

Premium Exploration is pleased to announce the execution of a letter of intent for the option to earn a 100% interest in the “Dos Amigos” project, consisting of 3,230 hectares (7,985 acres) where preliminary mapping, prospecting and sampling have returned results up to 7.27 g/t Au and 25.5 g/t Ag over 1.8m. The property is centered on the intersection of two major faults, with widespread alteration consisting of silicification, argillitization and sericite-adularia locally along a strike length of four kilometers, with quartz veins present up to two kilometers from the central structure. The geology consists of mafic, intermediate and felsic volcanic rocks cross-cut by mafic dykes. Final results were received for 12 of 44 samples collected. These samples are from the La Colorada vein, with the exception of the mine dump grab sample, which is from a caved working two kilometers south of La Colorada. Seven samples returned greater than 0.5 g/t gold and/or 200 g/t silver (see table below).  The remaining sample results are expected in early March. Under the terms of the letter of intent, Premium has the exclusive right to a 120 day due diligence period to assess the merits of the project and enter into a definitive acquisition agreement.

* ICP = induced coupled plasma; FA/AA = fire assay & AA finish 30g; FA grav. = fire assay gravimetric finish 30g.

Premium Signs Exclusive Contract with Mexican Mineral Exploration Acquisitions Group

Premium Exploration has signed a two-year exclusive contract with Ingeniería de Recursos Minerales, S.A. de C.V. (IRM), which specializes in the consolidation and acquisition of mineral exploration and mining projects in Mexico. Premium has also issued an option for 100,000 shares of Premium stock to IRM under the Company’s stock option incentive program.

IRM’s President, Mr. Jose Olmedo, is an experienced geologist with a Master of Science Degree applied in Mineral Exploration and a Master’s Degree in Business Administration, both from McGill University, Montreal, Canada. He also holds diplomas in finance and international commerce. Mr. Olmedo served for 10 years with the Servicio Geológico Mexicano (Mexican Geological Survey, SGM) as Chief of Mining & Exploration Projects Evaluation. Mr. Olmedo is fully bilingual in English and Spanish, and has conducted negotiations for mineral exploration and mining projects in the USA, Mexico, Canada and South America.

IRM’s Technical Director, Mr. Benjamin Martinez, is a geologist with over forty years of experience in exploration and mining, and has worked as an independent consultant with state and private mining corporations, as well as 10 years with the SGM. His experience includes planning, budgeting, evaluation and supervision of exploration and mine development projects. He holds a Bachelor of Science degree in Geology from Instituto Politécnico Nacional as well as certifications in mineral exploration. Mr. Martínez is a member and General Treasurer of the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México.

Cucurpe Project Update

Premium has elected not to proceed with the option to purchase the Cucurpe claim group, located in Sonora State. After conducting exploration consisting of mapping, rock chip sampling and a soil grid over the Buena Vista area, the Company has determined the results do not warrant further exploration on this claim group. Premium has maintained 5,187 hectares (12,817 acres) of the original area staked by the Company, which are not subject to underlying agreements. Resources and funding previously dedicated to Cucurpe have been freed to apply to other projects in Nayarit and Jalisco, and allow the company to concentrate resources in a smaller geographic area, lower costs and increase productivity.

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:

lmaxwell@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.