Premium Exploration Inc.

Premium Exploration Announces Completion of Private Placement

FOR IMMEDIATE RELEASE

VANCOUVER, BRITISH COLUMBIA (August 20, 2008) ? Premium Exploration, Inc. (TSX-V:PEM) (?Premium?) (http://www.premiumexploration.com) is pleased to announce that further to its news release dated July 28, 2008, that the Company has completed its non-brokered private placement (the ?Offering?) of 3,400,166 units (each, a ?Unit?) of the Company at a price of $0.30 per Unit for aggregate proceeds of $1,020,050. 

Each Unit consists of one common share (a ?Share?) of the Company and one common share purchase warrant (?Warrant?) of the Company.  Each Warrant is exercisable for a period of two years at an exercise price of $0.50 in the first year and $0.75 in the second year.

In addition, the Company has paid finders? fees of $70,538.50 in cash.  The 3,400,166 Shares and Warrants issued pursuant to this Offering are subject to a hold period expiring four months and one day after the closing date.

The proceeds from the private placement will be used for production permitting on Buffalo Gulch, exploration drilling, property evaluations, acquisitions and staking. The Offering is subject to regulatory approval.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique precious metals explorer focused on Mexico and the USA.  Listed on the TSX Venture Exchange (TSX-V:PEM), the Company was founded on a team with exploration success, committed to maximizing shareholder exposure to precious metal discovery, the most profitable stage of exploration. Premium?s portfolio holds gold, silver and platinum group metals projects in various stages of exploration, from grassroots to near-term production.  Premium?s business model utilizes the joint venture model where strategically chosen projects are quickly advanced. This approach allows the Company to focus its exploration efforts in under-explored precious metal belts that would allow for profitable extraction, with minimal political, social or environmental risks.   Additional information may be found on our website at www.premiumexploration.com.

All prospective and current shareholders of Premium Exploration are invited to join the company?s official investment forum exclusively at Pinnacle Digest:  www.pinnacledigest.com/company/pem:ca.  The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at www.pinnacledigest.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 involves 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.