Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

May 15, 2008 09:15 ET

Premium Exploration Announces Review of Chromite Values on Their Chrome Mountain Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to announce the review of data on chromite values on its Chrome Mountain property. Due to high demand and an increase in price of chromites, the Company will conduct additional exploration geared to chromites.

Highlights:

- Chromite (Cr2O3) values obtained from a U.S. Geological Survey and U.S. Bureau of Mines study conducted in 1955, from the central area of Premium's Chrome Mountain property:

-- H-354, 43.8% Cr2O3; H-306a, 45.6% Cr2O3; H-306c, 46.8% Cr2O3; and P-284, 47.1% Cr2O3. (The analysis were conducted on cleaned chromite samples)

- Chromite value has increased in price from just over $0.20 in 2003 to over $2.20 in April of 2008

In the Stillwater Complex in Montana, USA, chromite is well known to exist in the ultramafic rock series beneath and to the south of the Lower Banded rock series. The Lower Banded Series hosts the Johns Manville Reef (JM Reef) currently being mined by Stillwater Mining Company producing about 500,000 ounces of combined platinum and palladium per year from two mine sites. The JM Reef mineralization is characterized as having a low chromite component with high sulfide content comparable to the Merensky Reef in South Africa. The rock units can be traced for 40-km southeast to northwest.

There are four in-place historic chromite resources, as defined by extensive studies which included drilling and underground exploration, which averaged about 23% Cr2O3. See the cautionary statement below. The exploration was conducted adjacent to the Stillwater River near the central portion of the Stillwater Complex where the chromites are well exposed and access is good. Between 1986 and 1987, the Chrome Corporation of America conducted an extensive feasibility study on the resources and a planned 132,000 ton per year high-carbon ferrochrome operation. The project was abandoned due to the lack of funding and low commodity prices prevalent at the time. The Stillwater Complex resources represent 80% of the identified chromite resources in the USA.

(Cautionary Statement: The technical information presented above, including resource estimates, is historical. Premium has not done sufficient work to classify the historical estimates as current "mineral resources" or "mineral reserves" as defined in NI 43-101, nor is Premium treating the historical estimates as current mineral resources or mineral reserves. Premium has not verified the scientific and technical information disclosed, including sampling, analytical and test data underlying such information, because such scientific and technical information was not prepared by Premium. The historical estimates should not be relied upon. The historical resources are not located on Premium's property, but Premium considers that these historical estimates provide a conceptual indication of the potential quantity and grade of the mineral resources on their property. There has been insufficient exploration to define any mineral resource and it remains uncertain if further exploration will result in the target of such exploration being delineated as a current mineral resource.)

The 11 chromitite bands (A through K) that run the length of the Stillwater Complex, cross Premium's ground which is located on the west end of the complex for approximately 11 km of the 40 km strike length of the Stillwater Complex. Premium's joint venture partner, Beartooth Platinum Corp. is currently drilling the "B" chromitite unit for PGM's (see press release date).

In 1989, Inco (American Copper and Nickel Co.) collected 20 samples from the Chrome Mountain area and to the west of the Gish Property on Premium's western boundary. Fifteen samples came from chromite occurrence on the central part of Premium's claim block, three are from the Gish Property on the far west end of the complex and two are from the non-chromite high sulfide Frog Pond area of the JM Reef currently being mined by the Stillwater Mining Corporation. The JM Reef parallels Premium's property across the northern shoulder of Chrome Mountain, approximately 750 meters from Premium's boundary. Cr2O3 in the 20 samples collected by Inco ranged from 2% to 37% averaging 21.2% Cr2O3 in the outcrop and trench samples.

The Inco work was completed in conjunction with the 1955 study completed by US Geological Survey and Bureau of Mines. The four samples collected during the 1955 study were from the central area of Premium's Chrome Mountain property. The analysis' were conducted on cleaned chromite samples returning values and labeled as follws:

H-354, 43.8% Cr2O3; H-306a, 45.6% Cr2O3; H-306c, 46.8% Cr2O3; and P-284, 47.1% Cr2O3.

The last actual mining on the Stillwater Complex for chromitites was conducted between 1952-1962, on behalf of the US Government, by the American Chrome Company. The mine produced 920,000 tons of concentrate averaging 38.5% Cr2O3 from 2,100,000 tons of mined ore. The production came from the Mouat mine area located east of Premium's property. There has been no exploration of the Chrome Mountain chromites beyond historic reconnaissance. PGM mineralization has been discovered and is currently being explored in the chromitites. The price of chromite and chrome has skyrocketed due to stainless steel production and use especially in China.

To view the Chromite Price Chart please click on the following link: http://media3.marketwire.com/docs/pem515chart.pdf

The Stillwater Complex is known to host 80% of the US chromite resources, which is a necessary metal for production of stainless steel. The existing resource that has been developed has been defined on the eastern side of the Stillwater Complex and covers approximately 8 km of the 40km strike length of the Complex. The chromite horizons run the length of the Stillwater Complex and Premium's Chrome Mountain property is known to host chromite zones. Due to the historic low commodity price in the past, exploration had not focussed on defining additional chromite resources. As a result of increasing consumption of stainless steel and the increased demand for chromite, the commodity price has increased dramatically in the past year. The Company feels that that the historical estimates provide a conceptual indication of the potential quantity and grade of the mineral resources that may be associated with the chromite horizons on their property.

The technical information listed in this release includes historical resource estimates and is provided here for illustrative purposes. Premium has not completed sufficient work to classify these as mineral reserves as defined in NI 43-101.

Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

About Premium Exploration

Premium Exploration, Inc. is focused on precious metals exploration in the United States and Mexico. The Company is founded on a management and geological team with a proven track record demonstrated by their accomplishments. Premium's portfolio currently holds projects in various stages of exploration located within under-explored precious metal belts that host multi-million ounce deposits. Utilizing "value-added" and joint venture strategies, Premium maintains multiple interests and royalties in their projects, maximizing shareholder exposure to mineral discovery. Through a joint venture agreement, Premium is advancing the Chrome Mountain PGM project in Montana, USA and the Buffalo Gulch Gold Deposit in Idaho, USA, while negotiations for joint ventures and acquisitions in Mexico are underway. Additional information may be found on our website at http://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 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.

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

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