Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

December 14, 2006 17:35 ET

Premium Exploration, Inc. Announces Closing of Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 14, 2006) - Premium Exploration, Inc. (TSX VENTURE:PEM) (the "Company") (www.premiumexploration.com) is pleased to announce the closing of a non-brokered private placement of 2,750,000 units (the "Units") at $0.20 per Unit. Each Unit will consist of one common share (a "Share") and one half of one non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant is exercisable for a period of one year and entitles the holder to purchase one (1) Share of the Company at an exercise price of $0.25 per Share.

A finder's fee of 8% of the gross proceeds will be paid in cash and 10% in agent's warrants, exercisable at $0.25 for one year, in connection with this private placement. The securities are subject to a hold period expiring April 15, 2007.

The proceeds from the financing will be used to commence an exploration and drilling program on the Company's Nueva Galicia property in Nayarit State, Mexico.

About Premium Exploration, Inc.:

Premium Exploration, Inc. is a precious metals exploration company focused on 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 or on the SEDAR website at http://www.sedar.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 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.

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