Premium Exploration Inc.

Premium Exploration Inc.

March 03, 2008 09:44 ET

Premium Exploration Announces Drill Results From Chrome Mountain, Montana, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium") is pleased to announce that Beartooth Platinum Corporation, (TSX VENTURE:BTP) ("Beartooth" or "BTP") Premium's joint venture partner on its Chrome Mountain Property ("Property") has released the drill results from the 2007 drill program. (See Beartooth news release, February 29, 2008).

The Property is being explored under a joint venture agreement between Premium and Beartooth (see Premium news release June 5, 2007). Under the terms and conditions of the joint venture agreement between Premium and BTP, Beartooth can initially earn a 50% interest in the Property by spending USD$3,000,000 over three years on exploration activities on the Property ("Initial Earn-in.") Upon the completion of the Initial Earn-in, Beartooth can earn an additional 30% in the Property by spending an additional USD$2,000,000 on exploration expenditures on the Property over the subsequent, for a total earned interest of 80% ("80% Interest.") If Beartooth earns the full 80% Interest in the Property, Premium will retain a 20% Carried Interest in the Property, and a 1% NSR on the combined property. However, upon the completion of the Initial Earn-in by Beartooth, Premium can elect to maintain a 50% ownership interest in the Property by funding a pro-rata share of all exploration activities and costs with Beartooth on a 50-50 basis.

The highlights of the drill program are listed below:

- All holes intercepted anomalous gold + platinum + palladium mineralization with a high of 11.909 g/t.

- Average intercepts at Chrome Mountain is 118 meters at a grade of 0.66 g/t combined platinum, palladium, rhodium and gold mineralization.

- The platinum to palladium ratios of the assay results average 1:1.14 indicating that the Chrome Mountain target contains relatively more platinum than the North American average from producers.

- Rhodium assays for select core returned up to 0.5 g/t rhodium, with rhodium to platinum ratios averaging 8:1.

- The Chrome Mountain holes were drilled on sections approximately 200 apart, testing an area of 1000 metres by 4000 meters to a depth of 150 meters confirming a portion of the large soil geochemistry anomaly defined by the 2006 soil sampling.

- The highest grade section of the soil geochemical anomaly identified in 2006 has not been drill tested (See Premium Exploration, Inc. Press release October 26, 2006)). Additionally, 8 km of strike length to the northwest of the geochemical anomaly has not been soil sampled and mapped.

- There is Chromite mineralization in the assay results for the 2007 drill program that may report as a by product credit during processing if a mine is developed on the Property.

- It is worth noting that Premium retains the gold rights to all the gold on their portion of the Chrome Mountain property.

- Broad Zones of PGE Mineralization in 2007 Drill Holes (Table 1) (See Beartooth news release February 29, 2008)

- Rhodium concentrations (Table 2) (See Beartooth news release February 29, 2008)

The 2007 drill program confirmed the presence of reef style PGE mineralization associated with the "B" Chromitite layer at Chrome Mountain. The 2007 drilling program also encountered a second, previously unknown style of PGE mineralization in the Stillwater Complex. This previously unknown PGE mineralization at Chrome Mountain is a high-grade reef-style mineralization associated with chromitite layers occurs within a much thicker envelope of PGE enrichment. In drill hole CM2007-02 from the 2007 drill program, chromitite-associated mineralization reaches grades of 7.9 g/t combined Au+Pt+Pd over a width of 0.3 meters representing reef-style mineralization. This mineralization is further enclosed by a halo of additional PGE mineralization grading 1.5 g/t combined Au+Pt+Pd over an interval of 50 meters. Additionally, chromitite associated mineralization in hole CM2007-04 reaches grades of 11.9 g/t combined Au+Pt+Pd over 0.3 meters, with a corresponding mineralized halo grading 1.0 g/t combined Au+Pt+Pd over 116.7 meters. The assay results indicate high grade chromitite associated PGE mineralization occurs at multiple locations within the PGE-enriched halo. Five such intervals occur in hole CM2007-04, with respective combined Au+Pt+Pd interval grades of 7.6 g/t over 0.3 meters, 6.5 g/t over 0.3 meters, 11.9 g/t over 0.3 meters, 4.8 g/t over 1.2 meters, and 6.3 g/t over 1.2 meters. Similar mineralization structures are evident in all of the holes completed in the Chrome Mountain area during 2007 were collared in mineralization, with many of the holes being completely mineralized across the entire length of the core. Finally, the surface areas with the highest levels of Pt and Pd in previous soil samples were not drill tested during the 2007 drilling program due to logistic difficulties and early snows.

The UG2 and Platreef are two PGM producing areas of the Bushveld Complex located in South Africa. The UG2 is a PGM bearing chromite reef with mineralization widths ranging from .7 meters to 1.6 meters. The PGM grades from the UG2 range from 5 to 7 grams per ton. The mining industry considers the UG2 reef to be one of the highest grade PGM ore bodies in the world. The Platreef is a low grade bulk tonnage area that is currently a significant producer of PGMs in South Africa.

Mr. Del Steiner, President & CEO of Premium stated that, "Premium is very pleased with the comprehensive exploration approach being conducted to date by our joint venture partner Beartooth Platinum Corporation."

Dr. Reid Keays, PhD., of Monash University, a globally recognized researcher of PGE and nickel deposits and a technical advisor to Beartooth commented, "It is extremely exciting to have the opportunity to examine Beartooth's Stillwater results. The mineralization identified at Chrome Mountain appears to have characteristics similar to Platreef and UG2 styles of mineralization in South Africa. It appears that the processes by which these important world class deposits formed in the Bushveld Complex were also operating in the Stillwater Complex, and indeed may have overlapped to form a combined style of mineralization at Chrome Mountain."

Mr. Mike Johnson President & CEO of Beartooth Platinum Corporation) stated, "Quite frankly, we were astonished when the assay numbers started to come back from the Chrome Mountain holes. We realized we were looking at enormous volumes of rocks with elevated PGE contents, within which multiple, high grade, Chromitite-associated PGE reefs occur. We clearly anticipated intersecting Chromitite reef-style PGE mineralization, but the scale of the mineralized envelope is beyond all expectations. We are anxiously awaiting the opportunity to get back to Stillwater and test some of the areas that we could not reach last year."

For a complete discussion of the developing Stillwater Geologic Model and additional information on the 2007 exploration program, please visit

Qualified Person

Mr. Wilf Struck, P.Geo is the Qualified Person for the technical information in the news release under National Instrument 43-101.

About Premium Exploration, Inc.

Premium Exploration, Inc., is a precious metals explorer specializing in prospect generation in Mexico and the United States. Utilizing a joint venture strategy, Premium maintains interests and royalties in multiple projects, maximizing shareholder exposure to mineral discovery. Premium's portfolio currently holds projects in various stages of exploration, including grassroots projects in Mexico, and advanced-stage exploration project in Montana, USA, and a 43-101 resource in Idaho, USA which is undergoing permitting for production in 2009. Currently, Premium is advancing the Chrome Mountain platinum group metal project in Montana, USA, and the Buffalo Gulch gold deposit in Idaho, USA, while exploration and negotiation of joint ventures and acquisitions in Mexico and Idaho are in progress. Additional information may 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 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.

Two tables are now available on the following addresses:

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

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