Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

May 03, 2007 11:49 ET

Premium Exploration, Inc. Announces 2000 Metre Phase I Drill Program at Nueva Galicia Silver-Gold Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 3, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium") (http://www.premiumexploration.com) is pleased to announce a 2000 metre Phase I drill program at its Nueva Galicia Silver-Gold Project, located in Nayarit State, west central Mexico.

Overview of the Phase I Drill Program

As Premium previously announced on February 22, 2007, the company purchased a Hydracore 28 drill with a depth capacity of 170 meters of NQ/NQ2 (47.6/50.0mm diameter) or 300 meters of BQ (36.4mm diameter) core. The drill has arrived in Manzanillo, Mexico and is awaiting customs clearance. Import documentation has been reviewed by customs, and the drill is expected to clear customs and be moved to the company's field office in Compostela, Nayarit for assembly next week. Environmental filings for Phase I drilling have been completed. Once the drill arrives on site and is assembled, drilling can commence immediately. Premium's Phase I drill plan for Nueva Galicia has been reviewed and finalized by Premium's Qualified Person, Wilf Struck, P.Eng. In Phase I, 26 drill holes will be completed for a total of 2000 meters. Ore shoots exposed in historic workings will be tested along strike on step outs up to 25 meters and down dip to depths of 130 meters below surface. Phase I drilling will test steeply-dipping silver- and gold-bearing veins in the Tajitos North, Buenos Aires-La Palmera, Mercedes and San Mateo Zones at Nueva Galicia.

Premium has also arranged for priority access to two other drills and drillers. This drilling equipment and personnel is being provided though Ingenieria de Recursos Minerales S.A. de C.V. (see Press Release February 21, 2007). It is anticipated that Premium will have access to these additional drills in approximately four weeks. These drills, a Boyles BBS-25 and Longyear 44, have depth capacities of 300/350m HQ (63.5mm diameter), 430/700m NQ and 550/800m BQ core, respectively.

Premium is also pleased to announce that it has begun the preparation process for obtaining the necessary environmental permits for both a Phase II and Phase III drill program at Nueva Galicia. These filings are expected to be filed and approved by late June. Phase II drilling will commence after Phase I has been completed and all assays received and compiled. Premium has also completed the necessary agreements with the various Ejidos (communal landowners) and private landowners to obtain access to Nueva Galicia for the upcoming Phase II and Phase III drill programs. These agreements are strongly supported by the local community and government, are comprehensive in nature and include all exploration activities.

About Nueva Galicia

Mineralization at Nueva Galicia consists of silver sulphides and native gold in quartz veins, stockworks and breccias. Seventeen old mines dating back to Spanish colonial times are present on the property along a strike of 10 km. Ore shoots contain bonanza-grade silver mineralization with high gold content locally. In the current drill target area, four vein sets have been mapped by Premium over of 4500 meters of strike length. Anastamosing veins which host at least 12 mineralized zones outcrop semi-continuously over 1500-1700 meters along strike north-northwest-south-southeast and 1000m east-west. A map of the veins in this area and proposed drill holes will be posted on Premium's website next week.

The areas being tested by the Phase I,II & III drill programs represent a small part of the 18,125 hectare Nueva Galicia property. Nueva Galicia has significant exploration potential for similar vein deposits as well as bulk-tonnage open pit deposits beyond the area being tested in the first three-phase drill program. There are several high quality targets within the current land package. The next zones to be explored will be the El Orito and La Torre Zones, located seven kilometers south-southeast and southeast, respectively, of the areas to be drilled in Phase I, II and III.

A previous operator sampled 5.25 meters of 2.48 g/t gold and 139.8 g/t silver at El Orito, where silicification and quartz stringers were mapped and sampled by a previous operator along a northeast-striking fault structure for over 1000m with widths up to 100m, and along intersecting northwest structures for up to 300m. Premium has not independently verified these results. At La Torre, alteration and silicification and quartz veining and locally, quartz-carbonate breccias with coarse stibnite (antimony sulphide) with anomalous silver and gold values are present over two areas of approximately 500m2 each, flanking the same northeast-southwest structure that hosts El Orito mineralization. Mapping and sampling of the El Orito and La Torre Zones is planned to commence in June.

Phase II drilling will test the Tajitos South, Lluvia de Oro, El Alacran and El Monte Zones with approximately 1200m of drilling. The El Monte Mine, a low-angle quartz vein-breccia, was in production for several years at a rate of 10 tpd during the 1930's, but no production records are available.

Phase III drilling will test the San Ramon, Vivian, Rosa Isela and Nancy Zones with approximately 1200m of drilling. These zones are aligned along the same vein structure over a strike length of 1700m, approximately one kilometer west and sub-parallel to the Tajitos-Alacran vein.

Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a mineral exploration company focused on precious metals exploration in North America. The Company is listed on the TSX Venture Exchange and has assembled an innovative and experienced management and advisory team who are committed to the long-term success of the Company. Premium's goal is to discover precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. Current holdings are in Mexico and the USA. To maximize the possibility of realizing this goal, the company's exploration team continues to review early-stage projects located within under-explored precious metal belts that host multi-million ounce deposits. By acquiring prospects internally and financing some of them through joint venture partners, the company is able to maximize the potential for discovery while mitigating risk and increasing shareholder value. More information can be found on our website at http://www.premiumexploration.com.



----------------------------------------------------------------------------
Current Projects
----------------------------------------------------------------------------
Land Minerali-
Project Location Commodity Position zation Snapshot
----------------------------------------------------------------------------
Chrome Montana, PGM - 970 Platinum, Within the
Mountain USA Pt,Pd,Rh hectares palladium Stillwater
(2,397 and Complex., host
acres) rhodium to the only
100% within producing
owned chromitite primary platinum
layers and palladium
mine in the
USA. Strategic
Exploration
Alliance
with Beartooth
Platinum. 1,100
soil assays
pending.
----------------------------------------------------------------------------
Nueva Nayarit, Ag/Au 18,125 Silver Historic mines over
Galicia Mexico hectares sulphide a distance of 10 km
(44,787 and native (6 mi.). Three
acres) gold in parallel vein
Option to quartz systems have been
earn 100% veins, mapped in detail
stockworks for a total of 4500
and meters to date -
breccias the target of Phase
I-III drill
programs.
Outside of the area
to be drilled there
are several high
quality targets
within the land
package.
----------------------------------------------------------------------------
San Pedro Jalisco, Ag/Au/Zn 1,136 Past Phase I exploration
Analco Mexico hectares producer; program the
(2,800 high-grade following
acres) veins and highlights:
Option to breccias - 1,390.7 g/t Ag
earn 100% and 0.085 g/t
Au over
3.15 meters
- 534.5 g/t Ag and
0.787 g/t Au over
3.5 meters
----------------------------------------------------------------------------
Dos Nayarit, Ag/Au/Cu/ 3,230 Veins and Select grab sample
Amigos Mexico Zn/Pb hectares bulk- returned 8.3 g/t
(7,985 tonnage gold and 15,276 g/t
acres) deposits (445 oz./ton)
Option to silver as well
earn 100% as 7.2% copper,
4.5% lead and
17.2% zinc; further
results pending.
----------------------------------------------------------------------------
Rosamorada Nayarit, Au/Ag 300 Veins and Preliminary results
Mexico hectares bulk- pending.
(740 tonnage
acres) deposits
Option to
earn 100%
----------------------------------------------------------------------------


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

Contact Information