Premium Exploration Inc.

Premium Exploration Inc.

December 13, 2007 20:55 ET

Premium Exploration Announces Acquisition of a Gold-Silver Project in Guanajuato, Mexico and Update on Its Nueva Galicia Gold-Silver Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) ( is pleased to announce the acquisition of the Bonanza Gold and Silver Property located in Guanajuato, Mexico, along with an update on exploration progress at its Nueva Galicia Project, located in Nayarit State, west-central Mexico.

Acquisition of the Bonanza Gold & Silver Project:

Premium has executed an option to acquire 100% of the Bonanza Gold Property, ("Bonanza") in Guanajuato State, central Mexico, located six kilometers from the town of Victoria and 70 km from the city of Queretaro. Under this option Premium will acquire the right to purchase 599 hectares from the property vendor. Additionally, Premium has staked new claims covering approximately 9045 hectares around the optioned property that covers a structural window (exposure) of the same rocks which elsewhere host multi-million ounce deposits within the same northwest-striking structural corridor (see below).

Exploration targets at Bonanza include high-grade gold-silver vein deposits and disseminated bulk-tonnage gold-silver deposits. Premium also believes the potential exists to discover a highgrade root system and mineralization below impermeable post-mineral cover from which the mineralization and alteration at Bonanza emerges. There are several world-class, multi-million ounce precious metals deposits located within the same geological and structural setting as Bonanza, including:

- Metallica Resources' Cerro San Pedro deposit, located 145 km to the southeast of Bonanza, contains a reserve of 1.52 million ounces of gold and 62.1 million ounces of silver (84.8 million tonnes grading 0.93 g/t gold and 22.5 g/t silver, using prices of $475/oz gold and $8/oz silver at a cut-off grade of 0.20 g/t gold) and is projected to produce 89,000 oz gold and 2.1 M oz silver per year (see

- 27 km northeast of Bonanza is the historic Mineral de Pozos Mining District, where historic production in the district is estimated at 1,200,000 tons with average grades of 1.35 kg/ton Ag, and 8.5 g/ton Au, and some veins with bonanza grades of 2.5 kg/ton silver and 40 g/ton gold.

- 49 km northwest of Bonanza is Starcore International Ventures Ltd.'s San Martin Mine, with total proven and probable mineral reserves estimated at 0.9 million tonnes at a grade of 47 g Ag/t and 4.05 g Au/t.

- 106 km northeast of Bonanza is the Guanajuato Mining District, a world-class vein deposit famous for its prodigious silver production.

- Bonanza is 85 km northeast of the San Anton de las Minas mining district, where San Anton Resource Corporation announced a 43-101 compliant mineral resource estimate of 10.19 million ounces of gold equivalent at a 0.3 g/t Au eq. cut-off which consists of 4 million ounces of gold, 171 million ounces of silver and 448,000 tonnes of copper.

Bonanza was previously explored by the Consejo de Recursos Minerales (Geological Survey of Mexico, CRM) as the Victoria Project. CRM carried out a grid-based rock chip sampling program which returned values of zero to 3.2 g/ton gold and from 5 to 40 g/ton silver, as well as geophysics, (induced polarization and resistivity), and a drill program of four holes totaling approximately 800 meters. Based on this exploration, over an area of 2.5 km by 2.0 km, and using a depth of continuity of 100m, CRM estimated the potential for 50,000,000 tons with an average grade of 0.4 to 0.8 g/t gold and 15 to 40 g/t silver, which represents approximately one to two million ounces of gold equivalent. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources nor is the issuer treating the historical estimate as current mineral resources. The historical studies have not been examined by a qualified person and updated with current exploration results nor is the issuer treating the historical studies as current and the historical estimates should not be relied on, but are being presented to demonstrate target potential.

Preliminary mapping and sampling by Premium confirmed the presence of three major quartz veins, Victoria and Macrina I-Macrina II, as well as areas of argillic alteration and quartz stockwork. Seventy four samples were collected from surface outcrops and bedrock float across this area, as well as over exposed veins in the trench and on surface. Results are pending and are expected to be completed later this month.

Quality Control and Assurance

Samples were collected by contract geologists in the employ of Premium Exploration and were kept under direct control of the geologists until shipment to ACME Labs in Guadalajara, Mexico for sample preparation. Sample preparation consisted of crushing a 1 kg sample to 70% passing 10 mesh, splitting 250g and pulverizing to 95% passing 150 mesh. The sample pulps were then shipped to ACME Labs in Vancouver, BC, an ISO 9002 accredited analytical laboratory.

Reconnaissance rock samples are analyzed by 36 element ICP - MS (mass spectrometer) analysis. Sample splits of 15g are leached in hot (95 C) aqua regia. Samples returning over detection limit for silver (100 ppm) or gold (100 ppm) are re-analyzed for Au and Ag by Fire Assay on a 30g sample.

Nueva Galicia Exploration Update

At Nueva Galicia, to date Premium has completed 13 holes totalling 605 meters of diamond drilling of the Phase I, 2000 meter drilling program. This drill program is focussed on exploration along strike and at depth of 10 high-grade silver-gold ore shoots exposed at surface. These ore shoots were exploited on a small scale during Spanish colonial times, and based on detailed sampling by the Consejo de Recursos Minerales (CRM) of the shoot which was most extensively mined, Tajitos, 150,000 ounces of gold equivalent (using a ratio of 60:1) was extracted from a shoot with minimum dimensions of 130m along strike and 120m vertical extent, over and average width of 0.80 meters (Please See Press Release Dated Oct 15). Drilling has been suspended for the holiday season until early January. Core samples and surface rock chip samples from these ore shoots have been submitted for analysis, and results are expected early in 2008. In early 2008 Premium expects to restart its drilling program at Nueva Galicia.

Qualified Person

Ms. Nancy Reardon, M.Sc., P.Geo., VP Exploration of Premium Exploration Inc., 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, 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, the company's exploration team continues to review early-stage projects located within under-explored precious metal belts that host worldclass 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.

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.

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