Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

March 11, 2008 13:07 ET

Premium Exploration Announces Trenching Program on Gold-Silver Target in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2008) - Premium Exploration, Inc. (TSX VENTURE:PEM) (www.premiumexploration.com) is pleased to announce results from a surface sampling program and plans for a trenching program at its Rosamorada property, located in Nayarit State, west central Mexico.

Quartz veining and stockwork are present at Rosamorada over an area approximately 1000m by 300m. Forty-five rock chip samples of stockwork and veins from surface outcrops and locally-derived bedrock float from Rosamorada returned from 0 to 6.1 g/t gold, and 0 to 437 g/t silver.

Silver values in the stockwork zones may increase at depth, due to the leaching and downward mobility of the silver from surface. Results are listed in the table below:



----------------------------------------------------------
Sample Width/Area Gold Silver Gold
ID Rock Source Meters ppb ppm eq. g/t
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1251 Outcrop 2.70 132 63.2 1.2
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1252 Outcrop 0.60 10 9.1 0.2
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1253 Outcrop 5.00 5 0.6 0.0
----------------------------------------------------------
1254 Outcrop 1.00 5 4.1 0.1
----------------------------------------------------------
1255 Outcrop 1.00 60 1.8 0.1
----------------------------------------------------------
1256 Outcrop 1.00 95 88 1.6
----------------------------------------------------------
1257 Float 0.00 less 0.5 0.0
than 5
----------------------------------------------------------
1301 Outcrop 2.00 110 88.7 1.6
----------------------------------------------------------
1302 Outcrop 0.30 120 83.4 1.5
----------------------------------------------------------
1303 Outcrop 2.00 35 10.1 0.2
----------------------------------------------------------
1304 Outcrop 2.00 89 22.8 0.5
----------------------------------------------------------
1305 Outcrop 2.00 25 16.4 0.3
----------------------------------------------------------
1306 Outcrop 2.00 200 298.1 5.2
----------------------------------------------------------
1307 Outcrop 2.00 15 8.7 0.2
----------------------------------------------------------
1308 Outcrop 2.00 95 0.7 0.1
----------------------------------------------------------
1309 Float 0.00 852 17.4 1.1
----------------------------------------------------------
1310 Outcrop 1.00 40 6.5 0.1
----------------------------------------------------------
1311 Float 0.00 530 2.5 0.6
----------------------------------------------------------
1312 Float 0.00 2393 437.5 9.7
----------------------------------------------------------
339575 Outcrop 0.10 59 2.6 0.1
----------------------------------------------------------
339576 Float 15 x 10 6 1.7 0.0
----------------------------------------------------------
339577 Float 15 x 15 230 8.8 0.4
----------------------------------------------------------
339578 Subcrop 0.50 30 2.4 0.1
----------------------------------------------------------
339580 Float 15 x 15 532 1.9 0.6
----------------------------------------------------------
339581 Outcrop 1.90 1332 11.3 1.5
----------------------------------------------------------
339582 Subcrop 0.25 233 1.8 0.3
----------------------------------------------------------
339583 Float 15 x 15 613 4.5 0.7
----------------------------------------------------------
339584 Float 15 x 15 1110 6.6 1.2
----------------------------------------------------------
339585 Float 15 x 15 256 0.8 0.3
----------------------------------------------------------
339586 Stockpile 5 x 5 6133 78.6 7.4
----------------------------------------------------------
339587 Float 30 x 30 26 0.4 0.0
----------------------------------------------------------
339588 Subcrop 15 x 15 60 0.2 0.1
----------------------------------------------------------
365508 Outcrop 0.40 565 12.4 0.8
----------------------------------------------------------
365509 Float 5 x 5 293 4 0.4
----------------------------------------------------------
365511 Float 5 x 5 182 7.8 0.3
----------------------------------------------------------
365512 Outcrop 1.00 37 25.8 0.5
----------------------------------------------------------
365513 Float 5 x 5 81 54.5 1.0
----------------------------------------------------------
365514 Float 5 x 5 103 30 0.6
----------------------------------------------------------
365515 Float 5 x 5 87 1.5 0.1
----------------------------------------------------------
365516 Subcrop 1.00 1830 5.8 1.9
----------------------------------------------------------
365517 Subcrop 1.00 6 0.6 0.0
----------------------------------------------------------
365518 Float 5 x 5 103 8.1 0.2
----------------------------------------------------------
365519 Subcrop 1.00 20 0.3 0.0
----------------------------------------------------------
365521 Subcrop 1.00 1 0.3 0.0
----------------------------------------------------------
365522 Subcrop 1.00 2 0.5 0.0
----------------------------------------------------------


Gold equivalent calculated using a silver to gold ratio of 60:1.

Ten samples returned greater than 0.5 g/t gold and five samples greater than 1.0 g/t gold; nine samples returned greater than 30 g/t silver and seven samples returned greater than 60 g/t silver. Nineteen samples returned greater than 0.5 g/t eq. gold and 12 samples returned greater than 1.0 g/t eq. gold.

Rosamorada represents a low grade/high tonnage bulk-mineable open pit target with potential for a high-grade feeder system at depth. The project is located on low rolling hills at approximately 100 meters elevation with no post-mineralization cover, within two kilometers of the Pan American highway, and less than one kilometer from an active rail line. A high-tension powerline crosses the property.

Premium's Mexican subsidiary, Compania Minera Zorro de Plata, S.A. de C.V., has received approval from the Mexican environmental agency, SEMARNAP, for a Notice of Work, and has obtained written approval from the local community for a 500m trenching program on the property. The trenching program is designed to test, at depth, widespread gold-silver mineralization recognized on surface and is scheduled to commence in late March 2008.

Premium has an option to purchase 100% of the Rosamorada property by making staged cash payments totaling $1,000,000USD and exploration expenditures totaling $800,000USD over three years. The vendors retain a 1% NSR on the property, which may be purchased for $1,000,000USD.

Qualified Person

Ms. Nancy Reardon, M.Sc., P.Geol., Vice President Exploration 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, 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, thus 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.

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