Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

November 09, 2006 12:52 ET

Premium Exploration Announces Private Placement for Exploration and Drilling in Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - Premium Exploration, Inc. (TSX VENTURE:PEM) (the "Company") (www.premiumexploration.com) is pleased to announce that it intends to raise up to $500,000 through a private placement of 2,500,000 units (the "Units") at $0.20 per Unit. Each Unit will consist of one common share (a "Share") and one half of one non-transferable Warrant (a "Warrant"). Each whole Warrant will be exercisable into one Share for a period of one year at an exercise price of $0.25 per Share.

The Company will pay a finders' fee to registrants in the amount of 8% of the gross proceeds and 10% agent's warrants exercisable at $0.25 for one year.

The use of proceeds from the private placement will be used to commence our exploration and drilling program on the Nueva Galicia property in Nayarit State, Mexico. Drilling to commence in January.

The proposed private placement is subject to TSX Venture Exchange acceptance.

About Premium Exploration, Inc.:

Premium Exploration, Inc. is a precious metals exploration company focused on prospect generation, evaluation and 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 as a prospect generator 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 find and 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.

More information can be found on our website at http://www.premiumexploration.com or on the SEDAR website at http://www.sedar.com.

The information in this press release is not NI 43-101 compliant and should not be relied upon as such. 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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