Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

March 23, 2007 11:28 ET

Premium Exploration Inc. Mexico Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) (the "Company") (www.premiumexploration.com) is pleased to provide an update regarding our progress and growth in Mexico.

A second phase of exploration has commenced at the 1,136 hectare San Pedro Analco Project, in Jalisco State, Mexico. San Pedro Analco is a past-producer, and preliminary sampling by Premium returned excellent results from mine workings, including:

- 1,390.7 g/t Ag 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

- 535.3 g/t Ag and 0.195 g/t Au over 2.0 meters

- 316.1 g/t Ag and 3.44 g/t Au over 2.5 meters

For full details on these exploration results, please refer to the Press Release dated February 27th, which can be found at www.premiumexploration.com. A field camp has been established and a team of five geologists and support crew have commenced surface geological and structural mapping and sampling. The objective of the program is to further delineate the extent of mineralization and demonstrate potential extensions of known mineralized structures.

The diamond drill rig purchased by Premium has been shipped to Mexico and is expected to arrive in Manzanillo in mid-April. Upon clearing customs, the drill will be deployed directly to the Nueva Galicia Silver/Gold Project in Nayarit State to conduct a Phase I drill program. The drill program will explore approximately 200 hectares - less than 2% - of the 17,000 hectare property, and is centered on a 10km long mineralized structural corridor hosting 17 historic workings and numerous showings. Several other mineralized zones have been identified on the property will be advanced during 2007.

A surface rights agreement with a local ejido for the Tajitos area at Nueva Galicia has been arranged for five years. Ejidos are communal landowners under the Mexican land tenure system. The agreement allows access for exploration and provides for a cooperative relationship with the local community. Premium Exploration employs several key personnel from the local community of Compostela, where our field office and project accounting services are located.

In accordance with our corporate strategy as a prospect generator, Premium is seeking joint venture and strategic alliance partners for several of our projects in Mexico, and has initiated discussion with several qualified companies to create these opportunities. Premium is currently evaluating several additional exploration targets in central Mexico.

Premium is pleased to announce that geologist Stephen de Wit, B.Sc., P.Geol., will be joining our Mexico exploration team. Mr. de Wit is an experienced exploration geologist who is a specialist in QA/QC, data management and GIS (geographic information systems). He has worked for both major and junior exploration companies including Anglo American, Kennecott, Rio Algom, Placer Dome and Rubicon Minerals, and is currently completing an MBA in Project Management. As well, Premium has hired two junior Mexican geologists, bringing the Mexico exploration team to a total of six geologists.

Premium Explorations' 100% owned Mexican subsidiary, Compania Minera Zorro de Plata, S.A. de C.V., has retained the Mexican subsidiary of the international law firm of Baker & McKenzie, Baker & McKenzie Abogados, S.C., as its legal representation in Mexico. Baker & McKenzie Abogados, S.C. has more than 300 professionals in Mexico, with offices in Mexico City, Juarez, Tijuana, Monterrey, Guadalajara, Chihuahua and Cancun. Baker and McKenzie have substantial prestige in the business world as well as in governmental circles as one of the leading firms for handling the legal aspects of national and international business transactions. Baker & McKenzie's Canadian offices are located in Calgary and Toronto.

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 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. 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.

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