Premium Exploration Inc.

Premium Exploration Inc.

April 11, 2006 09:45 ET

Premium Exploration, Inc.: $200,000USD Soil Sampling, Mapping, and Trenching Campaign Announced for Premium Exploration's Cucurpe Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 11, 2006) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") ( is pleased to announce a US$200,000 exploration budget for the first phase of a two phase 2006 exploration program for its Cucurpe project located in Sonora, Mexico. The exploration work in the first phase will consist of a mapping, soil sampling and trenching campaign. Based on the initial results from this campaign, the first phase may be further expanded to include a ground geophysical study. The Company anticipates taking up to 2000 soil and chip samples during this program. In addition to the sampling, mapping and trenching, Premium will be upgrading a local access road to the property during the first phase of its 2006 exploration program in Mexico. This roadwork will facilitate efficient access to the property for an additional trenching and drilling program during the second phase of the Company's 2006 exploration program. The results from the first phase will define the high priority targets for trenching and drilling during the second phase of the exploration program. It is anticipated that this sampling campaign will commence in late April 2006 and be completed by the end of May 2006. Mr. Del Steiner, President and CEO of Premium, states, "The first phase of our 2006 exploration program for our Cucurpe project in Sonora is formulated to identify high-potential prospects for a targeted and tightly focused trenching and drilling program to be undertaken in the third and fourth quarters of 2006."

Cucurpe Project - Sonora, Mexico:

The Company's Cucurpe gold project is located inside the Sonora Gold and Silver District in the State of Sonora, Municipality of Cucurpe, Mexico. It is physically located 40 kilometers east of the town of Magdalena de Kino, Mexico and 180 kilometers south of city of Tucson, Arizona, United States of America. The property consists of thirty two (32) concessions totaling approximately twelve thousand (12,000) hectares. Thirteen (13) of the concession consisting of ten thousand (10,000) hectares were staked by Company, with the balance acquired under a mining exploration lease with an option to purchase one hundred percent (100%) of the leased property. Reconnaissance level exploration on the Company's concessions has defined a regional structure of faulting and shearing that hosts gold, silver and minor base metal mineralization approximately 4 kilometers wide and 8 kilometers long.

Historical Exploration:

The Company's exploration work to date has consisted of mapping and sampling with three geological crews which defined numerous gold bearing structures. The Company has collected 167 chip, channel and grab samples from veins, adits, stockworks and altered surface exposures. The assays results from these samples averaged 1.6 grams per tonne of gold with a high of 74 grams per tonne. Historic exploration work by past prospectors and artisan miners that was documented by the Mexican government outlines numerous prospects and short adits from 32 different locations within the project. The results from this historical work include:

- Gold values ranging from 2 grams per tonne to 12 grams per tonne.

- Silver values ranging from 30 grams per tonne to 300 grams per tonne.

The National Instrument 43-101 compliant Technical Report on the property can be obtained by directly contacting the Company or can be viewed on the internet at

Mineralization and Geology:

The geology of the project is very similar to the Carlin Trend located in the State of Nevada, United States of America. It is located within the Basin and Range Province approximately 70 kilometers west of the continental margin of the North American Plate. A large northwest trending shear and associated faults appear to be an important control of mineralization through fault localized conduits. The heat source for mineralized solutions is plutonic rocks of various ages. The plutonic rocks host several major copper porphyries at Cananea, Nacozari and La Caridad in the general area. To date, three general styles of mineralization have been identified and sampled on the property as follows:

- Gold and silver mineralization associated with faults and fractures which tend to have silica flooding of a strongly sheared central structure.

- Low grade disseminated mineralization associated with structural stockwork or brecciation of altered felsic rock.

- Placer deposits resulting from the erosion of primary deposits and deposition of the gold in the alluvium and gravels of the streams and arroyos.

The vein deposits resulting from silica flooding fractures are a common style of mineralization on the properties, but are generally of low volume. Gold values tend to be high and are generally accompanied by silver, with silver to gold ratio of 5 to 1. On rare occasions visible gold was observed where the sulphides hosting the gold had oxidized, leaving the gold in casts after pyrite or arsenopyrite. The disseminated gold mineralization associated with stockwork systems consisting of multidirectional quartz veinlets and micro-veinlets. In these areas, there is hydrothermal alteration consisting of silicification, oxidation, and argillization. Base metals (copper, zinc and lead) generally increase to the southeast which may indicate a deeper erosional level.

