Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

October 20, 2009 17:23 ET

Premium Exploration Amends Terms of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2009) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium") has amended the terms of the private placement announced on September 11, 2009. Under the terms of the amended offering, Premium intends to raise up to $2,800,000 through a non-brokered private placement of 14,000,000 Units at $0.20 per Unit. Each Unit will consist of one Common Share and one non-transferable Share Purchase Warrant. Each Share Purchase Warrant will be exercisable at a price of $0.30, for a period of 18 months from the closing date of the financing. The securities are subject to a four-month hold period.

The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date. In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days' notice to the Warrantholders.

The closing of the offering will be completed in two tranches. The funds raised will include up to 7% finder's fees in cash or shares. The amendment of the private placement is subject to approval from the TSX Venture Exchange.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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