Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

June 12, 2008 20:25 ET

Premium Exploration, Inc.: Drilling Update and Identification of New Zone at Alacran, Nueva Galicia Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to provide an update on their current Phase I, 2,000m drill program at the Nueva Galicia project in Nayarit, Mexico. Drilling has reached the approximate half way point (937m) with 16 holes completed and two in progress. There are 100 samples from split core in the lab awaiting assay.

To date, geologists at Nueva Galicia have identified three parallel structures over 10 km of strike length. These three structures host five mineralized zones identified at surface by 10 high-grade ore shoots. Within the five zones are 21 historic adits and numerous shafts and pits that were mined by the Colonial Spaniards in the 1,300's. Previous work indicated that one of the ore shoots, Tajitos, was developed over five levels covering 120m of vertical depth and historically produced 150,000 ounces of gold equivalent (ratio 60:1). The historic production has not been verified by the Qualified Person, however, the information is presented to indicate the exploration target.

Drilling is designed to delineate mineralization along strike and down dip from the historic workings at the following five zones:

1. Buenos Aires, La Palmera, Cholita: 8 adits, 2 shafts, 1 decline, 2 collapsed pits

2. Tajitos North and South: 3 historic adits

3. Alacran: 5 adits and 1 collapsed pit

4. Lluvia de Oro: 4 historic adits, 1 shaft, 2 collapsed pits

5. San Mateo: 1 adit, 1 collapsed pit

http://www.premiumexploration.com/images/stories/2008%20ng%20overview%20drill%20map.pdf

Premium has drilled two of the five zones. Ongoing mapping and sampling, along with geophysics interpretation are underway, to identify more drill targets:

Buenos Aires: Drill Holes NG07-001 and NG07-002 were drilled from the same set-up, 15m along strike to the north of the shaft of the historic Buenos Aires mine.

NG-07-001: 7.84 g/t Au, 814 g/t Ag over 2.6m starting 24.70m depth

NG-07-002: 2.32 g/t Au, 226 g/t Ag over 4.0m starting at 37.12m depth

http://www.premiumexploration.com/images/stories/ng_1_drillsection1%2C2%2C8_jfk_17mar08.pdf

La Cholita: Drill holes NG-07-012 and NG-07-013 collared 35m southeast along strike, under the Cholita 2 Adit.

NG-07-013: 8.79 g/t Au, 1309.7 g/t Ag over 1.52m starting at 18.9m depth,

including 18.1 g/t gold and 3327 g/t silver over 0.56m

NG-07-012: 10.2 g/t Au, 309.8 g/t Ag over 2.8m starting at 12.6m depth

http://www.premiumexploration.com/images/stories/ng_3_drillsection12%2C13_jfk_17mar08.pdf

Premium is currently drilling two other zones, one of which is Alacran.

Alacran: Historic workings host three adits of which the main adit contains a 1m wide structure visible at surface. Drillhole DDH-NG-08-015 was drilled at an offset of 20m from the principal structure at Alacran with the intention to intercept the structure at a downhole depth of 32m. The structure was intercepted as a 2m true width clay altered breccia from 36.73m - 40.2m depths.

Drilling beyond the principal structure showed promising results and henceforth Premium's geologists continued the drillhole when a potentially large zone was intersected downhole between 90.53m and 100.87m depth (true widths unknown).

This secondary zone at depth may be interpreted as splays related to mineralization observed on surface. Additional splays of massive quartz veining and stockwork were observed to a depth of 114m. Further drilling in the area is ongoing to test the extent and geometry of the mineralized zones encountered both at depth and near surface.

Del Steiner, President and CEO, is quoted as saying, "The high-grade drill results to date and unexpectedly intersecting new zones at Nueva Galicia, not only gives Premium a better understanding of the project, but has added an interesting dimension to the property."

Photos of this drill program will be available on our website at www.premiumexploration.com/index.php?option=com_content&task=view&id=32&Itemid=8

Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your internet browser's URL address field.

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

Premium Exploration, Inc. is focused on precious metals exploration in the United States and Mexico. The Company is founded on a management and geological team with a proven track record demonstrated by their accomplishments. Premium's portfolio currently holds projects in various stages of exploration located within under-explored precious metal belts that host multi-million ounce deposits. Utilizing "value-added" and joint venture strategies, Premium maintains multiple interests and royalties in their projects, maximizing shareholder exposure to mineral discovery. Through a joint venture agreement, Premium is advancing the Chrome Mountain PGM project in Montana, USA and the Buffalo Gulch Gold Deposit in Idaho, USA, while negotiations for joint ventures and acquisitions in Mexico are underway. Additional information may be found on our website at http://www.premiumexploration.com.

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 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 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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