Premium Exploration Inc.

Premium Exploration Inc.

April 17, 2007 11:17 ET

Premium Exploration Acquires Option on Gold-Silver Bulk-Tonnage Target in Nayarit, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 17, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) ( is pleased to announce it has signed a letter of intent to acquire 100% of the Rosamorada property, located in Nayarit State, west central Mexico, four hours west of Guadalajara, Mexico's second largest city.

The Company believes that the Rosamorada property demonstrates good potential for a bulk tonnage gold-silver target with excellent infrastructure and geometry. A preliminary field visit by Premium's exploration team revealed evidence of quartz veining and stockwork over an area at least 1000m by 300m.

The project is located on low rolling hills at approximately 200m elevation, within two kilometers of the Pan American highway and less than one kilometer from an active rail line. A high-tension powerline passes adjacent to the property. Several small historic workings are present on the property. No modern exploration has been carried out on the project, except a machine-dug trench approximately 50 meters by 3 meters wide exposing a portion the vein system. The majority of the vein-stockwork system not in the vicinity of the old workings remains completely unexplored.

A study by the Consejo de Recursos Minerales ("CRM" or Geological Survey of Mexico) was completed at Rosamorada in 1981 on a small portion of the property. CRM reported mineralization within quartz veins consisting of galena, argentite, pyrite, and iron and manganese oxides. A total of 40 samples were taken by CRM from the old workings and veins on surface, which were traced up to 200m along strike. The quartz stockwork was not sampled. Sampled quartz veins ranged from 0.10 to 1.70 meters wide and contained gold values from 0.25 g/t to 45 g/t, while silver ranged from 10 g/t to 294 g/t. The weighted average gold equivalent for all of the historic samples is 4.12 g/t over 0.46 meters, utilizing a gold price to silver price ratio of 60:1. These data are available in the technical archive of the Servicio Geologico de Mexico at, Archivo Tecnico #180083, and have not been directly verified by Premium.

As part of the Company's due diligence on the property, Premium's exploration team collect nineteen samples from surface outcrops and bedrock float across this area, as well as over exposed veins in the trench and on surface. Preliminary results confirm anomalous gold values and the complete results will be released once the final report is received from the lab.

Quality Control and Assurance

Samples were collected under the direct supervision of contract geologists in the employ of Premium and the samples were kept under direct control of the geologists until shipment to Inspectorate Labs in Durango, Mexico for sample preparation. The sample pulps were then shipped to Inspectorate Labs of Sparks, Nevada, and analyzed utilizing industry standard procedures. Inspectorate is a ISO 9002 Certified lab. For gold determinations, a 30 g split is used to perform a 1 AT (29.17 g) fire assay, with an Atomic Absorption finish. For trace level elements determinations for silver and base metals, a 0.5 g sub-sample is used to perform a 30 elements aqua regia digestion and ICP - AES (Inductively Coupled Plasma - Atomic Emission Spectrometer) analysis. Samples returning over detection limit for silver (200 ppm) were reanalyzed by fire assay.

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.

Project Location Commodity Position Mineralization Snapshot
Chrome Montana, PGM - 970 Platinum, Within the
Mountain USA Pt,Pd,Rh hectares palladium Stillwater
(2,397 and rhodium Complex,
acres) within host to
100% owned chromitite the only
layers of the producing
Stillwater primary
Complex platinum
mine in
the USA.
1,100 soil
Nueva Nayarit, Ag/Au 17,000 High grade Epithermal
Galicia Mexico hectares epithermal vein systems
(42,000 vein systems aligned along
acres) and breccias. a structural
Option to corridor over
earn 100% a distance of
10 km
(6 mi.).
parallel vein
systems have
been mapped
in detail for
a total of
4500 meters
to date - the
target of
Phase I drill
scheduled for
San Pedro Jalisco, Ag/Au/Zn 1,136 High-grade, Phase I
Analco Mexico hectares epithermal exploration
(2,800 vein systems program the
acres) and breccias following
Option to highlights:
earn 100% - 1,390.7 g/t
Ag and
0.085 g/t
Au over
3.15 meters
- 534.5 g/t
Ag and
0.787 g/t
Au over
3.5 meters
Dos Amigos Nayarit, Ag/Au/Cu/ 3,230 Veins and Select grab
Mexico Zn/Pb hectares bulk-tonnage sample
(7,985 gold/silver returned 8.3
acres) g/t gold and
Option to 15,276 g/t
earn 100% (445 oz./ton)
silver as
well as 7.2%
copper, 4.5%
lead and
17.2% zinc
Rosamorada Nayarit, Au/Ag 300 Veins and Preliminary
Mexico hectares bulk-tonnage results
(740 gold/silver pending.
Option to
earn 100%

More information can be found on our website at or on the SEDAR website at

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.

Contact Information