Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

November 17, 2010 09:00 ET

Premium Exploration and Velocity Minerals Clarify Claim Staking in Idaho, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Premium Exploration Inc. (TSX VENTURE:PEM) and Velocity Minerals Ltd. are pleased to jointly issue this release regarding the current state of mineral claims staked by the Companies in the Orogrande mining district in central Idaho USA.

Both Companies are engaged in the exploration of what is believed to be a very large gold trend known to be the Orogrande Shear Zone "OSZ". Premium is focused on systematically exploring and developing targets identified along its district-sized land package covering 30-Km of strike length along the interpreted OSZ. The land package extends from Project "X" at the southern end of the OSZ to Buffalo Gulch on the north, while Velocity Minerals is focused on the potential southern extension or splay of the OSZ.

Premium began announcing the increases to its original district-sized land package of 394 claims (32 sq-km), September 8th of 2010. The Company increased its land position to 582 claims (43 sq-km) by adding 134 claims (11 sq-km) due to the identification of multiple high-priority targets with geophysical signatures similar to that of the Friday-Petsite Project in the Deadwood and Aurum Project Areas.

On Oct 12th 2010, Premium announced a total 200% increase to its land package with the addition of 774 new claims, totalling 1,168 claims (95 sq km) over the OSZ upon the release of the Airborne Geophysics. The additional claims expanded the main project areas of Buffalo Gulch, Deadwood, Aurum, Friday-Petsite, and added Project X to the south.

The order of claim staking is attributed to the way the geophysical survey was conducted from north to south. As raw data was received, high priority targets were first interpreted and staked in the Deadwood and Aurum Project Areas. Further on, claims were staked south of the original Friday-Petsite claim boundary, culminating in the staking of the Project X anomaly.

On September 27th, Velocity announced the staking of 60 claims south of Premium's original Friday-Petsite Project, the southern-most boundary prior to Premium's second announcement of its final land position increase. Since then, Velocity has staked an additional 96 claims on the potential extension of the OSZ, south of Premium's Project X. 

In order to expedite the overall development of the gold trend and to gain a better understanding of its district potential, the two Companies have engaged in dialogue on how to most efficiently undertake exploration of the considerable land area believed to contain the trend, under the pretence of a strategic alliance. 

Premium's present corporate strategy is to systematically develop the OSZ; continuing the development of the Friday-Petsite Project while making new discoveries at the high-priorities in the central and northern portions of its land package. This leaves the early stage exploration and development in the southern portions of the OSZ to be advanced by Velocity, expediting the development of the largest amount of land along the gold trend in the most efficient manner possible. 

The recent staking activities of both companies have led to confusion regarding the size and location of various claims blocks located by Velocity and Premium. 

In order to remove any confusion, the companies have compared their respective claim locations and where there appeared to be an overlap one or the other of the companies have agreed to relinquish any claim to the area and Velocity will work south, outside of the existing Premium claims south of the UTM NAD83 Zone11m Northing of 5059090. This release contains a map showing the approximate location of the mineral claims now held by Premium Exploration and Velocity Minerals.

Click http://bit.ly/PEMClaimClarification for the map.

Qualified Person

The 2010 Phase-Three exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. Mr. Ostenson is a Qualified Person as defined by NI 43-101. Mr. Ostenson prepared, and approves of the content in this release.

About Velocity Minerals Ltd.

Velocity Minerals Ltd. is a public company dedicated to the acquisition, exploration and development of molybdenum, gold and other mineral resources. In addition to the Company's two Cassiar, B.C. area properties, its Southeastern B.C. gold prospect and its Idaho claims, several other opportunities in the mining industry in North America and elsewhere are actively being pursued.

About Premium Exploration Inc.

Premium is focused on the exploration and development of its district-sized land package along Orogrande Shear Zone "OSZ" to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite Project, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium's control. 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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