Premium Exploration Inc.

Premium Exploration Inc.

September 09, 2010 16:00 ET

Premium Exploration Clarifies Position with SNS Precious Metals Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2010) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") clarifies their position with SNS Precious Metals Inc.

In February 2009, Premium entered two Letters of Intent with Clearwater Mining Corporation ("CMC") and SNS Silver Corp. ("SNS", now SNS Precious Metals Inc.). Under the terms of the LOI's, the Companies had 90 days to complete a Definitive Agreement and SNS would have been allowed to earn in to a maximum of 50% by advancing financing, and paying in cash and stock, certain exploration and development costs to develop Premium's Friday/Petsite and Buffalo Gulch properties. 

SNS initially paid Premium $125,000 in advance on each Letter of Intent and in the event that a Definitive Agreement was not reached, Premium would be obligated to return $200,000 to SNS ($100,000 for each LOI). The time required to complete a Definitive Agreement lapsed and the ability of SNS to participate in negotiations was impeded due to the situation in Silver Valley, Idaho. Accordingly, Premium initiated a private placement and raised gross proceeds of $673,900 through the offering of 6,739,000 units at a price of $0.10 per unit in order to continue the orderly development of their Central Idaho properties. 

Although the LOI's indicated that a payment of $200,000 was required, due to a potentially contested claim by SNS, Management and Directors felt that it would be in the best interest of Premium shareholders to repay the entire amount. In June 2009, the Directors and Management of the Company made the decision to return the entire amount initially advanced by paying back to SNS, half of the proceeds in cash ($125,000) and half in shares (625,000 @ $0.20 per share), and the Company entered into a settlement arrangement to that effect with SNS on or about November 6, 2009. The shares were issued on November 10, 2009 and the resale restrictions for those shares expired on March 10, 2010. While this news release was required to be previously issued it was not done at that time, so this release therefore clarifies the Company's position with SNS.

SNS and Premium had a common director in Del Steiner, President & Director of Premium Exploration. Mr. Steiner resigned from his position as Director with SNS on July 13, 2010.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana. For additional information, please visit us 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 involves 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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