Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

March 16, 2009 14:54 ET

Premium Exploration to Drill High-Grade Gold Zone (4.5 g/t Au Over 68 Meters) at Friday-Petsite Project, Idaho, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2009) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium") is pleased to announce an 800 meter (2,624 ft) drill program at the Friday-Petsite gold project to designed to extend and further delineate the high-grade zone discovered by previous operators Bema Gold, Cyprus-Amax, Kinross Gold Corp, and Beartooth Platinum Corp. The project is located along the Orogrande Shear Zone ("OSZ") near Elk City in Central Idaho, USA.

Highlights from the Cyprus-Amax and Kinross drilling from the high-grade zone:

C008: 7.33 g/t gold over 16.7 meters (0.24 oz/ton gold over 55.78 ft) including:

52.05 g/t gold over 1.6 meters (1.67 oz/ton gold over 5.48 ft)

PC010: 4.58 g/t gold over 68.6 meters (0.15 oz/ton over 205.33 ft) including:

12.11 g/t gold over 19.8 meters (0.39 oz/ton over 64.94 ft)

75.09 g/t gold over 1.5 meters (2.41 oz/ton over 4.92 ft)

Premium intends to drill a six hole, 800 meter (2,624 ft) program to expand the strike length and further delineate the down dip extension of the high-grade zone. There are 24 historic drill holes above 4.5 g/t gold (0.14 oz/ton) and over 1.5 meters (5.0 ft) in width in the high-grade zone. Click here for a table of all 24 holes in the news release dated January 15, 2009 (http://media3.marketwire.com/r/pem3161). The current strike length of the high-grade zone is 350 meters (1,148 ft), and it remains open to the north, south and down dip.

In conjunction with definition drilling, Premium intends to audit the high-grade drill intercepts intersected by previous operators during the 1990's when the price of gold was approximately $290/oz. Drilling will commence as soon as snow levels allow; anticipated by late May 2009.

The High-Grade Zone

The high-grade zone occurs within a larger, more extensive lower-grade potentially open-pittable heap-leachable disseminated resource. Based on drilling to dated, this resource hosts an NI 43-101 inferred gold resource estimate of 3,247 kilograms of gold (531,890 troy ounces) contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.017 oz/ton).

192 drill holes totaling 19,577 meters (64,213 ft) have been completed by previous operators. The drill results were used to initiate a preliminary scoping study taking into consideration potential environmental and mine siting issues.

At a cutoff grade of 3.11 g/t (0.100 oz/ton), there are 1,602 kilograms of gold (51,510 troy ounces) in 381,000 tons at a grade of 4.2 g/t gold (0.1352 oz/ton). This higher-grade mineralized core is associated with the OSZ, which is the conduit for the large disseminated resource at Friday-Petsite. Worth noting is the fact that there are 13 historic mines on high-grade gold bearing cross-cutting quartz veins formed as fracture fillings along the OSZ. Click here for a picture of core with visible gold from the historic drill programs (http://www.premiumexploration.com/projects/usa/friday-petsite-dixie).

Bema Gold, Cyprus-Amax, and Kinross Gold Corp., delineated the first 250 meters (820 feet) of the high-grade zone while focusing on developing the near surface low-grade deposit. In 2004, Beartooth Platinum Corp., audited the previous drilling extended the strike length of the high-grade zone by 100 m (328 feet). At that time, the price of gold was approximately $350/oz.

BFD-32: 3.54 g/t gold 25 meters true width (0.11 oz/ton over 82 ft) including:

9.29 g/t gold over 1.9m (0.30 oz/ton over 6.2 ft) true width

9.75 g/t gold over 1.3 m (0.31 oz/ton over 4.3 ft) true width

BFD-30: 9.33 g/t gold over 2.9 meters (0.30 oz/ton over 9.5 ft) true width

BFD-31: 8.29 g/t gold over 13 meters (0.27 oz/ton over 42.6 ft) true width

Friday-Petsite has many of the hallmarks of a world-class gold deposit, in terms of its size potential and current grade and the possibility of additional sulphide gold mineralization at depth and additional oxide gold mineralization along strike.

This drill program is first phase of a larger program totaling 12,000 meters (40,000 ft) designed to systemically test the 28 kilometer Orogrande Shear Zone which is modeled as the conduit for the high-grade zones and feeder for the disseminated gold zones. The drill program is also designed to advance the four geologically similar gold projects hosted along the zone.

The Friday-Petsite resource is one of four projects and is located at the southern end of the 28 kilometers of north-south trending Orogrande Shear Zone currently being developed by Premium. It is the largest and most advanced discovery to date, and has important implications for the overall viability of the new geological model developed for this revived mineral belt.

Click here for a complete overview of the Orogrande Shear Zone (http://media3.marketwire.com/r/pem3162).

Orogrande Shear Zone

The Orogrande Shear Zone is host to numerous zones of mineralization with exploration targets containing over 681,000 oz of gold based on historic exploration (as mentioned previously there are 531,890 ounces which are NI 43-101 compliant while the remaining historic estimates are not NI 43-101 compliant but are noted as exploration targets). Metallurgical test work, facility design and mine design has been conducted by a previous operator on a portion of the historical resource and may provide an opportunity for near-term production which would offset future exploration costs. The company is currently assessing the historical resources and the mine design work using current gold prices.

The OSZ is located in Central Idaho and the majority of the streams and drainages in the area are heavily placer mined. Historic reported regional production in Central Idaho is upwards of 4,000,000 oz of gold.

Premium is currently advancing the permitting for gold production on its most northern property, Buffalo Gulch, in addition to drilling on Premium's Friday-Petsite property which is located on the southern end of the Shear Zone and hosts historic high-grade drill results.

Click here for a map of the Orogrande Shear Zone (http://media3.marketwire.com/r/pem3163).

The region is geopolitically stable and supported by excellent project infrastructure, including road accessibility and access to power and water.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique explorer and developer of world-class precious metals projects with significant potential for near-term production and growth. Premium's extensive portfolio holds advanced staged gold, silver and platinum group metals projects located in the USA and Mexico.

Listed on the TSX Venture Exchange (TSX VENTURE:PEM), Premium has attracted a world-class team of executives, advisors, metallurgists, geological and mining engineers, and consultants who are committed to achieving our plan of discovering and developing projects to production; some of the most profitable stages of exploration.

All prospective and current shareholders of Premium Exploration are invited to join the Company's official investment forum exclusively at Pinnacle Digest: http://www.pinnacledigest.com/company/pem:ca. The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at http://www.pinnacledigest.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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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