Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

June 12, 2006 09:45 ET

Premium Exploration Acquires Nueva Galicia Silver and Gold Project in Nayarit, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 12, 2006) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") (http://www.premiumexploration.com) is pleased to announce that the Company through its wholly owned subsidiary, Minera Zorro de Plata S.A. de C.V. has acquired the right to earn a 100% interest in the Nueva Galicia Project (the "Project") located in the State of Nayarit, Mexico.

The Highlights of the Nueva Galicia Project include:

- Historic assays produced by a previous operator from the Project with returned values of 219 grams per tonne Au and 586 grams per tonne Ag over 1.5 meter chip sample, and 22.2 grams per tonne Au and 2,450 grams per tonne Ag from a mine dump grab sample.

- The total land package is approximately 13,700 hectares in size, which covers this historic mining district.

- There are numerous historic workings on the Project which are located along a 10 kilometer strike length of a structural zone. This structural zone reaches widths of 3 kilometers in the core of the claim area.

- The historic working and mines exploited low-sulfidation epithermal quartz veins, stockworks and breccias.

The Nueva Galicia Project is located immediately south of Cream Mineral's Nuevo Milenio Project (TSX VENTURE:CMA)(OTCBB:CRMXF), where a NI 43-101 compliant inferred mineral resource 13,120,000 tonnes containing 268,000 oz Au and 30,340,000 oz of Ag have been identified so far. No drilling or geophysical surveys have ever been carried out on the Nueva Galicia Project, and the Company has not independently verified any of the historical data and assay results developed by previous operators of the Project.

Bladed quartz after calcite or barite is present locally, indicating preservation of the upper part of the epithermal system where boiling occurred, and which is typically above bonanza-grade mineralization. Some veins at Nueva Galicia have been traced continuously over 300 meters along strike and over vertical distances of up to 250 meters, with mineralized veins exposed discontinuously over 10 kilometers and a vertical distance of 650 meters. In addition to the high grade veins, stringer and disseminated mineralization within broad zones of stockwork and breccia have been identified on the property.

Infrastructure and access to the project are excellent. The claims are located 29 kilometers south east of the Nayarit State capital, Tepic, and four kilometers from the town of Compostela. Paved highways and electric power lines pass within 4 kilometers of the western boundary, and within one kilometer of the southern boundary of the property. An operating railway line crosses the northwest corner of the property. A gravel road provides access to the center of the property where most of the old mines are located. Water is available year round on the property.

The Company can earn 100% of the property by making staged cash and share payments over four years totaling US$1,000,000 and issuing 500,000 common shares of the Company and by incurring expenditures totaling US$1.8-million, of which US$150,000 must be spent in the first year. Should the project go into commercial production, the owner will receive the lesser of 500,000 shares of the Company or US$1,000,000.

Mr. Wilf Struck, P.Eng., geologic consultant to the Company is the qualified person responsible for the technical disclosure in this press release.

About Premium Exploration, Inc.:

Premium Exploration, Inc. is a Toronto Venture Exchange listed junior exploration company. Premium is being strategically developed to maximize the economic potential of the currently developing bull market in precious metals. The Company's exploration prospects consist of three significant land packages, one is located in the Stillwater Complex in the State of Montana and two are located in the states of Nayarit and Sonora, Mexico, respectively. The Company's exploration targets have indicated mineralization consisting of gold, silver, copper, nickel and platinum group metals. More information can be found on our website at http://www.premiumexploration.com or on the SEDAR website at http://www.sedar.com.

The information in this press release is not NI 43-101 compliant and should not be relied upon as such. 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 files 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. 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.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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