Premium Exploration Inc.
TSX VENTURE : PEM
OTCQX : PMMEF

Premium Exploration Inc.

September 10, 2012 09:00 ET

Premium Exploration Defines Extensive New Gold-in-Soil Trends Along Idaho Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2012) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company") is pleased to announce the definition of several new gold-in-soil anomalies along the Idaho Gold Project ("IGP"). During the 2011 field season, nearly 10,000 soil samples were collected with systematic grid sampling in the Deadwood, Lucky Strike, Monday, Friday, and X Zones. Results doubled the strike length of the Lucky Strike anomaly and two significant gold-in-soil trends have also been discovered in the Monday and X Zones.

Key Points:

  • New 4 km by 2 km gold in soil trend discovered in the X Zone

  • New 3.5 km by 1 km trend discovered in the Monday Zone

  • Lucky Strike Zone extended from 1 km to 2 km by 500 meters.

"These results are exciting and continue to illustrate the excellent exploration potential of the Idaho Gold Project. The scale and intensity of the new soil trends are strikingly similar to the original soil results that led to the definition of the Buffalo Gulch, Deadwood, and Friday deposits. Gold-in-soil sampling also led to Premium's drill success in 2011 throughout the Deadwood Zone," stated Michael Ostenson, VP of Exploration.

Idaho Gold Project Soil Sampling

Gold mineralization along the IGP is structurally controlled and the results continue to confirm the strong correlation between structural corridors identified by geophysics and elevated gold-in-soil trends. Soil sampling is a reliable exploration tool at the Idaho Gold Project due to the lack of glacial influence and near surface nature of gold mineralization: drilling beneath coincident geophysical and unglaciated in situ gold-in-soil trends has led to several new zones of gold mineralization and has defined three deposits to date.

Lucky Strike Zone

The previously reported gold in soil trend of 1 km by 500 m has been extended an additional 1 km for a total strike length of 2 km and a width of 500 m with gold values up to 360 ppb. The Lucky Strike gold-in-soil anomaly coincides with a potentially mineralized major regional fault structure. The geophysical interpretation indicates the structure has a potential strike length of up to 15 km and has been geologically mapped and confirmed on the ground.

Monday Zone

An irregular trend of elevated gold-in-soil has been discovered covering an area of approximately 3.5 km in length by 1 km in width. The gold-in-soil values are up to 1,924 ppb and the trend is coincident with interpreted fault structures and geological contacts.

Elevated gold-in-soil values of up to 503 ppb have also been encountered directly above the Monday Zone mineralization discovered in two drill holes during the 2010 Phase-Three drill program, which demonstrate a potential strike length of 900 meters; 1.4 g/t Au over 38.4 m including 9.4 g/t Au over 4.6 m and 2.1 g/t Au over 20.1 m including 5.5 g/t Au over 6.4 m, respectively in holes PFR2010-19 and PFR2010-22.

X Zone

A large consistent gold-in-soil trend has been discovered in the X Zone with a strike length of 4 km and up to 2 km in width. The orientation of the gold-in-soil trend correlates strongly with interpreted fault structures and geological contacts and has values of up to 1,363 ppb.

Premium is in the permitting stages for exploration drilling along these zones.

Maps of the 2011 Soil Plan and Results can be found here: http://bit.ly/2011SoilPlan and http://bit.ly/2012SoilResults.

Qualified Person

The 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 is focused on the exploration and development of its district-sized Orogrande Shear Zone "OSZ" to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite deposit, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium's control. 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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