Premium Exploration Inc.
TSX VENTURE : PEM
OTCQX : PMMEF

Premium Exploration Inc.

July 28, 2011 10:13 ET

Premium Exploration Completes 35% of 10,000 Soil Campaign at Unglaciated Idaho Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company) is pleased to announce that its aggressive 2011 soil sampling program is well underway at the Company's 100% owned Idaho Gold Project.

Crews have collected 3,500 of the 10,000 soil samples across the unglaciated 172km2 property.

Priority targets include systematic grid sampling over last year's newly identified 18 km Lucky Strike structural target, and a comprehensive first pass throughout the southern portion of the property in the area surrounding the Monday and "X" Zones. A plan map showing the proposed soil sample locations is available here: http://bit.ly/IGP_2011SoilPlan

Gold mineralization at the Idaho Gold Project is associated with regional scale structures. To date:

  • Approximately 20% of prospective structural targets have been systematically soil sampled, identifying 16 km of correlating gold-in-soil trends.
  • Less than 1.5 km of the 16 km multiple gold-in-soil trends have been drill tested.
  • 1.4 km of the sampled structural target hosts an NI 43-101 Indicated gold resource of 343,000 oz in 11.8 Mt averaging 0.90 g/t Au (0.5 g/t Au cut-off) and 879,000 Inferred oz Au in 26.4 Mt averaging 1.04 g/t Au (0.5 g/t Au cut-off).

The first area of focus for the 2011 soil sampling program is the "Lucky Strike Trend"; a consistent 1.0 km x 300 m zone of elevated gold-in-soil peaking at 265 ppb Au located approximately 5.0 km north of the known drill discoveries at the Idaho Gold Project.

The Lucky Strike Zone was discovered at the end of the 2010 season when geophysics revealed an 18 km long, potentially mineralized structure. Upon identifying the structure, Premium managed to sample a 1.0 km segment of the 18 km structure prior to winter conditions and is following up on the positive results.

The Lucky Strike has never been systematically explored, soil sampled, or drilled, and a 3.5 km portion of the 18 km structure was extensively dredged and heavily panned for gold in the late 1800's to early 1990's during the Great Idaho Gold Rush. Previous operators never identified the source of the mineralized system.

Pending favourable soil results along the 18 km long zone, the Company anticipates drilling the Lucky Strike in Phase-Four.

Lack of glaciation over the Idaho Gold Project has allowed in-situ soil-sampling to be employed as a highly effective, target refining tool. Two of Premium's gold discoveries to date have been found by drilling beneath gold-in-soil anomalies. The 14.5 km of untested soil anomalies along structural targets on the property warrant drill follow-up.

Drill Update

Presently, two diamond drills are located in the Deadwood Zone focusing on exploration and one drill is located in the Friday Zone conducting step-out drilling along strike to the south of the Friday-Petsite resource.

Drill #3 is drilling a structural target identified by geophysics with correlating gold-in-soil near the historic Deadwood deposit located in the central portion of the Deadwood Zone (drill-hole DW2011-4).

Drill #2 is located on the east side of the Deadwood Zone and is drilling a cross-cutting structural target that also hosts the historic Grangeville Mine (drill-hole DW2011-2).

Drill #1 is in the Friday Zone in progress on PFR2011-13, a 550 meter step-out to the south from the Lower Block of the Friday resource. Since the start of Phase-Four, Premium has extended the strike length of the Friday mineralization by 45%. The total strike length of the untested Friday gold-in-soil trend exceeds 3.0 km.

The current resources within 800 meters of the Friday gold-in-soil include 343,000 Indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 780,000 Inferred oz in 22.5 Mt grading 1.08 g/t Au (0.5 g/t cut-off).

Qualified Person

The 2011 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. Mr. Ostenson is a Qualified Person as defined by NI 43-101. Mr. Ostenson prepared, and approves of the content in this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is focused on gold exploration within its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, 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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