Iron oxides (hematite and limonite) are closely associated with high grade mineralization on the property. Due to limited access to old shallow workings, it is unknown if the oxides continue at depth or if they are due to surface weathering. Numerous small pits and old working define the higher grade veins, but production is not well documented, and little or no exploration has been conducted in the past using modern exploration techniques and procedures. The previously fragmented ownership of the property has inhibited the development of a comprehensive geological workup for this project. Now that the property is under the Company's control and ownership a comprehensive geological model will be developed to guide the Company's future exploration programs.

Sonora Exploration Team:

The fieldwork of the first phase of the 2006 exploration program will be led by Ms. Nancy Reardon, M.Sc., Pgeol, SEG Fellow. Ms. Reardon has over 18 years of junior exploration project experience working with gold prospects located across North, Central and South America. She is a bi-lingual geologist who just returned from the property where she completed a field reconnaissance program and noted, "The Cucurpe Project geology is largely within the same rocks as the Santa Gertrudis Mine and the La Jojoba Project currently being undertaken by Columbia Metals Corporation, Ltd. (TSX VENTURE:COL) The Cucurpe Project has the same potential as these two nearby gold projects." Working with Ms. Reardon on the exploration program is the Company's General Manager in Mexico, Mr. Barney G. Lee Portillo, the Company's Geologic Consultant, Mr. Wilf Struck, P.Eng., and the Company's V.P. of Minerals, Mr. James Robertson, P.Eng. Mr. Struck is the qualified person responsible for the technical disclosure in this press release.

Overview of the Sonora Gold and Silver District:

The Sonora Gold and Silver District is a historic mining district that is host to several current major projects. The Company's property within the District historically has been under-explored due to its previously fractured ownership, which provides significant impediments to a comprehensive exploration program that is warranted by its geology. In April 2005 the Company completed the consolidated of the property ownership though a coordinated series of acquisition transactions involving 19 different property owners that will now allow for a holistic exploration program to be completed on the property for the first time ever. There are several significant production and exploration projects located either very near or directly adjacent to the Company's project as further described below.

Santa Gertrudis Mine: Sonora Copper, LLC

Sonora Gold Corporation (TSX VENTURE:SGG) recently sold the Santa Gertrudis Mine to Sonora Copper, LLC a privately held United States Company that plans to reopen the mine this year. The mine is located approximately 12 kilometers north of Premium's Cucurpe project. The project was originally placed into production by a subsidiary of Phelps-Dodge, Inc. (NYSE:PD) and was later sold to Campbell Resources, Inc. (TSX VENTURE:CCH), who produced 560,000 ounces of gold at the mine through the year 2001. At the end of 2001 the mine was mothballed and sold due to low gold prices. The mine's production was derived from 22 small open pits transported to a central leach pad.

La Jojoba Project: Columbia Metals Corporation, Ltd.

The La Jojoba Project a 529 hectare property that contains several gold occurrences which have been intermittently explored by three different operators which each estimated the property contains approximately 200,000 ounces of gold averaging approximately 1gram per tonne gold. Columbia Metals acquired this project in April 2005 and is planning on placing this project into production during 2006.

San Enrique and Greta Projects: Teck Cominco, Ltd. - Sonora Gold Corporation Joint Ventures

A wholly owned subsidiary of Teck Cominco, Ltd. (TSX:TEK.MV.A)(TSX:TEK.SV.B), has entered into a joint venture agreement with Sonora Gold Corporation whereby it will obtain a 70% interest in Sonora Gold's San Enrique and Greta Projects for complete US$7,000,000 in exploration expenditures on the projects. The San Enrique project is a gold and copper-moly exploration target, and the Greta exploration project is focused on a high grade gold vein system that has an associated disseminated low grade open pit target. Subsequent to entering into these joint ventures with Sonora Gold Corporation, the wholly owned subsidiary of Teck Cominco, Ltd., undertook a major claim staking campaign where they acquired 90,000 hectares of property that completely surrounds, on all sides, the Company's Cucurpe project.

About Premium Exploration, Inc.

Premium Exploration, Inc., is a Vancouver, British Columbia based, junior natural resource exploration Company. The Company currently has two precious metal projects located in the Western United States and Mexico.

The information in this press release is not NI 43-101 compliant and should not be relied upon as such. This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involve 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 files 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. Information contained in this news release includes information about adjacent properties on which we have no right to explore or mine. We advise investors in the United States that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. United States investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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

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