Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

October 10, 2007 17:15 ET

Premium Exploration Completes 2007 Platinum Group Metals Drill Program on Their Chrome Mountain JV Project, Montana, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM), is pleased to announce the completion of seven holes of the first drill program on the Chrome Mountain Joint Venture Project, located in the Stillwater Mafic Intrusive Complex in Montana, USA. The Chrome Mountain property is a joint venture with Beartooth Platinum Corporation (TSX VENTURE:BTP).

The 2007 Chrome Mountain drill program was designed to intercept the "A" & "B" Chromitite Zone which appears to parallel the JM Reef, which produced over 600,000 ounces of Platinum Group Metals (PGM's) in 2006. The "A" & "B" Chromitite Zone is widely believed to be similar to the UG2 Layer of the Bushveld Complex, South Africa, where PGM's are currently mined at 5 to 7 g/t (0.132oz to 0.185oz/ton). The drill holes averaged 260m (855ft) deep, and were centered on a greater than or equal to 1 g/t PGM soil anomaly, covering an area of approximately 2300 meters (7,544 ft) by 1000 meters (3,280 ft), compiled from over 9,000 soil samples collected by BTP during the 2006 field program.

Worth noting, in 2006, BTP's drill program on Iron Mountain, which is 7km from Chrome Mountain along the length of the Anomaly, identified zones of high Rhodium values of 1 to 2 g/t within the A and B Chromitites. As of today's date, Rhodium is trading at $6,140.00/oz, Platinum at $1,385.00/oz, and Palladium at $372.00/oz.

Beartooth Platinum Corp. has the option to earn a 50% in this project by spending $3,000,000 on exploration over the next three years. The J M Reef, which is part of the Stillwater Mafic Intrusive Complex, and is host to two of the largest PGM producing mines in North America. The Stillwater and East Boulder Mines, owned by Stillwater Mining Company (SMC) have been in production since 1992.

Beartooth Platinum Corp. employs a QA/QC protocol on all aspects of the analytical procedure. Core samples are sawn in half, one half retained for the record and the second half shipped to SGS Assay Laboratory in Toronto for assay. Samples are collected on a maximum of 1.3m (4 feet), with smaller lengths in areas of interest. Sample preparation is conducted in SGS's sample preparation Lab located in Elko, Nevada and the pulps are shipped to SGS Mineral Services Ltd. In Toronto, Canada for assay, using industry standard fire assay techniques. A blank sample is inserted within every 50 & 100 ft of core. Known standards, representing a high and low range of grade are inserted at 25 and 75 ft intervals. Approximately 12.5% of the pulps are re-analyzed by SGS.

The Quality Control and all aspects of exploration program are supervised by Mr. Wilf Struck, P.Eng., the Qualified Person ("QP"), 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, 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.



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Premium Exploration's Projects
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Land
Project Location Commodity Position Targets Highlights
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Chrome Montana Pt-Pd-Rh 970 Platinum, One km from
Mountain USA hectares palladium and producing
(2,397 rhodium within platinum and
acres) chromitite palladium mine.
100% owned layers of the Drilling
Stillwater underway funded
Complex & by US$5,000,000
shear-hosted joint venture
gold and PGM with Beartooth
Platinum.
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Nueva Nayarit Au-Ag 18,125 High grade Over four km of
Galicia Mexico hectares veins and veins mapped to
(44,780 breccias. date. Phase I
acres) 2000 meter drill
Option to program
earn 100% 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
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San Pedro Jalisco Ag 1,136 High-grade Phase I
Analco Mexico hectares veins and exploration
(2,800 bulk-tonnage highlights:
acres) breccias - 1,390.7 g/t
Option to Ag over 3.15
earn 100% meters true
width
- 534.5 g/t Ag
and 0.787 g/t
Au over 3.5
meters true
width
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Dos Nayarit Au-Ag 3,230 Veins and Quartz stockwork
Amigos Mexico hectares bulk-tonnage mapped over
(7,985 gold/silver 500m x 400m
acres)
Option to
earn 100%
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Rosa- Nayarit Au-Ag 300 hectares Bulk-tonnage Quartz stockwork
morada Mexico (740 acres) gold/silver mapped over
Option to 1000m x 300m
earn 100%
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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.

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