Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

June 27, 2011 16:59 ET

Premium Exploration Clarifies Technical Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") announces that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify our disclosure.

The BCSC identified the following National Instrument 43-101 ("NI 43-101") compliance issues in the Company's website, corporate presentation, investor relations material and MD&A.

  • On its website, corporate presentation and investor relations material, the Company reports a current resource for the Friday-Petsite deposit, however, it does not disclose the effective date, source, key assumptions and parameters of the resource estimate.
  • On its website, the Company had links to third party investor relations material which add inferred mineral resources to other categories.
  • On its website, investor relations materials, corporate presentation and MD&A, the Company discloses the potential exploration targets for the Idaho Gold Project but does not include the required disclosure language.

While Premium dedicates significant internal resources to verify the information contained above, the disclosure to the public through the Company's website and delivery of certain information in the corporate presentation, investor relations materials and MD&A was not in complete compliance with NI 43-101.

The Company wishes to clarify this information as follows:

  • The current NI 43-101 technical report on the Friday-Petsite Zone on Premium's Idaho Gold Project, in Idaho, USA, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc. Mr. Pfau is an Independent Qualified Person as defined under NI 43-101. The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011.
  • The Company had links to certain third party newsletter writers whose newsletters contained aggregate resource numbers for the Friday-Petsite deposit. Under NI 43-101, and for disclosure purposes, different categories of resources must be listed separately and may not be combined. Premium retracts this disclosure of the combined resource numbers for the Friday-Petsite deposit and clarifies that the NI 43-101 compliant resource on the Friday-Petsite Zone consists of the following:

343,000 Indicated oz Au – (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) 879,000 Inferred oz Au – (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off)

For additional information, please see the Company's press release issued March 28, 2011.

  • On its website the Company had stated that the Idaho Gold Project has, "the potential to host several multi-million oz near surface bulk tonnage deposits" without including appropriate disclosure language required by NI 43-101. The Company wishes to state that the potential additional resources are conceptual in nature only, and that there has been insufficient exploration to define an increased mineral resource outside of the current NI 43-101 compliant resource. Furthermore, it is uncertain if further exploration will result in additional mineral resources. Estimates for potential additional resources are reported as exploration targets based on the presence of step-out mineralized drill holes, known mineralized zones open along strike and depth and geophysically anomalous areas from data received by the Company.

The Company retracts the prior corporate presentation and has provided an updated presentation which is available on the Company's website at www.premiumexploration.com.

In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone ("OSZ") in North-Central Idaho, USA; the 4th largest gold producing country in the world. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at 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 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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