Premium Exploration Inc.

Premium Exploration Inc.

August 23, 2007 14:10 ET

Premium Exploration Announces Completion of $1,322,500 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) (the "Company") ( is pleased to announce that, further to its news release dated July 30, 2007, the Company has completed its non-brokered private placement (the "Offering") of 3,306,250 units (each, a "Unit") of the Company at a price of $0.40 per Unit for aggregate proceeds of $1,322,500.

Each Unit consists of one common share (a "Share") of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") of the Company. Each Warrant entitles the holder thereof to purchase one Share of the Company at a price of $0.50 per Share at any time and from time to time until 5 p.m. (Vancouver time) on August 22, 2008.

In addition, the Company has paid finders' fees of $32,750 in cash and issued 201,250 Shares equal to 10% of $1,322,500 proceeds raised from the sale of 2,831,250 Units in connection with the Offering.

The 3,306,250 Shares and 1,653,125 Warrants issued pursuant to this Offering, together with 1,653,125 Shares reserved for issuance upon the exercise of 1,653,125 Warrants and 201,250 Shares issued as a finder's fee are subject to the hold period until December 23, 2007 in accordance with policies of the TSX Venture Exchange.

The proceeds of the Private Placement will be used toward drilling in Mexico, property acquisitions, evaluations and general and administrative expenses.

More information can be found on our 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.

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

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