Premium Exploration Inc.
TSX VENTURE : PEM
OTCQX : PMMEF

Premium Exploration Inc.

August 10, 2011 16:00 ET

Premium Exploration Finds More Gold at Friday Zone: 1.0 g/t Gold over 117.4 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company") is making gold discoveries. The Company's goal is to discover multiple deposits along its 30 km Idaho Gold Project, an emerging gold district in Idaho, USA.

The Company is pleased to announce that drill-hole PFR2011-10 intercepted 1.0 g/t gold over 117.4 m including 3.3 g/t gold over 4.9 metres upon stepping out 155 metres north along strike and at depth of the Main Zone of the Friday-Petsite NI 43-101 indicated gold resource of 11.8 Mt grading 0.90 g/t Au containing 343,000 oz gold and inferred gold resource of 22.5 Mt grading 1.08 g/t Au containing 779,000 gold oz, both at 0.5 g/t cut-off.

The 800 metre Main Zone which hosts the aforementioned resources has now been extended to 1,220 metres since the start of the 25,000 metre drill program. This is a 53% increase to the strike length of the mineralized zone and demonstrates the continued growth potential of the Friday-Pestsite bulk tonnage deposit. Drilling has been focused along a 5 km gold-in-soil and correlating structual target identified by geophysics.

"Nine of the ten step-out holes drilled to date have encountered near surface bulk-tonnage gold mineralization, extended the mineralized zone from 800 to 1,220 metres, and demonstrates the multi-million oz potential of the Friday-Petsite deposit," stated Michael Ostenson, P.GEO., VP Exploration. "Upon defining the extent of the mineralized zone along strike, Premium can then begin development to potentially increase the resource. Until then, our plan is to continue stepping out to determine how large the zone really is."

Three drills are active at the Idaho Gold Project; one at the Friday Zone and two in the highly prospective Deadwood Zone focused on making new discoveries. The Deadwood Zone covers approximately 35 km2, is located between the Buffalo Gulch and Friday Zones along the Idaho Gold Project, and exhibits intriguing structural complexity.

A 12 km gold-in-soil trend extends along the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structural target identified by geophysics. There are numerous, additional gold-in-soil anomalies that correlate with multiple cross-cutting structures, historic mines, and prospects throughout the 35 km2 Deadwood Zone.

Two of the four discoveries at the Idaho Gold Project have been made by drilling beneath gold-in-soil anomalies, while the balance were made by drilling geophysical targets which have not been soil sampled as yet. Premium has completed three drill holes at various targets in the Deadwood Zone and is awaiting results.

To date 3,512 metres (14%) of the 25,000 metre program have been report reported, and 7,644 metres drilled to date.

Friday-Petsite Drilling North:

PFR2011-10 intercepted: 1.0 g/t gold over 117.4 metres including
3.3 g/t gold over 4.9 metres.

Drill-hole PFR2011-10 is an 85 metre step-out from previously reported PFR2011-8 which returned 1.0 g/t gold over 117.7 metres including 2.9 g/t gold over 9.1 metres, along the 5 km gold-in-soil anomaly that correlates with the +5 km structural target identified by geophysics. The drilling extends the strike length of the Friday Main Zone 155 metres north, and mineralization between the North Zone and the Main Zone is now interpreted to be continuous.

The hole was drilled northwest starting in the footwall, intersected the Friday Fault structure, and drilled across the hanging wall mineralization, which is consistent with the Main Zone of the resource.

Drill-Hole Zone From (m) To (m) Interval (m) Au g/t
PFR2011-10 Friday 64.0 181.4 117.4 1.0
146.9 151.8 4.9 3.3
The gold grade calculation is a weighted mean with no top cut and no bottom cut. The grade calculation includes internal waste and low grade sections. True Widths are estimated to be 25-75% of the drilled interval.

Sections and the Block Model are available at Corebox by clicking: http://bit.ly/CoreboxFP3DModel.

To view the Friday Zone Plan Map & Results, click: http://bit.ly/FridayPlan_08_10;

Cross & Long Sections: http://bit.ly/Xsection11_11, http://bit.ly/Longsection11_11;

Idaho Gold Project Phase-Four Drill Results, click: http://bit.ly/IGPPlan_08_10.

Exploration Update

  • Drill #1: Friday Zone Step-out drill-hole PFR2011-14 in progress
  • Drill #2: Deadwood Zone drill-hole DW2011-4 in progress
  • Drill #3: Deadwood Zone drill-hole DW2011-5 in progress

DW2011-5 is drilling a structural target identified by geophysics with correlating gold-in-soils along strike to the south of the historic Deadwood deposit located in the central portion of the Deadwood Zone.

DW2011-4 is drilling a structural target identified by geophysics with correlating gold-in-soils near the historic Deadwood deposit located in the central portion of the Deadwood Zone.

PFR2011-14 is at the Friday Zone in progress on a 550 metre step-out to the south from the Main Zone of the Friday resource. Since Phase-Four, Premium has extended the strike length of the Friday mineralization by 53%. The total strike length of the untested Friday gold-in-soil trend exceeds 3.0 Km.

Premium's strategy of drilling structures identified by geophysics with correlating gold-in-soil anomalies has led to four discoveries along the 30 km property in under 15,000 metres of drilling, and increased the Friday-Petsite resources from 549,000 Inferred oz in 15 Mt grading 1.1 g/t Au (0.5 g/t Au cut-off) to 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off) in 10,000 metres of drilling.

NI 43-101

Premium's current NI 43-101 on the Friday-Petsite Zone along the Company's Idaho Gold Project, 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.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company's News Releases of July 9th, 2009 and December 29th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold. ALS Chemex is the check laboratory for the program.

Qualified Person

The 2010 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)(OTCQX:PMMEF) is focused on gold exploration at 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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